2021
Integrated
annual
report
Table of contentsTable of contents
01 Barco at a glance ...................................3
Continuing our journey towards integrated reporting .....3
Interview with our CEOs ..............................4
Key figures
..........................................9
Highlights
..........................................10
02 Our company .....................................
12
I
ntroduction to Barco ................................ 13
Our organization ....................................14
Leadership
......................................... 17
Culture & ethics .....................................20
0
3 How we create value ............................. 22
Value creation model . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 23
04 Shaping our strategy ............................. 30
On a mission to enabling bright outcomes ............. 31
Four strategic levers ................................. 31
Keeping our strategy in shape.........................36
7 relevant market trends..............................37
Materiality .......................................... 41
Risks
..............................................45
05 Innovation and technology
....................... 46
06 Our markets
.....................................
.
53
O
ur markets .......................................
54
C
ustomer engagement ..............................55
Entertainment
......................................
58
E
nterprise ..........................................62
Healthcare
.........................................65
Focus on China .....................................68
07 Our results....................................... 69
Group results .......................................70
Results of the Entertainment division...................81
Results of the Enterprise division
.....................
.
83
R
esults of the Healthcare division......................
85
This is the core section of Barco’s 2021
integrated annual report. Other sections
are available via the download center at
ir.barco.com/2021.
CORE
MORE
• Governance & risk report
• Report on planet - people - communities
• Financial report
ANNEX
• Integrated Data Pack
• Glossary
• GRI Content index
• Assurance report
All definitions for alternative performance measures (APM’s) as used in this report
are available in the glossary as available on Barco’s investor portal and in Annex
of the Annual Report
This financial report in pdf format is only a supplementary document. The ocial
ESEF (European Single Electronic Format) version prevails.
This financial report in pdf format is only a supplementary document.
The ocial ESEF (European Single Electronic Format) version prevails.
Barco Integrated report 2021
2
CORE Report
01 BARCO
AT A GL
ANCE
02 OUR
CO
MPANY
04 SHAPING
OUR
STRATEGY
03 HOW WE
CRE
ATE VALUE
05 INNOVATION AND
TE
CHNOLOGY
06 OUR
MAR
KETS
07 OUR
RE
SULTS
Continuing our journey towards
integrated reporting
In 2020, Barco replaced its traditional annual financial and
sustainability reports with a single integrated report, providing
a more compelling and holistic overall view of how we create
and sustain value in the short, medium and long term.
The positive feedback has motivated us to step up our eorts
in 2021. We finetuned the KPIs, increased transparency, sharp-
ened content, and improved the connectivity between the
report and our corporate website to deliver an even better
integrated report for 2021.
Is it perfect now? Not yet. After all, integrated reporting is a
journey. Yet, as we increasingly integrate ESG standards into
our strategy, strengthen our commitment to long-term value
creation and deepen the dialogue with all our stakeholders,
we gradually infuse integrated thinking into our company
– allowing us to deliver ever-better outcomes to customers,
employees, investors and society at large.
Barco Integrated report 2021
3
CORE Report
01 BARCO
AT A GL
ANCE
02 OUR
CO
MPANY
04 SHAPING
OUR
STRATEGY
03 HOW WE
CRE
ATE VALUE
05 INNOVATION AND
TE
CHNOLOGY
06 OUR
MAR
KETS
07 OUR
RE
SULTS
Interview with
our CEOs
In the second half of 2021, An Steegen and Charles
Beauduin came on board as the new co-CEOs
of Barco. We asked them about their plans and
determination to fuel Barco forward.
Both of you have known the Barco organization for
quite some time now as members of the Board of
Directors
.
What do you see as the biggest strengths of our
company?
An Steegen: Let me first say it’s an honor and privilege to be
the new CEO of Barco, together with Charles. When I joined
Barco as a director in 2017, a couple of things really struck
me. Barco has a lot of talented and committed people and
our technical expertise in image processing is impressive.
Our image processing capabilities have huge potential for
the future. In today’s digital world, people want new insights,
new experiences and connectedness. Barco has the visual-
ization solutions to bring data alive, create experiences and
connect people.
Charles Beauduin: Indeed, everything we do at Barco is related
to an overarching trend – that of images: never before have
images played such a fundamental role in how people live,
work and play. That new reality oers huge opportunities for
Barco. Moreover, Barco is active in healthy markets with size-
able growth opportunities. That, too, is a key asset.
People want new insights, new experiences
and connectedness. Barco has the
visualization solutions to bring data alive,
create experiences and connect people.
An Steegen
Barco Integrated report 2021
4
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEG
Y
03 HOW WE
CREATE VAL
UE
05 INNOVATION AND
TECHNOLO
GY
06 OUR
MARKETS
07
OUR
RESULTS
Look-back to a challenging 2021
Still, 2021 has not been the easiest year to build upon
these strengths, I guess. How do you look back on this
year?
An Steegen: Just like in 2020, the first priority for Barco has
been the safety of our people and their families. The covid-19
crisis has left a permanent mark on all of us, requiring a great
deal of mental strength, resilience and flexibility. We are proud
of the commitment and engagement of every Barco employee
and are doing our very best to deal with the impact of the
pandemic. When looking at our business, we can’t look away
from the fact that the pandemic kept dampening our results
for the second year in row. While there were meaningful signs
of recovery, the strong order intake was not fully reflected in
sales due to supply bottlenecks.
Su
pply chain shortages have been a common challenge
for many businesses over the past year
.
What do you
consider Barco’s biggest challenges going forward?
Charles Beauduin: The covid-19 crisis has revealed a number
of weaknesses, which we plan to turn into opportunities for
growth and eciency gains in the future. The supply disrup-
tions that An mentioned point to weaknesses in our value
chain. A stronger upstream value chain position will limit our
dependency and allow for more competitive dierentiation.
That’s why we want to strengthen and leverage our supply
and manufacturing capabilities.
Opportunities revealed
Already in October 2021 you took the bold step to
reorganize the company. Was that a way to speed up
decision-making?
Charles Beauduin: Barco had a very complex organization
structure with many competing centers of power, leading to
slow decision-making and a lack of end-to-end accountability.
That is why we decided to regroup sales, marketing, product
management and R&D within our business units. That will
boost eciency and entrepreneurial dynamics: shorter report-
ing lines, faster decision-making and enhanced customer and
market responsiveness.
An, you mentioned the enormous potential of Barco’s
imaging capabilities
.
Do you, as a technology expert, have
plans to further build on these?
An Steegen: Image processing is the common thread in
everything we do at Barco, so the business opportunities are
enormous. Yet, we need more groundbreaking, value-added
solutions that ultimately set us apart. New star products.
Developing that technology requires experts, which we defi-
nitely have, as well as the courage to make choices, cut knots
and let go of products if they prove disappointing. We must
do all we can to support our technology experts in making
the right technology choices and speeding up innovation.
Charles, what about Barco’s plans for China?
Charles Beauduin: We absolutely have to expand our local
presence there. The country shows great growth potential
in markets like entertainment and healthcare, where Barco
is active.
By simplifying our organization,
we will shorten reporting lines,
speed up decision-making and
enhance customer and market
responsiveness.
Charles Beauduin
Barco Integrated report 2021
5
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEG
Y
03 HOW WE
CREATE VAL
UE
05 INNOVATION AND
TECHNOLO
GY
06 OUR
MARKETS
07
OUR
RESULTS
2022 and beyond
What are your priorities and expectations for the coming
years?
An Steegen: 2022 will obviously be a year of transition. The
new organizational structure is a great foundation to execute
on our objectives. Our ultimate ambition is to build a dier-
entiating product portfolio and win good market share in all
our markets and regions.
Charles Beauduin: Speed will be crucial going forward, in all
domains: we have to accelerate internationalization, operations
and supply chain. And that speed will be just as important in
innovation, to turn ideas into sellable solutions. James Bond
would say ‘there is no time to die’.
2021 was also the year of the UN Climate Change
Conference in Glasgow, putting more emphasis on
making sustainability actionable and delivering impact
.
D
o you have plans to accelerate eorts in that field too?
An Steegen: I’ve always been passionate about sustainable
technology. I’ve seen that Barco has been working hard in
this field, in the past few years, and I’m impressed with the
progress. Now it’s time to strengthen the impact of our sus-
tainability approach, fostering engagement and ensuring it
gets embedded into everything we do – in every division, every
business unit, every department and every region. When prior-
itizing the domains in which we want to make an impact, we
decided to focus on ‘Planet’ initiatives first: Barco is working on
further lowering its carbon footprint and that of its customers.
Next is sustainable employability, with a focus on diversity
and inclusion.
Building a promising future
On a final note: there’s confidence that Barco will emerge
stronger from the covid-19 crisis?
Charles Beauduin: Barco has been a technology leader for so
many decades and, like I said, there’s huge potential to retain
that leadership – or rather strengthen it. I’m proud to take the
steering wheel and build a promising future for Barco, together
with An and the entire team.
An Steegen: I couldn’t agree more. I’m just as excited to shape
Barco’s future as Charles is, together with all our people, cus-
tomers, partners and shareholders. Let me end by thanking
all those stakeholders for their trust and confidence in our
company. The entire Barco team will work hard in 2022 and
beyond to create sustainable value for all of you.
We need more groundbreaking,
value-added solutions that
ultimately set us apart. New star
products.
An Steegen
Speed will be crucial going
forward, in all domains.
Charles Beauduin
Barco Integrated report 2021
6
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEG
Y
03 HOW WE
CREATE VAL
UE
05 INNOVATION AND
TECHNOLO
GY
06 OUR
MARKETS
07
OUR
RESULTS
Our Chairman Frank Donck
on the leadership changes
2020 and 2021 were challenging years for the entire world,
as they were for Barco. Jan De Witte has navigated our orga-
nization through the covid-19 crisis. During his five years as
CEO, he made Barco a more resilient, professionally led and
international company and the Board of Directors is grateful
to him for the changes that he realized.
Our new CEOs Charles Beauduin and An Steegen bring a load
of complementary background and expertise to the plate to
steer our company forward. Both An and Charles are commit-
ted to growth, entrepreneurship and innovation. As members
of our Board of Directors, they got to know Barco really well.
That in-depth understanding has allowed them to quickly reor-
ganize Barco’s organizational structure and leadership team,
to now focus on Barco’s strategic priorities and execution.
We are confident they will put Barco in a stronger position to
capture the mid- and long-term growth opportunities in every
market that we are active in.
Frank Donck
Our new CEOs bring a load of
complementary background and
expertise to the plate to steer our
company forward.
Frank Donck
Barco Integrated report 2021
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CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEG
Y
03 HOW WE
CREATE VAL
UE
05 INNOVATION AND
TECHNOLO
GY
06 OUR
MARKETS
07
OUR
RESULTS
1.
Is there a future for cinema?
Absolutely, and it’s started already – with strong movie
launches and solid box oce results globally. Moviegoers
will, however, want premium solutions, which we oer. Our
opportunities? Further expansion in China, in the Middle East,
India and other emerging regions, plus capturing the renewal
wave in cinema, as the first-generation digital projectors are
reaching end-of-life (sub-optimal image quality, high energy
consumption, …).
Read more
2.
Is ClickShare ready to thrive on the hybrid meeting
trend?
Hybrid oce working – and, consequently, hybrid meet-
ings – are the way forward. But there is a limited number of
popular platforms that can ensure true collaboration and
meeting interaction. With ClickShare Conference, meeting
room participants can wirelessly connect their laptops to
all the meeting room peripherals (cameras, speakerphones,
soundbars), in order to enjoy easy, reliable wireless confer-
encing and content sharing.
Read more
3.
By when will Barco be back to 2019 performance levels?
We believe 2022 will be a transition year. Recovery rates will
vary depending on the markets and we assume supply chain
constraints will continue to impact our business in the begin-
ning of the year. Still, we know that Barco is well positioned to
capitalize on the growth opportunities that will gradually yet
steadily emerge in all of its end markets. We expect to beat
2019 performance (both topline and bottom-line) as of 2023.
Read more
The future of Barco: 3 ‘burning questions’ every stakeholder is asking
Barco Integrated report 2021
8
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEG
Y
03 HOW WE
CREATE VAL
UE
05 INNOVATION AND
TECHNOLO
GY
06 OUR
MARKETS
07
OUR
RESULTS
Key figures
Barco’s standard customer
experience metric, measured
quarterly (upper quartile industry performance)
Customer NPS
(Net Promoter Score)
Eco score
Employees
Reported in heads, excluding temporary workforce
% revenues from products
with Barco ECO label
31%
47
2019
3,636
2020
3,303
2021
3,141
Sales
In millions of euro
Gross profit
In millions of euro
EBITDA
in millions of euro
1,083
770
804
429
284
288
40%
37%
36%
2019
2020
2021
2019
2020
2021
2019
2020
2021
153
54
59
14%
7%
7%
(Database Corporate Associates per 31/12/2021)
Gross profit margin EBITDA margin
100
200
300
400
500
600
700
800
900
1,000
1,100
50
100
150
200
250
300
350
400
450
500
550
10
20
30
40
50
60
70
80
90
130
120
110
100
140
150
Barco Integrated report 2021
9
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEG
Y
03 HOW WE
CREATE VAL
UE
05 INNOVATION AND
TECHNOLO
GY
06 OUR
MARKETS
07
OUR
RESULTS
Highlights
JANUARY
Making (remote) reading versatile with new
12 MP diagnostic display
The versatile Nio Fusion 12MP puts diagnostic
flexibility and reliability at radiologists’ fingertips.
It boosts the workflows of the radiologists, while
helping them take confident decisions.
Read more
FEBRUARY
Frost and Sullivan award for ClickShare
Conference
With the award, Frost and Sullivan recognize Barco’s
leadership position in the market and the innovative
character of our one-click wireless conferencing
solution.
Read more
MARCH
Science Based Targets initiative formally
approves our carbon reduction target
Our carbon reduction target is confirmed to be
consistent with the levels required to keep global
warming to below 1.5°C – the most ambitious goals
of the Paris Agreement – a great acknowledgment
of the ambitious journey we have been accelerating
since 2016.
Read more
APRIL
Enabling surgical teams to collaborate
remotely with game-changing platform
Meeting the growing need for hybrid collaboration,
NexxisLive enables participants to talk, chat and
annotate as if they’re all in the same OR, with excel-
lent audio and video quality and minimal latency.
Read more
APRIL
IMAX reconfirms its trust in Barco
As a long-term partner, Barco and IMAX will opti-
mize the use of our laser light source technology
to help power IMAX systems globally.
Read more
JUNE
Leading through innovation with the world’s
first stand-alone digital pathology display
Our new ultra-high definition MDPC-8127 display
oers pathologists an exceptionally high-quality
digital tool to alleviate their growing workloads,
while ensuring the best health outcomes.
Read more
Barco Integrated report 2021
10
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEG
Y
03 HOW WE
CREATE VAL
UE
05 INNOVATION AND
TECHNOLO
GY
06 OUR
MARKETS
07
OUR
RESULTS
SEPTEMBER
Barco weConnect accredited as top-quality
learning solution
The Learning and Performance Institute (LPI) ocially
accredited Barco with the Gold Standard for providing
top-quality learning products, solutions and services
via our teaching and training solution.
Read more
SEPTEMBER
Performance meets sustainability in new LED
rear-projection cube
Ensuring a 55% increase in light output at the same
power consumption, the MVL-721 is an impressive
re-engineered version of our successful LED RPC
video wall, answering all the needs of modern con-
trol rooms.
Read more
SEPTEMBER
Celebrating the prestigious 100,000 digital
cinema projectors milestone
Since the first release of our digital cinema projector
prototypes in 1999, Barco has manufactured over
100,000 projectors – a milestone acknowledged by
the entire cinema community.
Read more
OCTOBER
Tianfu International Airport takes o with Barco
OpSpace in 14 control rooms
The new Tianfu International Airpoirt in Chengdu
(China) sets a milestone for intelligent transporta
-
tion. An impressive stack of Barco technology helps
controllers keep the skies – and the airport – safe.
Read more
NOVEMBER
Barco F400-HR is the world’s first single-chip
native 4K simulation projector
Native 4K resolution, up to 240Hz processing speed,
laser illumination and extreme reliability: the new
F400-HR ticks all the boxes for use in even the most
demanding training and simulation applications.
Read more
Barco Integrated report 2021
11
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEG
Y
03 HOW WE
CREATE VAL
UE
05 INNOVATION AND
TECHNOLO
GY
06 OUR
MARKETS
07
OUR
RESULTS
Our company
Barco Integrated report 2021
12
CORE Report
01 BARCO
A
T A GLANCE
02 OUR
COMPANY
04 SHAPING
O
UR STRATEGY
03 HOW WE
C
REATE VALUE
05 INNOVATION AND
TECHNOLOGY
06 OUR
MARKETS
07 OUR
RESULTS
Introduction to Barco
About Barco
Barco is a global technology leader that develops networked
visualization solutions for the entertainment, enterprise and
healthcare markets. Our solutions make a visible impact, allow-
ing people to enjoy compelling entertainment experiences;
to foster knowledge sharing and smart decision-making in
organizations and to help hospitals provide their patients with
the best possible healthcare.
Headquartered in Kortrijk (Belgium), Barco has a global team of
3,000+ employees, whose passion for technology is captured
in 500 granted patents. Our company has been listed on the
Brussels Stock Exchange since 1985.
Our mission:
enabling bright outcomes
Imagine a way to see, sense, and share the intangible. It’s what
happens when big data becomes knowledge. When images
become insight. And when experiences come to life.
That’s what Barco is all about. In a world where data and rich
content are expanding exponentially, we empower people
with inspired sight, sound and sharing solutions to help them
make meaningful connections.
For us, it’s our customers that count. We help them achieve
their goals, whether it’s protecting the health and safety of
millions, creating unforgettable experiences, or supporting
people to work smarter together. We help them get the most
out of what they do every day. So together, we create brighter
outcomes, around the world.
Barco Integrated report 2021
13
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEGY
0
3 HOW WE
CREATE VALUE
0
5 INNOVATION AND
TECHNOLOG
Y
06 OUR
MARKETS
07
OUR
RESULTS
Entertainment
Cinema
Immersive
Experience
Enterprise
Meeting
Experience
Large
Video Walls
Healthcare
Diagnostics
Surgical
Imaging &
Modality
Global services & Sales ops
Operations (MLO)
Corporate Digital & Information Oce
Finance & Strategy // HR & Legal
Division
Business
unit 1
Business
unit 2
Sales
Products
Sales
Products
Barco Labs
R&D R&D
Our organization
Reviewing our organizational
structure
In October 2021, Barco decided to replace its fully-fledged
matrix organization by a more focused model. In the past, geo-
graphic regions handled sales, marketing and customer service
functions and interacted with business units in the operational
divisions. Under the revised structure, regional sales are folded
into the business units together with sales, product manage-
ment, and research & development. In addition, more general
functions like services, sales support, operations, digitization,
finance, HR, legal and Barco Labs will be managed on a global
level:
Our new organizational market
structure will boost agility,
market responsiveness as well as
accountability. Business units are
now fully empowered to execute
strategic priorities while global
functions act as an enabler for
the entire organization.
Charles Beauduin
Barco Integrated report 2021
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01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEGY
0
3 HOW WE
CREATE VALUE
0
5 INNOVATION AND
TECHNOLOG
Y
06 OUR
MARKETS
07
OUR
RESULTS
Geographical breakdown of sales
25%*
Asia-Pacific
38%
EMEA*
37%
The Americas
* EMEA: Europe & Middle East & Africa * Breakdown based on sales 2021
39%*
Entertainment
29%
Enterprise
33%
Healthcare
Sales per division
Barco Integrated report 2021
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01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEGY
0
3 HOW WE
CREATE VALUE
0
5 INNOVATION AND
TECHNOLOG
Y
06 OUR
MARKETS
07
OUR
RESULTS
Geographical footprint The people of Barco
Our people are the driving force to our success. A team of over 3,000 employees, located
around the globe, all join forces to enable bright outcomes;
Americas
• Brazil
•
C
anada
•
Colombia
• Mexico
•
U
nited States
Asia-Pacific
•
Australia
• China
• Hong Kong
• India
• Japan
• Malaysia
• Singapore
•
S
outh Korea
•
T
aiwan
Europe, Middle East & Africa
•
B
elgium
•
France
•
G
ermany
• Italy
•
T
he Netherlands
•
Nor
way
•
Poland
•
Russia
•
Spain
• Sweden
• Turkey
•
U
nited Arab Emirates
•
U
nited Kingdom
Sites
R&D and/or manufacturing facilities
Reported in heads, excluding temporary workforce (Database Corporate Associates per //)
Barco has sites in nearly 30 countries and R&D and/or manufacturing
facilities in 10 countries.
73% male
27% female
12% The Americas
55% EMEA
Number of employees
Gender
Geographical
Per functional group
3,6362019
3,3032020
3,1412021
7% General & Administration
21% Sales & Marketing
30% Research & development
41% Operations
33% Asia-Pacific
Barco Integrated report 2021
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01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEGY
0
3 HOW WE
CREATE VALUE
0
5 INNOVATION AND
TECHNOLOG
Y
06 OUR
MARKETS
07
OUR
RESULTS
Leadership
Barco believes that the role of its leadership team
and its Board of Directors is not only to protect the
corporation but also to ensure that Barco is able to
create value for society at large.
While the Board of Directors sets, steers and
monitors our strategic direction, our Core Leadership
Team (‘CLT’) is responsible for implementing our
group strategy and policies and achieving our
objectives and results. In this way, all governance
bodies contribute to value creation at Barco.
Barco Integrated report 2021
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01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEGY
0
3 HOW WE
CREATE VALUE
0
5 INNOVATION AND
TECHNOLOG
Y
06 OUR
MARKETS
07
OUR
RESULTS
The composition of the Board of Directors meets the gender
diversity requirements. All directors held or have held senior
positions in leading international companies in organisations.
With board members Charles Beauduin and An Steegen taking
up the positions of co-CEOs in 2021, Frank Donck became
chairman of the Board. In addition, we welcomed Lieve Creten
as new independent director.
Check the CGR report for an overview of the changes in the Board of directors in 2021. Biographies are available on our corporate website.
Board of Directors
4
3
3
Directors with
5 years of seniority
Female members of
the Board
Independent
directors
An Steegen
CEO
Hilde Laga
Charles Beauduin
CEO
Lieve Creten
Frank Donck
Chairman
Ashok K. Jain
Barco Integrated report 2021
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01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEGY
0
3 HOW WE
CREATE VALUE
0
5 INNOVATION AND
TECHNOLOG
Y
06 OUR
MARKETS
07
OUR
RESULTS
The CLT, which operates under the chairmanship of the CEOs,
comprises key ocers from various functions, businesses and
regions. Four new CLT members came on board in 2021.
Our Core Leadership Team
Charles Beauduin
CEO
Johan Fornier
Surgical & Modality
Iain Urquhart
Global Services & Sales
Operations
An Steegen
CEO
Ann Desender
Chief Financial Ocer
Marc Spenlé
Chief Digital &
Information Ocer
Wim Buyens
Cinionic
Stijn Henderickx
Immersive Experience
Kurt Verheggen
General Counsel
Geert Carrein
Diagnostics
Anthony Huyghebaert
Chief HR Ocer
Kenneth Wang
MD Barco China
Olivier Croly
Meeting & Learning
Experience
Rob Jonckheere
Global Operations
Gerwin Damberg
Cinema & Acting CTO
Chris Sluys
Large Video Wall
Experience
Check the CGR report for an overview of the changes in the CLT in 2021. Biographies are available on our corporate website.
9
2
6
CLT members with
5 years of seniority
Female CLT
members
Non-Belgian
CLT members
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CREATE VALUE
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06 OUR
MARKETS
07
OUR
RESULTS
Culture & ethics
Every organization has a culture; implicit or explicit.
It is its personality – a set of unwritten rules on how
an organization behaves. And it reveals itself in
many dierent forms. In 2019, we rejuvenated our
corporate culture, defining the cultural traits that we
must embrace to continue leading in our dynamic
markets. For years, ethical behavior has been deeply
embedded in our culture.
Barco culture: how we live our DNA
Corporate culture is everywhere. It comes alive in how we act
towards our customers and how we talk and listen to them. It
becomes visible in the way we design our processes: have we
designed them from our perspective or from the perspectives
of those who are aected by them? It guides us in creating
teams, but also in how we treat each other as team members.
Culture even comes alive in our decision of how to greet each
other in the morning. And above all, it defines how we execute
our strategy. Culture is how we live our DNA.
Learn more about our corporate culture
The importance of ethics and compliance
Barco’s reputation and continued success depend on the con-
duct of its employees as well as its business partners. That’s
why we put great emphasis on ethics and compliance: we
continuously invest in building a company culture in which
ethical conduct and compliance with our policies and the
applicable regulations are at the core of how we do business.
The 5 building blocks that summarize the Barco culture
Barco Integrated report 2021
20
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04 SHAPING
OUR STRATEGY
03 HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06 OUR
MARKETS
07 OUR
RESULTS
Planet, people and
communities
At Barco, we firmly believe that sustainable business
is good business – and vice-versa. To that end, we
are committed to taking ownership of a sustainable
future. Our sustainability strategy (‘Go for Sustainable
Impact’) has been an integral part of our corporate
strategy for quite some years now and we are
constantly accelerating our eorts.
More than safeguarding the future of our planet, sustainability
at Barco also incorporates responsibility to our employees and
to the communities in which we operate. For each of our three
sustainability pillars – Planet, People, and Communities – we
defined an overall ambition statement as well as medium- and
short-term targets that guide and motivate us to infuse sus
-
tainability across the organization.
Our ambitions and targets are linked to the sustainability
areas that matter most to our stakeholders and where we
can achieve the greatest impact: our material topics.
We will lower our environmen-
tal footprint and those of our
customers.
We invest in sustainable employ-
ability by creating the right
conditions for our employees to
have an engaging, enriching and
healthy career at Barco. We do
this by encouraging our people
to learn and develop themselves
and by ensuring a healthy work-
ing environment – both physically
and mentally. We engage in build
-
ing an inclusive workplace that
embraces the diversity of our
people.
We will play an active role in the
communities we operate in by
upholding the highest ethical and
quality standards and expecting
the same from our business part-
ners. We always aim to deliver
added value to our customers
through our solutions, services
and capabilities. In addition, we
help ensure more people can
participate in and benefit from
the innovation society.
PeoplePlanet Communities
Barco has been working hard in the field of sustainability in the past few years and I’m
impressed with the progress
.
Now it’s time to strengthen the impact of the program, fostering
engagement and ensuring it gets embedded into everything we do – in every division, every
business unit, every department and every region.
An Steegen
Barco Integrated report 2021
21
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEGY
0
3 HOW WE
CREATE VALUE
0
5 INNOVATION AND
TECHNOLOG
Y
06 OUR
MARKETS
07
OUR
RESULTS
How we
create value
Barco Integrated report 2021
22
CORE Report
01 BARCO
A
T A GLANCE
02 OUR
COMPANY
04 SHAPING
O
UR STRATEGY
03 HOW WE
C
REATE VALUE
05 INNOVATION AND
TECHNOLOGY
06 OUR
MARKETS
07 OUR
RESULTS
PeoplePeople
PlanetPlanet
CommunitiesCommunities
ManufacturedManufactured
IntellectualIntellectual
FinancialFinancial
E
n
t
e
r
p
r
i
s
e
d
i
v
i
s
i
o
n
H
e
a
l
t
h
c
a
r
e
d
i
v
i
s
i
o
n
E
n
t
e
r
t
a
i
n
m
e
n
t
d
i
v
i
s
i
o
n
S
t
r
a
t
e
g
y
Enabling
bright
outcomes
Value creation model
The concept of ‘value creation’ fits perfectly with
our mission of enabling bright outcomes. The value
creation model on the right describes how we create
value to all our stakeholders in the short, medium
and long term. The model articulates the mission
of our company and links it to our strategy and the
markets we cover. The horizontal layers represent the
six capitals in which we group the respective KPI’s.*
Check the full Value creation model on our website
* Together these 6 capitals represent stores of value that are the basis of an
organization’s value creation. See background paper of International Integrated
Reporting Council (IIRC).
The capitals remained the same in the annual report of 2021 compared to
2020 and aligned with the recommendations of IIRC. Some reported KPIs
in Barco’s value creation model 2021 however are dierent compared to the
2020 reporting, resulting from a KPI-assessment, in preparation of the 2021
report and presented to the Audit Committee. Only the KPIs with ‘materiality’
and ‘value driver’ properties for Barco were selected for reporting in the value
creation model.
Barco Integrated report 2021
23
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04 SHAPING
OUR STRATEGY
03 HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06 OUR
MARKETS
07 OUR
RESULTS
Financial
Sales
(in millions of euro)
1,083
770
804
+10%
-29%
+4%
Orders
(in millions of euro)
1,102
746
979
+10%
-32%
+31%
2019
2020
2021
Net earnings
(in millions of euro)
95
-4
9
EBITDA
(in millions of euro)
153
54
59
14%
7%
7%
% growth % growth EBITDA margin
2019
2020
2021
2019
2020
2021
2019
2020
2021
20
40
10
20
30
40
50
60
70
80
90
100
60
80
100
120
140
160
100
200
300
400
500
600
700
800
900
1,000
1,100
100
200
300
400
500
600
700
800
900
1,000
1,100
Barco Integrated report 2021
24
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
0
4 SHAPING
OUR STRATE
GY
03 HOW WE
CREATE V
ALUE
05 INNOVATION AND
TECHNO
LOGY
06 OUR
MARKETS
07
OUR
RESULTS
ROCE
(%)
25%
3%
4%
Product revenues inhouse
manufactured
(over hardware revenues)
63%
70%
66%
Manufactured
CapEx
(millions of euro)
20
15
19
2%
2%
2%
3.2
2.
3
2.4
Inventory value
(millions of euro)
169
175
176
% of sales Inventory turns
2019
2020
2021
2019
2020
2021
2019
2020
2021
2019
2020
2021
5
10
15
20
25
10
20
30
40
50
60
70
80
90
100
20
40
60
80
100
120
140
160
200
180
5
10
15
20
25
Barco Integrated report 2021
25
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
0
4 SHAPING
OUR STRATE
GY
03 HOW WE
CREATE V
ALUE
05 INNOVATION AND
TECHNO
LOGY
06 OUR
MARKETS
07
OUR
RESULTS
Intellectual
R&D spend
(in millions of euro)
Employees in
R&D
# of new patent
filings
# of patents
at year-end
119
945
8
402
103
941
9
461
101
945
17
504
11%
13%
13%
26%
29%
30%
% of sales % of total employees
2019
2020
2021
2019
2020
2021
2019
2020
2021
2019
2020
2021
1
2
3
4
5
6
7
8
9
10
13
14
15
16
17
11
12
50
100
150
200
250
300
350
400
450
500
10
20
30
40
50
60
70
80
90
120
110
100
100
200
300
400
500
600
700
800
900
1,000
1,100
Barco Integrated report 2021
26
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
0
4 SHAPING
OUR STRATE
GY
03 HOW WE
CREATE V
ALUE
05 INNOVATION AND
TECHNO
LOGY
06 OUR
MARKETS
07
OUR
RESULTS
34
34
39
29%
54%
52%
Energy footprint
of sold products
(relative reduction vs base year 2015)
TARGET : -%
Energy consumption
in own operations
(MWh/mio € revenues)
TARGET :
Planet
* Product and project revenues as reported in Note 3 of the financial chapter of our integrated report
% of revenues* from
products with ECO label
TARGET : %
26%
31%
-20%
-20%
-27%
-34%
-30%
-33%
Greenhouse gas emissions
from own operations
(tonnes CO
2
e/mio € revenues)
TARGET :
64
53
54
0.80
0.73
0.70
% renewable % reduction vs 2015% reduction vs 2015
2019
2020
2021
2019
2020
2021
2019
2020
2021
2020
2021
10
20
30
40
50
60
70
80
100
90
5
10
15
20
25
30
35
45
40
10
20
30
40
50
60
70
80
0.
2
0.1
0.8
0.6
0.7
0.4
0.5
0.3
Barco Integrated report 2021
27
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
0
4 SHAPING
OUR STRATE
GY
03 HOW WE
CREATE V
ALUE
05 INNOVATION AND
TECHNO
LOGY
06 OUR
MARKETS
07
OUR
RESULTS
% women overall
& senior management
15%
overall
senior management
27%
16%
17%
28%
28%
Average training
hours/employee
13.2
11.3
10.5
People
Total number of
employees
(# heads)
3,636
3,303
3,141
Employee Net
Promoter Score
TARGET:
39
2019
2020
2021
2021
2019
2020
2021
2019
2020
2021
5
10
15
20
25
30
35
40
1
2
3
4
5
6
7
8
9
11
12
10
13
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
5
10
15
20
25
30
35
40
45
50
Barco Integrated report 2021
28
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
0
4 SHAPING
OUR STRATE
GY
03 HOW WE
CREATE V
ALUE
05 INNOVATION AND
TECHNO
LOGY
06 OUR
MARKETS
07
OUR
RESULTS
Communities
Customer Net
Promoter Score
(Relationship NPS)
Average cybersecurity
maturity score
(NIST CSF)
TARGET : .
ISO 27001 certification
(security)
(# of product lines in scope)
TARGET: + YEARLY
Suppliers scored on
sustainability performance
(% of production spend)
TARGET : %
1
2
2
2.19
2.23
44%
58%
47
47
2019
2020
2021
2020
2021
2020
2021
2020
2021
10
20
30
40
50
60
0.5
1
1.5
2
2.5
3
3.5
4
1
2
4
3
10
20
30
40
50
60
80
90
70
100
Barco Integrated report 2021
29
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
0
4 SHAPING
OUR STRATE
GY
03 HOW WE
CREATE V
ALUE
05 INNOVATION AND
TECHNO
LOGY
06 OUR
MARKETS
07
OUR
RESULTS
Shaping
our strategy
Barco Integrated report 2021
30
CORE Report
01 BARCO
A
T A GLANCE
02 OUR
COMPANY
04 SHAPING
O
UR STRATEGY
03 HOW WE
C
REATE VALUE
05 INNOVATION AND
TECHNOLOGY
06 OUR
MARKETS
07 OUR
RESULTS
On a mission to enable
bright outcomes
At Barco, we are on a mission to help our customers
enable bright outcomes by transforming content
into insight and emotion. In spite of the accelerated
disruption in the world today, our ‘enabling
outcomes’ strategy remains our guiding light. To
remain competitive in today’s digitally accelerating
world, though, we continually refine our approach
and priorities to keep these in line with the changing
dynamics, including relevant market trends, material
topics and risks.
Four strategic levers
The commitment to outcomes is one of the four levers of
the Barco strategy. It is intertwined with a zeal for innovation,
a characteristic that has been shaping our company since
its earliest days, a permanent focus on performance and the
resolute choice to go for sustainable impact.
When making strategic decisions, we increasingly take into
account the material topics that create the most value for
Barco and its stakeholders.
Innovate for impact
Outcome-based solutions
Focus on performance
Go for sustainable impact
Barco Integrated report 2021
31
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05
INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Focus areas Status Proof points in 2021
Focus on
innovation with
balanced
R&D investments
• % of sales spent on R&D on a group level.
•
N
ewly assigned CEOs bring strong technology expertise to Barco’s executive
level
.
•
L
aunching a more focused innovation approach to support a more balanced
innovation pipeline with more new growth investments
.
• The global software development structure was further strengthened as part
of our Corporate Digital & Information Office
.
•
S
trenghtening patent management
.
Innova
tion with
impact
•
A
redesigned organizational structure to enhance market effectiveness and
customer responsiveness and also to reinforce the connection between inno-
vation and real customers’ requirements
.
•
L
aser portfolio expanded with state-of-art, single-chip RGB projectors (XDM
and XDX) for media-based attractions.
• First single-chip native projectors for simulation and Pro AV applications:
F--HR and G projectors
.
•
C
lickShare Conference wins Frost & Sullivan Best Practices Market Leadership
award and Connected Magazine’s ‘Most Popular’ award.
Mor
e than just
introducing new
products
•
F
urther roll-out of SaaS-based business models (weConnect and Demetra)
.
•
S
tepping up security levels in Nexxis operating room solutions (full compli-
ance with MDR regulation)
.
•
R
enewal of LCD videowall solutions portfolio
.
•
A
djacent markets: new, first stand-alone display cleared for digital pathology
.
Related to these highly material topics:
• Innovation management
•
P
roduct quality, safety & security
•
P
roduct stewardship
1. Innovate for impact
In the next few years, Barco is determined to double down
on innovation and technology. To retain our position as a
technology leader, we are strengthening our focus on our R&D
investments, bringing in expertise in disruptive new technol-
ogies to complement our own know-how, reorganizing our
innovation approach and introducing lean, agile innovation
practices.
By strengthening our innovation and technology capabilities,
we want to further dierentiate ourselves from our competi-
tors, launching disruptive solutions that can change the way
people work, live and play. In spite of the acceleration, we will,
of course, never forget our trusted motto: innovation at Barco
is innovation that delivers impact, i.e. added value for our
customers. By analyzing our innovation plans, discussing them
with customers and de-risking them, we will keep ensuring
solid returns on our innovation investments.
C
heck out more insights and interviews in
t
he ‘innovation and technology’ chapter
Assessment
Overall, we score a 2/4 on “Innovate for Impact” as well as on
the dierent sub-levers. We believe progress has been made
but there is still ample room to grasp new and more eective
growth opportunities.
Barco Integrated report 2021
32
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05
INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Focus areas Status Proof points in 2021
Show resilience and
be a trusted partner
• Meaningful signs of recovery, with orders up % compared to and flat
compared to .
• Continued focus on operational continuity across all of our sites while coun-
tries and regions moved in start-stop lock down mode
.
• Celebrating , digital cinema projectors manufactured
.
•
We reconfirmed our commitment to the large video wall control room market.
Focus on
organizational
eciency
• Simplified organization, removing competing centers of power and shorter
reporting lines
.
•
S
trong end-to-end accountability established and speed of action enhanced
by regrouping sales, product management and R&D
.
•
O
perational expenditure contained at the same level as while orders
picked up by % and sales by more than %
.
Strengthen
commercial
excellence
•
E
nhanced market effectiveness and customer responsiveness with regional
sales folded into the company’s business units
.
•
Our expanding Alliance program – with more than partners on-board –
makes ClickShare the most universally compatible solution for hybrid meetings.
Focus on value chain
position
• Strategic drivers as part of key objectives:
- Drive for operational excellence, incl. extensive automation & design for
manufacturing.
-
E
xecutive focus to strengthen Barco’s position in the value chain and to
harness the supply chain position.
Focus on China
• Seizing the China opportunity with stronger local presence:
-
N
ew plant in Suzhou for Healthcare (operational in December )
.
- Investment in industrial site in Wuxi for future R&D plans and production
primarily for the Chinese projection technology market.
Related to these highly material topics:
• Sustained profitable growth
• Financial resilience
Improving our performance and shaping our organization has
been a priority for Barco over the past few years. Step by step,
we became a leaner and more resilient company. But just as
we began to feel that we were in the pole position for growth
in early 2020, the covid-19 crisis hit. It urged us to sharpen our
focus on performance again, in 2020 and 2021.
In 2021, Barco started addressing a number of weaknesses
revealed by the pandemic. Simplifying our organizational
structure, strengthening our supply chain, value chain and
innovation eorts and accelerating our business in China will
make us a stronger company, ready to deliver on the growth
opportunities ahead.
Assessment
Our scores in the field of ‘performance’ vary between 1/4 and
3/4 on the dierent sub-levers, with good progress on orga-
nizational eciency and resilience. Value and supply chain
position, China and commercial excellence remain areas for
further improvement.
2. Focus on performance
Barco Integrated report 2021
33
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05
INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Focus areas Status Proof points in 2021
Strengthen
capabilities and
organization
• Launch of revised services offering named EPO (enable, protect, optimize) as a
guarantee for reliable outcomes and happy customers
.
•
P
osition the sales support organization to leverage the common skills and
capabilities across the different Barco businesses, in order to provide
customer-focused, best-in-class capabilities, systems, and processes at scale
across Global Commercial operations, Global Services, Global Marketing, and
Global Partners and Channels
.
•
S
olid progress in our customer engagement initiatives
.
Explore and launch
outcome-based
solutions in new
business models
•
B
usiness model innovations such as Virtual classroom solutions are finding
their ways to more and more reference customers globally
.
•
L
aunch of the new NexxisLive platform to expand the OR, virtually and
securely, enabling teleconferencing, teleassistance and telemonitoring.
• New agreement between IMAX and Barco to further collaborate on cut-
ting-edge laser experiences.
R
elated to these highly material topics:
•
C
ustomer engagement
•
P
roduct quality, safety & security
• Information security & data protection
• Product stewardship
Barco wants to be a reliable partner that provides its custom-
ers with outcome-based solutions instead of just products.
That’s why we are increasingly strengthening our capabilities
and organization to combine hardware with software and
services.
Doing so is a multi-year journey, but as our technology is
mission critical, the potential is huge. More than constantly
improving customer services, delivering outcome-based solu-
tions will also help us achieve predictable, recurring revenues.
Step by step, we are making progress in this field.
Assessment
We score low (1/4) to medium (2/4) in this domain. ‘Delivering
outcome-based’ solutions’ is a clear strategic objective and
will be a multi-year journey. We are seeing good signals of
progress but need to accelerate our pace to ensure more
progress in the years to come.
3. Offer outcome-based solutions
Barco Integrated report 2021
34
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05
INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Focus areas Status Proof points in 2021
Strengthen
governance and
organization
• An Steegen, as co-CEO, is now chair of the exec sustainability steerco.
• Further implementation of strong ESG governance with exec sponsor(s) and
workstream lead(s) for every (highly) material ESG topic.
Sustainability strategy
• Our carbon reduction target was formally approved by Science Based Targets
initiative, and declared as consistent with levels required to keep global warm-
ing to below .°C.
•
N
ew targets for supplier sustainability and information security were set
.
•
S
hifting focus to integration and implementation in the business units, aligned
with the corporate strategy
.
Impr
ove
sustainability
performance in
the domains of
planet, people and
communities
• We reached our planet sustainability goals for :
-
c
arbon footprint of our operations -% (vs baseline )
-
e
nergy footprint of our products -% (vs baseline )
-
a
t least % of new product releases received the Barco ECO label
.
• Acknowledgments for increased transparency and improved performance:
-
A
goria awards Barco as ‘Employer ready for the future of work’
-
E
SG ratings: we obtained sector top % performance with Vigeo Eiris ESG
rating; CDP score improved from B- to B
-
W
inning the best ESG materiality reporting IR magazine award
• Putting plans in place on topics like:
-
Em
ployee engagement
- D
iversity and inclusion
-
S
upplier sustainability
Related to these highly material topics:
•
Information security & data protection
•
B
usiness ethics
•
Em
ployee engagement
•
D
iversity & inclusion
•
P
roduct stewardship
•
C
limate change & energy
4. Go for sustainable impact
Barco is convinced that sustainable business is good busi-
ness. That’s why our sustainability strategy is an integral part
of our corporate strategy. When deciding how to execute
our strategy, we decided to work with respect for the planet,
our people and the communities we operate in. For each of
these three domains, which we call our sustainability pillars,
we defined an overall ambition statement as well as several
focus areas.
Year after year, our commitment to ‘go for sustainable impact’
becomes more deeply embedded in our corporate DNA
Assessment
Over the past few years, we have put solid fundamentals in
place in this domain – resulting in a 3/4 to 2/4 score. Highlights
include a strong governance model based on the materiality
assessment done in 2020, clear targets with defined roadmaps,
a broad data collection program, transparent integrated report-
ing and a powerful eco-scoring methodology. That progress is
also reflected in positive ratings from multiple sustainability rat
-
ing agencies. To further enhance our position in this domain,
we are launching a new sustainability chapter, focusing on
strengthening our impact by fostering engagement and ensur-
ing implementation across the dierent Barco departments.
CORE Report Barco Integrated report 2020
35
01 BARCO
A
T A GLANCE
02 OUR
COMPANY
04 SHAPING
O
UR STRATEGY
03 HOW WE
C
REATE VALUE
05 OUR
TECHNOLOGY
06 OUR
MARKETS
Market
trends
Materiality
Risks
Keeping our strategy
in shape
Even the best plan must be adapted continuously. The global
pandemic has, more than ever, highlighted the need for agility
and resilience. So, while our strategy is based on four clear pil-
lars that define the way we want to play and win in the market,
it is far from static. We constantly question our strategy, fine-
tune and even reimage it to ensure that it remains anchored
in the realities of our business and the rapidly changing world
around us.
In order to keep our strategy in shape, we look at it through
dierent lenses. We monitor relevant market trends, keep track
of evolutions in the material topics and closely follow up on
the risks that could aect our business.
Barco Integrated report 2021
36
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05
INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
7 relevant
market trends
Our customers, our markets and even our world
are changing faster than ever. As these changes
largely impact our business, we keep a close eye
on trends and act upon them when going forward.
The following shortlist of 7 market trends is not
exhaustive but is considered as really relevant for the
business that we’re active in. They are shaping our
solution portfolios and strategy.
TREND #1
Cinema is not dead.
It’s changing.
The pandemic drove people to put their money in large TV
sets and comfortable sofas. Video streaming is skyrocketing.
And still, there’s no way our living rooms will replace cine-
mas. People still crave the power of the big screen and the
experience of a night at the movies. Moreover, the amount
of digital content – that cannot be shown at any place better
than cinemas – is going through the roof these days. What is
changing, though, is the concept of cinema: cinemagoers
want a premium movie experience. Exhibitors that cater to
that need are set to recover from the current downturn and
leave the competition behind.
Explore the cinema of the future
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01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEGY
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HOW WE
CREATE VALUE
05
INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
TREND #2
Climate change is for real
Highlighted by the 2021 Glasgow conference COP26 and
in the 2021 World Economic risk report, climate change is
increasingly considered a ‘global emergency’. Many countries
in Western Europe, the US and China have now issued net-
zero emissions pledges. In addition, authorities, investors and
employees are putting companies under pressure to set more
ambitious emissions reduction targets to ensure a 1.5°C future.
Consumers around the world want action too. Organizations
that stand up to tackle the climate challenge – while also
embracing other ESG targets – will be rewarded and win in
their markets.
Check out Barco’s carbon emission reduction commitments
TREND #3
China remains a growth engine
for the world
The Chinese economy came to a standstill when covid-19 hit
but recovered really quickly compared to any other regions.
Driven by a growing middle class, China is well on its way to
becoming the world’s largest consumer market. The pan-
demic did, however, emphasize a series of trends, including
digitization, domestic consumption and a growing interest
in high-quality healthcare. Foreign businesses are increas-
ingly investing in China and moving supply chains onshore or
switching to suppliers with local production in order to grasp
these opportunities.
Learn more about our ‘focus on China’
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MARKETS
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TREND #4
The need for efficiency and
speed in healthcare
Never before have the world’s healthcare systems been under
such enormous pressure as during the covid-19 health crisis.
Yet even before the pandemic, demand for healthcare services
was already exceeding capacity, urging physicians, radiologists,
nurses and surgeons to look for ways to increase eciency
and reduce cognitive load. New technologies can help them
analyze digital images, speed up diagnoses, adjust workflows
and orchestrate surgical teams, taking the burden o health-
care workers while positively impacting patient outcomes.
Read how our healthcare solutions help improve eciency
TREND #5
How can we control today’s
explosion of data?
Individuals, businesses and governments are generating an
astronomical amount of digital data, which is surging year
after year. While much of that data is useful, it’s a huge chal-
lenge to collect, store, process, distribute and retrieve it – let
alone distill insights from it. Organizations – from enterprises
to trac control centers, emergency dispatch centers, utilities
and hospitals – that invest in solid, reliable solutions for data
processing, analysis and visualization are sure to enhance
decision-making and gain an edge over their competitors.
Read how Barco provides the right perspective
on image and data management
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OUR STRATEGY
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CREATE VALUE
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INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
TREND #6
The rise of all things hybrid
Meetings, seminars, courses and even surgery are no longer
either online or in-person, but an amalgamation of the two.
What began as a necessity for safety during the covid-19 pan-
demic has now become a normal way of working and learning:
hybrid collaboration is the new normal – and this trend is
sure to boom in 2022 and beyond. Technology that connects
people wherever they are and makes collaboration truly flow
will lead to success in the new, hybrid world.
Discover how Barco supports hybrid collaboration
i
n every environment
TREND #7
More than ever, people are
craving experiences
The experience economy that has been around for several
years was abruptly brought to a halt due to the covid-19 health
crisis. That was, however, just temporary. The pandemic has
shown the world how fundamental social contact and a sense
of togetherness are and highlighted that there is more to life
than material possessions. More than ever, people want to have
memorable experiences, which they can share with family and
friends. To create these experiences, sites and activities such as
events, museums, theme parks, etc. will become increasingly
interactive and participatory.
3 things to keep in mind when organizing
an event in the coming years
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Materiality
Continuous monitoring of material issues is critical to
staying on top of emerging risks and opportunities.
A materiality assessment helps organizations
understand what topics matter most to their
businesses and stakeholders and where to focus
the attention. We regularly update our materiality
assessment to make sure it reflects changes in our
business and the external environment.
Our materiality assessment
Our last extensive materiality assessment was done in 2020.
It was based upon and aligned with our integrated reporting
approach, considering the six capitals. The resulting materiality
matrix has three categories – low, medium and high materiality
topics. The illustration on the right reflects our medium and
highly material topics.
In the Board meeting of August 2021, it has been decided to
raise the topic “Diversity & inclusion”, from medium to highly
material, as diversity and inclusion is considered a catalyst for
creativity and innovation. From 2022 onwards, we will accel-
erate our eorts to create a more inclusive workplace that
embraces the diversity of our people.
Barco’s materiality matrix (2020) - linked to the six capitals
of integrated reporting
IMPACT ON LONG-TERM SUCCESS OF BARCO
IMPORTANCE TO STAKEHOLDERS
High materiality
Medium materiality
18
19
20
21
1
2
3
5
6
7
8
9
10
12
13
15
17
16
14
11
4
Communities
1. Customer engagement
2. Product quality safety
& security
3
. I
nformation security & data
protection
4. Business ethics
5. Corporate governance
6. Responsible supply chain
management
7. Community engagement
Intellectual
8. Innovation management
9
. Brand
Financial
10. Financial resilience
11. Sustained profitable growth
12. Market reach
People
13. Employee engagement
14
. Employee health, safety
& wellbeing
15. Labor practices & human
rights
16. Learning & development
17. Diversity & inclusion
Planet
18. Product stewardship
19. Climate change & energy
20
.
Waste management
Manufactured
21. Long-term asset
performance
A description of the material topics can be found on
our corporate website
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TECHNOLOGY
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MARKETS
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RESULTS
Dynamic, data-driven
materiality assessment
As we are aware that the world around us is changing faster
than ever, we decided to implement dynamic, data-driven
monitoring in 2021 to enhance our foresight and to keep a
pulse on what is material to our industry. While our 2020 mate-
riality assessment was based on stakeholder interviews and
surveys, we teamed up with the strategic intelligence com-
pany Trensition in 2021 to perform a dynamic analysis of the
materiality matrix.
The analysis allowed us to identify material topics with a
significant increase (learning & development, diversity &
inclusion and climate change & energy) in signal strength,
which ensures we are prepared and better positioned to take
ownership of emerging risks and opportunities.
How does it work?
Using AI on global big data, Trensition technol-
ogy automatically scans and analyzes millions
of data points from publicly available sources,
including scientific articles, patents, industry
news, mass media, etc. to help companies spot
emerging issues not yet manifested or which
are changing perception with the potential for
being disruptive.
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2. Product quality,
safety & security
8. Innovation
management
18. Product
stewardship
10. Financial resilience
11. Sustained profitable
growth
1. Customer
engagement
2. Product quality,
safety & security
3. Information security
& data protection
18. Product
stewardship
3. Information security
& data protection
4. Business ethics
13. Employee
engagement
17. Diversity & inclusion
18. Product
stewardship
19. Climate change
& energy
Innovate
for impact
Focus on
performance
Oer outcome-based
solutions
Go for
sustainable impact
UN SDGs HIGHLY MATERIAL TOPICS
How the UN SDGs guide
our strategy
Defined in 2015 by the United Nations General Assembly, the
Sustainable Development Goals (SDGs) consist of 17 global
goals with a 2030 deadline. We realize these goals cannot be
met without support from the global business community.
Our approach to supporting the SDGs is to focus on the goals
where we can have the most impact, while screening and
implementing actions that contribute to the other goals as well.
We have selected six SDGs that are closely linked to Barco’s
highly material topics and the overall Barco strategy:
• SDG 3: Good health & wellbeing: Ensure healthy lives and
promote well-being for all at all ages
• SDG 7: Aordable and clean energy: Ensure access to
aordable, reliable, sustainable and modern energy for all
• SDG 8: Decent work and economic growth: Promote
sustained, inclusive and sustainable economic growth, full
and productive employment and decent work for all
• SDG 9: Industry, innovation and infrastructure: Build
resilient infrastructure, promote inclusive and sustainable
industrialization and foster innovation
• SDG 12: Responsible consumption and production: Ensure
sustainable consumption and production patterns
• SDG 13: Climate action: Take urgent action to combat
climate change and its impacts
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02 OUR
COMPANY
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OUR STRATEGY
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CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
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RESULTS
Stakeholder engagement
Barco attaches great importance to stakeholder engagement.
After all, outside views help us identify and prioritize emerging
issues and better align our strategy, actions and policies with
the interests of our society and planet. In addition, stakeholders
can provide valuable feedback on our performance and other
aspects, like transparency.
Our engagement approach for each key stakeholder group
is outlined on the Barco website. The dierent engagement
activities to date indicate no significant concerns with respect
to our sustainability approach and performance.
2020 stakeholder engagement process
In 2020, we organized a comprehensive stakeholder
engagement process, involving external as well as internal
stakeholders, as input for our materiality assessment. The
results have also been used to shape our activities in 2021. In
total, 111 stakeholders participated in surveys and interviews.
Read more on our stakeholder engagement approach
Customers Employees Investors Suppliers (Non-) governmen-
tal organizations
1 Customer
engagement
Customer
engagement
Financial resilience Innovation manage-
ment
Climate change &
energy
2 Product quality,
safety & security
Employee
engagement
Sustained profitable
growth
Product quality,
safety & security
Information security
& data protection
3 Innovation man-
agement
Product quality,
safety & security
Market reach Business ethics Innovation manage-
ment
4 Financial resilience Innovation
management
Product quality,
safety & security
Customer engage-
ment
Product stewardship
5 Information
security & data
protection
Brand Corporate
governance
Financial resilience /
Sustained profitable
growth
Employee health,
safety & wellbeing
Top 5 material topics by stakeholder group (2020 assessment)
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MARKETS
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OUR
RESULTS
Risks
Within the context of its business operations, Barco
is exposed to a wide variety of risks that can aect
its ability to achieve its objectives and to execute
its strategy successfully. To anticipate, identify,
prioritize, manage and monitor the risks that impact
its organization, we put a sound risk management
and control system into place, which is actively
supported by the Board of directors.
Risk management process
Risk management is firmly embedded into our processes, at all
levels. For every key management, assurance and supporting
process, Barco has a systematic risk management approach
that consists of five steps: identification, analysis, evaluation,
response and monitoring.
2021: main risks
Every year in the fourth quarter, Barco performs a company-wide
risk assessment and compliance gap analysis. In 2021, that
led to a slight reclassification and renaming of certain risks,
leading to the following overview.
Read more on Barco’s risk management
Risk Trend Material topics Strategic levers
1 Supply chain and
‘Nth’ party risk
• Responsible supply chain management
• Sustained profitable growth
• Product quality, safety and security
• Focus on performance
• Go for sustainable impact
2 Product portfolio
& Innovation
NEW
•
I
nnovation management
•
M
arket reach
•
I
nnovate for impact
•
O
ffer outcome-based solutions
3 Human capital and
talent management
•
E
mployee engagement
•
L
earning and development
•
Em
ployee health, safety and wellbeing
•
D
iversity and inclusion
•
F
ocus on performance
•
G
o for sustainable impact
4 Digital
transformation and
new technologies
•
I
nnovation management
• Learning and development
•
I
nnovate for impact
• Offer outcome-based solutions
5 Macroeconomic &
geopolitics risk
• Market reach • Focus on performance
6 Product quality • Product quality, safety and security
• Customer engagement
• Brand
• Innovate for impact
• Offer outcome-based solutions
7 Information
security risk
• Information security and data protection
• Product quality, safety and security
• Focus on performance
• Go for sustainable impact
8 Data governance
and privacy
• Innovation management
• Information security and data protection
• Go for sustainable impact
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01 BARCO
AT A GLANCE
02 OUR
COMPANY
04
SHAPING
OUR STRATEGY
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05
INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Innovation and technology
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Barco is a true technology company, with market-leading
capabilities in the field of image processing. While we initially
focused on projection – with roots going back to the radio
and television industry – we have broadened our scope and
expertise over the years, to oer groundbreaking solutions
based on four key technology domains.
Building on decades of experience and expertise in imaging
and visualization, we have always invested strong (on average
11% to 13% of turnover) in R&D in order to meet the rapidly
evolving market demands. We are further strengthening and
sharpening our innovation eorts, with more focus on break-
through, disruptive solutions that deliver truly bright outcomes
for our customers, while helping us retain a sustainable pole
position in our markets.
Still, no matter how determined we are to disrupt our mar-
kets with groundbreaking technologies, innovation at Barco
will never be purely technology-driven. We take a disciplined
approach to innovation: every new solution or service is the
result of extensive market research and stems from dialogue
with our customers and partners, as well as with internal teams.
Moreover, exceptional product performance, quality, security
and stewardship are deeply embedded in our solution design
processes.
Innovation and
technology
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Our innovation process
2. SEED FUNDING GATE
Idea is feasible with a
promising business case.
3. PROOF OF CONCEPT
Proof of concept becomes
a viable product/solution
4. BREAK-EVEN GATE
INCUBATOR
SEED
SCALE UP
IDEATION
1. FUNNEL ENTRY GATE
Business unit-related
breakthrough &
dierentiating innovation
Central organization / BarcoLabs
Business unit
Breakthrough idea
not related to BU
Our innovation
approach
Successful innovation creates both value for the customer
and true business value. To ensure that our ideas are tightly
connected to our strategy and can be turned into both revenue
growth potential and brighter outcomes for our customers,
we are increasingly adopting a more disciplined approach to
innovation.
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The new, more structured approach to innovation
that Barco kicked o in 2020 got full support of our
new leadership board in 2021. What’s more, our
new CEOs decided to rebalance the R&D investment
portfolio to build a more eective new growth
development portfolio. They also highlighted the
need to focus more on new growth innovation
– a challenge that CTO Gerwin Damberg seizes with
both hands.
Last year, you explained that you wanted to instill a more
start-up-like approach to innovation
.
Could you shortly
recap?
Start-ups adopt a bold and holistic approach to innovation to
survive. First, there is a truly disruptive idea that addresses a
customer’s real pain point, after which they verify whether their
idea can scale and lead to exponential growth. If the idea ticks
these boxes, then the technology solutions often fall into place.
In 2020, we rolled out a Barco-wide innovation approach that
considers these steps. Once every quarter, innovators pitch
their ideas in a venture capital like setting. We then check if
they meet all the criteria, and only then will they receive fund-
ing and stang to work rapidly towards a proof of concept
that can be tested with early customers. By the way, I shouldn’t
forget the sustainability criterion. That, too, has become essen-
tial when developing new solutions, early on.
Accelerating our
start-up-like approach
Strengthening our patent management
Intellectual Property (IP) represents a compet-
itive advantage for a technology company like
Barco: patent holders have a higher chance
to attract customers, investors and even
employees
.
A solid patent strategy asserts
our position as a global technology leader.
While Barco has always been an innovator,
IP and patens have long been considered a
‘technical topic’ rather than a strategic asset.
In the past two years we have strenghtened
our IP management by assigning dedicated
patent delegates and further built out the
internal patent team with new expertise.
More than educating employees on the
importance of IP, the team has now fully
incorporated patenting in our innovation
process. As a result, we file more strategic
patents earlier. Patentability is continuously
monitored throughout the product devel-
opment cycle and we have introduced
professional IP infringement checks.
We now have the right
mindset, a dedicated team
and we invest time and
money in the IP process –
as befits a true technology
company.
Gerwin Damberg
Barco CTO
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The new co-CEOs
have now explicitly
stated they want more
groundbreaking, value-
added solutions faster
.
Does that confirm that
last year’s shift was the
way to go?
I am fully behind that com-
mitment. Barco has a solid
position in its core markets,
and we need to afford to
take bold moves, either by
disrupting in our existing markets or beyond. When we look
at Barco’s executive management team, there’s a lot more
tech expertise and deep market insight on board than a few
years ago and disruptive innovation is high on the agenda.
We encourage a culture at all levels in which doubling down
on innovation, knowing this comes with higher risk, is not
just welcome, but a central part of our strategy. We pick up
the story we started writing last year and expand on it. In the
past years, Barco put more weight on incremental innovation,
taking existing products to new levels. This was important
and now we want to intentionally disrupt ourselves, develop
exciting new solutions and take these into other markets. The
redesign of the organization that An and Charles implemented
last October will help boost that entrepreneurial spirit with full
focus on each market and if done right with the dynamics of
a start-up.
D
oes this new approach
to innovation also
require new skills or even
a dierent company
culture?
The amount of technology
expertise and brainpower
and the creative thinking
that is going on here at
Barco is mind-blowing. It is
incredibly rewarding to work
in this environment. Despite
that, to disrupt, Barco will
also need to grow organically with new colleagues who have
expertise in dierent technology domains, like from the gaming
and the computer graphics industry. Bringing on board new
entrepreneurs into the engineering and product management
teams can lead to exciting new solutions.
Exciting – and a bit risky at the same time. How do you
want to ensure that the investments in innovation are well
spent?
Risk is inherent to innovation. Yet, a good governance process
is key, of course. We need to be careful about the decisions
we make, keep the process lean and always remain honest
to ourselves: if an idea doesn’t work, we need the courage
to stop. Stopping should never be considered a failure but
an important lesson learnt. Equally important: if an early idea
proofs successful, we must accelerate it. Moving slow on a
good idea is one of the biggest risks in corporate innovation.
We really have to maintain the startup pace and mentality all
the way through the growth stages. If we are too slow, our
competitors are bound to outpace us.
Innovation is all about sifting
through ideas, finding the gold
nuggets and turning them into
executive eectiveness – quickly.
The biggest enemy of innovation is
slowness. If you don’t deliver quickly
after ideation, you’re losing your
momentum.
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Guy Van Wijmeersch, Director Innovation & Design
Thinking, is at the very front-end of innovation at
Barco. His role: facilitating early innovation and
helping Barco translate bright new ideas into valuable
development that meets real customer needs.
Research or ideation challenges conducted with leading uni-
versities, discussions with startups or workshops with big-name
customers or internal innovation challenges in hackathons
or challenges in our emerging leadership teams,: it’s just a
few of the initiatives that Guy has undertaken to discover and
explore new ideas.
“By teaming up with an entire ecosystem of customers, experts,
and employees, we are making sure that we fully understand
the market. After all, there is really no point in innovating if no
one needs the new solutions. By combining market insights
with exciting new ideas that are based on the technologies that
we have mastered, we can spark true innovation,” Guy explains.
“The start-up-like approach to innovation that we launched
last year, where we look at every idea through dierent lenses
and gradually move it further, is a smart way to transform ideas
into solutions with market potential. Just like Gerwin, I hope
that the tech drive in our management and our reorganization
will help us come up with disruptive new ideas that have the
potential to boost Barco’s business in the longer term.”
Read how we build a Barco ecosystem
Matching technology seeds
with customer needs
Product quality and stewardship:
much more than an afterthought
As a high-tech company, we have a duty to
our customers to ensure that the products we
develop and bring into the world are high-qual-
ity, safe and secure, and help customers lower
their environmental footprint. But it’s not about
just ensuring compliance with legislation and
standards – we want to continuously raise the
bar and consistently meet and even exceed cus-
tomers’ quality expectations. After all, that’s what
they expect from a world-class brand like Barco.
Barco product quality has long stood for top
performance, reliability and durability, while our
solutions are known to be easy to use and main-
tain, and that they are sustainable and come with
exceptional support services. Each and every
one of these criteria are taken into account in
the earliest phases of our innovation and design
processes.
The Eurovision Song Contest
is a mega production equaled
by very few worldwide. You
can only be successful in this
production by applying the
highest quality standards.
For Eurovision, only quality
technology is good enough,
and that’s exactly what we
found with Barco.
Ben Augenbrou
project manager for Eurovision 2021
Product quality, safety &
security and product stew-
ardship are highly material
topics
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Image processing has been and remains the
cornerstone of Barco’s technology map. On the
base of this first component, we have defined three
more building blocks which form the foundation for
Barco’s innovation for impact in the future.
Image processing
Professional visualization requires both classical image pro-
cessing algorithms and data-driven approaches. Barco’s image
processing technology domain covers image and video cap-
ture, enhancements, processing, understanding and rendering
as well as techniques to enhance human-machine interaction.
Increasingly important is the implementation of high-per-
formance software solutions on modern hardware such as
graphics processing units.
Advanced display & projection
The display and projection technology that lies at the heart
of Barco’s visualization solutions include optics, electronics
and signal processing, manufacturing and calibration tech-
niques related to projection systems and direct view display
technologies, including LCD and LED. This advanced tech-
nology powers a wide range of advanced display solutions
for use in demanding markets – from cinema projectors and
high-resolution medical displays to video walls for large screen
visualization.
Computational optics
Computational optical technology exploits the properties of
light to enable visual experiences that cannot be delivered
using traditional optical systems alone. This technology opens
the door to a spectrum of new solutions with functionalities or
value that cannot be delivered by other visualization or imaging
techniques. Examples include Demetra, Barco’s multispec-
tral skin imaging platform and the high dynamic range (HDR)
light-steering technology that uses real-time programmable
lasers and lenses to shape light into high-contrast, high-bright-
ness images on screen.
Connectivity & data analytics
Technology that enables connectivity is at the core of Barco’s
solutions, as it allows the real-time monitoring of devices or
the local or remote streaming of audio and video data. The
connectivity platforms that power Barco solutions are always
highly optimized for the professional application at hand,
whether that is live entertainment, diagnosis or surgery in
healthcare settings or sharing content in the workplace. On top
of enabling connectivity, Barco increasingly helps customers
understand the data transmitted, thus providing trustworthy,
actionable insights and boosting productivity, collaboration
and engagement.
Technology: domains
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OUR STRA
TEGY
03 HOW WE
CREATE
VALUE
05 INNOVATION AND
TECHN
OLOGY
06 OUR
MARKETS
0
7 OUR
RESULT
S
Our markets
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02
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COMPANY
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CREATE VALUE
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TECHNOLOGY
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We provide our customers with imaging capabilities that enable
them to make a visible impact, creating experiences, gener-
ating insights and ensuring connectedness in three healthy
markets: Entertainment, Enterprise, and Healthcare.
Our presence in these three markets goes back many years
and is mainly based on the potential of our technology: the
entertainment, enterprise and healthcare markets all have a
real need for top-notch imaging capabilities. Thanks to its
deep-rooted expertise and experience, Barco is well equipped
to take a competitive edge in all three markets. We work hard
to keep consolidating our leadership position, by oering
innovative, high-quality and increasingly also truly sustainable
solutions that create value and meet – or rather: exceed – the
expectations of our customers and end-users.
From a geographical point of view, we are active in the
Entertainment, Enterprise and Healthcare industries around
the globe – from Europe, the Middle East and the US to Asia
(with a growing focus on China).
Our markets
Barco Integrated report 2021
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01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Customer
engagement
Across markets, divisions and business units, whether
in Belgium, the US or China: Barco always goes the
extra mile to meet its customers’ requirements. And
yet, we realize that customer demands are changing
and that it is more important than ever to engage
with our customers, exchange ideas with them and
put them at the very heart of what we do.
Connecting to customers and their ecosystems
The key to delivering an outstanding customer
experience is understanding the customer. The
more ‘connected’ we are to our customers’
lives and ecosystems, the better we know what
they want and need. That’s why our people
seize every opportunity to intensify their con-
nections with our clients, share insights and
discuss trends, collaborate and even co-cre-
ate solutions.
Sharing insights and discussing trends
In EMEA, for example, 40 of our core end-cus-
tomers regularly get together in the ‘inner circle
forum’ to discuss trends and roadmaps. In the
US, consultant round tables help us understand
the needs of our markets. The Image Processing
department has its own Facebook community,
where imaging professionals and Barco experts
share experiences and ask questions. Our health-
care as well as our cinema teams regularly bring
market-leading customers and experts together
to talk over market developments and needs.
And that’s just a few examples.
We also actively share the knowledge gained
from research with the outside world on our
website and via expert publications. In this way,
we want to involve our audience in our markets
to help them stay on top of their business.
Collaboration and co-creation
More than that, Barco actively teams up with
experts, customers and prospects to discuss,
test and even co-create Barco solutions and
services. The Demetra platform for skin imaging,
for example, was developed in close collabo-
ration with dermatologists. Barco engineers
worked alongside the experts to be able to see
the world through their eyes, like they do for a
growing number of R&D projects. Even our mar-
keting and communications team spends time
with customers to truly understand their needs
and translate these into clear content.
Barco doesn’t believe in technology
for technology’s sake. People always
come first. That’s why people who
design Barco products are in close
and frequent contact with the
people who will use them.
Olivier Vanovermeire
Chief Medical Ocer at Barco
and former head of the medical imaging
department at AZ Groeninge (Kortrijk)
Customer engagement is a
highly material topic
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01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
To be able to think from our customers’ perspectives, under-
stand how they feel about – and what they expect from – our
approach and oering in every step of the customer journey,
Barco launched a customer experience roadmap in 2018.
In the meantime, we have identified KPIs, set customer expe-
rience targets and launched quarterly NPS surveys, which we
are continuously fine-tuning. Based on the customer feedback
we get through the surveys, we are continuously improving
our oering, services and skills.
In addition, we increasingly digitize the end-to-end customer
engagement process to meet customers’ needs for speed and
high-quality services. A dedicated customer journey man-
agement organization supports the transformation and helps
infuse the always-customer-first mindset across the company.
Providing exceptional customer
experiences throughout the
journey
Global customer success is all about
accelerating growth by bringing
together a set of front-oce
functions that really will help the
business units and the rest of Barco
achieve our vision, mission and
goals together
.
How our reorganization fosters customer intimacy
Moreover, the company reorganization that we car-
ried out in October 2021 will also help to improve the
customer experience. By centralizing sales among
the managers of the business units, we will get
shorter lines with our customers. This will allow us
to respond more quickly to questions and needs. To
further enhance the customer success journey, we
are bringing together four focused global functions:
commercial operations, service, marketing and part-
ners and channel management.
Read more on our customer engagement initiatives
The new displays have really
transformed our reading
experience for the better. Both
myself and my colleagues in
the Radiology department,
are so thankful for the support
provided by the Barco team,
which has been nothing short
of outstanding
.
Tom Leyland
WWL NHS Foundation
and Teaching Hospital (UK)
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01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Three divisions
While each Barco division has its own goals, targets and focus
areas, they all oer innovative, high-quality and increasingly
also truly sustainable visualization solutions that create value
and meet – or rather: exceed – the expectations of Barco
customers and end-users.
When in October 2021, we decided to redesign our organi-
zational structure, each division was split into two business
units, which are fully empowered to execute strategic priorities.
39%*
Entertainment
29%
Enterprise
33%
Healthcare
Entertainment
Enterprise
Healthcare
* Breakdown based on sales 2021
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AT A GLANCE
02
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COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Entertainment
Creating moments,
enriching lives
39%
Entertainment
50%
Cinema
50%
Immersive Experience
Whether in cinemas, sports arenas or concert halls; in muse-
ums or theme parks; at corporate events or festivals: Barco’s
end-to-end entertainment solutions create compelling
moments. More than that, you’ll also find us in simulation
and training environments where we help pilots, Formula 1
drivers or seafarers to practice their skills, and in virtual 3D
environments. By oering the most advanced and reliable
solutions and outstanding service, we help our customers
enable the brightest of outcomes.
The Entertainment division comprises two business units:
Cinema and Immersive Experience.
CINEMA
Cinema oers the industry’s most complete
range of smart laser projectors and media
servers. Barco’s cinema solutions are brought
to market and supported by CFG-BARCO (for
China) and by Cinionic (for the rest of the
world).
IMMERSIVE EXPERIENCE
Our Immersive Experience business unit
offers solutions tailored to the specific
needs of large venues, live events, projec
-
tion mapping, themed entertainment (such
as museums and theme parks) and simulation
applications: projection, image processing
and a modular support service solution.
Barco Integrated report 2021
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01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
How Barco Entertainment
creates value
Solutions and services that entertainment
professionals can rely on
Barco stands out from the crowd with its wide portfolio of
visualization solutions – graphics processing, media handling,
projectors, direct view displays, etc. – designed with an unwav-
ering dedication to product performance and service quality.
The Barco brand is synonymous with technology innovation
in every entertainment and simulation market. Our complete
portfolio leverages smart platforms for interoperability and
ease of use. Every product sets the benchmark in every field,
with the best image quality at the lowest TCO, powered by
high-performance software in connected systems. To maintain
and further elevate this high standard, we invest into product
innovation, into continuous improvement and into end-to-end
services and new business models that meet our customers’
needs.
I have been working in the industry for more
than 25 years now and I have come to know
Barco projection technology very well. With
Barco, I’m confident that we are safe for many
years, without needing a dedicated support
person on site 24/7.
Tor Ditlevsen
Lighting designer at Superlys, who set up
the installation at Artic University Museum in Tromsø
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AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
A trusted brand that puts customers first
A close relationship with the customer is key in the enter-
tainment market
. For example, the mission of Cinionic
clearly highlights the positive impact of a customer-oriented
approach: listening to the exhibitors and discussing trends
and needs with the world’s biggest players in cinema helps
Cinionic instill trust and win business with leading cinema
chains.
What does our customer really need
and how can we make a dierence
– not just in hardware and software,
but also in services: that’s the
starting point of everything we do,
at our business unit
.
Therefore, it’s
key for our product managers and
R&D teams to work closely together
with our salespeople and meet up
with customers
.
Stijn Henderickx
EVP Immersive Experience
Sustainability is not an
afterthought, but an integral
part of our innovation process
.
Beyond that, we are continuously
seeking ways to make our own
operations and logistics more
sustainable
. P
rojector engines
for US customers are now
repaired locally in Atlanta, for
example, instead of in Belgium.
We are committed to leaving less
and less a mark on the planet
.
Sustainable business leads to
better business, and is simply the
wise thing to do
.
Gerwin Damberg
EVP Cinema
A division with a purpose:
we go for sustainable impact
As the world’s largest projector maker, we must
deeply engrain sustainability in our design cul-
ture and consider it from the earliest concept
until the end of life of our products. The shift to
a complete laser technology portfolio, which
consumes far less power than lamp-based
systems (more than 50% savings), has consid-
erably shrunk the overall carbon footprint of
our products while cutting operating and capital
expenses for the customer.
Reducing the weight of our projectors and
keeping packaging to a minimum reduces cost
and the footprint of shipments. Maximizing
modularity across projectors and media serv-
ers improves serviceability and enables remote
upgradeability, which extends the useful lifetime.
Eco-friendly materials, like the recycled plastics
used in our SP2K laser cinema projector, help
reduce the burden on our planet. In this way, our
solutions meet the most stringent ecoscoring
criteria.
In both our Cinema and Immersive Experience business units,
the customer comes first when designing new solutions. From
dedicated Facebook groups and customer advisory boards to
early field trials: every new channel for sharing our customers’
experiences, insights and ideas with our teams brings us one
step closer to delivering exceptional end-user experiences.
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02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
The Cinionic experience
Over the past few years, the cinema landscape has evolved
rapidly. The conversion from analog film to digital systems is
nearly complete. Barco has embraced and driven this evolu-
tion: first by making early digital technologies available, and
then by innovating toward cinema technologies that provide
the audience with a wow experience at a low cost of owner-
ship to the exhibitor; essential in a post-VPF (virtual print fee)
world, where cinema equipment cost was shared across the
ecosystem.
Barco has been delivering state-of-the-art digital cinema
projectors for over a decade and continuously invests into
expanding its product oering. More than that, however, we
knew we had to complement our products with a full solutions
and services approach. That’s why Cinionic was born, as a
full-service channel to the market.
Read more on cinionic
.c
om
Our team is 100% dedicated to cinema. Just
like our customers, we are passionate about
the shared social experience of movies. It’s
that social experience that will ensure cinema
is here to stay: people want to go out and be
entertained. We provide exhibitors with the
technologies and content they need to create
that unique experience.
Wim Buyens
CEO Cinionic
Barco Integrated report 2021
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AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Enterprise
Engaging you to unleash the
power of shared knowledge
29%
Enterprise
52%
Meeting Experience
48%
Large Video Walls
Every Barco enterprise solution is designed to help people
collaborate better by ensuring engaging experiences. From
boardrooms and workplaces to control rooms and classrooms:
all our solutions help people unleash the power of shared
knowledge – for brighter ideas and, ultimately, better results.
The Enterprise division comprises two business units: Meeting
Experience and Large Video Walls.
MEETING EXPERIENCE
Meeting Experience (MX) is one of the few
manufacturers in the market to offer all
main collaboration and visualization tech
-
nologies for a smart workplace or learning
environment: ClickShare wireless confer-
ence and presentations systems, installation
projectors, video walls, weConnect Virtual
Classroom, image processors as well as
services.
LARGE VIDEO WALLS
Large Video Walls oers a package of solu-
tions to help control room operators make
well-informed decisions: video walls, video
wall controllers, control room software and
a full suite of support services.
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01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
How Barco Enterprise creates
value
Solutions and services that
organizations can rely on
Barco has been building control room visualization and col-
laboration solutions since 1994. Throughout the years, we’ve
remained the number one choice for control room profes-
sionals who want to stay on top of their situational awareness,
thanks to our commitment to exceptional quality, reliability,
durability and our end-to-end oering.
When it comes to meeting room and learning technology, we
are just as obsessed with quality. By working closely together
with customers and end-users, requesting feedback and con-
stantly analyzing usage data, we understand their hardware
and software needs. Based on those insights, we adjust existing
solutions and design new products. Moreover, we maintain
close ties with resellers and other partners too. Thanks to
our advice, training and support they, too, can deliver the
high-quality customer experience that fits the Barco brand.
When selecting a large control room
installation, organizations prefer dealing with
just one vendor. We oer a true single end-
to-end solution that bundles large video walls
in all key technologies, media management,
workflow support, analytics and support
services. That approach, combined with our
solid quality reputation, makes Barco the No. 1
brand in the control room market
Chris Sluys
EVP Large Video Walls
Barco Integrated report 2021
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01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
A trusted brand that puts customers first
Barco has always been committed to delivering outstanding
customer experiences. In 2018, though, the Enterprise divi-
sion decided to take customer engagement to the next level
and started mapping the customer journey and launching
initiatives to boost customer intimacy. In the meantime, that
initiative has been rolled out company-wide.
In recent years, the Enterprise division has been strengthening
the collaboration with partners, customers and end-users
to understand customer pain points, test new solutions and
drive adoption and satisfaction. In turn, we share expertise and
experience with our resellers and consultants, which helps
them reinforce their market position.
Read more: How consultants help Barco see
the bigger picture in control room projects
Our customer is our ultimate sales
representative, so we have to do all we can
to drive adoption and make sure end-users
love our ClickShare and weConnect solutions.
Initiatives like our ClickShare Beta Testing
Community and customer advisory boards
help us understand the pain points of our end-
users – so that we can constantly finetune our
oering.
Olivier Croly
EVP Meeting Room Experience
We were impressed by the
Barco video wall’s color
uniformity and valued
the solution’s economic
performance in terms of
energy consumption.
Fernando Almeida Teles
Head of Service Operation Center
at Altice Portugal
A division with a purpose:
we go for sustainable impact
Using durable components and thoroughly tested
material, Barco enterprise solutions have always been
designed to be really durable – which is key to their
sustainability. Increasingly, our hardware and software
solutions are now designed for easy upgradeability too.
Owners of our legacy lamp-based rear-projection video
wall, for example, can easily integrate a new RGB laser-
based projection module into the existing mechanical
structure with minimum impact, and thus extend its
lifetime – and reduce energy consumption – for many
more years.
In our UniSee LCD video walls, the input modules, power
supply and LCD displays are physically separated, so
when a new input connectivity technology is available,
the input boards can simply be replaced in the field.
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AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Healthcare
33%
Healthcare
50%
Diagnostic Imaging
50%
Surgical & Modality
Barco connects healthcare professionals at almost every
patient touchpoint. From the imaging room to radiology,
during specialist consultations and in the surgical suite: our
solutions and services help medical professionals enable
better health outcomes and work more eciently in an
increasingly complex healthcare enterprise.
The Healthcare division comprises two business units:
Diagnostic Imaging and Surgical & Modality.
DIAGNOSTIC IMAGING
Diagnostic imaging oers an extensive line-up
of high-precision medical display systems for
disciplines including radiology, mammogra-
phy, dentistry, pathology and clinical review
imaging, plus a full suite of support services.
SURGICAL & MODALITY
Surgical & Modality brings together two
activities with great synergistic potential, as
they target the same end-customers (often
operating rooms) and, thus, require the same
go-to-market strategy. More than surgical
displays, the oering of this business unit
includes our digital operating room portfo-
lio (based on video-over-IP-technology), as
well as custom medical displays for modality
imaging, plus a full suite of support services.
Enabling better healthcare
outcomes for more people
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AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
How Barco Healthcare creates
value
Solutions and services that healthcare
professionals can rely on
There’s no room for compromise when Barco develops
medical displays: we systematically exceed product quality
guidelines. After all, in hospital environments, world-class
healthcare solutions can make the dierence between life or
death. That’s why we provide radiologists, surgeons and other
physicians with medical-grade display solutions that promote
clear and consistent image quality (brightness and contrast),
anytime, anywhere, to make accurate diagnoses, identify the
best options for treatment and perform flawless surgical pro-
cedures. In addition, our healthcare solutions and services are
reliable, supporting healthcare professionals during reading
hours or surgery without interruption.
Barco medical solutions have
been considered the best in the
market for decades. By increasingly
automating compliance, following
up maintenance and incidents and
broadening our service oering, we
further raise quality and reliability
levels.
Geert Carrein
EVP Diagnostic Imaging
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02
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COMPANY
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SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
A trusted brand that puts customers first
To make sure our healthcare solutions truly help healthcare
professionals in delivering better patient outcomes, we are
increasingly involving the people who actually use our solu-
tions in the design, concept and validation stages.
For years, a Radiology Advisory Board that consists of cus-
tomers as well as key opinion leaders has been helping our
diagnostics team to understand their needs, spot trends
and discuss ideas, roadmaps and solutions. In 2021, a
Surgical Advisory Board was set up with the same objective.
Furthermore, new solutions like the Demetra skin imaging
solution are being developed in close cooperation with the
professionals who’ll use it in the future.
In our modality business, we design
custom solutions from the ground
up to deliver the exact performance
and features our customer need
.
This business is the ultimate proof of
how Barco thinks with the customer.
Johan Fornier
EVP Surgical and Modality
A division with a purpose:
we go for sustainable impact
Sustainability has been deeply embedded in
our healthcare department. In 2005 already, the
team started considering the carbon footprint
and recyclability of its products when designing
new solutions. The Coronis Fusion 4MP and 6MP
diagnostic displays were Barco’s first products to
get the A ECO label. Step by step, more products
are now getting an A ecoscore.
Meeting the increasingly stringent standards
regarding energy eciency, materials sourcing,
packaging and logistics and end-of-life requires
fundamental choices, constant fine-tuning and
discussions between the R&D team and the
ecoscoring team. That continuous assessment
works really well and leads to truly sustainable
results.
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AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
With a market share of more than 50% for our
cinema business, growing interest in other Barco
entertainment solutions and a huge potential for
our healthcare business, China will play a key role
in Barco’s future growth. To further strengthen our
position in the dynamic Chinese market, we plan
to considerably reinforce our local manufacturing,
innovation, R&D and sales bases and team up with
local suppliers in 2022 and beyond.
Barco’s china strategy – 3 questions and
answers
Kenneth Wang, MD of Barco China since March 2021 explains
how Barco wants to grasp the opportunities in China’s rapidly
growing market.
Why is China such an important market for Barco?
China is one of the key global economic leaders today. More
than the GDP, consumption is rising too. Our China cinema
business has been booming for years and we are still leading
the market. Interest in other solutions like projection mapping
is huge too. In addition, the Chinese government set up a
huge action program to promote the health of China’s 1.4
billion people by 2030. That drives investments in healthcare
infrastructure. So, with Entertainment and Healthcare two our
key markets, the opportunities for Barco are huge.
Focus on China
How do you want to grasp the growth opportunities?
Right now, we have a team of 350 people and 130 more in
CFG-Barco (China Film Group), the cinema joint venture where
we hold 49% of the shares. In addition, there’s a Barco projec-
tor manufacturing plant in Beijing and we opened a healthcare
hub in Suzhou in 2018. In December 2021 we opened a new
facility in Suzhou to increase our production capacity for
medical displays. We plan to set up more sites in the future.
In addition, we will set up a Barco China Labs team to bring
innovation to life and expand our local R&D, product devel
-
opment and sales teams too. We will promote innovating on
the basis of what has worked in the past. In addition, we want
to team up with local partners as much as possible.
Why is it so important to build a strong Barco
organization in China?
To be successful in China, one of the most important things
is to understand the customers. Our business culture diers
greatly from that in other parts of the world. So, if we want
to tailor our products and strategy to the Chinese market, we
have to do that from within China. Moreover, local factories
and local sourcing help us meet the cost requirements that are
key to winning in the Chinese market and enable us to meet
customer needs much quicker.
“To be successful in China,
you have to understand the
customers, whose preferences
dier from those of their Western
counterparts
.
So, if we want to
tailor our products and strategy to
the Chinese market, we have to
do that from within China
.”
Kenneth Wang
MD of Barco China
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01 BARCO
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02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Our results
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A
T A GLANCE
02 OUR
COMPANY
04 SHAPING
O
UR STRATEGY
03 HOW WE
C
REATE VALUE
05 INNOVATION AND
TECHNOLOGY
06 OUR
MARKETS
07 OUR
RESULTS
Barco’s standard customer experience
metric, measured quarterly (upper quartile industry performance)
% revenues from products with Barco ECO label
* Breakdown based on sales 2021
Customer NPS
(Net Promoter Score)
Eco score
47
31%
Sales
In millions of euro
Gross profit
In millions of euro
EBITDA
in millions of euro
1,083
770
804
429
284
288
153
54
59
Group results
39%*
Entertainment
29%
Enterprise
33%
Healthcare
40%
37%
36%
2019
2020
2021
2019
2020
2021
2019
2020
2021
14%
7%
7%
Gross profit margin EBITDA margin
100
200
300
400
500
600
700
800
900
1,000
1,100
50
100
150
200
250
300
350
400
450
500
550
10
20
30
40
50
60
70
80
90
130
120
110
100
140
150
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CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Comments on the group results
Group topline – solid order intake and sales
conversion lagging
Orders were 979 million euro, up 31% compared to 2020,
driven by solid economic recovery across all markets and all
regions.
Sales for the year increased by 4% to 804 million euro, still
reflecting ongoing impact of the pandemic on business activi-
ties and component shortages (estimated impact in 4Q21 was
approximately 15 million euro).
Fourth quarter sales were 29% higher than 4Q20, reflecting
growth in each business unit but 21% below the pre-pandemic
fourth quarter of 2019.
At the end of 2021, the order book was at a record level of
487 million euro.
(1) All definitions for alternative performance measures (APM’s) are available in the glossary
as available on Barco’s investor portal
Sales FY21 € 804 million, EBITDA margin 7.3%
Demand strong with order book up 73% over 2020.
Financial highlights fiscal year 2021 and 4Q21
(1)
• Orders FY21 € 979 million, +31% versus orders FY20
• Sales FY21 € 804 million, +4% versus sales FY20
•
O
rder book year-end € 487 million up 206 million euro versus FY20
•
F
Y21 EBITDA € 58
.5 m
illion euro or 7
.3% o
f sales versus € 53
.6 m
illion in 2020
•
F
Y21 Adjusted EBIT € 19
.4 m
illion compared to 10
.2 m
illion euro in 2020
•
F
Y21 Free cash flow 78 million euro versus a negative 36 million euro for FY20
•
O
rders 4Q21 +52% versus 4Q20; -2% versus 4Q19
•
S
ales 4Q21 +29% versus 4Q20; -21% versus 4Q19
•
P
roposal to increase the gross dividend to 0.4 euro per share from 0
.3
78 euro
Barco Integrated report 2021
71
CORE Report
01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Division topline – encouraging rebound in
Entertainment and Enterprise
The Entertainment division delivered good growth in both
orders and sales in 2021, following a soft 2020. Both busi-
ness units contributed to the year-over-year growth, with
Cinema showing order intake increase across all regions and
sequential gains in sales. The Immersive Experience business
unit recovered well, particularly in the fixed install business,
reflecting greater demand from museums, projection mapping
and theme parks.
Enterprise saw a continuation of quarter-over-quarter improve-
ments in orders as of 2Q21 in both segments. Sales rebounded
toward the end of the year, fueled by solid deliveries and
deployments in both the Meeting Experience and Large Video
Wall segments.
Orders for Healthcare reached a record high in 2021, reflecting
the resumption of healthcare investments in both the diag-
nostic imaging and surgical markets, while sales were flat,
hampered by component shortages.
Profitability and free cash flow
Gross profit margin for the year declined by 1.1 percentage
points to 35.7% due to higher component and logistics costs
mainly in the second semester of 2021. As a result, with oper-
ating expenses flat compared to 2020, EBITDA 2021 amounted
to 58.5 million euro with a 7.3% EBITDA margin versus 53.6
million euro and a 7% EBITDA margin in 2020.
Free cash flow for 2021 was 78 million euro compared to 36
million euro negative a year earlier, resulting mainly from bet-
ter gross operating cash flow and decreased working capital
Executing toward the long-term financial
objectives
2021 was a challenging year, but there were undeniable indi-
cations of recovery in Barco’s demand across all business units
and regions attesting to the health of Barco’s end markets and
the strength of our leadership positions. The Barco team turned
challenges into opportunities, adjusting to the impacts of the
pandemic on business operations. The new organizational
structure has been established and the benefits in customer
responsiveness and team engagement start to become clear.
While the company is still dealing with uncertainties regarding
the shape and pace of market recoveries, it starts the year with
a strong order book, a solid balance sheet and a cost structure
that provides the flexibility to navigate the risks and opportu-
nities ahead. As a result, the company is in a good position to
resume executing toward its long-term financial objectives.
Outlook 1H22
The following statements are forward looking, and actual
results may dier materially.
For the first half of 2022, and assuming no further deterioration
of the supply chain constraints, management expects sales
to increase approximately 20% compared to 1H21. EBITDA
margin is expected to be higher than the full year 2021 EBITDA
margin reflecting gradually improving gross profit margin and
operating leverage on higher sales.
The company is not providing a full year outlook for 2022 as
visibility for the year is currently limited and business conditions
may change substantially over the year.
Barco Integrated report 2021
72
CORE Report
01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Dividend
Barco’s Board of Directors will propose to the General
Assembly to distribute a gross dividend of 0.4 euro per share,
a 5% increase from 0.378 euro a year ago.
Barco’s shareholders will be oered the choice between pay-
ment in cash or dividend in shares, enabling them to reinvest
in the company.
CEO, Charles Beauduin and chairman of the board, Frank
Donck, have confirmed the intent of respectively Titan Baratto
NV and 3D NV, to opt for the stock dividend.
Update 4Q21
The fourth-quarter results were significantly better than last year and the third quarter of 2021. The order book strengthened
further to an all-time-high level of 487.0 million euro mainly due to continued solid order intake.
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
In an environment marked by a mixture of demand recov-
ery, intermittent lockdowns and supply chain constraints,
Entertainment and Enterprise generated approximately 40%
sales growth in the fourth quarter, compared to both the third
quarter of 2021 and the fourth quarter of 2020.
The Healthcare division registered 5% growth compared to
the fourth quarter of 2020 and 10% growth compared to the
third quarter of 2021.
Although sales were up year-over-year in all divisions, com-
ponent shortages and transport scarcity continued to cause
delays in converting orders to sales (estimated impact of
approximately 15 million euro in the fourth quarter).
Quarter-over-quarter order and sales 2019-2021
Orders
Sales
Barco Integrated report 2021
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CORE Report
01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Consolidated results for the fiscal year 2021
Order intake
Order intake was 978.8 million euro, up 31% from 746 million
euro a year ago with increases in all divisions and across all
regions.
Order book
Order book at year-end was 487.0 million euro compared to
281.5 million euro at FY20 year-end, an increase of 73% mainly
driven by strong order intake in all divisions combined with
slow conversions from orders to sales.
Order intake by division
In millions of euro FY FY FY Change vs FY
Entertainment
. . . +%
Enterprise
. . . +%
Healthcare
. . . +%
Group . . ,. +%
Order intake
In millions of euro FY FY FY Change vs FY
Order intake . . ,. +%
Order intake at constant currencies +%
Order book
In millions of euro FY FY FY Change vs FY
Order book . . . +%
Order intake breakdown by region
In millions of euro FY FY FY Change (in nominal value)
The Americas % % % +%
EMEA % % % +%
APAC % % % +%
Global % % % +%
Barco Integrated report 2021
74
CORE Report
01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Sales
As a result of slower conversion of orders to sales, mainly due
to supply chain constraints, full year sales increased by 4%.
Impact of supply chain constraints
As previously disclosed, Barco is not immune to compo-
nent shortages and supply chain constraints, both of which
impacted selected product lines. While the team has been
able to mitigate some of this, the negative impact was primar-
ily noticeable in the delivery of projectors, large video walls,
healthcare displays and components assemblies.
While sales in Healthcare remained flat, Entertainment and
Enterprise registered mid to high single-digit growth. From a
regional perspective, EMEA booked the strongest increase,
up 9% versus last year, while the American and APAC regions
saw more modest increases in sales.
Sales
In millions of euro FY FY FY Change vs FY
Sales
. . ,. +.%
Sales at constant currencies
+.%
Sales by division
In millions of euro FY FY FY Change vs FY
Entertainment
.
.
.
+%
Enterprise
.
.
.
+%
Healthcare
. . . -%
Group . . ,. +.%
Sales by region
In millions of euro FY FY FY Change (in nominal value)
The Americas % % % +%
EMEA % % % +%
APAC % % % +%
Global % % % +.%
Barco Integrated report 2021
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CORE Report
01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Profitability
Gross profit
Component and transport scarcity elevated the costs of goods
sold and led to manufacturing and sales ineciencies. This
combination of factors had a marked impact on the gross
profit margin for 2021.
Barco implemented price increases across its portfolio and
regions and expects these to benefit gross profit margin begin-
ning in the first half of 2022.
In 2021, gross profit margin was 35.7%, a decline of 1.1 percent-
age points compared to 2020. Gross profit was 287.5 million
euro, up 1.3% compared to 2020 on a sales increase of 4.4%.
Indirect expenses & other operating results
Total indirect expenses were stable at 265.4 million euro
compared to last year, reflecting continued cost contain
-
ment measures oset by selective investments in Research
and Development (R&D) and commercialization to defend
and extend the company’s market position.
As a percentage of sales indirect expenses were 33.0% in 2021
compared to 34.5% in 2020.
• R&D expenses remained flat at 101.3 million euro (compared
to 102.6 million euro last year). As percentage of sales, R&D
expenses were 12.6% compared to 13.3% a year earlier.
• Sales & Marketing expenses increased slightly to 116.2 million
euro, compared to 112.3 million euro for 2020. As a percent
of sales, Sales & Marketing expenses were 14.5% compared
to 14.6% in 2020.
• General & Administration expenses amounted to 47.9 million
euro compared to 50.4 million euro last year and were 6.0%
as a percentage of sales compared to 6.5% in 2020.
Other operating expenses amounted to 2.7 million euro, 5.6
million lower than 2020, as a result of a combination of lower
exchange losses, lower bad debt and other provisions and
gains realized on the sale of a building in Germany.
EBITDA & adjusted EBIT
The combination of a modest increase in gross profit and flat
indirect expense level, resulted in an EBITDA increase of 58.5
million euro from 53.6 million euro last year.
EBITDA margin was 7.3% versus 7.0% for 2020.
All three divisions posted mid- to high single-digit full-year
EBITDA margin.
• Entertainment: improved from break-even in 2020 to 6.9%,
reflecting improved gross profit margin resulting from price
increases to osett the impact of supply constraints, and
disciplined indirect cost controls.
• Enterprise: EBITDA margin was 6.3%, 2 percentage points
lower than last year mainly due to a lower gross profit
margin as a result of higher transport costs and component
shortages, in combination with increased investment in
commercialization and core portfolio product developments.
• Healthcare: EBITDA margin was almost 5 percentage
points lower year-over-year due to the negative impact of
component shortages and transport disruptions on the gross
profit margin and a lagging eect of price increase.
EBTIDA by division
In millions of euro Sales EBITDA EBITDA %
Entertainment
. . .%
Enterprise
.
.
.
%
Healthcare
.
.
.
%
Group . . .%
EBITDA by division 2021 versus 2020 (and 2019)
In millions of euro FY FY FY Change vs FY
Entertainment
. . .% + %
Enterprise
. .
.
% -%
Healthcare
.
.
.
% -%
Group . . .% +%
Adjusted EBIT
2
was 19.4 million euro or 2.4% of sales, com-
pared to 10.2 million euro or 1.3% of sales for 2020.
As a result of the organizational redesign and a number of
cost-down measures across dierent countries and functions,
Barco booked 6.4 million euro restructuring and impairment
charges. Taking this charge into account, EBIT was 13.0 million
euro compared to -4.3 million euro in 2020.
(2) Adjusted EBIT is EBIT excluding restructuring charges and impairments, see
Glossary Annual and Half year report,
Barco Integrated report 2021
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01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Income taxes
Taxes in 2021 were 2.1 million euro for an eective tax rate of
18%, compared to zero last year on pre-tax negative results.
Net income
Full-year net income attributable to the equity holders was
8.9 million euro compared to -4.4 million euro a year ago.
Net income per ordinary share (EPS) was 0.10 euro versus
-0.05 euro in 2020. Fully diluted earnings per share were also
0.10 euro compared to -0.05 in 2020.
Cash flow & balance sheet
Free cash flow and working capital
Free cash flow for 2021 was 78.0 million euro reflecting primar-
ily gross operating cash flow of 51 million euro and reduced
working capital. Free cash flow for 2020 was 35.9 million euro
negative on lower EBITDA and cash outlays associated with
the restructuring and working capital.
All divisions contributed to the positive free cash flow for 2021.
In millions of euro FY FY FY
Gross operating free cash flow . . .
Changes in trade receivables -
.
. -
.
C
hanges in inventory
.
-
. -
.
C
hanges in trade payables . -. .
Other Changes in net working capital .
-
.
.
Change in net working capital . -. -.
Net operating Free Cash Flow . -. .
Interest Income/expense -
. -
.
.
I
ncome Taxes -
.
-
. -
.
Free cash flow from operating activities . -. .
Purchase of tangible and intangible FA -. -
. -
.
P
roceeds on disposal of tangible and intangible FA . . .
Free cash flow from investing -. -. -.
Free cash flow . -. .
Barco Integrated report 2021
77
CORE Report
01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Working capital
Inventory + Accounts Receivables – Accounts Payables over
sales was 27.2% compared to 32.6% in 2020. Net working cap-
ital improved to 5% of sales compared to 10% of sales in 2020.
The improvements in working capital reflect mainly collections
of past due trade receivables, mostly in Entertainment, and
higher trade payables linked to higher amounts of component
purchases. Inventory levels remained stable compared to year-
end, due to a combination of higher raw materials and lower
finished goods inventory.
Capital expenditure
Capital expenditure was 18.8 million euro compared to 15.0
million euro in 2020, an increase driven by investments in
expanding the company’s manufacturing footprint in China.
ROCE
ROCE for the year was 4% versus 3% for 2020 and versus 25%
for 2019.
Cash position
Net financial cash position, including net cash held in Cinionic,
was 309.8 million euro, compared to 193.5 million euro end
2020.
The increase versus last year is attributable to the swing to
positive free cash flow, a lower amount of dividend payments
and the sale of a minority investment position.
In millions of euro FY FY FY
Trade Receivables . . .
DSO
Inventory
.
.
.
I
nventory turns . . .
Trade Payables -
. -
. -
.
DP
O
Other Working Capital -. -. -.
Total working capital . . .
Barco Integrated report 2021
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CORE Report
01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
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 ambition statement and defined several
targets. In this chapter, we oer some highlights on the prog-
ress we made in 2021 within each of these pillars. For a more
comprehensive sustainability chapter please read our Planet
– People – Communities report.
FY FY FY Change vs
Greenhouse gas emissions from own operations reduction (vs ) -% -% -% -ppt
% revenues from ECO labeled products % % +ppts
(3) For more information about Barco eco scoring methodology, see the Barco website.
Planet
Under the Planet pillar, Barco has set a goal of reducing its environmental footprint and that of its customers.
Barco’s operations carbon footprint performance during 2021
was mixed. An increase in the logistics emissions due to severe
supply chain constraints was partially oset by savings in mobil-
ity (business travel and fuel emissions) as a result of lockdowns
and travel restrictions.
To reduce the footprint of its products and to improve the
eco-friendliness of its solutions portfolio Barco has introduced
and rolled out a company-wide ecoscoring methodology. We
started measuring the revenues from the ECO labeled solutions
in 2020 and set the target level for 2023 of 70% ECO labeled
revenues
3
. In 2021, 31% of revenues came from products with
a Barco ECO label compared to 26% in 2020. Driven by an
increasing proposition of ECO labeled product releases, the
company expects to see ECO labeled revenues increase.
In addition, Barco’s carbon reduction target was formally
approved in 2021 by the Science Based Targets initiative, and
declared consistent with levels to keep global warming to
below 1.5°C.
Barco Integrated report 2021
79
CORE Report
01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
People
Barco invests in sustainable employability by creating the right
conditions for our employees to have an engaging, enriching
and healthy career at Barco.
In 2021, we started measuring the Employee Net Promoter
Score (E-NPS) via short surveys, resulting in a first E-NPS score
of 38.5, which breeds into the category “great engagement”.
Communities
Barco is committed to playing an active role in the communi-
ties in which it operates by upholding the highest ethical and
quality standards and holding its business partners to the same
standards. In addition, we always aim to deliver added value to
our customers through our solutions, services and capabilities.
In this context, Barco remains focused on delivering a val-
ue-add customer experience. The company gathers feedback
from end-customers as well as partners on a quarterly basis
using the relational Net Promoter Score (NPS) as its standard
customer experience metric.
In 2021, we significantly increased the number of responses
versus previous years, making the outcome more reliable and
insightful. At the end of 4Q21, Barco achieved an NPS of 47 flat
with the NPS at the end of 2020. While Healthcare remained
stable, we have seen fluctuations over the year with a lower
score for the Meeting Experience business compared to peak
2020 outcomes, oset by solid increases in our Immersive
Experience business. A score above 50 is considered excellent
and that is also where we want to steer the company’s rating.
FY FY FY Change vs
Employee Net Promoter Score . - - NA
FY FY Change vs
Customer Net Promoter Score
Barco Integrated report 2021
80
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01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Results of the Entertainment division
% revenues from products with Barco ECO label
Eco score
Division in the group
Distribution based on sales
25%
Sales
In millions of euro
Gross profit
In millions of euro
EBITDA
in millions of euro
455
291
310
143
83
92
32%
28%
30%
43
0
22
9.5%
0%
7%
Gross profit margin EBITDA margin
39%
Entertainment
50%
Cinema
50%
Immersive Experience
2019
2020
2021
2019
2020
2021
2019
2020
2021
50
100
150
200
250
300
350
400
450
500
550
10
20
1030
40
50
2060
70
80
3090
130
40120
110
100
140
50150
Barco Integrated report 2021
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01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
On the strength of continued solid uptakes throughout the
year, the Entertainment division delivered a 44% increase in
order intake and a 6% increase in sales for the year compared
to 2020. The orders and sales gains reflect the resumption
of activity in the Immersive Experience segment with strong
demand for fixed installations (museums, theme parks) and
projection mapping and in China cinema. Cinema accounted
for approximately 50% of the divisional sales in 2021, in line
with the breakdown of last year and compared to 58% in 2019.
The Cinema segment saw a rebound in fundamentals during
2021. Theaters reopened in the second half of the year in
most regions and visitor attendance statistics were encour-
aging, supported by an attractive slate of movies. Following
an extended period when theaters were closed due to the
pandemic, this rebound gives Barco confidence that future
growth opportunities in the cinema industry remain intact.
Order growth was solid compared to 2020, driven by new build
programs in China, the Middle East, Latin America and selected
smaller renewal projects in developed regions. Nevertheless,
sales growth was modest as major renewal programs were
pushed out of 2021. Barco expects these programs to resume
in the second half of the 2022.
The segment also saw increased interest for its retrofit program
oering, as well as for its license-based Cinionic Giant Screen
with now more than 400 installations globally (including
The Entertainment
division delivered a
44% increase in order
intake and a 6% increase
in sales for the year
compared to 2020.
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
Entertainment
30
60
90
120
Quarter-over-quarter order and sales 2019-2021
Orders
Sales
Entertainment division
In millions of euro FY FY FY Change vs FY
Orders . . . +%
Sales . . . +%
EBITDA . . . + %
EBITDA margin
.
%
.
% .
%
China). Barco also signed a new long-term frame agreement
in 2021 to support IMAX’ shift to laser projection in its existing
install base and new build plans.
Within the Immersive Experience business, an intensified com-
mercial focus on the fixed install subsegment and an expanded
product portfolio resulted in market share gains and growth
in orders and sales. Demand was particularly strong for the
growing immersive digital art experience in museums, where
Barco has a leadership position, and other fixed AV installations
with deployments worldwide, osetting weakness in the events
subsegment due to pandemic-related lockdown measures
and event cancellations.
While sales for the Simulation segment were slightly down
in 2021 the segment’s strong market position and contract
wins with reference customers further built its order book
during the year.
Entertainment’s gross profit margin improved slightly com-
pared to last year as a result of timely price increases which
oset the impact of higher component and freight costs. In
combination with tight indirect expense control this resulted
in a significant improvement in EBITDA and an EBITDA margin
of 6.9% compared to 0.1% for 2020.
Barco Integrated report 2021
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01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Results of the Enterprise division
% revenues from products with Barco ECO label
Eco score
Division in the group
Distribution based on sales
52%
Sales
In millions of euro
Gross profit
In millions of euro
EBITDA
in millions of euro
359
217
233
183
105
109
51%
49%
47%
74
18
15
21%
8%
6%
Gross profit margin EBITDA margin
29%
Enterprise
52%
Meeting Experience
48%
Large Video Walls
2019
2020
2021
2019
2020
2021
2019
2020
2021
50
100
150
200
250
300
350
400
20
10
40
20
60
80
30
40
120
100
140
160
180
80
70
60
50
200
Barco Integrated report 2021
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CORE Report
01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
The Enterprise division saw a gradual recovery over the year
with a strong second-half order intake followed by a solid sales
uptake in the last quarter of the year. As a result, year-over-year
orders increased by more than 20% and sales by 8%. In terms of
the sales mix, Meeting Experience accounted for about 52% of
Enterprise sales for 2021 versus 51% for 2020 and 58% for 2019.
In the Meeting Experience segment, growing adoption of
wireless conferencing and a reopening of oces led to a
gradual recovery of orders, particularly in the EMEA region
throughout 2021, which demonstrates a continued strong
correlation with regional back-to-oce dynamics, and strong
order intake of 3Q21 translating into significant sales growth
in the last quarter of the year.
ClickShare has now been installed in nearly 1 million meeting
rooms globally up from 850.000 at the end of last year. The
new ClickShare Conference accounted for 45% of ClickShare’s
volume over the last quarter of 2021. More than 70,000 units
have been shipped and installed since the launch in 2020.
Barco continued to build a community of leading meeting
room ecosystem players from around the globe, making
ClickShare the most universally compatible solution for hybrid
meetings. At the same time, ClickShare Conference garnered
additional industry awards related to the “new normal” of
hybrid meetings that commended the solution’s simplicity and
operability with video conferencing platforms. In addition, the
segment connected more ClickShare installations to Barco’s
cloud platform, providing lifetime monitoring, diagnostics
The Enterprise division
saw a gradual recovery
over the year with a
strong second-half order
intake followed by a solid
sales uptake in the last
quarter of the year
.
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
20
40
60
80
100
Quarter-over-quarter order and sales 2019-2021
Orders
Sales
Enterprise division
In millions of euro FY FY FY Change vs FY
Orders . . . +%
Sales . . . +%
EBITDA . . . -%
EBITDA margin .
% .
%
.
%
and usability data on the connected installed base of 30,000
meeting rooms.
With respect to the division’s virtual conferencing weConnect
growth initiative, we saw that our sales and marketing invest-
ments have yielded a steadily growing number of distinguished
customer references in dierent regions and a growing funnel.
The Large Video Wall segment booked quarter-over-quarter
progress in both orders and sales throughout the year
.
In the
first three quarters of the year, sales were somewhat slow
caused by project delays in relation with covid restrictions.
The fourth quarter showed a clear rebound driven by large-
size deployments in the Americas region while sales was still
held back by component shortages.
Orders grew to healthy levels compared to 2020 and exceeded
2019, reflecting the strength of the segment’s market position
and value proposition. The segment has also made progress
in maturing and commercializing its software and networking
solution portfolio and in oering robust services including
upgrades to the installed base.
The Enterprise division produced a 6.3% EBITDA margin, down
from 8.4% a year ago, driven by higher component and logis-
tics costs and higher indirect expenses reflecting selective
investments in both R&D and sales & marketing.
Barco Integrated report 2021
84
CORE Report
01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
Results of the Healthcare division
% revenues from products with Barco ECO label
Eco score
Division in the group
Distribution based on sales
20%
Sales
In millions of euro
Gross profit
In millions of euro
EBITDA
in millions of euro
33%
Healthcare
50%
Diagnostic Imaging
50%
Surgical & Modality
269
262
262
103
96
87
38%
37%
33%
36
35
22
13%
13%
9%
Gross profit margin EBITDA margin
2019
2020
2021
2019
2020
2021
2019
2020
2021
50
100
150
200
250
300
350
400
20
5
40
10
60
80
15
20
120
100
140
160
180
40
35
30
25
200
Barco Integrated report 2021
85
CORE Report
01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
The Healthcare division posted very solid order growth in
line with a gradual resumption of healthcare investments in
Diagnostic Imaging and Surgical & Modality. Conversion to
sales lagged, resulting in flat year-over-year sales, mainly due
to delayed deliveries resulting from component shortages. As
a result, Healthcare saw its order book strengthen significantly.
The Diagnostic segment delivered strong growth in orders
driven by intensified demand for diagnostic solutions in mainly
the Americas and the EMEA region. Sales, however, were
slightly down compared to 2020 due to deployment delays
and supply chain disruptions. The segment also strengthened
its value proposition with the world’s first stand-alone approved
digital pathology display.
The Surgical & Modality segment recorded solid order and
modest sales growth as strategic partners are stepping up
demand for Barco’s digital operating room solution and the
operating room infrastructure market increasingly adopts dig
-
ital solutions. Barco also expanded its surgical oering with
the addition of NexxisLive, an advanced secure cloud-based
collaboration software platform.
For its growth initiative Demetra, a skin cancer diagnos-
tic-solution, Healthcare has been adding partners in both the
Americas and European region and has seen its installed base
– while still small – grow steadily month-over-month in 2021.
The Healthcare division
posted very solid order
growth in line with a
gradual resumption of
healthcare investments
in Diagnostic Imaging
and Surgical & Modality.
4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21
20
40
60
80
Quarter-over-quarter order and sales 2019-2021
Orders
Sales
Healthcare division
In millions of euro FY FY FY Change vs FY
Orders . . . +%
Sales . . . -%
EBITDA . . . -%
EBITDA margin
.
%
.
% .
%
EBITDA margin was below last year’s margin, mainly as a result
of higher component and freight costs. Barco increased prices
also for its healthcare portfolio and expects these to benefit
gross profit margin as from the first half of 2022.
Barco Integrated report 2021
86
CORE Report
01 BARCO
AT A GLANCE
02
OUR
COMPANY
04
SHAPING
OUR STRATEGY
03
HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06
OUR
MARKETS
07
OUR
RESULTS
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Barco Integrated report 2021
87
CORE Report
01 BARCO
AT A GLANCE
02 OUR
COMPANY
04 SHAPING
OUR STRATEGY
03 HOW WE
CREATE VALUE
05 INNOVATION AND
TECHNOLOGY
06 OUR
MARKETS
07 OUR
RESULTS
2021
Integrated
annual
report
Governance & Risk Report
01 CORPORATE
G
OVERNANCE
02 RISK
M
ANAGEMENT
01 CORPORATE
GOVERNANCE
02 RISK
MANAGEMENT
Table of contents
This is the Governance & Risk Report
section of Barco’s 2021 Integrated annual
report. Other sections are available via the
download center at ir.barco.com/2021.
CORE
MORE
• Governance & risk report
• Report on planet - people - communities
• Financial report
ANNEX
• Integrated Data Pack
• Glossary
• GRI Content index
• Assurance report
01 Corporate governance..............................3
Corporate governance statement
......................4
Board of Directors....................................5
Core Leadership Team ................................8
Annual General Meeting
.............................12
Activity report & Evaluation of the
Board and its Committees ............................ 13
Remuneration report
................................ 17
Policies of conduct ..................................32
02 Risk management and control processes
...........33
Control environment & Risk management process.......35
Top risks ...........................................39
Extra risk section regarding the consequences
and impact of the covid-19 pandemic. .................48
03 Risks to be disclosed pursuant to the
rules regarding non-financial information. . . . . . . . . . . . . 50
Environmental impact ............................... 51
Business ethics......................................52
Financial risk management and internal control
.........53
Barco Integrated report 2021
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Barco Integrated report 2021
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Governance & Risk Report
01 CORPORATE
GOVERNANCE
02 RISK
MANAGEMENT
Corporate
governance
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Governance & Risk Report
01 CORPORATE
GOVERNANCE
02 RISK
MANAGEMENT
Barco's governance structure is one-tier, operating pursuant to the company's articles of asso-
ciation and corporate governance charter. Both are available for download at
www.barco.com/corporategovernance.
There are no dual voting rights for certain shareholders.
In accordance with article 3:6, §2 of the Code of Companies and Associations, Barco applies
the 2020 Belgian Code on Corporate Governance.
• Barco deviates from the 2020 Belgian Corporate Governance Code as follows:
Corporate governance
statement
• Art. 7.6: The Board of Directors decided
not to grant shares to non-executive board
members as part of their remuneration.
Such grant requires further analysis of the
practical ramifications thereof, both for the
company and its board members.
• Art. 7.9: The Board of Directors has not set a
minimum threshold of shares to be held by
the executives. The remuneration package
for executives is sufficiently balanced
with various components to incentivize
the executives to pursue a strategy of
sustainable profitable growth.
• A monitoring study, conducted in 2021
by the Belgian Corporate Governance
Commission, confirmed that Barco applies
this Code correctly, including the 'comply
or explain' principle.
• Art. 7.12: The Board of Directors endeavors
to insert a ‘clawback provision’ in contracts
of employment with executives to the
extent permissible by the law governing
such contract.
Declaration regarding the
information given in the
Integrated Annual Report 2021
The undersigned declare that:
• The annual accounts, which are in line with the standards
applicable for annual accounts, give a true and fair view of
the capital, the financial situation and the results of the issuer
and the consolidated companies.
• The annual report gives a true and fair view of the
development and the results of the company and of the
position of the issuer and the consolidated companies, as
well as a description of the main risks and uncertainties they
are faced with.
Charles Beauduin, co-CEO
An Steegen, co-CEO
Ann Desender, CFO
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01 CORPORATE
GOVERNANCE
02 RISK
MANAGEMENT
Frank Donck (°1965) Chairman
has been the managing director of investment holding
company 3D NV since 1998, investing in a mix of long-term
public equity, private equity and real estate. He also serves as
Chairman of Atenor Group NV, as non-executive director of
KBC Group NV and as independent director of Elia Group NV
and Luxempart SA. Frank Donck holds a Master of Law from
the University of Ghent and he obtained a Master of Finance
from Vlerick Business School. He started his career as invest-
ment manager for Investco NV and was a chairman and board
member for several listed and privately owned companies.
He is also a member of Belgium’s Corporate Governance
Commission.
Mr. Donck is member of the Board of Directors of Barco NV
since April 2015.
C
harles Beauduin (°1959)
has been CEO and owner of Vandewiele NV since 1993.
Vandewiele is an international technology player and leader
in solutions for the textile industry. Mr. Beauduin holds several
positions in trade associations and employer organizations.
He holds a Master of Law from KU Leuven and an MBA from
Harvard Business School.
Mr. Beauduin has broad professional management experience,
including international assignments in Asia and the United
States. He is member of the Board of Directors of Barco NV
since January 2015.
Mr Beauduin has been nominated as co-CEO as of
September1, 2021.
A
n Steegen (°1971)
is member of the Board of Directors of Barco NV since April
2017. Dr. Steegen holds a Ph.D. in Material Science and
Electrical Engineering from the Catholic University of Leuven,
KUL, in collaboration with the Interuniversity Microelectronics
Center, imec, in Belgium.
She joined IBM Semiconductor R&D in Fishkill, New York, in
2000. As R&D director and executive of IBM’s International
Semiconductor Alliance, she was responsible for IBM’s
advanced logic semiconductor technology development
for the mobile and wireless application market. In 2011, she
rejoined imec in Belgium. As Executive Vice President, she was
in charge of imec’s Semiconductor Technology & Systems
division. Dr. Steegen is a recognized leader in semiconductor
R&D and an acclaimed and inspiring thought leader in inno-
vation in the IoT and digitalization era.
In 2018, Dr. An Steegen joined Umicore as Chief Technology
Ocer, responsible for the company’s overall innovation strat-
egy. In this role, An was in charge of Umicore’s R&D in the
areas of clean mobility materials, recycling and sustainability
and responsible for Umicore’s new business incubation in
adjacent and new opportunity markets. She also served as
Executive Vice President of the Electro-Optical Materials and
Metal Deposition Solutions business units.
Dr. An Steegen has been nominated to co-CEO as of
October1, 2021.
Board of Directors
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01 CORPORATE
GOVERNANCE
02 RISK
MANAGEMENT
Ashok K. Jain (°1955)
is member of the Board of Directors of Barco NV since October
2012. He holds a Master of Technology degree from the Indian
Institute of Technology in Delhi, India. During his career,
Mr. Jain has founded several technology start-ups and has
converted them into successful businesses through strong
leadership coupled with insights into emerging opportuni-
ties and trends in the global economy. Mr. Jain was founder
and Chairman of the Board of IP Video Systems, which was
acquired by Barco in February 2012. He is currently a General
Partner at Co=Creation=Capital LLC. Mr. Jain is of Indian origin
and has US citizenship.
Hilde Laga (°1956)
holds a PhD in law. She is one of the founding partners of
the law firm Laga, which she led as managing partner and
head of the corporate M&A practice until 2013. Hilde Laga
joined the Board of Directors of Barco NV and NV Greenyard
Foods in 2014. In 2015, she joined the Board of Directors of
Agfa-Gevaert NV and of Gimv NV. In 2016, she became pres-
ident of Gimv NV. She is a member of the Belgian Corporate
Governance Committee and served as a member of the super-
visory board of the FSMA (formerly CBFA) until 2014.
Lieve Creten (° 1965)
holds a Master’s degree in business engineering from the
University of Leuven as well as a postgraduate in tax sciences.
She is a certified public accountant and has been a partner
at Deloitte for more than twenty years, where she developed
the M&A practice for national and international investors in
various sectors and headed the Financial Advisory business
as managing partner from 2008 to 2019. She was a member
of the executive committee of Deloitte Belgium until 2019. In
addition, she was part of the global executive team of Deloitte
Financial Advisory from 2015 to 2021. Currently she is also a
non-executive director at Elia Transmission Belgium, Elia Asset
and board member at Doctors without Borders.
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4
Directors with
5 years of seniority
Female members of
the Board
3
Independent
directors
3
The composition of the Board of Directors meets the gender
diversity requirement laid down in article 7:86 of the Code of
Companies and Associations. Moreover, half of the Board of
Directors is independent.
All directors hold or have held senior positions in leading inter-
national companies or organizations. Their biographies can
be found here.
Board of Directors
Situation on February
Chairman Frank Donck
()
*
Directors Charles Beauduin *
An Steegen *
Adisys Corporation (represented by Ashok K. Jain) *
Hilde Laga
()
*
Lieve Creten
()
*
Secretary Kurt Verheggen General Counsel
(1)
independent directors – Ms. An Steegen was an independent director until her appointment as co-CEO on 1
st
October 2021
* date on which the term of oce expires: end of the annual meeting
Changes to the Board of Directors
The General Meeting of 29 April 2021 has appointed Mrs. Lieve
Creten and re-appointed Mrs. Hilde Laga as independent direc-
tors, both for a period of three (3) years until the closing of the
ordinary General Meeting of 2024.
Following Mr. Jan De Witte's decision to resign as CEO and
director, the Board of Directors has appointed Mr. Charles
Beauduin and Mrs. An Steegen as co-CEOs with eect on
September 1 and October 1, 2021 respectively. Mr. Frank
Donck was appointed Chairman in succession of Mr. Charles
Beauduin.
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Core Leadership Team
Charles Beauduin (°1959)
An Steegen (°1971)
See biographies of Board of Directors
Wim Buyens (°1966)
C
inionic
heads the Cinema Joint Venture, Cinionic. He has held several
senior management positions in high tech companies during
the past 15 years. He started his career in IT prior to joining
the Danish company Brüel & Kjaer where he occupied sev-
eral global senior management positions in sales and product
strategy. Mr. Buyens joined Barco in November 2007 as Vice
President Digital Cinema and has been General Manager of
the Barco Entertainment division for 7 years. He served as
Chairman of the Board of Governors of the Advanced Imaging
Society in Hollywood in 2017-2018. Mr. Buyens holds a degree
in Engineering and obtained his executive management at
Stanford University and IMD in Lausanne.
Geert Carrein (°1958) Diagnostics
is Executive Vice President Diagnostics. He holds a Master’s
degree in electrical and electronic engineering as well as a
postgraduate Business Administration and Management from
the University of Leuven. With over four decades of experi-
ence in healthcare imaging Geert leads Barco's diagnostics
business unit.
O
livier Croly (°1965)
M
eeting & Learning Experience
joined Barco in 2017 as Senior Vice President of APAC. Prior
to joining Barco, he held top positions at GE Healthcare &
Philips, leading businesses across EMEA & Asia. After grad-
uating from the National Telecom Institute with a Master of
Telecommunications & Informatics in 1988, Mr. Croly earned
an MBA from Paris Dauphine University.
Gerwin Damberg (°1978) Cinema & Acting CTO
serves as Executive Vice President Cinema and Chief
Technology Ocer (acting) at Barco NV. He is an entrepreneur
at heart and has advanced image science and technologies for
the cinema industry over the last two decades both through
tech start-ups and in established media and technology com-
panies in R&D, business development and senior management
roles. He joined Barco in 2016 through the acquisition of his
start-up company that innovated in the fields of computer
graphics, computational imaging and laser projection. Gerwin
holds a mechatronics engineering degree from the German
Hochschule Karlsruhe - Technik und Wirtschaft as well as a
PhD in Computer Science (Graphics) from the University of
British Columbia, Canada.
Ann Desender (°1971) Chief Financial Ocer
joined Barco in 2008 and has been leading Barco’s global
finance team since 2010. Prior to joining Barco, she held
management positions as Corporate Director of Finance &
Reporting at Unilin and was a Senior Audit Manager at Arthur
Andersen and Deloitte. Mrs. Desender holds a Master of
Applied Economic Sciences from the University of Ghent
and completed an advanced management program at IESE
Barcelona.
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02 RISK
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Johan Fornier (°1971) Surgical & Modality
first joined Barco in 1998 and held several positions in manage-
ment of research and development in the field of projection
technologies for meeting room and simulation applications.
After spending 4 years in R&D management at Philips, Mr.
Fornier re-joined Barco as VP Product Development for
the Healthcare Division in 2010. In 2021, he was appointed
as Executive Vice President of the Business Unit Surgical &
Modality.
Mr. Fornier holds a Master in Engineering and a PhD in
Engineering from the University of Ghent.
Stijn Henderickx (°1980) Immersive Experience
joined Barco in 2013 and held several positions in Barco’s
Entertainment Division prior to joining the Core Leadership
Team in 2019 as Senior Vice President EMEA. As of end 2021
he leads the Immersive Experience business.
Prior to joining Barco, Mr. Henderickx led Philips Arena
Solutions, Philips' global business entity focused on stadiums
and arenas. Earlier in his career, he took on multiple strategy
positions, first at The Boston Consulting Group as Consultant,
later on with Philips as Director Corporate Strategy. He holds a
Master in Business Engineering from the University of Antwerp.
Anthony Huyghebaert (°1974) Chief HR Ocer
joined Barco on April 1, 2021. He started his career as a lawyer
with Landwell and KPMG, before moving to Alcatel-Lucent
and Nokia. He worked in multiple senior HR roles covering the
breadth of functional domains in Human Resources, working
as HR functional expert as well as in HR business partnership
roles across regions, technology and operational organizations,
while being stationed in Belgium and Singapore.
Mr. Huyghebaert holds a Law Degree from the KU Leuven and
a DES International and European Law from the UC Louvain.
Rob Jonckheere (°1964) Global Operations
joined Barco in April 2016 as Vice President Global Procurement
and became Senior Vice President Global Operations as of 2019.
In this role he manages Barco’s worldwide manufacturing sites
as well as the worldwide Logistics, Procurement, Quality and
Facilities teams.
Prior to joining Barco, Mr. Jonckheere held various positions
in R&D, Program- and General Management at Philips and TP
Vision and was chairman of the Board of Directors of TP Vision
Belgium. He holds a Master of Science in Electromechanical
Engineering.
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02 RISK
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Chris Sluys (°1960) Large Video Wall Experience
started his career in R&D at Philips and held several manage-
ment positions in supply chain, manufacturing and business
management. Before joining Barco in 2017 as VP of the control
room business, he was responsible for the professional displays
business of TPV in EMEA and USA.
Mr. Sluys holds a Master in Electronic Engineering from the
University of Brussels and a post graduate degree in Business
Administration from the University of Louvain.
Marc Spenlé (°1972) Chief Digital & Information Ocer
joined Barco as Chief Digital & Information Ocer in August
2020. During his 25+ years of international professional expe-
riences in companies like IBM, Vodafone and smaller IT service
companies, he has lead projects in customer centric business
transformation, operating of SaaS business models, Software
development and IT technology.
Mr. Spenlé holds a degree in Process Engineering from the
University of Applied Sciences in Niederrhein (Germany).
Iain Urquhart (°1970) Global Customer Success
joined Barco in 2019 as Senior Vice President of the Americas.
Prior to joining Barco, he led the cloud transformation of
Oracle America’s SaaS applications channel business. Before
Oracle, Iain held senior leadership roles at Rackspace and
Microsoft, focusing on driving cloud and as-a-service trans-
formation in direct sales, channels, marketing and services.
Mr. Urquhart holds a BS in History and Communication from
the University of Missouri-Columbia.
K
urt Verheggen (°1970)
G
eneral Counsel
serves as Company Secretary of the Board. He is the General
Counsel of Barco in charge of legal, risk & compliance mat-
ters. He started his career with the law firm Linklaters and
then worked as legal counsel for CMB, Engie and General
Electric. He holds a Law Degree from KU Leuven, a 'DEUG en
droit' from Université du Havre, a Master of Laws from Tulane
University Law School in New Orleans and a Master of Real
Estate from Antwerp Management School. He is a judge in
enterprise matters with the Enterprise Court in Kortrijk and a
lector at the law faculty of the KU Leuven.
Kenneth Wang (°1972) Barco China
rejoined Barco as SVP for the China region as of March
2021. He originally joined Barco in 2015 as Sales Director
for the China Entertainment and Clickshare business, and
in 2018 moved as General Manager to the CFG-Barco JV
in Digital Cinema for China. Prior to joining Barco, he held
several commercial and business leadership roles in multina-
tional companies in China including Philips, Dell and British
American Tobacco.
Mr. Wang holds an Engineering degree from Beijing University
of Technology, and an EMBA from University of Texas at
Arlington.
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Changes Core Leadership Team
Barco NV is managed by a Core Leadership Team (‘CLT’) which
comprises certain key ocers from business units and func
-
tions. The CLT operates under the chairmanship of the Chief
Executive Ocers and shares responsibility for the deployment
of Barco’s strategy and policies, and the achievement of its
objectives and results.
The CLT composition has gone through a number of changes
in 2021:
• Jan De Witte resigned as CEO on August 31 and has been
succeeded by Charles Beauduin and An Steegen as co-CEO’s
as of respectively September 1 and October 1. This change
was announced on July 16.
• Barco announced an organization redesign on October
21, whereby the regional sales teams were folded into the
business units together with product management and
research and development.
In conjunction with this organizational structure re-design,
the composition of the leadership team changed, and three
divisional presidents Filip Pintelon, George Stromeyer and
Nicolas Vanden Abeele resigned their positions at Barco to
pursue career opportunities outside the company.
Johan Fornier, Geert Carrein, Chris Sluys joined the CLT
as business units leads for respectively the Surgical and
Modality, Diagnostics and Large Videowall activity. Oliver
Croly and Stijn Henderickx, both formerly heading regional
teams, were assigned new busines unit leads for respectively
the Meeting & Learning Experience and the Immersive
Experience business unit. Gerwin Damberg, CTO of the
company is now also heading the Cinema business unit.
Iain Urquhart, former head of The Americas region, is now
leading the Global Customer Success teams.
CLT members with
5 years of seniority
Female CLT
members
6 non-Belgian
CLT members
9
2
6
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Participation rate & Average of "For" votes
Annual General Meeting
The annual general meeting (AGM) is held on the last Thursday
of April. Shareholders can normally attend the meeting in per-
son, submit written voting instructions or vote by proxy. In
light of the corona epidemic and the government imposed
covid measures, the individual shareholders did not physically
attend the annual meeting but casted their votes by submitting
their voting instructions or proxies to the company secretary.
The Board of Directors organized virtual meetings whereby
shareholders could attend the meetings remotely and ask live
questions, using Barco’s weConnect technology.
Next to the ordinary general meeting, the Board of Directors
also convened an extra-ordinary general meeting to approve
the authorization to the Board of Directors to increase the
issued capital.
The company is open to discussions with proxy voting agen-
cies to better understand their policies and align the company’s
governance practices therewith, considering its size, profile,
jurisdiction as well as the geographical scope of its activities.
Over the past years, shareholders' participation has been con-
sistently above 50%
91%
2020*
64%
95%
2017
56%
94%
2018
54%
95%
2019
58%
97%
52%
2016
Physical attendance
Approval rate by voting shareholders
Voting by proxy
* In 2020 and 2021, physical attendance was not possible due to covid-19.
88%
2021*
51%
80
60
40
20
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Activity report on Board and Committee meetings
Directors’ attendance at Board and Committee meetings
Board of
directors
Audit
committee
Remuneration &
nomination
committee
Strategic &
technology
committee
Attendance
Rate
Charles Beauduin %
Jan De Witte %
Frank Donck
()
%
Ashok K. Jain %
Hilde Laga
()
%
An Steegen %
Lieve Creten
()
%
(1)
independent directors
Board of Directors
Title 1 and 2 of Barco’s Corporate Governance Charter
describe the responsibilities of the Board of Directors and its
Committees.
The table below provides a comprehensive overview of the
directors’ attendance at Board of Directors and Committee
meetings in 2021.
Intermediate meetings are held via teleconference call if need
be. All the Board of Directors meetings took place in Belgium
with some of the directors attending the meetings via video-
conference due to covid-related travel and sanitary restrictions.
One meeting was closed with a dinner attended by the exec-
utive management to foster closer interaction between the
directors and the managers of the company.
At every meeting, the Board of Directors reviewed and dis-
cussed the financial results as well as the short to mid-term
financial forecast of the company. At the beginning of the
year, upon recommendation by the Audit Committee, the
Board approved the financial results of 2020 and proposed
the dividend for approval by the shareholders. In light of the
adverse covid-related business environment, the Board also
proposed to the shareholders the option to subscribe to newly
issued shares by contributing the dividend.
The board was involved in the process of the resignation
of Jan De Witte as CEO and appointed Charles Beauduin and
An Steegen as Barco’s new CEO’s.
At the same time, the Board appointed Frank Donck as new
Chairman of the Board.
The Board, in close concert with the Core Leadership Team,
reflected on each of the divisions’ strategies for the short to
mid-term, discussed and decided upon the growth initiatives
for the company and approved the 2022 financial budget.
The Board continued to closely monitor the impact of the
corona epidemic on the company’s operations and financial
results.
average total
attendance rate
99%
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Board of Directors
Audit Committee
Remuneration Committee
Technology Committee
Audit Committee
The Audit Committee is composed of three members. Lieve
Creten, who acts as Chair, Frank Donck and Hilde Laga. All
members are independent directors. The Audit Committee’s
members have relevant expertise in financial, accounting and
legal matters as shown in the biographies on pages 5/6.
Changes to the composition of the Audit Committee during
2021: An Steegen was member and acted as Chair of the Audit
Committee until the Committee meeting of April 19, 2021. As
a result, Lieve Creten joined the Committee as a new member
and was appointed Chair of the Audit Committee as of the
Committee meeting of July 14, 2021.
The Audit Committee met six times during 2021. All Audit
Committee members were present during all the meetings,
except for An Steegen who was present in two out of three
meetings.
The Audit Committee reported the outcome of each meeting
to the Board of Directors. The yearly report of the activities of
the Audit Committee was submitted to the Board of Directors.
The CFO and the VP Corporate Finance attended all regular
meetings. The CEO was present at all regular meetings, except
one. The Group’s internal auditor and the Group’s external
auditor PwC Bedrijfsrevisoren/Accountants bcvba were present
in 4 meetings. The overview below indicates a number of mat-
ters that were reviewed and/or discussed in Audit Committee
meetings throughout 2021:
• The Company’s 2020 annual and 2021 interim financial
statements, including non-financial information, the
Company’s 2020 integrated report, prior to publication
thereof.
• The Company’s 2021 integrated report content and review.
• The Committee also assessed in its quarterly meetings the
adequacy and appropriateness of internal control policies
and internal audit programs and their findings.
• Matters relating to accounting policies, financial risks and
compliance with accounting standards. Compliance with
statutory and legal requirements and regulations, particularly
in the financial domain, was also reviewed. Important
findings, Barco’s major areas of risk (including the internal
auditor’s reporting thereon, as well as the review of litigation
and other claims), follow-up actions and appropriate
measures were examined thoroughly.
• Quarterly review of critical accounting judgements and
uncertainties, including impact of covid-19.
• Each quarter, the Committee reviewed the Company’s free
cash flow generation and working capital ratios.
• The Committee monitored potential impairment indicators,
reviewed the goodwill impairment test performed, financial
impact of strategic investments and risk management (covid-
19, cyber security, global and Healthcare compliance, GDPR).
• With regard to internal audit, the Committee reviewed and
approved the internal audit charter, audit plan, audit scope
and its coverage in relation to the scope of the external audit,
as well as the stang, independence and organizational
structure of the internal audit function.
Board Committees
AUGUSTJANUARY MARCH MAYFEBRUARY APRIL JUNE DECEMBERSEPTEMBERJULY OCTOBER NOVEMBER
Overview of the Board and Committee meetings in 2021
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• With regard to the external audit, the Committee proposed
the reappointment of PwC as group auditor to the Board of
Directors of February 2021. Furthermore, the Committee
reviewed the proposed audit scope, approach and fees, the
independence of the external auditor, non-audit services
provided by the external auditor in conformity with Barco’s
non-audit fee policy. The Committee also reviewed the
key audit matters valuation of goodwill and valuation of
deferred tax assets, as well as the group external auditor’s
management letter, which contained no recommendations
with material impact.
• For information on the fees of Group auditor, please refer
to note 22 Related party transactions in the Financial
Statements 2021.
• The Committee reviewed the report from the external auditor
in which the auditor set forth its findings and attention points
during the relevant period. The Committee also assessed the
overall performance of the internal and external auditor. The
Committee also reviewed and confirmed its current Audit
Committee schedule.
Remuneration and Nomination Committee
The Board of Directors has combined the Remuneration
Committee and the Nomination Committee into a single
committee.
The composition of the Remuneration & Nomination
Committee has been reviewed twice in 2021. Mrs. An Steegen
and Mrs. Lieve Creten joined the committee in September
2021 as new members, next to Mr. Frank Donck, Mrs. Hilde
Laga and Mr. Charles Beauduin. Following their appointment
as co-CEO's, Mr. Charles Beauduin and Mrs. An Steegen left
the committee and Mr. Frank Donck took up the position of
Chairman of the committee as of September 1
st
.
The Remuneration and Nomination Committee fulfils the mis-
sion imposed on it by law and meets at least three times per
year, as well as whenever the Committee needs to address
imminent topics within the scope of its responsibilities. The
CEO’s are invited to meetings, except for matters that concern
them personally. The meetings are prepared by the Chief HR
Ocer, who attends the meetings.
In 2021, the Remuneration and Nomination Committee met
six times.
First focus point for the Committee has been the composition
of the Barco Core Leadership Team (i.e. nomination of the
new CHRO and new China leader early 2021 and the nomina-
tion of new Core Leadership Members at the occasion of the
new Organizational set-up) and the review of compensation
packages for 2022.
Secondly, the Committee has been focusing on the new Barco
organization set up proposed by the co-CEOs. Rationale for
the organizational change is stepping up business growth and
speed of action by organizing Barco’s value chain and maxi-
mizing Barco’s competitive advantage.
Given the negative impact of the covid crisis on the variable
compensation pay-out (no bonus pay-out in 2021 and 2022)
and subsequent consequences on attrition and motivation of
employees, the Committee has firstly been focusing on the
review of the Remuneration policy for both Core Leadership
Team and Executives and the design of a new Short-Term
Incentive plan.
Objective has been to implement a clear, fair, simple and trans-
parent remuneration policy and Short-Term Incentive plan (as
from 2022), the latter taking over a limited number of financial
KPIs and sustainability KPIs.
The new Short-term Incentive plan has obviously a strong link
with Barco’s strategy and performance and enables a focused
mindset and Business Unit P&L accountability.
Also, the allocations of Stock Options for 2021 have been pre-
pared and brought to the Board for approval.
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Technology Committee
The Technology Committee is an advisory body to the Board
of Directors. The Committee was composed of four mem
-
bers till August 2021 and three members since then; Charles
Beauduin, who acts as Chairman, Ashok Jain and An Steegen.
Jan De Witte was member till end of August 2021.
The Technology Committee assists the Board of Directors in
fulfilling its oversight responsibilities by preparing technology
related matters that could influence Barco’s strategy, such as
the identificationof major investment opportunities in future
technologies through internal resources or technology acquisi-
tions, technology roadmap strategy, operational performance
and technology trends that may aect portfolio performance.
Major technology investments relate to investments running
over a number of years that involve a minimum commitment
by the company of 10 million euro over the entire duration of
the project. The investments might also include technology
acquisitions.
In 2021, the Technology Committee met four times. The
Committee organized specific working sessions by division,
thus ensuring appropriate depth and focus for each of Barco’s
divisions. The Committee also performed the annual general
review of foundational technologies as included in its strategic
plan update presented to the Board.
Regularly assessing the size, composition, functioning and
performance of the Board of Directors and its Committees
as well as the interaction with the executive management is
an essential element of corporate governance.
The principle of Board assessment is laid down in the
Corporate Governance Code as well as Title 1 (1.5) of the
company’s Corporate Governance Charter.
See www.barco.com/corporategovernance
The Board of Directors carries out self-assessments under the
supervision of the Chairman with the aim to evaluate its func-
tioning and that of its Committees. In this respect, individual
and private interviews are held with each of the directors. The
topics discussed are: the interaction between management
and the Board, the information and documents submitted to
the Board, the preparation of the Board meetings, the quality of
the discussions and decision-making of the Board, the extent
to which all relevant strategic, organizational and managerial
issues are addressed by the Board and the contribution of
the directors to the decision-making process of the Board.
This process allows for actions to improve the company's
governance.
Evaluation of the Board of
Directors and its Committees
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Remuneration report for financial year 2021
General introduction
By law of 28 April 2020, new rules have been introduced in
Belgian company law, implementing the EU Directive 2017/828
as regards the encouragement of long-term shareholder
engagement.
These new rules require inter alia the company to have a remu-
neration policy, on which the shareholders have the right to
vote at the general meeting. The company submitted its remu-
neration policy for its directors, CEO and Core Leadership
Team to the shareholders for their approval at the general
meeting of 29 April 2021. The shareholders approved the policy
with a 66% majority.
This remuneration report must be read together with the
remuneration policy which, to the extent necessary, should
be regarded as forming part of this remuneration report. The
remuneration granted to directors, CEO and CLT members
with respect to financial year 2021 is in line with the remu-
neration policy. This report covers the 2021 remuneration
of the non-executive board members (Part A), of the Chief
Executive Ocer (CEO), who is also a member of the board
and thus an executive director (Part B) and other members
of the Core Leadership Team (CLT) who are not members of
the board (Part C).
Part 1:
Introduction to the 2021
remuneration report
Together with the component shortage crisis and the world-
wide increase of transport costs, the covid-19 pandemic
continued to have wide-ranging impacts on our company, our
markets and our people. By consequence, our remuneration
policy was also directly impacted by the crisis, with conse-
quences for executive pay (management, CEO and CLT) as
well as on the wages of the wider workforce.
In response to the crisis, Barco continued its measures to reset
expense levels, such as relying on temporary unemployment,
redeploying people, a continued discretionary spending stop
and hiring delays. While the impact on fixed remuneration
was limited, Barco took salary/bonus actions and decided
not to pay-out short-term incentive payment. Also, the long-
term incentive cash bonus was aected by the pandemic, as
it is directly linked to the annual business objectives, which
Barco had defined. Concerned about employee retention and
engagement, the Board, on the proposal of the Remuneration
and Nomination Committee, decided to provide a budget for
the payment of a one-time retention bonus in March 2022.
Part 2:
Remuneration report on the non-executive board
members, CEO and CLT-members
2.A Remuneration of the non-executive board members
On 29 April 2021, pursuant to article 17 of the Articles of
Association, the General Meeting set the aggregate annual
remuneration of the entire Board of Directors at 2,144,575 euro
for the year 2021. Next to the board fees of the non-executive
directors this amount includes the remuneration package of
the CEO. Details on the CEO’s remuneration are provided in
section 2, B hereinafter.
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Total remuneration non-executive directors
Name
Position
Fixed remuneration Variable remuneration
Extraordinary
items
Pension
expense
Total
remuneration
Proportion of fixed
and variable remuneration
Base
compensation
Attendance
fees
Other
benefits
One-year
variable
Multi-year
variable Fixed Variable
Charles Beauduin (*)
Chairman of the Board
€, €
.
NA NA NA NA NA €, % %
Lieve Creten (**)
Member of the Board
€, €, NA NA NA NA NA €, % %
Frank Donck,
Member of the Board
Chaiman of the Board (***)
€, €, NA NA NA NA NA €, % %
Ashok Jain,
Member of the Board
€, €, NA NA NA NA NA €, % %
Hilde Laga,
Member of the Board
€, €, NA NA NA NA NA €, % %
An Steegen (****)
Member of the Board
€, €, NA NA NA NA NA €, % %
Total €, €, NA NA NA NA NA €, % %
(*) Chairman until 31 August 2021 - CEO as of 1 September 2021 // (**) appointed by the General Meeting of 29 April 2021 // (***) Chairman of the Board as of 1 September 2021 // (****) Board member until 30 September 2021 - co-CEO
as of 1 October 2021
The remuneration paid to non-executive directors consists
solely of an annual fixed component plus the fee received
for each meeting attended. Considering the substantial time,
he devotes to the ongoing supervision of Barco group aairs,
the Chairman of the Board receives a dierent remuneration
package that comprises solely a fixed component. This rule
also applies to Mr. Frank Donck and this from his appointment
as Chairman of the Board onwards. The table above shows
both his remuneration as a member of and as chairman of
the Board. Details on the remuneration package of the Board
of Directors can be found in the Barco Remuneration Policy.
Non-executive directors do not receive any variable compen-
sation linked to results or other performance criteria. They
are not entitled to stock options or shares (see comment in
the Corporate Governance statement on page 4 regarding
the application of Principle 7.6 of the 2020 Belgian Corporate
Governance Code), nor to any supplementary pension
scheme.
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2.B Remuneration of the CEO
2.B.1 Total remuneration
The remuneration package of the CEO consists of a base
salary, a variable remuneration, stock options, a pension contri-
bution, and other components. There were no shares granted.
The remuneration package aims to be competitive and is
aligned with the responsibilities of a CEO leading a globally
operating industrial group with various business platforms.
Details of the remuneration package for the CEO can be found
in the Barco Remuneration Policy.
Following the departure of Mr. Jan De Witte end of August 2021
and the nomination of the co-CEO’s Mr. Charles Beauduin
and Mrs. An Steegen, as of 1 September 2021, respectively
1 October 2021, three individuals are under analysis of this
chapter.
T
he amount of the remuneration and other benefits granted
directly or indirectly to the CEO’s, by the Company or its sub-
sidiaries, in respect of 2021 for their CEO role is set forth below.
Redundancy payments are not included in these amounts.
Base Salary
The base salary of the CEO consists of the actual salary paid
by the company and may include a fixed director’s fee paid by
Barco, Inc. and by Barco China (Holding) Ltd.
Variable remuneration
The variable remuneration of the CEO consists of an annual
bonus which is subject to a deferral period of three years. The
CEO is, contrary to other members of the CLT, not entitled to
a long- term incentive (LTI). Variable remuneration, if any, vests
on 31 December of the performance year. Therefore, such
variable remuneration is reported for the year it vests and not
for the (subsequent) year it is paid.
For the reasons explained in Part 1 of this report and in
alignment with the dierent salary actions, and cost reduction
measures, taken across Barco’s workforce over the first half of
2021, the contractually agreed base salary of Mr. Jan De Witte
was reduced. No bonus for 2021 was vested in the hands of Mr.
Jan De Witte on 31 December 2021, except for the deferred
payment of 2019, nor in the hands of Mrs. An Steegen.
Taking into account his part time assignment, Mr. Charles
Beauduin is not entitled to an annual bonus.
Pension
The pension benefit of the CEO is an individual defined
contribution pension arrangement, which also includes a
death cover.
Taking into account his part time assignment, Mr. Charles
Beauduin is not entitled to a pension arrangement.
Total remuneration of CEO
Name
Position
Fixed remuneration Variable remuneration
Extraordinary
items
Pension
expense
Total
remuneration
Proportion of fixed
and variable remuneration
Base
compensation
Foreign
director fees
Other
benefits
One-year
variable
Multi-year
variable Fixed Variable
Jan De Witte
CEO (*)
, € , € , € € , € NA , € , € .% .%
Charles Beauduin
CEO (**)
, € , € € € € NA € , € .% .%
An Steegen
CEO (***)
, € € , € € € NA , € , € .% .%
(*) end of mandate 31/08/2021 // (**) start of mandate 1/09/2021 // (***) start of mandate 1/10/2021
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Other components of remuneration
The other components comprise the total cost of ownership
of a company car, hospitalization insurance as well as a
guaranteed income insurance in case of disability.
Taking into account his part time assignment, Mr. Charles
Beauduin is not entitled to these benefits.
The relative weight of base and variable remuneration is
exceptional as it is heavily impacted by the fact that no STI
vested for 2021.
2.B.2 Share based remuneration
The stock options granted to Mr. Jan De Witte under the
2018 scheme vested during 2021. Mr. De Witte has exercised
stock options granted in 2016 and 2017 during 2021. For more
details, see the table on page 21.
The Board of Directors has granted stock options to the
co-CEOs on 6 December 2021 under a stock option plan
covering a three-year period. The stock options will vest over a
period of 5 years at the rate of 20% of the total grant at the end
of each calendar year following the year of grant. The stock
options will only become exercisable after a period of 5 full cal-
endar years from the grant date and may be exercised during
the normal exercise periods, from May 15 to June 15, from
August 1 to September 15 and from October 1 to December
15. They have a ten (10) year term, thus linking the LTI to the
longer-term value creation for the shareholders. The stock
options are taxable at the time of grant in application of the
Belgian tax regulations and no conditions are attached to the
exercise of the stock options.
Since the grant nor the exercise of the stock options is linked
to performance conditions, this item of compensation is not
considered as variable remuneration in the sense of the Belgian
Corporate Governance Code. Therefore, it is also not included
in the calculation of the above relative weight of base pay and
variable remuneration.
There were no shares granted.
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Stock options
Main provisions of the stock option plan
Information related to the financial year
Name
Position
Plan
Identification
Grant
Date
Vesting
Date
End of
retention
period Exercise period
Exercise
price
Number of options
at the beginning of
the year
a) Number of
options granted
b) value underlying
shares @ grant date
a) Number of
options vested
b) value @
exercise price
Number of
options
exercised
Jan De Witte
CEO
SOP -CEO // // NA //- //
.
€ ,
SOP-CEO // // NA //- //
.
€ ,
SOP-CEO // // NA //- //
.
€ ,
a) ,
b) ,, €
SOP-CEO // // NA //- // . € ,
,
SOP-CEO // // NA //- //
.
€ ,
,
Charles
Beauduin
CEO
SOP -CEO // // // //- //
.
€
a) ,
b) ,, €
SOP -CEO // // // //- // . €
a) ,
b) ,, €
SOP -CEO // // // //- //
.
€
a) ,
b) ,, €
SOP -CEO // // // //- //
.
€
a) ,
b) ,, €
SOP -CEO // // // //- // . €
a) ,
b) ,, €
An Steegen
CEO
SOP -CEO // // // //- //
.
€
a) ,
b) ,, €
SOP -CEO // // // //- //
.
€
a) ,
b) ,, €
SOP -CEO // // // //- // .
€
a) ,
b) ,, €
SOP -CEO // // // //- // .
€
a) ,
b) ,, €
SOP -CEO // // // //- //
.
€
a) ,
b) ,, €
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2.C Remuneration of the CLT-members
The Core Leadership Team under analysis of this chapter
includes 17 people.
The CLT-members are employed by local Barco companies in
their respective countries of residence. Their compensation
packages, therefore, take local market remuneration and ben-
efit practice into account.
2.C.1 Total remuneration
The remuneration package of the Core Leadership Team mem-
bers other than the Chief Executive Ocer consists of a base
remuneration, a short-term variable remuneration, a long-term
variable bonus, stock options, a pension contribution, and
various other components. The remuneration package aims to
be competitive and is aligned with the role and responsibilities
of each CLT member, being a member of a team leading a
globally operating industrial group in the technology market
space with various business platforms. Details of the remu-
neration package for the CLT members can be found in the
Barco Remuneration Policy.
T
he amount of the remuneration and other benefits granted
directly or indirectly to the CLT-members, by the Company
or its subsidiaries, in respect of 2021 is set forth below.
Redundancy payments are not included in these amounts.
CLT-members
Name Position Employer legal entity Joined/left CLT
Geert Carrein Diagnostics Barco nv (BE) joined CLT : //
Tet Jong Chang Barco Visual Electronics Co
., L
td
.
(CN) left CLT : //
Olivier Croly Meeting & Learning Experience Barco Singapore Pte Ltd
.
(SG)
Gerwin Damberg Cinema & acting CTO MTT Innovation Inc
.
(CA)
Ann Desender Chief Financial Officer Barco nv (BE)
Johan Fornier Surgical & Modality Barco nv (BE) joined CLT : //
Stijn Henderickx Immersive Experience Barco nv (BE)
Anthony Huyghebaert Chief HR Officer Barco nv (BE) joined CLT : //
Rob Jonckheere Global Operations Barco nv (BE)
Filip Pintelon Barco nv (BE) left CLT : //
Chris Sluys Large Video Wall Experience Barco nv (BE) joined CLT : //
Marc Spenlé Chief Digital & Information Officer Barco nv (BE)
George Stromeyer Barco Inc
.
(USA) left CLT : //
Iain Urquhart Global Customer Success Barco Inc
.
(USA)
Nicolas Vanden Abeele Barco nv (BE) left CLT : //
Kurt Verheggen General Counsel Barco nv (BE)
Kenneth Wang Barco China Barco Visual Electronics Co., Ltd. (CN) joined CLT : //
Total remuneration of CLT (excluding CEO)
Name
Position
Fixed remuneration Variable remuneration
Extraordinary
items
Pension
expense
Total
remuneration
Proportion of fixed
and variable remuneration
Base
salary
Foreign
director fees
Other
benefits
One-year
variable
Multi-year
variable Fixed Variable
Core Leadership Team € , , € , € , € , €, € , € , € , , % %
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Base salary
The base salary reflects role responsibilities, job characteristics,
experience, and skill sets.
Variable salary
Variable salary consists of an STI component and a Long-Term
Incentive (LTI) component, both delivered in cash.
Variable remuneration, if any, vests on 31 December of the
performance year. Therefore, such variable remuneration is
reported for the year it vests and not for the (subsequent)
year it is paid.
Annual Bonus
It is Barco’s ambition to continue to build a pay for perfor-
mance culture where performance makes a dierence and
is truly recognized and rewarded with an annual bonus as
set forward by the global Barco Bonus Policy. The individual
bonus for the CLT members is governed by the same policy.
The main conditions for the annual bonus are (i) the creation
of the bonus pool and (ii) the achievement of bonus targets:
• Profitability of the Barco group is the basis for creating the
bonus pool. A minimum of 70% of the 2021 Profit Plan
EBITDA (excluding results on divestments and discontinued
operations and excluding growth initiatives) should be
achieved on group level before bonuses are paid.
• A strong focus on performance at Group, divisional/regional/
functional and individual level is reflected in the annual
Barco bonus program, which is directly linked to the annual
business objectives.
Payment is capped at 150% of the target award.
Barco Bonus performance matrix
bonus target
clusters Performance criteria
relative
weight
a) Minimum target performance &
b) corresponding award payment level(*)
a) on-target performance and
b) corresponding payment level(*)
a) Maximum target performance &
b) corresponding payment level(*)
) Threshold for bonus
pool
company
% of Group Ebitda PP target:
yes / no
%
a) %
b)
a) NA
b)
a) NA
b)
Payment level
) Bonus targets company EBITDA %
a) %
b)
.
a) %
b)
.
a
) %
b)
.
F
CF %
a) %
b) .
a) %
b) .
a) %
b) .
business
region
or function
- Division EBITDA
- Division Sales
- Division Working Capital %
- Regional Sales
- Regional Sales Cost vs Sales %
- Group Sales
- WW functional budget
% a) %
b) .
a) %
b) .
a) %
b) .
individual
Individual performance targets:
operational excellence, people
leadersip (engagement, culture),
personal development
% a) %
b) .
a) %
b) .
a) %
b) .
Total Bonus Payment level individual bonus . . .
Total Bonus Payment level (threshold outcome) x (bonus payment level) . . .
T
otal bonus: (individual OT bonus x (total payment level)
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The Company does not disclose the actual targets per cri-
terion, as this would require the disclosure of commercially
sensitive information.
As explained in Part 1 of this report, no 2021 STI was vested
in the hands of the CLT on 31 December 2021 as the 70% of
Group EBITDA target, condition for creating the bonus pool
was not met.
Long-term incentive Plan
In 2018 Barco implemented its revised LTI policy that exists
of a combination of a LTI Cash Plan and stock options. The
latter are dealt with in section 2, C, 2 below. The LTI Cash Plan
incentivizes and rewards engagement and leadership in driving
the performance of Barco’s business in accordance with its
long-term strategic goals.
The long-term incentive cash bonus is a conditional right to
receive a cash payment upon the achievement of long-term
company performance indicators as determined by the Board:
• LTI PLan 2018 - 2020: sales CAGR, EBITDA margin increase
and cumulated net earnings over the respective 3-year plan
period and continued employment on the last day of the
plan period.
• LTI PLan 2021 - 2023: cumulated net earnings, EBITDA % at
End of PLan Period and sustainability drivers (Greenhouse
Gas Emission reduction and Eco-labeled revenues) over the
respective 3-year plan period and continued employment
on the last day of the plan period.
Payment is capped at 150% of the target award.
Following the hard wide-ranging impact of the covid-19
pandemic on our company and our markets, the Board of
Directors decided in 2020 to extend exceptionally the vest-
ing period of the LTI PLan 2018-2020 with an additional year
(thus extending the vesting period till 31 December 2021). No
change was made to the performance criteria. The plan did
not vest on 31 December 2021.
Pension
The CLT is entitled to a complementary pension benefit based
on the provisions of the defined contribution plans for senior
executives in their base countries.
Other components of remuneration
The other main components for all CLT-members are com
-
pany car or car allowance, hospitalization or medical insurance
and guaranteed income insurance in case of disability, next
to occasional local benefits in accordance with local market
practice.
Relative part of base pay and variable pay
Following what is stated above, the CLT’s entire 2021
pay consisted only of fixed remuneration and no variable
remuneration. This relative weight is exceptional as it is heavily
impacted by the fact that no STI nor LTI vested for 2021.
2.C.2 S
hare based remuneration
As stated above, part of the LTI is delivered as stock options
.
No shares were granted to the CLT-members, nor was
any other share-based remuneration provided to the CLT-
members, during 2021. Reference is made to the explanation
given in the Corporate Governance Statement on page 4
regarding the reason for this deviation from article 7.9 of the
Belgian Corporate Governance Code.
In 2021, following authorization by the general meeting and at
the proposal of the Remuneration and Nomination Committee,
the Board of Directors allotted stock options to 13 members of
the CLT. The exercise price amounts to EUR 17,80 per option,
with a three-year vesting period. The number of options to be
oered to each individual beneficiary is variable in part. The
options are oered to the beneficiaries for no consideration.
For CLT members on a Belgian payroll the stock options are
taxable at the moment of grant in application of the Belgian
tax regulations. 136,000 stock options were granted to and
accepted by the members of the CLT.
All details on the stock options granted, vested, and exercised
by the CLT members are provided in the table on page 25.
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Stock options
Main provisions of the stock option plan Information related to the financial year
Name
Position
Plan
Identification
Grant
Date
Vesting
Date
End of
retention
period Exercise period
Exercise
price
Number of
options at the
beginning of
the year
a) Number of
options granted
b) value underlying
shares @ grant date
a) Number of
options vested
b) value @
exercise price
Number of
options
exercised
number
of options
expired
Geert
Carrein,
EVP
SOP -P // // NA //- //
.
€
a) ,
b) , €
SOP-EEA // // NA //- // . € ,
SOP-EEA // // NA //- //
.
€ ,
Olivier
Croly,
EVP
SOP -P // // NA //- //
.
€
a) ,
b) , €
SOP -P // // NA //- // . € ,
SOP-P // // NA //- //
.
€ ,
SOP -P // // NA //- //
.
€ ,
a) ,
b) , €
SOP-EEA // // NA //- // . € , ,
Gerwin
Damberg,
EVP
SOP -P // // NA //- //
.
€
a) ,
b), €
SOP -P // // NA //- //
.
€ ,
SOP-P // // NA //- // .
€ ,
Ann Desender,
CFO
SOP -P // // NA //- //
.
€
a) ,
b) , €
SOP -P // // NA //- // . € ,
SOP-P // // NA //- // . € ,
SOP -P // // NA //- // . € ,
a) ,
b) , €
SOP-EEA // // NA //- // . € ,
,
SOP-EEA // // NA //- // .
€ ,
,
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Stock options
Main provisions of the stock option plan Information related to the financial year
Name
Position
Plan
Identification
Grant
Date
Vesting
Date
End of
retention
period Exercise period
Exercise
price
Number of
options at the
beginning of
the year
a) Number of
options granted
b) value underlying
shares @ grant date
a) Number of
options vested
b) value @
exercise price
Number of
options
exercised
number
of options
expired
Johan Fornier,
EVP
SOP -P // // NA //- //
.
€
a) ,
b) , €
Stijn
Henderickx,
EVP
SOP -P // // NA //- // . €
a) ,
b), €
SOP -P // // NA //- //
.
€ ,
SOP-P // // NA //- //
.
€ ,
SOP-EEA // // NA //- // . € ,
Anthony
Huyghebaert,
CHRO
SOP -P // // NA //- // . €
a) ,
b) , €
Rob
Jonckeere,
EVP Operations
SOP -P // // NA //- //
.
€
a) ,
b) , €
SOP -P // // NA //- //
.
€ ,
SOP-P // // NA //- //
.
€ ,
SOP-EEA // // NA //- //
. € ,
SOP-EEA // // NA //- // .
€ ,
Chris Sluys,
EVP
SOP -P // // NA //- //
.
€
a) ,
b) , €
Marc Spenlé,
CDIO
SOP -P // // NA //- //
.
€
a) ,
b), €
SOP -P // // NA //- //
.
€ ,
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Stock options
Main provisions of the stock option plan Information related to the financial year
Name
Position
Plan
Identification
Grant
Date
Vesting
Date
End of
retention
period Exercise period
Exercise
price
Number of
options at the
beginning of
the year
a) Number of
options granted
b) value underlying
shares @ grant date
a) Number of
options vested
b) value @
exercise price
Number of
options
exercised
number
of options
expired
Iain Urquhart,
EVP
SOP -P // // NA //- // . €
a) ,
b), €
SOP -P // // NA //- //
.
€ ,
SOP-P // // NA //- // . € ,
Kurt Verheggen,
General
Counsel
SOP -P // // NA //- // . €
a) ,
b) , €
SOP -P // // NA //- //
.
€ ,
SOP-P // // NA //- // . € ,
SOP -P // // NA //- //
. € ,
SOP-EEA // // NA //- //
.
€ , ,
SOP-EEA // // NA //- // .
€ , ,
Kenneth Wang,
EVP
SOP -P // // NA //- // . €
a) ,
b) , €
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The details on the stock options granted, vested, and exercised by the CLT members who left Barco are provided in the table below.
Stock options
Main provisions of the stock option plan Information related to the financial year
Name
Position
Plan
Identification
Grant
Date
Vesting
Date
End of
retention
period Exercise period
Exercise
price
Number of
options at the
beginning of
the year
a) Number of
options granted
b) value underlying
shares @ grant date
a) Number of
options vested
b) value @
exercise price
Number of
options
exercised
number
of options
expired
Xavier Bourgois,
left December
SOP-P // // NA //- //
.
€ ,
SOP -P // // NA //- //
.
€ ,
a) ,
b) , €
SOP-EEA // // NA //- //
.
€ ,
SOP-EEA // // NA //- //
.
€ ,
SOP-EEA // // NA //- // . € ,
Piet Candeel,
left March
SOP-EEA // // NA //- // . € , ,
Tet Jong Chang,
retired March
SOP -P // // NA //- // . € ,
SOP-P // // NA //- // . € ,
SOP -P // // NA //- //
.
€ ,
a) ,
b) , €
SOP-ROW // // NA //- // . € ,
An Dewaele,
left December
SOP-P // // NA //- //
.
€ ,
SOP -P // // NA //- // . € ,
a) ,
b) , €
SOP-EEA // // NA //- // . € ,
Johan Heyman,
left CLT
September
SOP-P // // NA //- // . € ,
SOP -P // // NA //- // . € ,
SOP-EEA // // NA //- // . € ,
SOP-EEA // // NA //- // . € , ,
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Stock options
Main provisions of the stock option plan Information related to the financial year
Name
Position
Plan
Identification
Grant
Date
Vesting
Date
End of
retention
period Exercise period
Exercise
price
Number of
options at the
beginning of
the year
a) Number of
options granted
b) value underlying
shares @ grant date
a) Number of
options vested
b) value @
exercise price
Number of
options
exercised
number
of options
expired
Filip Pintelon,
left October
SOP -P // // NA //- //
.
€ ,
SOP-P // // NA //- // . € ,
SOP -P // // NA //- // . € ,
a) ,
b) , €
SOP-EEA // // NA //- //
.
€ ,
SOP-EEA // // NA //- // .
€ ,
SOP-EEA // // NA //- // . € , ,
SOP-EEA // // NA //- //
.
€ ,
George
Stromeyer,
left October
SOP -P // // NA //- //
.
€ , ,
SOP-P // // NA //- //
.
€ , ,
SOP -P // // NA //- // . € ,
a) ,
b) , €
SOP-US // // NA //- // . € , ,
Nicolas Vanden
Abeele,
left October
SOP -P // // NA //- // . € ,
SOP-P // // NA //- // . € ,
SOP -P // // NA //- //
. € ,
a) ,
b) , €
Reference is made to page 71 in the Financial Statements for an overview of the stock options exercisable under the stock option plans.
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Part 3:
Redundancy payments
CLT members operate under an employment contract, con-
cluded with the entity of the Barco group in the country where
they live. Their contracts are governed by the local legal provi
-
sions. If the employment of a CLT member is terminated, local
rules and legislation governing the contract of employment,
including those pertaining to notice periods and severance
payments, apply.
Upon proposal of the remuneration and nomination commit-
tee, the Board agreed on the departure compensation for 5
people, and the basis for its calculation as set forward below.
Tet Jong Chang, former SVP China, retired from the com-
pany on 31 March 2021. In accordance with the retirement
agreement a prorated STI bonus on target has been paid for
bonus year 2021.
Eective 31 August 2021, Jan De Witte, former CEO, left the
company. In accordance with the severance agreement, he
was granted a termination indemnity based on nine months
of total remuneration.
Eective 20 October 2021, George Stromeyer, former SVP
Enterprise, left the company. In accordance with the severance
agreement, he was granted a termination indemnity based
on six months of remuneration whereby the remuneration
basis includes fixed pay, and continuation of Health Coverage
(COBRA) for 6 months.
Eective 22 October 2021, Nicolas Vanden Abeele, former
SVP Entertainment, left the company. In accordance with the
provisions of his employment contract, the severance agree-
ment included a termination indemnity based on six months
of remuneration whereby the remuneration basis includes
fixed pay, 65% of the on-target STI bonus, the annual pension
contribution and other benefits.
Effective 22 October 2021, Filip Pintelon, former SVP
Healthcare, left the company. In accordance with the pro-
visions of his employment contract of 3 October 2008, the
severance agreement included a termination indemnity based
on eighteen months of on-target remuneration whereby the
remuneration basis includes fixed pay, on-target STI bonus,
annual pension contribution and other benefits.
Part 4:
Use of the right to reclaim
There was no reason for the Board to reclaim any previously
paid variable remuneration to the CEO or to any of the
CLT-members.
Part 5:
Deviations from the remuneration policy
All of the above was determined and paid in line with the
existing company reward policies. It also reflects the
measures taken by the Board of Directors at the initiative of
the Remuneration and Nomination Committee as stated in
Part 1 above.
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Part 6:
Evolution of remuneration
and company performance
As requested by the Belgian Company Law, Barco reports
the pay ratio of the CEO remuneration versus the lowest FTE
employee remuneration in its legal entity Barco nv. The 2021
pay ratio is 25.58.
Part 7:
Vote of the shareholder
The remuneration report 2020 was approved by the general
meeting of 29 April 2021 with a 90% vote. As no comments
were made to the previous remuneration report, there were
no such comments to be considered for the remuneration
paid or vested during 2021.
From conversations with shareholders, it appears however
that the variable part of the remuneration packages for CLT
members is complex, with many KPIs and too little attention
to targets in the sustainability area. On the Remuneration
and Nomination Committee’s proposal, the Board agreed to
introduce an STI policy that is simple, transparent, and ecient.
Hence an updated version of the remuneration policy will be
presented at the next general meeting for approval.
In thousands of euro
Remuneration of Non-Executive Directors
()
Total annual remuneration , , , , , ,
Year-on-year difference (%) % % -% -% -% %
Number of Non-Executive Directors under review
Remuneration of CEO
CEO remuneration
Total annual remuneration (EUR) ,, ,, ,, ,, ,, ,,
Year-on-year difference (%) % -% % % -% -%
Remuneration of CLT
Total annual remuneration (EUR) ,, ,, ,, ,, ,, ,,
Year-on-year difference (%) % % % % -% -%
Number of CLT Members under review
Barco Group Performance
NET SALES (M euro) ,, ,, ,, ,, , ,
Year-on-year difference (%) % -% -% % -% %
EBITDA (M euro) , , , , , ,
Year-on-year difference (%) % % % % -% %
Net income attributable , , , , -, ,
Year-on-year difference (%) % % % % -% %
Average remuneration per FTE employee
()
Average employee cost per FTE (EUR)
()
, , , , , ,
Year-on-year difference (%) .% .% -.% .% -.% .%
(1)
As indicated in Part 2,A of the Remuneration Report the remuneration for non-executive directors depends only on the number of meetings and is reported aggre-
gated for this table.
(2)
Average remuneration of employees is calculated on the basis of “wages and direct social benefits”, including company cars, divided by the number of employees
on a year-over-year basis.
(3)
Employee cost 2021 increase due to (a) less unemployment and wage subsidies following enacted covid release acts, (b) merit and COL increases versus only
mandatory COL increases in 2020, (c) higher attrition combined with recruiting in an overheated labor market
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Transparency of transactions involving shares or other
financial instruments of Barco
The company has issued a Market Abuse Prevention Policy
which is being enforced as part of its compliance management
program, available for review on the company’s website (www.
barco.com/corporategovernance). It meets the requirements
of the EU Regulation of 16 April, 2014 n° 596/2014 on market
abuse. Persons discharging managerial responsibilities and
persons closely associated with them must notify the Financial
Services Market Authority (“FSMA”) of any transactions involving
shares or other financial instruments of Barco within three
business days after the transaction. Such transactions are made
public on the website of the FSMA (www.fsma.be) as well as
the company’s website, the latter on an aggregate basis.
Policies of conduct Managing sustainability
At Barco, we see sustainability as one of the drivers of our
corporate strategy. We design and act towards sustainable
outcomes for our planet, the community we operate in and
our colleagues. Governance keeps our corporate sustainability
strategy on track, ensuring that our strategy remains eective,
and that accountability for our results sits right at the top of
our company. A more detailed description of our sustainability
governance is available in our Planet-People-Communities
chapter and on Barco’s corporate website.
Conflicts of interest
The company has laid down the rules for conflicts of inter-
est, applicable to its directors and executive managers, in its
Corporate Governance Charter.
These rules complement the procedures set by the Code
of Companies and Associations for conflicts of interest of a
financial nature and related party transactions (Article 7:96
and 7:97 CCA).
In 2021, no conflicts of interest of a financial nature or related
party transactions falling within the scope of these procedures
arose.
Statutory auditor
Barco refers to note 22 Related party transactions in Financial
Statements 2021.
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Risk management
and control processes
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Within the context of its business operations, Barco is
exposed to a wide variety of risks that can aect its
ability to achieve its business objectives and to execute
its corporate strategy successfully. To anticipate, identify,
prioritize, manage and monitor the risks that impact its
organization, Barco has put a sound risk management
and control system into place in accordance with the
Code of Companies and Associations and the 2020
Corporate Governance Code. Our risk management and
control processes are actively supported by the Board
of Directors. They understand the risks that Barco faces,
and assure that these risks are eectively managed by
requiring that the co-CEOs and the Core Leadership
Team (CLT) are fully engaged in risk management. Risk
mitigation and control is a core task of the executive
management and all employees with managerial
responsibilities.
Barco’s risk management and control system was set up to
achieve the following objectives:
The risk management and control system is based on the
principles of the COSO reference framework and the ISO
31000 risk management standard.
Objectives
Objectives
Correct and timely
financial reporting
Compliance with all
applicable laws and
regulations
Operational and
strategic objectives
Operational
excellence
Risk
management
and control
system
Control
Environment
Objectives
Identification
Risk
response
Control
activities
Information &
communication
Monitoring
Analysis &
evaluation
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Barco strives for a strong compliance culture and risk aware-
ness attitude by defining clear roles and responsibilities in all
relevant domains. In this way, the company fosters an environ-
ment in which it pursues its business objectives and corporate
strategy in a controlled manner
.
This environment is created
by implementing various company-wide policies and proce-
dures, such as:
•
T
he Code of Ethics
•
D
ecision and signature authority rules
• The Barco culture building blocks
• Quality and other management systems
• Risk profiling, reporting and mitigation processes
Risk management is firmly embedded into Barco’s processes,
at all levels. For every key management, assurance and sup-
porting process, Barco has developed and implemented a sys-
tematic risk management approach. It consists of five steps:
identification, analysis, evaluation, response and monitoring.
The CLT fully endorses this approach. Employees are regularly
informed and trained on these subjects to ensure sucient
risk management and control at all levels and in all areas of
the organization.
E
very year in the fourth quarter, we perform a company-wide
risk assessment and compliance gap analysis. This exercise,
which involves the CLT members, the legal & compliance re-
sponsible of the subsidiaries and other key employees, aims to
strengthen and formalize risk awareness throughout Barco.
It encourages the employees with managerial responsibilities
to actively think about the risks that impact our business and
provides them with a clear view on how their peers around the
world perceive risk.
The yearly risk assessment and c
ompliance gap analysis is a
joint eort of the Risk Manager, the Global Compliance Man-
ager and Internal Audit.
Identification
The Barco risk universe is reviewed on a yearly basis, based on
insights from interviews with the CLT members and a bench-
marking against the risk reports published by the top global
insurers and international organizations.
In 2021, ‘pr
oduct portfolio and innovation’ was defined as a
new risk in the Barco risk universe. In previous years, it was part
of the ‘Macroeconomic, geopolitics and market’ risk and the
‘Digital transformation and new technologies’ risk. According-
ly, these two risks have been re-defined.
Control environment Risk management process
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* 'Nth' party risk: An order of magnitude broader than the traditional third-party
risk. Every party that a company utilizes is likely to use a large number of
other parties of its own. This then becomes a chain of downstream relation-
ships with fourth, fifth parties and eventually Nth parties, introducing a new
risk factor to the ecosystem.
Barco Risk Universe
The following risks are taken into consideration. Analysis
Once identified, the risks are scored using inherent risk (‘likeli-
hood’ and ‘impact) and control level scales. The scales for im-
pact, likelihood and control level are based on the acceptable
level of risk exposure determined by the Board of Directors
and laid down in the Barco corporate risk evaluation system.
The sc
oring of Barco’s risks was done via an online question-
naire in 2021. All 16 CLT members and all 23 senior managers
from dierent subsidiaries completed the questionnaire.
E
valuation
In the ‘evaluation’ phase, a risk matrix is drawn up, resulting in
Barco’s inherent and residual risk profile.
To
set the right priorities, the risk is first evaluated in terms
of impact and likelihood. The resulting inherent risk does not
yet consider any management activities or control measures
developed to mitigate it.
The r
esidual risk level is then determined by taking into ac-
count the control level (control measures and their eective-
ness) of each risk.
The CLT then reviews the results. The top risks are identified
and divided into risks to be accepted, monitored or improved.
For each top risk, a risk sponsor is designated.
Barco
risk
universe
• Information security
• Business Ethics
• Product quality
• Supply chain & ‘Nth’ party
• Financial & liquidity risk
• Data governance & privacy
• Macroeconomic, geopolitics and market
• Human capital & talent management
• Contingency & crisis response
• Local compliance & regulatory change
• Corporate governance & strategy
• Sustainability & environmental impact
• Digital transformation & new technologies
FREQUENT RARELY
DESTRUCTIVE
NEGLIGIBLE
• Information security risk
• Macroeconomic & geopolitics risk
•
H
uman capital & talent management
•
Digital transformation & new technologies
• Product portfolio & innovation
•
D
ata governance & privacy
•
P
roduct quality
•
S
upply chain & 'Nth' party risk
•
C
ontingency & crisis response
•
Business ethics
• Corporate governance & strategy
• Financial & liquidity risk
• Local compliance & regulatory change
• Sustainability & climate risk
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Risk response
Management response to the top risks
• ‘Risks to improve’ are contained by means of an enhanced
mitigation plan next to the continuous improvement actions
and existing control measures. This plan must minimize the
eect of these risks on the organization’s ability to achieve
its objectives and results. For these types of risks, if any, a
CLT risk sponsor is appointed.
• ‘Risks to monitor’ are contained by means of the ongoing
continuous improvement actions and existing control
measures. These types of risks reside under the sponsorship
of a CLT member who monitors them.
• ‘Acceptable risks’ and ‘risks to optimize’ are recorded in the
risk register of the related process.
The outcome is summarized in a report that is presented to
the Audit Committee and made available to the Board of Di-
rectors.
The Risk Manager supports the adoption of clear processes
and procedures for a wide range of business operations. In
addition to these control activities, an insurance program has
been implemented for selected risk categories that cannot be
absorbed without material impact on the company’s balance
sheet.
Monitoring
Risk monitoring helps to ensure that mitigation plans and in-
ternal controls continue to operate eectively. Progress of
action plans and related status KPIs are tracked on a regular
basis to remediate gaps in mitigation and monitoring activities.
Risks in the ‘improve’ and ‘monitor’ quadrants are subject to a
quarterly review by the CLT risk sponsor, the Risk Manager and
a delegation of CLT members. A semi-annual review is con-
ducted during a CLT meeting which is formalized by Internal
Audit and reported to the Audit Committee.
INHERENT RISK
ACCEPT
MONITORIMPROVE
OPTIMIZE
2
10
15
20
25
3 4 5CONTROL LEVEL
RISK UNDER OBSERVATION
UNACCEPTABLE RISK
CRITICAL RISK
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The continuity and the quality of Barco’s risk management
and control system is assessed by following actors:
• Internal Auditor – the tasks and responsibilities assigned
to Internal Audit are recorded in the internal audit charter,
which has been approved by the Audit Committee. The key
mission of internal audit as defined in the internal audit char-
ter is “to add value to the organization by applying a system-
atic, disciplined approach to evaluating the internal control
system and providing recommendations to improve it”.
•
External Auditor
– in the context of the external audit review
of the annual accounts and their assessment of key internal
controls.
•
Compliance Ocer
– within the framework of the compa-
ny’s Corporate Governance charter.
• Risk Manager – plays a pivotal role in the organization by en-
suring appropriate coordination and follow-up of risk man-
agement activities.
•
Global Compliance Manager
– coordinates between dier-
ent compliance roles, functionally and regionally
.
The com-
pliance status and gaps are mapped on a regular basis in
order to define compliance risks, priorities and mitigations
as needed.
•
Audit Committee
– the Board of Directors, assisted by its
Audit Committee, has the final responsibility with respect to
internal control and risk management
.
Control activities
A timely, complete and accurate information flow – both top-
down and bottom-up – is a cornerstone of eective risk man-
agement.
In opera
tional domains, Barco has implemented a manage-
ment control and reporting system (MCRS) to support e-
cient management and reporting of business transactions and
risks. This system enables the Barco management to capture
relevant information on particular areas of business operations
at regular time intervals. The process enforces the clear as-
signment of roles and responsibilities, thus ensuring consis-
tent communication to all stakeholders regarding external and
internal changes or risks impacting their areas of responsibility.
In addition
to the MCRS, the company has put several mea-
sures into place to ensure the security of confidential in-
formation and to provide a communication channel for
employees to report any (suspected) violation of laws, regu-
lations, the company’s code of ethics or policies.
Information and communication
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02 RISK
MANAGEMENT
On the right are the top risks, identified by the 2021 risk man-
agement process, along with the trends and related material
topic/strategic lever
.
Certain risks have been slightly regrouped
and renamed compared to last year following the most recent
risk identification process.
W
e refer to the extra risk section regarding the consequences
and impact of the covid-19 pandemic and to the management
discussion and analysis in the ‘results’ section for an update on
the impact of covid-19 and the impact of supply constraints on
the full year 2021 results.
Top risks
Risk TREND MATERIAL TOPIC STRATEGIC LEVER
Supply chain &
‘Nth’ party risk
pp
Responsible supply chain management
Sustainable profitable growth
Product quality, safety and security
Focus to Perform & Go for sustainable impact
Product portfolio &
Innovation
New
Innovation management
Market reach
Innovate for Impact & Offer outcome-based
solutions
Human capital &
talent management
p
Employee engagement
Learning and development
Employee health, safety and wellbeing
Diversity and inclusion
Focus to Perform & Go for sustainable impact
Digital transformation & new
technologies
Innovation management
Learning and development
Innovate for Impact & Offer outcome-based
solutions
Macroeconomic &
geopolitics risk
Market reach Focus to perform
Product quality
Product quality, safety and security
Customer engagement
Brand
Innovate for Impact & Offer outcome-based
solutions
Information security risk
Information security and data protection
Product quality, safety and security
Focus to Perform & Go for sustainable impact
Data governance
and privacy
Innovation management
Information security and data protection
Go for sustainable impact
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Risk description
The dependency on suppliers, partners, integrators and dis-
tributors creates a vulnerability that might impact our prod-
uct portfolio in terms of quality, availability and cost. Next to
the covid-19 pandemic, the global chip shortage has put high
pressure on the global supply chain and caused an additional
burden on Barco’s resources, inventory, manufacturing and
delivery performance.
Trend:
Supply chain and Nth party risks were identified as a main risk
in 2020 and became the key risk in 2021, especially in light of
the global electronics component shortage.
Supply chain & 'Nth' party risk
Mitigation plan:
We maintained mitigation actions that we had defined in the
past years and further developed these to meet the challenges
going forward, focusing on:
•
W
ar rooms and day-to-day alignment processes across
our global operations to ensure business continuity
.
•
24/7 monitoring of component shortages by the
procurement teams around the world
.
•
Multi-sourcing of key components and design-in of
available alternatives
.
• M
ulti-tier risk assessment and multi-level risk monitoring
.
• Component selection in line with state-of-the-art
supplier’s product and technology roadmaps.
• Early supplier involvement during the development of
new products
.
• S
upplier contingency plans for our key and core
suppliers
.
More information can be found in “Supply chain responsibility”
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Product portfolio & innovation
Risk description
If competitors outperform Barco with new technologies, new
business models, faster time-to-market, lower costs or en-
hanced product features, this can result in missed business
opportunities and thus eventually a decline in revenue.
The inability to balanc
e between core and transformational
innovation with real breakouts may lead to poor product port-
folio management and weakened competitive power
.
Not being able to identify customer needs and to successfully
convert these into value-adding products and solutions might
impact market share and profitability of our business.
Trend:
Product portfolio and innovation is one of the top risks in Bar-
co ranked as number 2.
Mitigation plan:
In 2021, we implemented organizational changes to enhance
market responsiveness and fully empower business unit exe-
cution of strategic priorities combined with focused account-
ability
.
In the past, Barco worked with a matrix organizational
structure consisting of geographic regions which handled
sales, marketing and customer service functions. These inter-
acted with business units in the operational divisions. Under
the revised organizational structure, regional sales is folded
into the company’s business units together with product man-
agement and research & development.
A thorough and continuous review of the R&D investment
portfolio to define priorities and ensure a healthy balance be-
tween maintenance R&D and breakthrough innovation must
ensure that Barco preserves a frontrunner position in its key
technologies.
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Risk description
A skilled workforce and agile organization are essential for the
continued success of our business. Diculties in attracting,
retaining and developing employees could lead to continued
vacancies in certain critical areas, higher employee dissatis-
faction and turnover, lower performance and underutilization
of existing skills. Stang issues could result in a skillset not
able to meet all competency requirements in view of rapidly
moving technologies, changing business models and opera-
tional agility
.
In times when employees ar
e required to work from home,
they may become disconnected from the work environment.
That could lead to mental fatigue, stress and anxiety.
It is
therefore crucial to protect employees’ health and wellbeing
to avoid labor incidents, burnouts and long-term sickness.
Trend:
Human resources management has been identified as an impor-
tant risk in the last three years.
Mitigation plan:
The Human Resources team commits to investing in work-
force strategy and organizational eectiveness as key fo-
cus domains, in addition to delivering professional Human
Resources services to attract, develop, reward and engage a
diverse and global workforce, while ensuring timely and clear
communication to employees.
The HR-r
elated priorities start from the Barco business objec-
tives, translating these into main HR actions in the following
domains:
• Workforce strategy & skill gap analysis: HR guides and
partners with the business to translate the organizational
strategy of the business units into a coherent people plan,
using a competence framework and identifying skills of the
future. Based on these insights, they can develop proactive
and strategic recruitment and training plans (upskilling-reskill-
ing-internal mobility-external hiring).
• Workforce and headcount management strategy: HR leads
the recurrent review of headcount status and in-out-turnover,
monitoring worldwide talent pools in the diverse regions we
are active in, in order to measure and improve the impact of
our retention and recruitment plan.
Human capital & talent management
• Culture, people & leadership development: HR provides
employees and people leaders with the proper tools and solu-
tions to work on employee development, engagement and
wellbeing through an employee engagement measurement
tool, a dedicated Barco University training oering (classroom,
online, e-learning or hybrid) and continuing the culture jour-
ney with focus on a global and diverse culture.
Read more in the Report on People.
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Risk description
The inability to embrace technological advancements quickly
could impact Barco’s ability to accelerate growth. Technologies
such as machine learning, robotics, artificial intelligence and
the use of big data and analytics can improve business pro-
cesses and increase eciency
.
The failure to adopt these will
impair operational resilience and the ability to face current
and future challenges and may result in missed revenues and
missed business opportunities. In Barco’s environment, a rapid
time to market is the key to ensuring competitiveness.
Trend:
Digital transformation and new technologies were one of our
main risks in 2020 and remains key in 2021.
Mitigation plan:
To mitigate this risk, Barco developed a master plan, which it
launched in March 2021 together with the new ‘Digital and
Information Organization’: the centralization of both the cor-
porate marketing and the SW R&D functions with IT
.
Major blocks of the mitigation plan are:
•
(Digital)
Customer journey & experience: customer
journey mapping exercises and active use in the business
units.
•
R
oll out of SalesForce as a global Customer relationship
management tool.
•
Mindset, cultur
e and leadership transformation:
define marketing blue-print program and train internal
stakeholders on value streams and design thinking.
• Data governance, management and strategy: Definition
of the data collection/monetization metrics
.
See also
‘Data governance and privacy risk’
.
•
I
T stability, quality, flexibility & speed: re-organization
based on the helix model with five business-centric
value streams and separate Center of Excellences
.
I
mplementation of a Strategic Global Portfolio
Prioritization methodology to decide on investments and
to generate transparency on projects and capacity
.
Digital transformation & new technologies
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Risk description
Serious political and (macro) economic evolutions and fluc-
tuations can heavily impact the investment climate and could
even slow business in a country or region to a complete halt.
Geopolitical tensions, deteriorating trade relations and trade
policy uncertainties impact global economic activity and
could translate into constraints to Barco’s operations (taris,
intellectual property restrictions, data ownership, investment
restrictions, sta mobility restrictions due to travel limitations;
but also quarantine restrictions impacting the company and
its people).
Trend:
The “Macroeconomic, geopolitics and market” risk was iden-
tified as the key risk in 2020
.
The risk was redefined in 2021,
moving the market-related elements to the new risk ‘Product
portfolio & innovation’, in the risk universe. Accordingly, the
‘Macroeconomic and geopolitics’ risk dropped in ranking in
2021.
Mitigation plan:
• The company closely monitors the macroeconomic and
geopolitical developments in the regions in which it is active.
Their potential impact on the company’s business operations
(geographical footprint, supply chain, operations, import and
export activities, commercial and go-to-market strategy, cash
management, etc.) and possible remedial actions are assessed
in business review meetings for the short term, and in the
strategic Management Plan and Profit Plan for the mid to
long term.
• The wide spread of activities across dierent regions and
industries contributes to absorbing the risk.
Macroeconomic & geopolitics risk
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Risk description
Barco’s reputation as a business partner relies heavily on its
ability to supply high-quality products. Failure to comply with
the internal quality processes and stage gate requirements can
lead to the market introduction of immature products – result-
ing in loss of sales and market share, additional cost and rep-
utational damage. Product quality issues and delivery issues
such as the inability to fulfill orders in a timely way leading
to reputational damage, customer dissatisfaction and loss of
business.
Trend:
Product quality was one of our main risks in 2020 and remains
so in 2021.
Product quality
Mitigation plan:
Product quality is guaranteed by rigorously executing and
monitoring the Barco processes covering the complete
product life cycle – from product planning, to design and de-
velopment and sales, all the way to customer services. These
processes are embedded in Barco’s quality management
system, which is audited by independent external parties and
customers. The product quality is monitored through a set of
quality-related indicators covering the dierent interrelated
processes.
In close c
ollaboration with the dedicated quality teams, the
business unit executive teams draw up a mitigation plan cen-
tered around the following themes:
• Regular review of the product quality dashboards and key
performance indicators (KPIs) by the quality teams incorpo-
rating regional and customer feedback.
•
Strict evaluation of product maturity, reliability and manu-
facturability, but also the need to schedule adherence and
scope completeness at the dierent product design mile-
stones.
•
Specific pr
oduct quality and process improvement programs
based on internal quality indicators and customer feedback.
R
ead more on Product quality, safety & security
.
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Risk description
Barco relies considerably on its IT systems: infrastructure, net-
works, operating systems, applications and databases. Failure
of an information technology system due to an internal or
external event (terrorism, crime, violence, vandalism, theft or
human error) could impact employees, sites, assets, critical
information, or intellectual property and have negative conse-
quences for the business (business interruption, reputational
damage and/or liability claims).
Ensuring
information security includes, among others, pro-
cesses that:
• protect IT infrastructure, IT governance, prevention and
remediation of IT failure and security awareness.
• ensure the development and sale of secure products.
Trend:
Cyber risk was identified as one of the top priorities in 2020.
This year it dropped in the ranking.
Mitigation plan:
Despite its lower ranking, information security remains an im-
portant risk. This risk stays marked as ‘to be further monitored
by the CLT sponsor’. No additional actions were defined in
2021, given the recently updated roadmap on cyber security
improvements, which focuses on:
•
R
efining cyber security incident response.
•
Incr
easing management controls on privileged accounts.
•
Impr
oving network segmentation.
•
R
evisiting back-up and recovery strategies.
•
Monitoring,
preventing, detecting, analyzing and responding
to cybersecurity threats and incidents.
•
Enhancing overall pa
tch management.
Read more on Corporate security and data privacy and
Product quality, safety & security
.
Information security
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Risk description
Insucient governance regarding data assets, data confiden-
tiality and data ownership could lead to loss or improper use
of business-critical or personal data, causing a loss of process
eciency, vulnerabilities, prosecution, fines and reputational
damage. Lack of data governance may also lead to data leaks
outside of the organization, which could benefit competing
players on the market.
Insucient IP awareness and a lack of IP strategy can lead
to the inability to safeguard and monetize our IP and a dis-
connected strategy towards filing and protection. Other risks
could come from IP infringements by suppliers or unclear IP
agreements. Critical IP or know-how may get lost when key
employees or consultants leave the organization.
Trend:
Data protection was one of our main risks in 2020 and ranks
lower in 2021.
Mitigation plan:
The mitigation plan is split in terms of ownership: there are
actions around intellectual property (IP) and actions around
data governance and privacy
.
The IP mitigation plan is composed of two blocks:
• Strategic protection of our technologies and innovations
with patents. The Intellectual Property team was strengthened
with a new colleague in 2021. The patent prosecution strategy
has been refreshed (more focus on strategic inventions, earlier
filing, selection of a panel of patent attorneys).
• Boost culture and awareness about the way confidential
information is treated both internally and externally.
Data governance & privacy
The data governance and privacy plan contains the following
elements, which are all key in Barco’s digital business transfor-
mation journey:
• Data architecture within Barco through the establishment of
a Center of Excellence in Data.
• Governance around the data model.
• Continuous implementation of measures aimed at protecting
data privacy, such as release and update of relevant policies
and procedures, awareness creation among employees
through online learning courses and classroom trainings,
designation of security and privacy champions, security and
privacy assessments of suppliers, and GDPR audits.
R
ead more on Corporate security and data Privacy
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Extra risk section regarding the consequences
and impact of the covid-19 pandemic.
Since Q1 2020, the covid-19 pandemic has been aecting
businesses all over the world – including Barco.
Risk description
The public health crisis caused by the covid-19 pandemic, as
well as measures taken in response to contain or mitigate the
pandemic, have had, and are expected to continue to have,
certain negative impacts on Barco’s business including, with-
out limitation, the following:
•
T
he demand, reflected by impact on orders and sales
mainly in Barco’s Entertainment and Enterprise divisions
.
•
S
upply constraints, reflected by impact on sales mainly in
Barco’s Healthcare division
.
•
T
he profit and loss and operating results
.
• Cash flow issues (mainly in 2020).
A
pproach
In this section, Barco addresses its risk mitigation plan related
to the covid-19 pandemic impact.
Overall approach
Since the start of the corona virus outbreak (in China in Janu-
ary 2020) Barco has set up a dedicated global response team
that is monitoring and supporting Barco’s operations and is
focusing both on the safety and health of its employees, as
well as on ensuring business continuity.
Measures to keep employees safe
• Hygiene, social distancing and track-and-trace measures
Ensuring health and safety in the work environment remained
a top priority in 2021. Following the lessons learned in 2020,
Barco was able to prepare and respond in an agile and
upfront way. The global response team reviewed the impact
of the worldwide pandemic, the resulting legal obligations
and how global communication on measures taken within
the Barco premises was handled.
>
Please r
efer to the ‘Planet, People and Communities’ report
for more details. A wide range of measures aimed at avoid-
ing the spread of the covid-19 virus were established. This
included warning employees in the case of an infection,
ensuring social distancing, ventilation, working from home,
and many others. These measures were largely successful,
although the Barco Noida site was hit severely when cov-
id-19 infections in India peaked.
• Hybrid way of working
Some of Barco’s oces have been (partially) closed for short
periods throughout 2021. As far as regulations and the local
situation allowed, the company applied unlocking measures
and started bringing back employees while still taking into
account local or regional regulations and recommendations.
Barco implemented a hybrid way of working with an alternate
home-work protocol for its white collars. All oces have been
updated according to the strengthened social distancing and
sanitary measures to ensure a covid-proof and flexible work
environment.
O
perations and supply chain
2020 had proven to be a real test for Barco’s supply chain
resilience, given the trade wars and regional/global lockdowns
resulting from the covid-19 pandemic. While business regained
momentum in 2021, there were still the occasional sudden
lockdowns disrupting the supply chain. The new worldwide
shortages in different commodities in 2021 made further
demands on Barco’s supply chain resilience. Our strong, long-
term supplier relationships and agile approach have proven
to be key in finding solutions to the shortages in many cases.
Nevertheless, the order to sales conversion was and will not be
fully immune to the impact of supply chain constraints.
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Business health
In the first quarter of 2020 and as a result of lockdowns in
China, Barco’s sales in China were halted during February and
gradually resumed as of March. Since then, the covid-19 pan-
demic has spread internationally, with negative eects mainly
in Barco’s Entertainment and Enterprise markets. The nega-
tive impact was caused by both the economic impact of the
pandemic on some of its markets as well as by the lockdown
measures and related restrictions. In 2021, supply chain dis-
ruptions, including higher component prices, increased freight
broker rates and higher logistics costs negatively impacted the
company’s results.
Barco remained focused on business continuity and protec-
tion of the business health.
The c
ompany executed on a plan to align both its activity rate
and spending with the impacts of the pandemic by resetting
indirect cost levels, next to temporary measures and resource
redeployments. We also raised prices across our portfolio and
regions, which we expect to benefit gross profit margins as of
the first half of 2022.
• Aligning activity rate with market realities and customer
demand
Barco implemented temporary work arrangements and
economic unemployment measures for both white and
blue collars, in conformity with country-specific legal frame-
works, support mechanisms and regulations, mainly in 2020
and to a limited extent in the first half of 2021. The new work
conditions varied depending on the region, and Barco’s
covid-19 response team reviewed the situation site by site,
with the same objective to ensure business continuity while
also considering all applicable covid regulations.
The activity rate and cost containment measures also in-
clude ensuring a strong commitment to our customers
through sales and servicing.
• Adjusting the cost base and discipline in discretionary
spending
These measures – which can be adjusted again in line with
future changes in the pandemic situation – also entailed
shifts in the planned investment patterns on selected long-
term initiatives in 2020 and a sustained strict discipline on
discretionary spending.
The company made deliberate choices on the continuation
and timetable of selected development projects based on
current needs in the market and adjusting internal support
levels in function of the focus shift. Furthermore, we were
able to apply for wage grants under the newly enacted
covid-19 relief legislation in APAC, Canada and US in 2020.
St
rong funding and liquidity structure in place
Barco has a strong balance sheet and ample liquidity
.
We refer
to note 14 for more details on Barco’s net cash position. Our
company has sucient headroom to be able to conform to
covenants on our existing borrowings. The group complied
with all requirements of the loan covenants on its available
credit facilities throughout the reporting period.
While the future may still bring some levels of headwind, Barco’s
strong funding and liquidity structure in place should be more
than sucient to ensure the going concern of the company. In
addition, we refer to note 8 where we explain how we tested
goodwill and all other non-current assets for impairment and
concluded no impairment losses need to be recognized.
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Risks to be disclosed pursuant to the rules
regarding non-financial information
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Environmental impact
Risk description
Climate transition and the environmental footprint in general
holds a series of risks for Barco. The inability to meet (future)
environmental legislation to limit CO
2
emissions and increase
energy and material eciency could lead to regulatory fines
(such as a carbon tax). More importantly, failure to adapt to
changing customer behavior and address environmental
concerns could negatively impact Barco’s reputation with
customers and investors, thus leading to loss in sales or even
shareholder value. Physical climate change risks include
impacts of extreme weather events on production facilities
and/or equipment and disruptions in the supply chain due to
these events.
Read more in the ‘Report on planet, people and communities’.
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Risk description
Insucient fair practice and business behavior (according to
the ethical standards and principles set by the Barco Code of
Ethics), including fraud, corruption, bribery, abuse and viola-
tions of human rights leads to reputational damage, decrease
of sales and legal investigations and prosecutions.
Bar
co is directly exposed to risks in the area of human rights
as an employer in the first place, but also through its opera-
tions in the regions where it conducts business. Barco may
source raw materials from suppliers which may not respect
their employees’ human rights, such as the freedom of asso-
ciation.
The increased pressure on management and employees
could raise the temptation to deal with unscreened partners
without any diligence procedures. The inability to foster an
environment of equality and equal opportunities regardless of
gender, race, ethnicity, age or sex could harm Barco’s repu-
tation and could lead to noncompliance with applicable laws
and regulations.
Business ethics
Approach:
Code of Ethics:
• Barco’s Code of Ethics is fully endorsed and applies to
everyone employed by Barco and its partners, regardless of
position and level of responsibility
.
•
The manda
tory training on “Standards@Work” helps edu-
cate our people and reminds them about the group’s ethical
principles and values.
•
The ethics mailbox is available to everyone who wishes to re-
port, even anonymously, any issue to the Ethics Committee.
Suppliers:
• Our suppliers must comply with the Responsible Business
Alliance (RBA) code of Conduct, including labor, ethics
and health and safety standards. Before engaging in
a business relationship, we screen new suppliers,
considering the risk profile and reputation of each partner
as well as their adherence to ethical standards. Existing
key partners are screened periodically. Key principles
such as the four-eyes principles ensure segregation
of duties in our procurement and buying processes.
Human rights and anti-discrimination:
• Barco applies a human rights policy in line with the standards
and policies set by the Universal Declaration of Human
Rights, the International Labor Organization (ILO), the UN
Guiding Principles on Business and Human Rights and the
OECD Guidelines for Multinational Enterprises. Our Human
Rights pledge and our anti-discrimination policy are available
on our intranet.
• To oversee this pledge, we use the company-wide compli-
ance management system.Adherence to the anti-discrimi-
nation policy is monitored by the HR department.
•
Bar
co includes all its employees in collective bargaining
agreements by complying with all necessary local work-
force regulations in the countries where Barco operates.
Barco handles specific workforce-related topics by closing
o company-specific collective bargaining agreements.
Where applicable, Barco organizes workers’ councils (both
national and international).
• We promote equal opportunity and do not discriminate
against any employee, candidate, contractor or supplier
based on nationality, race, age, physical disability, social, po-
litical or religious preference or other personal characteris-
tics. Barco encourages social and cultural diversity, and our
recruitment, remuneration, evaluation and supplier tender
processes are based solely on professional qualifications.
Anti-corruption:
• In order to limit the risk of money laundering, a process to
screen incoming payments is in place under the Payment
Processing Policy.
• Employees in sales functions and dedicated corporate
functions across the world have to follow a mandatory
anti-bribery course as part of the “Standards@Work” level 2
training.
Read more on 'Ethics and compliance' and 'Supply chain
responsibility'.
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Financial risk management and internal control
• Finance and accounting manuals, which are available to
key accounting sections, ensure the accurate and consistent
application of accounting rules throughout the company.
• Specifically, within the financial domain, a quarterly bot-
tom-up risk analysis is conducted to identify and document
current risk factors (up-down sides reporting) that have po-
tential impact on the forecasted results. Action plans are de-
fined for all key risks. The results of the analysis are discussed
with the statutory auditor at least every half year
.
•
The accounting teams are responsible for producing the
accounting figures (closing books, reconciliations, etc.),
whereas the business partnering (controlling) teams check
the validity of these figures. These checks include analytical
reviews through comparison with historical and budget fig-
ures as well as sample checks of transactions according to
their materiality.
•
All
material areas of the financial statements concerning
critical accounting judgements and estimates are period-
ically reported to the Audit Committee.
•
Specific internal contr
ol activities concerning financial re-
porting are in place, as documented in the financial closing
and reporting procedure. This procedure assures clear com-
munication of timelines, completeness of tasks, and clear
assignment of responsibilities. Specific identification proce-
dures for financial risks are in place to assure the complete-
ness of financial accruals.
•
Uniform reporting and a standard chart of accounts
throughout the organization ensures a consistent flow of fi-
nancial information, which allows the detection of potential
anomalies.
• To provide Barco’s investors and other (external) stakehold-
ers with the information necessary for making sound busi-
ness decisions, financial reporting is shared with the outside
world. The external financial calendar is planned in consul-
tation with the Board of Directors and the Core Leadership
Team and then announced to external stakeholders.
•
Financial r
eporting and analyses are shared with Barco’s
co-CEOs, the CLT and divisional and regional excoms in or-
der to drive actions towards short-term (forecast), mid-term
(budget) and long-term targets in accordance with the strat-
egy set forward.
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barco.com ENABLING BRIGHT OUTCOMES
Group management
Beneluxpark 21
BE-8500 Kortrijk
Tel.: +32 (0)56 23 32 11
Registered oce
President Kennedypark 35
BE-8500 Kortrijk
Tel.: +32 (0)56 23 32 11
Stock exchange
Euronext Brussels
Financial information
More information is available from the
Group’s Investor Relations Department:
Carl Vanden Bussche
Vice President Investor Relations
Tel.: +32 (0)56 26 23 22
carl.vandenbussche@barco.com
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Barco Integrated report 2021
CGR
54
Barco Integrated report 2021
CGR
Governance & Risk Report
2021
Integrated
annual
report
Report on planet - people - communities
Table of contents
01 Our sustainability ambition statement ...............3
02 Our sustainability strategy . . . . . . . . . . . . . . . . . . . . . . . . . .4
Go for sustainable impact .............................5
Materiality ...........................................9
How the UN SustainableDevelopment Goals
guide Barco’s strategy.................................
11
03
Our sustainability performance
....................
12
P
lanet..............................................13
People .............................................26
Communities .......................................39
04 Reporting on EU taxonomy ........................57
0
5 Managing sustainability .......................... 62
Sustainability governance and responsibility ............63
Stakeholder engagement.............................64
External initiatives(platforms and commitments).........65
Certifications
.......................................65
External evaluations
.................................
66
This is the planet - people - communities
section of Barco’s 2021 Integrated annual
report. Other sections are available via the
download center at ir.barco.com/2021.
CORE
MORE
• Governance & risk report
• Report on planet - people - communities
• Financial report
ANNEX
• Integrated Data Pack
• Glossary
• GRI Content index
• Assurance report
Barco Integrated report 2021
2
PPC
Planet - People - Communities
01 SUSTAINABILITY
A
MBITION
S
TATEMENT
02 SUSTAINABILITY
S
TRATEGY
04 REPORTING
ON E
U TAXONOMY
05 MANAGING
S
USTAINABILITY
03 SUSTAINABILITY
PE
RFORMANCE
In line with our ambition to fully integrate sustainability into our
corporate DNA, Barco designs and acts towards sustainable
outcomes for our planet, people and communities.
1. We will lower our own environmental footprint and those
of our customers.
2. We invest in sustainable employability by creating the right
conditions for our employees to have an engaging, enriching
and healthy career at Barco. We do this by encouraging our
people to learn and develop themselves and by ensuring a
healthy working environment – both physically and mentally.
We engage in building an inclusive workplace that embraces
the diversity of our people.
3. We will play an active role in the communities we operate
in by upholding the highest ethical and quality standards
and expecting the same from our business partners. We
always aim to deliver added value to our customers through
our solutions, services and capabilities. In addition, we help
ensure more people can participate in and benefit from the
innovation society.
Barco is ready to gear up and move forward towards a more
sustainable future.
An Steegen & Charles Beauduin
CEOs Barco
Our sustainability
ambition statement
Barco Integrated report 2021
3
PPC
Planet - People - Communities
01 SUSTAINABILITY
AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
03 SUSTAINABILITY
PERFORMANCE
04 REPORTING
O
N EU TAXONOMY
05 MANAGING
SUSTAINABILITY
Our sustainability
strategy
Barco Integrated report 2021
4
PPC
Planet - People - Communities
01 SUSTAINABILITY
AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
03 SUSTAINABILITY
PERFORMANCE
04 REPORTING
O
N EU TAXONOMY
05 MANAGING
SUSTAINABILITY
Our sustainability strategy ‘Go for Sustainable Impact’ is an
integral part of our corporate strategy, ‘Enabling bright out-
comes’. Because we believe growing our company goes hand
in hand with helping our people and the communities around
us thrive, while safeguarding our planet.
That’s why Barco’s Sustainable Impact strategy is focused on
three pillars: planet, people and communities. For each pillar,
we defined an overall ambition statement and linked it to the
areas that matter most to our stakeholders and where we can
achieve the greatest impact: our material topics. The material
topics are defined in the 2020 materiality assessment.
We translated our sustainability ambitions in measurable tar-
gets, so that we can track our progress year over year.
MATERIAL TOPICS AMBITION
Our sustainable impact pillars, ambitions and material topics
We will lower our environ-
mental footprint and those
of our customers
.
•
C
limate change & energy*
• Product stewardship*
•
W
aste management
We invest in sustainable
employability by creating
the right conditions for
our employees to have an
engaging, enriching and
healthy career at Barco.
We
do this by encouraging our
people to learn and develop
themselves and by ensuring
a healthy working envi-
ronment – both physically
and mentally
.
We engage
in building an inclusive
workplace that embraces the
diversity of our people.
•
Em
ployee engagement*
•
L
earning & development
• Employee health, safety &
wellbeing
• Diversity & inclusion*
• Labor practices & human
rights
• Customer engagement*
• Product quality, safety &
security*
• Information security & data
protection*
• Business ethics*
• Responsible supply chain
management
• Corporate governance
• Community engagement
We will play an active role in
the communities we operate
in by upholding the highest
ethical and quality standards
and expecting the same
from our business partners.
We always aim to deliver
added value to our custom-
ers through our solutions,
services and capabilities
.
I
n addition, we help ensure
more people can participate
in and benefit from the inno-
vation society.
Planet People Communities
* Highly material topics
Go for
sustainable impact
Barco Integrated report 2021
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Planet - People - Communities
01 SUSTAINABILITY
AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
0
3 SUSTAINABILITY
PERFORMA
NCE
04 REPORTING
ON EU TAXON
OMY
05 MANAGING
SUSTAI
NABILITY
Planet
0.80
0.73
0
.70
20
19 2020 2021
Energy efficiency
index of sold
products (relative vs
base year)
Tonnes CO
e /mio € revenues
By , reduce the
energy footprint of our
products by %
(vs )
-%
. Take science-based climate action
2019
-24%
34
2020
-22%
34
2021
-12%
39Energy consumption
in own operations
MWh/mio € revenues
% reduction vs
By , reduce energy
consumption in own
operations by %
(vs )
-%
31%
26%
. Enable our customers to lower their
environmental footprint
2020 2021
% revenues from
products with Barco
ECO label
By , ensure that at least
% of our revenues comes
from products with the Barco
ECO label**
%
64
53
54
2019
-20% -20%
2020
-34% -27%
2021
-33% -30%
Greenhouse gas
emissions of our
own operations
Tonnes CO
e /mio € revenues
% reduction vs % reduction vs
By , reduce
greenhouse gas emissions
from own operations by
% (vs )
-%
458,441
27 7, 335
281,874
2019
-43%
2020
-65%
2021
-65%
Total greenhouse gas
emissions
Tonnes CO e
% reduction vs
By , reduce absolute
greenhouse gas emissions
by % (vs )*
-%
Our sustainable impact (primary) targets and progress
* Target approved by Science Based Targets initiative, in line with the IPCC 1.5°C scenario, covering Scope 1, 2 and 3
emissions. As SBTi requires targets to cover a minimum of 5 years from the date the target is submitted to the SBTi for
validation, the target year has been set to 2025.
** As of reporting year 2021 total revenues from products correspond to total product and project revenues (see note 3 on
p. 35) as reported in the financial chapter of our integrated report, which corresponds to the EU taxonomy eligible turn-
over in 2021. For comparison reasons 2020 total revenues from products were updated, corresponding to total product
and project revenues in 2020. The % revenues from products with Barco ECO label were recalculated using the updated
turnover.
Barco Integrated report 2021
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PPC
Planet - People - Communities
01 SUSTAINABILITY
AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
0
3 SUSTAINABILITY
PERFORMA
NCE
04 REPORTING
ON EU TAXON
OMY
05 MANAGING
SUSTAI
NABILITY
Our sustainable impact (primary) targets and progress
People
. Empower all our colleagues to have an engaging, enriching and healthy career
2021
39
Employee net
promotor score
Each year, aim for an
employee Net Promoter
Score of at least
13.2 24
11.3
20
10.5
20
2019 20192020 20202021 2021
Average training
hours/employee
# hours
Internal mobility
% vacancies filled internally
Invest in learning and
development
28
15
28
17
27
16
2019 2020 2021
% women overall
% women in senior
management
Step up our efforts
in diversity
Barco Integrated report 2021
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01 SUSTAINABILITY
AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
0
3 SUSTAINABILITY
PERFORMA
NCE
04 REPORTING
ON EU TAXON
OMY
05 MANAGING
SUSTAI
NABILITY
Our sustainable impact (primary) targets and progress
Communities
4747
. Deliver great customer experience
2020 2021
Customer Net
Promoter Score
Relationship NPS
Measure and drive customer
Net Promoter Score to an
above market average score
.
. Proactively manage information security risks
2020 2021
Average cybersecurity
maturity score
NIST CSF
By , obtain an
average cybersecurity
maturity score of
at least .
%
44%
58%
%
. Engage our suppliers in adopting sustainable
business practices
2020 2021
% of production spend covered
by supplier sustainability
score
By , have suppliers covering at least
% of our production spend scored on
their sustainability performance
+ yearly
2019
1
2020
2
2021
2
ISO
certification (security)
# of product lines in scope
Each year, add at least
one new product line
to the scope of the
ISO certificate
. Always act lawfully, ethically and with integrity
wherever we operate
2019
99%
2020
98%
2.19
2021
99%
2.23
% employees trained
in Standards@Work
% of heads (white collars)
Each year, train all
our employees in
Standards@Work
Barco Integrated report 2021
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01 SUSTAINABILITY
AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
0
3 SUSTAINABILITY
PERFORMA
NCE
04 REPORTING
ON EU TAXON
OMY
05 MANAGING
SUSTAI
NABILITY
Materiality
Continuous monitoring of material issues is critical to stay on
top of emerging risks and opportunities. A materiality assess-
ment helps organizations understand what topics matter most
to their business and stakeholders. Every three to four years,
Barco conducts a comprehensive materiality assessment to
make sure it reflects the latest developments in its business
and external environment.
Our last assessment, which was done in 2020, was based
upon and aligned with our integrated reporting approach,
considering the six capitals. 111 stakeholders participated in
the surveys and interviews. The resulting materiality matrix has
three categories: low, medium and highly material topics. The
illustration on the next page reflects our medium and highly
material topics. The materiality analysis of 2020 is still valid as
stakeholder interactions in 2021 did not reveal major changes,
except for the topic ‘Diversity and inclusion’.
In the meeting of September 2021, our Board of Directors
underlined the importance of diversity and inclusion as a
catalyst for creativity and innovation. Diversity and inclusion
will therefore be treated as a highly material topic.
Barco Integrated report 2021
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PPC
Planet - People - Communities
01 SUSTAINABILITY
AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
0
3 SUSTAINABILITY
PERFORMA
NCE
04 REPORTING
ON EU TAXON
OMY
05 MANAGING
SUSTAI
NABILITY
In 2021, the strategic intelligence company Trensition per-
formed a dynamic analysis of our materiality matrix. Based
on AI and big data, the technology automatically scans and
analyzes millions of data points from diverse sources to identify
and predict business trends and industry dynamics. This anal-
ysis provides a thorough understanding of how our material
topics will most likely evolve in the coming years.
The most significant increases expected for the next year are:
• Learning & development
• Diversity & inclusion
• Climate change & energy
The rise in the importance of the people-related materiality
topics could be explained as a result of the covid-19 pandemic.
Next to that, the UN Climate Change Conference in Glasgow,
COP26, was a catalyst for the climate change topic to keep
growing in importance.
IMPACT ON LONG-TERM SUCCESS OF BARCO
IMPORTANCE TO STAKEHOLDERS
High materiality
Medium materiality
18
19
20
21
1
2
3
5
6
7
8
9
10
12
13
15
17
16
14
11
4
Communities
1. Customer engagement
2. Product quality safety
& security
3
. I
nformation security & data
protection
4. Business ethics
5. Corporate governance
6. Responsible supply chain
management
7. Community engagement
Intellectual
8. Innovation management
9
. Brand
Financial
10. Financial resilience
11. Sustained profitable growth
12. Market reach
People
13. Employee engagement
14
. Employee health, safety
& wellbeing
15. Labor practices & human
rights
16. Learning & development
17. Diversity & inclusion
Planet
18. Product stewardship
19. Climate change & energy
20
.
Waste management
Manufactured
21. Long-term asset
performance
Dynamic, data-driven
materiality assessment
Barco’s 2020 materiality matrix - linked to the six capitals
of integrated reporting
To win in the coming decade,
investors and companies
must equip themselves with
forward-looking and proactive
approaches to materiality.
Source: Embracing the new age of materiality:
harnessing the pace of change in ESG,
World Economic Forum
A description of the material topics can be found on
our corporate website
Barco Integrated report 2021
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Planet - People - Communities
01 SUSTAINABILITY
AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
0
3 SUSTAINABILITY
PERFORMA
NCE
04 REPORTING
ON EU TAXON
OMY
05 MANAGING
SUSTAI
NABILITY
2. Product quality,
safety & security
8. Innovation
management
18. Product
stewardship
10. Financial resilience
11. Sustained profitable
growth
1. Customer
engagement
2. Product quality,
safety & security
3. Information security
& data protection
18. Product
stewardship
3. Information security
& data protection
4. Business ethics
13. Employee
engagement
17. Diversity & inclusion
18. Product
stewardship
19. Climate change
& energy
Innovate
for impact
Focus on
performance
Oer outcome-based
solutions
Go for
sustainable impact
How the UN
Sustainable
Development Goals
guide Barco’s strategy
We use the United Nations Sustainable Development Goals
(SDGs) as a guideline to shape our strategy and ambitions.
Defined in 2015, the SDGs consist of 17 global goals with a
2030 deadline. All 193 countries in the UN General Assembly
adopted this resolution.
We realize these goals cannot be met without support from
the global business community. Our approach to supporting
the SDGs is to focus on the goals where we can have the
most impact, while screening and implementing actions that
contribute to the other goals as well. To identify the SDGs
where Barco can make the most impactful dierence, we
start from Barco’s strategy and material topics. As a result we
have selected six SDGs that are closely linked to Barco’s highly
material topics and the overall Barco strategy:
• SDG 3: Good health & well-being: Ensure healthy lives and
promote wellbeing for all at all ages
• SDG 7: Aordable and clean energy: Ensure access to
aordable, reliable, sustainable and modern energy for all
• SDG 8: Decent work and economic growth: Promote
sustained, inclusive and sustainable economic growth, full
and productive employment and decent work for all
• SDG 9: Industry, innovation and infrastructure: Build
resilient infrastructure, promote inclusive and sustainable
industrialization and foster innovation
• SDG 12: Responsible consumption and production: Ensure
sustainable consumption and production patterns
• SDG 13: Climate action: Take urgent action to combat
climate change and its impacts
UN SDGs
HIGHLY MATERIAL TOPICS
Barco’s strategic levers, linked to highly material topics
and the UN SDGs
Barco Integrated report 2021
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Planet - People - Communities
01 SUSTAINABILITY
AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
03 SUSTAINABILITY
PERFORMANCE
04 REPORTING
ON EU TAXONOMY
05 MANAGING
SUSTAINABILITY
Our
sustainability
performance
Barco Integrated report 2021
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PPC
Planet - People - Communities
01 SUSTAINABILITY
AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
03
SUSTAINABILITY
PERFORMANCE
04
REPORTING
ON EU TAXONOMY
05
MANAGING
SUSTAINABILITY
Planet
Primary targets* Supporting targets
. Take science-based
climate action
By , reduce energy consumption
in own operations by % (vs )
By , send zero waste from own
operations to landfill
By , reduce greenhouse gas
emissions from own operations by
% (vs )
By , recycle % of solid waste in own
operations
By , reduce absolute greenhouse gas
emissions by % (vs )**
. Enable our customers
to lower their environmental footprint
By , ensure that at least % of our
revenues come from products with the
Barco ECO label
By , % of new products released
have a Barco ECO label
By , reduce the energy footprint of
our products by % (vs )
Our targets
Our ambition
* The baseline of greenhouse gas emissions and energy footprint refer is 2015, as this is the year where we started measuring
these indicators.
** Absolute reduction of scope 1, 2, and 3 emissions. Target approved by Science Based Targets initiative, in line with the
IPCC 1.5°C scenario. As SBTi requires targets to cover a minimum of 5 years from the date the target is submitted to the
SBTi for validation, the target year has been set to 2025.
In 2021, a first limited assurance has been obtained on a selected number of KPIs from two planet
key initiatives (see PwC assurance report). KPIs that obtained a limited assurance are Indicated
with a checkmark in the key initiatives disclosure in the planet chapter of the PPC report and
in the Core report. This process was a first step towards expected limited assurance obligations
as of financial year 2023, as proposed by the non-financial reporting directive.
We will lower our environmental footprint and those of our customers.
Barco Integrated report 2021
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PPC
Planet - People - Communities
01 SUSTAINABILITY
AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
03
SUSTAINABILITY
PERFORMANCE
04
REPORTING
ON EU TAXONOMY
05
MANAGING
SUSTAINABILITY
Our scope and methodology
MEASURING CARBON FOOTPRINT OF OUR OWN OPERATIONS
Methodology
• Bilan Carbone
®
methodology
• Compliant with ISO standard
• Sources of emission factors: emission factors from internationally recognized emission factor databases,
ADEME, GHG Protocol, IEA, suppliers specific for electricity
Scope
•
T
echnical: all greenhouse gases such as carbon dioxide (CO
), methane (CH
), nitrous oxide (N
O), refrig-
erants (HFCs, PFCs, CFCs) are converted into CO
equivalents using Intergovernmental Panel on Climate
Change (IPCC) -year global warming potential (GWP) coefficients
•
B
oundaries: operational (vs
.
equity) approach, as it better defines the boundaries of influence
•
G
eographical scope: all manufacturing and research & development sites (in Belgium, China, Italy, Ger-
many, India, Norway, Taiwan and US) covering in total minimum % of the group’s total FTEs
Calculation assumptions
• CO
emissions are calculated by the external party COLogic
• Extrapolation of October and November data was applied to the main components of infrastructure &
logistics CO
emissions calculation of full year and results
• CO
emissions from logistics are only covering Barco paid transport
• Emissions from own vehicles only cover Belgium and Germany as the other sites in scope have very few
own vehicles and are therefore immaterial in view of the full scope
Baseline
• For targets and performance comparison, Barco selects FY as a baseline
MEASURING OUR CARBON FOOTPRINT RELATED TO PRODUCT USE EMISSIONS
Methodology
• Greenhouse Gas Protocol Methodology
Formula to be used: ∑ (total lifetime expected uses of product × number sold in reporting period × electric-
ity consumed per use (kWh) × emission factor for electricity (kg CO
e/kWh))
Scope
•
E
missions based solely on the energy consumption of the product (excluding the embodied energy of
components, end-of-life emissions, etc.
)
• Approx. % of the products covered (in terms of sales volume) in
Barco Integrated report 2021
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Planet - People - Communities
01 SUSTAINABILITY
AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
03
SUSTAINABILITY
PERFORMANCE
04
REPORTING
ON EU TAXONOMY
05
MANAGING
SUSTAINABILITY
1.Take science-based climate action
In 2020, Barco committed to setting science-based targets
to further solidify its ambitious climate action. We commit to
aligning our business with the most ambitious goals of the
Paris Agreement: to limit the global temperature rise to 1.5°C
above pre-industrial levels. Our absolute target is to reduce
scope 1, 2 and 3 greenhouse gas emissions by 45% by 2025
from a 2015 base year. This target was approved by the Science
Based Targets initiative in March 2021.
In 2021, we achieved a 65% reduction compared to 2015,
exceeding the -45% target already. However, the drop is mainly
a result of the pandemic and supply chain constraints, which
led to lower sales volumes. With markets expected to recover,
the 2025 target will be a challenge. In the next paragraphs, we
zoom in on relative results, which give a better picture of our
actual emission reduction eorts.
As climate urgency is more and more tangible
it is great to see companies like Barco really
engage in a clear and transparent climate
journey in line with science. The Paris
agreement, the Science Based Targets and our
very constructive collaboration oer the right
framework for credible climate action.
Antoine Geerinckx
founder & impact development
CO
2
logic (Part of South Pole)
Our roadmap towards sustainable impact:
key initiatives and action plans
Total greenhouse gas emissions (absolute)
Tonnes CO
2
e
TARGET : % vs
458,441
277,335
281,874
2019
2020
2021
423.3
360.1
350.5
Total greenhouse gas emissions (relative)
Tonnes CO
2
e/mio € revenues
Barco Integrated report 2021
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AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
03 SUSTAINABILITY
PERFORMANCE
04 REPORTING
ON EU TAXONOMY
05 MANAGING
SUSTAINABILITY
100,000
200,000
300,000
400,000
500,000
1.1 Lowering energy consumption in our own operations
Energy is consumed in our facilities and by our company
fleet. At the end of 2021, energy consumption amounted to
39 MWh/mio € revenues – a 12% decrease against the 2015
baseline (44.2 MWh/mio € revenues) but an increase compared
to previous years as we needed more energy to ventilate our
headquarters to avoid the spread of the covid-19 virus (100%
fresh air against 50% in previous years). Our target for 2023 is
to reduce 15% compared to the 2015 base year, so we are still
on track to meet that target.
The main action to reduce energy consumption in our facilities
is cutting the overall footprint of our facilities. In Sacramento,
for example, moving to a smaller campus helped us cut energy
use. In addition, we share tips on saving energy through
our internal communication channels, to boost awareness
among employees. Energy is also a topic in the mandatory
Sustainability Standards@work training and the Compliance
Challenge.
As working from home was still often the practice in the
covid-19 context, our fleet used less fuel in 2021 compared
to pre-covid times. While fuel use is expected to increase,
hybrid working – and meeting – will keep fuel use lower than
it was before. In addition, we now actively promote the use
of electric vehicles (EVs), which are more energy ecient.
When looking at Barco’s total energy consumption (electricity
and fuel use) in 2021, 52% is from renewable sources, mainly
thanks to the worldwide switch to renewable electricity already
in 2020. We expect the share of renewables in our energy
mix to further increase in the future, as the company fleet
will gradually become fully electric and EV charging stations
at the headquarters are powered by 100% renewable energy.
Energy consumption in own operations
MWh/mio € revenues
TARGET :
.
% vs
33.7
34.3
39.0
2019
2020
2021
29%
54%
52%
% renewable
Barco Integrated report 2021
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AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
03
SUSTAINABILITY
PERFORMANCE
04
REPORTING
ON EU TAXONOMY
05
MANAGING
SUSTAINABILITY
5
10
15
20
25
30
45
40
35
1.2 Better waste management in our own operations
First and foremost, we aim to keep waste from operations to
a minimum, especially non-sorted waste. We work hard to
reduce the amount of packaging waste of incoming compo-
nents and products by guiding suppliers on how to reduce
packaging. By the end of 2021, total solid waste was 1.41
tonnes/mio € revenues – a 44% decrease compared to last
year which is largely due to eective waste volume reductions,
mainly in the US sites.
In addition, we aim to have 80% of solid waste recycled by
2023 by raising awareness amongst suppliers (use recyclable
packaging materials) and employees (ecient and correct
sorting of waste). Waste recycling is part of our 5S audit sys-
tem, where the presence of the dierent waste recycling bins
is checked. The recycling rate went up to 58%, partly due to
the selection of better waste recycling partners in the US (as
of the second half of 2021).
In 2021, our target was to reduce landfilling by 50% compared
to previous years. We reached that target as the percentage
of waste sent to landfill dropped to 15%, down 14 percentage
points from 2020. Our next horizon is 2023, where we aim
for zero waste sent to landfill.
Solid waste genera
ted in own operations
Tonnes / mio€ revenues
2.32
2.52
1.41
0.5
1
2.5
2
1.5
2019
2020
2021
61%
52%
58%
26%
29%
15%
% recycled/composted waste
TARGET : %
% waste to landfill
TARGET : %
Barco Integrated report 2021
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STATEMENT
02 SUSTAINABILITY
STRATEGY
03
SUSTAINABILITY
PERFORMANCE
04
REPORTING
ON EU TAXONOMY
05
MANAGING
SUSTAINABILITY
1.3 Reducing greenhouse gas emissions from our own operations
There are three main sources of greenhouse gas emissions
in our own operations: logistics, mobility and infrastructure.
The greenhouse gas emissions of our own operations
amounted to 53.6 tonnes CO
2
e/ mio € revenues – numbers
which reflect the impact of the covid pandemic (see the
following pages). The relative reduction in greenhouse gas
emissions from our own operations is -33% compared to the
2015 baseline (80.5 tonnes CO
2
e/ mio € revenues). Our target
is to achieve -35% by 2023 vs 2015.
1. Logistics
Logistics i.e. the transport of incoming goods and outgoing
finished products, was responsible for 80% of Barco’s own
CO
2
emissions in 2021. Overall logistics-related greenhouse
gas emissions dropped by 18% between the 2015 base year
(52.2 tonnes CO
2
e/ mio € revenues) and 2021. Our target is
to reduce 35% by 2023 vs 2015.
Large supply chain disruptions, capacity constraints in ocean
transport and unreliable logistical planning made 2020 and
2021 particularly challenging in the field of logistics. As a result,
we were not able to further progress on the modal shift from
air to ocean. Yet, we did continue to invest in shortening our
supply chains, by moving production to China for Chinese
markets. We also connected our Chinese and Belgian pro-
duction bases through railway transport.
As in the previous years, we continued working in 2021 on:
• Re-designing packaging for logistics: when designing new
products, we aim to design smaller and lighter packaging,
in order to reduce the volume and/or the weight of high-
running appliances. Packaging/logistics is one of the four
domains in our ecodesign program.
• Modular product design: as more new Barco products are
built on existing platforms, only the final customization has
to be done in a local warehouse. In this way, we can ship
larger volumes to overseas destinations up front by sea.
• Transport and warehousing tenders include a sustainability
clause, articulating that logistics suppliers are expected to
inform Barco about their sustainability plans and initiatives.
This information is considered in the overall decision matrix
and in our supplier selection procedure. In addition, we add
sustainability clauses to contracts, driving our suppliers to
advance their eorts to cut carbon emissions.
Greenhouse gas emissions of our own
operations
tonnes CO
2
e/ mio€ revenues
TARGET : . % vs
64.3
53.4
53.6
2019
2020
2021
Infrastructure
Mobility
Logistics
Greenhouse gas emissions of our own operations
tonnes COe/ mio€ revenues
Infrastructure
.
. .
Mobility
.
. .
Logistics
.
. .
Total
.
. .
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5
5
10
15
20
25
30
65
45
55
50
60
40
35
2. Mobility
The second-largest source of greenhouse gas emissions from
our own operations is mobility: business travel, company cars
and commuting. In 2021, the share of mobility in Barco’s CO
2
emissions from own operations was 13%.
Overall mobility-related greenhouse gas emissions dropped by
63% between the 2015 base year (19.1 tonnes CO
2
e /mio € rev-
enues) and 2021. With this reduction we have amply achieved
the 2023 target of -23% vs 2015. Both 2020 and 2021 were, of
course, exceptional years with severe travel restrictions. We
realize that the mobility-related emissions will rise as soon as
business travel and commuting pick up again. Nevertheless,
we have invested in hybrid working capabilities by, for exam-
ple, installing Clickshare Conference in many of our meeting
rooms, over the past two years. That may result in reduced
commuting and related fuel use in the future. Next to that,
the electrification of our fleet, which took o in 2020 and will
continue in the coming years, will further reduce mobility-re-
lated CO
2
emissions.
In 2021, 50% of new company cars
leased at the headquarters were
fully electric. It’s great to see that
many colleagues choose EVs. Their
conscious choice will help us realize
our 2023 target.
Johan Heyman
VP HR Operations
3. Infrastructure
The third source of greenhouse gas emissions from our own
operations is infrastructure: emissions from the use of elec-
tricity, fossil fuels (excl. company cars), waste treatment and
the leakage of refrigerant gases from cooling equipment. In
2021, the share of infrastructure in Barco’s own CO
2
emissions
was 7%, which was mainly attributable to the use of fossil fuels.
Overall infrastructure-related greenhouse gas emissions
dropped by 57% between 2015 (9.2 tonnes CO
2
e/mio € rev-
enues) and 2021 - largely thanks to the switch to renewable
electricity in all our R&D and manufacturing sites in 2020. Our
target is to achieve a 66% reduction by 2023 vs 2015.
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1.4 Reducing greenhouse gas emissions from our products (product use emissions)
Product use emissions are emissions resulting from the energy
that Barco products use on our customers’ premises. They are
by far the largest source of emissions for Barco. In 2021, total
product use emissions amounted to 297 tonnes CO
2
e/mio
€ revenues. The largest portion of product use emissions is
generated by our projectors (Entertainment division). Product
use emissions decreased by 58% between 2015 (698.6 tonnes
CO
2
e/mio € revenues) and 2021. The pandemic had the largest
impact on sales of projectors in 2021, therefore changing the
product mix in overall sales. We expect product use emissions
to increase again when projector sales grow as of 2022.
Greenhouse gas emissions of sold
products (product use emissions)
tonnes CO
2
e/ mio€ revenues
359.0
306.7
296.9
2019
2020
2021
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100
50
400
300
350
200
250
150
2. Lowering the environmental footprint of our customers
2.1 Embedding ecodesign in R&D
Barco’s Planet ambition is not only to reduce our own envi-
ronmental footprint but also that of our customers, by fully
embedding ecodesign in our New Product Introduction (NPI)
process. Kicked o in 2015, our ecodesign program came at
cruising speed in 2017 when we developed an objective tool
to determine the environmental performance of new products.
The ecoscoring tool, as it is called, assesses products on four
domains: energy performance, materials use, packaging, and
end-of-life optimization (i.e., the way it can be maintained,
refurbished, upgraded and eventually recycled). To improve
the value of our tool for external stakeholders, we submit it to
an external audit under the framework of the ISO 14021:2006
standard (limited assurance) every year. The audit ensures that
the methodology is complete, reliable, objective and based
on relevant product aspects.
Find more about the ecoscoring tool on our website
We kept finetuning our ecoscoring tool, raising awareness
about it and releasing more and more products with the ECO
label in 2021. Achievements included:
• The ecoscoring tool was updated to a more stringent
version. The new version includes: life cycle assessment
and benchmarking, maximum power budget for displays
according to green procurement standards, product
reliability, product recallability rate and expected lifetime
calculation. A cornerstone in the new version is the link
with the upcoming EU taxonomy regulation and the overall
commitment of Barco to meet the 1.5°C IPCC science-
based targets. The 2021 external audit confirmed that the
technical screening criteria defined in the Delegated Act
Climate Change Mitigation, activity ‘Manufacture of other low
carbon technologies’ and the Do No Significant Harm criteria
have been correctly embedded in the updated ecoscoring
methodology. Read more on the EU taxonomy in the next
chapter.
• We evaluated dedicated tooling to conduct life cycle
assessments and performed pilots on eight products. Our
objective is that, as part of Barco’s ecodesign program, new
products launched will have a standardized environmental
declaration based on life cycle assessment by 2023.
• We trained multiple stakeholders on our ecoscoring
methodology: dedicated online training for suppliers, as
well as internal training for procurement and R&D colleagues
took place in 2021.
• We successfully ecoscored 100% of newly developed
platforms across all Barco R&D development centers
worldwide. 65% of new products bore the Barco ECO label
(Ecoscore A or higher) upon launch, none had a D score. This
means that, thanks to a strong engagement of our R&D teams,
we are well on track to achieve our 2023 target: at least 75%
of new Barco products launched carry the ECO label.
% of new products released with Barco
ECO label (hardware)
TARGET : %
23%
48%
65%
2019
2020
2021
E
N
E
R
G
Y
M
A
T
E
R
I
A
L
U
S
E
P
A
C
K
A
G
I
N
G
E
N
D
-
O
F
-
L
I
F
E
&
L
O
G
I
S
T
I
C
S
O
P
T
I
M
I
Z
A
T
I
O
N
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20
10
100
90
60
80
70
40
50
30
As we want to focus most on our bestselling products, we have
set an even stronger target, articulating that by 2023, at least
70% of revenues should come from ECO labelled products.
In 2021, 31% of revenues came from ECO labelled products.
Ecoscoring our medical product portfolio
How does the ecoscoring system work in
practice? What challenges does it bring for our
medical products? And how do we at Barco feel
about the first years of ecoscoring medical prod-
ucts? We asked our Environmental Compliance
Officer Jan Daem and Stijn Vancoillie, R&D
Manager for Medical Display Systems. Stijn
explains how ecoscoring is a truly iterative
process: “You start with the design, which is
assessed with a questionnaire. Based on the
feedback, the design gets a score and the
ecoscoring team gives recommendations for
improvement. That’s the beginning of a back-
and-forth process between the project team and
the ecoscoring team – an approach that works
really well.”
“In 2018 we set up a few pilot projects to test
the first version of the ecoscore. Some products
needed some additional actions after the first
evaluation, but these all have an A ecoscore now.
That was the idea: the ecoscore is no walk in the
park, but it should actually make a dierence, for
us as a company but also for our customers,”
says Jan Daem.
The entire interview is available
on the Barco website
%revenues from products with
Barco ECO label*
TARGET : %
26%
31%
2020
2021
20
10
100
60
70
80
90
40
50
30
* As of reporting year 2021 total revenues from products correspond to total
product and project revenues (see note 3 on p. 35) as reported in the financial
chapter of our integrated report, which corresponds to the EU taxonomy
eligible turnover in 2021. For comparison reasons 2020 total revenues from
products were updated, corresponding to total product and project revenues
in 2020. The % revenues from products with Barco ECO label were recalculated
using the updated turnover.
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2.2 Improving energy eciency of our products
One of the four domains of Barco’s ecodesign program is
energy performance. As the energy our products consume
on our customers’ premises has a major impact on the
environment, improving their energy performance is a high
attention topic
.
At the same time, market trends and customer preferences
are shifting towards ever-higher performance (brightness, res-
olution, etc.), which requires higher energy consumption. We
therefore measure energy consumption relative to brightness,
resolution, luminance, etc. as watt/delivered capability and
have set the target for 2023 to reduce the energy footprint of
our products by 25% versus base year 2015.
In 2021 the average energy eciency of sold products was 0.7,
which is lower than the 0.75 target (i.e., a 25% reduction versus
baseline 2015). The drop in energy eciency was mainly driven
by the growing adoption of laser projectors, which consume
far less power (-50% to -150%) than traditional lamp-based
systems while producing more light, higher brightness levels
and a better image quality. Smart and balanced innovation in
both video wall and projection technology will be needed to
further drive the reduction of energy consumption.
Energy eciency index of sold products*
(relative vs 2015 base year)
TARGET :
.
% vs
0.80
0.73
0.70
2019
2020
2021
* For definition of energy eciency index: see glossary.
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0.2
0.1
0.8
1.0
0.6
0.7
0.4
0.5
0.3
The circular economy is a focus area in Barco’s sustainabil-
ity strategy. We want to help our customers with innovative
products and services to provide an increasingly circular expe
-
rience. Through smart design and services, we aim to reduce
waste and retain the highest utility and value of products
and components.
Circular product design
To enable circular solutions for our customers, we engage in
circular design. Several criteria are embedded in the ecodesign
program to improve the circularity of our products, such as
increasing the use of recyclable and recycled materials, both
in the product and its packaging. In 2021, we ramped up the
use of post-consumer recycled (PCR) plastics in products.
35% of new products launched contained PCR plastics, and
we aim to boost that figure in the coming years.
The ecodesign program also focuses on improving material
eciency. We work to shift our portfolio toward more materi-
als-ecient products and packaging, for example by reducing
product weight or digitization. In 2021, material use intensity
was 4,441 kg/mio € revenues.
Next to our internal circular design eorts, we fully support the
development of clear, objective criteria that drive the industry
toward more circular products. As an active member of the
CEN-CENELEC Joint Technical Committee 10 on energy-re-
lated products, which aims to establish an objective measuring
methodology for repairability and recyclability of products, we
contribute to future standards that will improve the circularity
performance of products.
% of new products released with
post-consumer recycled plastics
0%
4%
35%
2019
2020
2021
40
30
20
10
100
80
90
60
70
50
Product recycling services
As e-waste is one of the fastest growing waste streams, it is
crucial for our products to be recycled at end-of-life. This is the
very basic first step in a circular economy. For every product,
we provide a user manual that includes information for cus-
tomers on how to handle the end-of-life stage, and a recycling
passport that oers recycling information to recyclers.
We allow customers to return used products to recycling part-
ners free of charge. In 2021, 25% of our revenues were sold
in countries where we participate in and oer product return
and recycling programs. Where no structured program is in
place yet, we oer ad-hoc recycling and collection services.
We demand that all our recycling partners are ISO 14001 cer-
tified and comply with legislation regarding the prohibition of
e-waste export.
Read more on our website
To increase transparency into product composition and to
improve waste treatment operations, the European Chemicals
Agency (ECHA) has deployed a publicly accessible database:
the SCIP (Substances of Concern In articles as such or in com-
plex objects (Products)) database. Containing information on
substances of very high concern present in articles placed on
the EU market, the database ensures that the information on
the articles is available throughout the entire lifecycle of prod-
ucts and materials, including at the waste stage. This database
informs recyclers on which substances are used.
2.3 Oering circular solutions
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In 2021 Barco registered all its active end-products in the ECHA
SCIP database. We were able to do that prior to the deadline
thanks to our large coverage of Full Material Disclosures (FMDs)
(82% of active components in 2021) and RoHS certificates
with the applicable exemptions. That makes us a pioneering
company when it comes to providing transparent and up-to-
date information.
Extending circular service oerings
We realize that before products are recycled, more valuable
circular opportunities should be grasped. That’s why we
explore opportunities to extend the lifetime of our product,
including upgrades and predictive maintenance options. In
addition, we start exploring oerings where customers get
access to – rather than ownership of – products. This opens
new opportunities for the circular economy.
Circularity in action:
Barco’s rear-projection
cube video wall
upgrades
Rear-projection video walls consist of multiple
cubes stacked in a matrix structure. Each cube
contains a projector, a mirror reflecting the
image, and a projection screen integrated in a
mechanical structure. While electronic parts,
cooling units and light sources (although they
can be separately replaced) age, the mechan-
ical structure, mirror and screens can last a lot
longer. That is why we oer an upgrade solu-
tion: customers can equip their existing video
wall structures with a new projection module.
In this way, they get access to the latest RGB
laser projection technology quickly, while sig-
nificantly extending the lifetime of their overall
system and minimizing waste. This fast, easy and
low-cost operation is oered in both CapEx and
OpEx models.
In 2021, 35% of rear-projection video wall instal-
lations were upgrades of existing rear-projection
cubes. What’s more, the legacy projection
engine and lenses are, under certain conditions,
also being refurbished. For example, in 2021, 136
lenses were refurbished.
35%
of our rear-projection video
wall installations in 2021 were
upgrades of existing cubes
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Our ambition
Our targets
We invest in sustainable employability by creating the right conditions
for our employees to have an engaging, enriching and healthy
career at Barco. We do this by encouraging our people to learn and
develop themselves and by ensuring a healthy working environment
– both physically and mentally. We engage in building an inclusive
workplace that embraces the diversity of our people.
The people of Barco
73% male
27% female
12% The Americas
55% EMEA
Number of employees
Gender
Geographical
Per functional group
3,6362019
3,3032020
3,1412021
Figures reported are in heads (not FTE). For definitions on indicators: see glossary. We refer to note in the
financial chapter and to our remuneration report for more explanation on the headcount evolution.
7% General & Administration
21% Sales & Marketing
30% Research & development
41% Operations
33% Asia-Pacific
. Empower all our colleagues to have an engaging,
enriching and healthy career
Primary targets
Each year, aim for an employee Net Promoter Score of at least
Step up our efforts in diversity
Invest in learning and development
Supporting targets
Each year, aim for zero work accidents
People
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Despite all diculties and hard times linked
to the corona pandemic, I have always felt
and continue to feel that my colleagues on
all levels are really caring: for the work they
do, for the results, for the satisfaction of the
customer and for each other
.
I look around
me and I see a working environment full of
highly skilled and willing professionals, keen
to learn from each other, providing each other
with honest feedback and growing together,
day after day
.
Argentina Margaret Iezzi
Inside Sales Coordinator, Italy
Our people: they are what makes Barco great. 2021
has, again, been a challenging year for many of us,
as the covid-19 pandemic kept impacting our lives
and work – either directly or indirectly. Both the
individual employees and Barco as a company had to
cope with the worldwide health crisis.
In line with our ‘We care’ corporate value, the HR department,
all our business leaders and every single employee did the best
they could to ‘care’ for their colleagues. We tried to nurture our
company culture, highlighting the aspect of ‘connection’, to
make sure people pulled through the challenging times both
professionally and socially. Initiatives were set up (globally and
locally) to make sure people were safe and doing okay.
Still, we also prepared to get back on the path towards growth.
Aware that the pandemic had disrupted our business, we
invested in resilience, flexibility and adapted our company to
the new realities. We are working on new homework policies,
we focused on internal mobility and talent management, and
looked for new colleagues to fill job openings (in a challeng-
ing job market). In this way, we have strengthened the Barco
foundations to secure future success.
Our roadmap towards sustainable impact:
key initiatives and action plans
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1. Employee engagement
1.1 Pulse surveys measuring employee engagement
Since 2020, Barco has been measuring employee wellbeing,
engagement and satisfaction through so-called ‘pulse surveys’.
These short polls allow us to gauge satisfaction multiple times
a year and have proven to be a very valuable tool during the
times of mandatory working from home. They provide us with
real-time insights on how employees are feeling, allowing us
to take action quickly in order to keep everyone motivated.
In 2021, we took the surveys in February and in July. On aver-
age 70% of the Barco employees responded and the outcome
was positive. In July, 85% of employees indicated they were
doing OK or great (versus 78% in February) – the same percent
-
age as in the first worldwide survey during the first covid-19
outbreak (April 2020). Overall engagement in 2021 was 8.3/10.
Based on this engagement score, we calculated an employee
Net Promoter Score (E-NPS) of 38.5: a great result according to
industry expert literature and well above our target (at least 30).
Upholding employee engagement was again a priority in 2021. Both in times of mandatory working from home
and return to the oce, we put several initiatives and mechanisms in place to keep employee engagement on
the high level we are used to.
38.5
Employee Net Promoter
Score in 2021
What is a good NPS score?
-100 0 30 70
NEEDS IMPROVEMENT
100 0
GOOD
(0 - 30)
GREAT
(30 - 70)
EXCELLENT
(70 - 100)
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1.2 Focus on connection
The July 2021 pulse survey confirmed that our biggest chal-
lenge is to stay connected. Connected to our colleagues,
team and manager; connected with our customer, but also
connected with our role and purpose in the broader Barco
context. To reinforce that connection, we launched a variety
of initiatives for employees and team leaders, from which they
learn and benefit, as individuals and as a team: from workshops
on team dynamics (using Insights Discovery), workshops on
giving and receiving feedback, keynotes and recordings on
resilience and re-energizing teams (by e.g., Streetwize) to key-
notes from customers and external partners.
During the Streetwize connect session, we
explored the skills proven crucial to succeed
on the streets
.
When studying children who
live in the street there is a connection of their
need to be ever changing and savvy, in the
same way we need to be agile in business
.
The more we are open to change and able to
share our ideas, the more we feel connected
and a part of the corporation
.”
Melanie Foster
Executive assistant
Despite these eorts, we faced an increase in voluntary turn-
over in 2021 compared to 2020. This trend is in line with the
higher resignation rates observed in the overall (tech) industry.
Voluntary turnover rate
% of heads
9.1
9.6
10.5
2019
2020
2021
2
1
10
6
7
8
9
4
5
3
iGemba program
For the 11
th
year in a row, we encouraged operators
to share their improvement ideas via the iGemba pro-
gram. iGemba’s goal has remained unaltered since the
launch of the program: to establish a culture of contin-
uous improvement. Improvement ideas can be in many
domains: quality, safety, ergonomics, environment, …
every suggestion that moves the organization forward
is welcomed.
In 2021, on average 5.5 suggestions were made per
operator. This is a clear rebound from the dip in 2020
when the focus on crisis management and the severe
lockdowns clearly hampered the iGemba initiative.
Number of iGemba improvement
suggestions per operator
6.0
4.1
5.5
2019
2020
2021
2
1
6
4
5
3
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2. Employee safety, health & wellbeing
2.1 Making all workplaces safe during the covid-19 pandemic
Ensuring health and safety in the working environment has
been a top priority in 2021. Learning from 2020, we were able
to prepare and respond to the covid-19-related challenges in
an agile and proactive way. A global response team reviewed
the worldwide pandemic impact and the legal obligations
and communicated on measures taken at Barco. This team
focused on:
• Ensuring compliance with the (constantly changing) legal
requirements in the dierent countries, e.g., working from
home;
• Contact tracing in the company;
• Supplying protective equipment (e.g., hand gels, face masks);
• Organizing on premise-work aligned with social distancing
rules;
• Updating travel advice in function of the applicable
legislation;
• Frequent communication with employees.
A wide range of contingency measures were set in place,
including warning employees in the case of an infection,
ensuring social distancing, ventilation, homeworking, and
many others. While these measures were largely successful
and at most sites globally almost continuously operational,
the Barco Noida site (India) had to close in May 2021 when
covid-19 infections in the country reached a peak.
Caring about people is in our company’s DNA. We aim to establish a culture that places top priority on safety
and on health, as we state in our Environment, Health, Safety and Security Pledge. The covid-19 pandemic did
not stop when 2021 started, and the focus of the year was again on mitigating the impact of the pandemic. But
even in this context, we pursued or launched additional initiatives to structurally improve the safety and the
wellbeing of our people.
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How we put our ‘We care’ pledge into practice
during the covid-19 crisis in India
In April and May 2021, India was hit by a devastating wave of
covid-19 cases. Over 100 out of the 500 Barco India employees
were impacted. As the country ran out of hospital beds, oxygen
cylinders, medicines and testing capacity, Barco immediately
lent help.
“We set up a helpdesk where our employees and their families
could reach us 24/7 and ensured they had access to testing
and medical care, from a doctor, oxygen and other medical
supplies through to, in the worst cases, an ambulance and
hospitalization. In addition, colleagues who struggled with
the impact of the crisis were encouraged to talk about their
concerns via an employee assistance program,” says Jayati Roy,
HR director Barco India. Barco Noida also ensured the health
and safety of their people
by oering continuous test-
ing services and setting up
a temporary vaccination
center.
“Our colleagues around
the globe helped us with
financial support, oxygen
concentrators and with
moral support too. Everyone
really expressed their con-
cern and checked how they
could help,” Jayati contin-
ues
. “That sincere support
was a great help to all of us. It highlighted that Barco is a
warm company that really cares for its people.”
The sincere support of the entire
Barco community was a great help
to all of us. Barco really is a warm
company that cares for its people.
Jayati Roy
HR Director, Barco India
Barco Integrated report 2021
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Planet - People - Communities
01 SUSTAINABILITY
AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
03 SUSTAINABILITY
PERFORMANCE
04 REPORTING
ON EU TAXONOMY
05 MANAGING
SUSTAINABILITY
2.2 Continuous improvement
In line with our ambition to reach zero work accidents, each
Barco site creates a Plan-Do-Check-Act cycle based on the
group’s requirements for safety and health management.
This includes, among other relevant activities, developing a
management framework governed by a safety and health
supervisor, and implementing risk assessments. Some import-
ant actions are:
• The launch of an initiative regarding internal transport in the
production site at our headquarters.
• Continued efforts to ensure chemicals safety – which
remains a top priority for Barco – around the globe. While
all existing actions and initiatives remained in place, a new
updated procedure for chemicals was rolled out.
• Ensuring laser safety: the laser safety committee makes sure
that the strict laser safety procedures are respected, and that
laser technology is always handled in dedicated rooms only.
• Placing the safety of Barco operators at the heart of
improvement ideas through the iGemba program:
which encourages Barco operators around the globe to
continuously improve processes. iGemba promotes a safety
culture as one of the most important values.
In 2021, the worldwide lost time injury frequency rate was
1.59, which is a significant improvement compared to previous
years. Lost time injury severity rate was 0.07.
2.3 Training and communication
Employees and the subcontractors working on Barco premises
are properly informed and trained for the tasks they are per-
forming – not only on a technical level, but also when it comes
to health, safety and wellbeing. We also actively communicate
on the subject with employees through meetings with labor
unions and the joint management-worker Health and Safety
Committee at the headquarters. In 2021, a specific mandatory
Standards@Work e-learning course on safety was rolled out
globally. 100% of white-collar employees followed the course.
2.4 Promoting mental health and wellbeing
Barco undertakes multiple actions to promote the health and
wellbeing of all our employees, which are listed on the cor-
porate website. In 2021, in the midst of the covid times, we
launched several extra initiatives. One example: in our head-
quarters, a group of volunteers – the so-called CeOs (Chief
energizing Ocers) – set up dierent targeted initiatives to
boost the morale of our workforce.
0.5
1.0
1.5
2.5
2.0
3.0
2019 2020
2.44
1.59
0.070.07
0.05
2.73
2021
Lost time injury frequency rate
Lost time injury severity rate
Lost time injury frequency rate
Per 1,000,000 hours worked
Lost time injury severity rate
Per 1,000 hours worked
Barco Integrated report 2021
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STATEMENT
02 SUSTAINABILITY
STRATEGY
03
SUSTAINABILITY
PERFORMANCE
04
REPORTING
ON EU TAXONOMY
05
MANAGING
SUSTAINABILITY
3. Employee learning &
development
3.1 Adapting training programs to strategic
needs
For some time now, Barco has been organizing ‘Governance
Boards’ charged with identifying the strategic training needs
of the company and developing a relevant learning and devel-
opment program. In 2021 a new ‘Governance Board’ focusing
on digital transformation was installed – led by Marc Spenlé,
Chief Digital Information Ocer.
Despite the ongoing pandemic, with periods of mandatory
remote working, we managed to keep providing courses.
Thanks to our own weConnect platform, we could oer
employees an engaging learning environment. 89% of Barco
employees enrolled into a course in 2021, either oine or
online.
At Barco, we are dedicated to promoting and
supporting employee development, through training
programs and development opportunities. Driven by
the continued pandemic and subsequent restrictions
in social contacts and travel, trainings in 2021 were
mainly digital. As employees were enthusiastic
about this approach – and digital learning oers
obvious benefits in terms of costs and environmental
footprint – we will maintain a set of virtual courses in
the future portfolio.
Agoria awards Barco as
‘Employer ready for the
future of work’
At the end of 2019, Barco signed the ‘Be
The Change’ charter of Agoria, the Belgian
federation of the tech industry, committing
ourselves to apply tech innovations on the
work floor. Achieving all four targets yielded
us the Agoria award of ‘Employer ready for
the future of work’.
Read more
Barco Integrated report 2021
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02 SUSTAINABILITY
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04
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05
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SUSTAINABILITY
The training courses on Barco’s Standards@Work were again
very successful, reaching no less than 99% of white-collar
employees. New were the online learnings provided via
LinkedIn Learning to a selection of employees worldwide.
In 2021, Barco employees received on average 10.5 hours of
training. That is lower than previous years, mainly due to the
diculties with organizing training in the covid context.
3.2 Promoting internal mobility
Whenever there is a job opening at Barco, the job is posted
internally. In addition and whenever possible, Barco’s internal
mobility forum actively looks for an internal candidate with the
needed skillset – in line with our internal recruitment policy.
In this way, we strive to keep talent in-house and stimulate
people to further develop themselves. In 2021, one out of
five vacancies were filled internally.
Average training hours per employee
# hours
13.2
11.3
10.5
2019
2020
2021
3
4
1
2
9
13
12
11
10
7
8
5
6
24
20
20
2019
2020
2021
5
25
20
15
10
Internal mobility
% vacancies filled internally
Barco Integrated report 2021
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STATEMENT
02 SUSTAINABILITY
STRATEGY
03
SUSTAINABILITY
PERFORMANCE
04
REPORTING
ON EU TAXONOMY
05
MANAGING
SUSTAINABILITY
The Emerging Leader Program was organized for the third
time in 2021. 30 employees, who are not yet in a leadership
position, but with strong leadership talent and marked ambi-
tion were selected to participate in this program. Throughout
this program they developed their skills in various aspects of
business and leadership, creating a strong foundation for them
to develop into the leaders of tomorrow.
Next to the corporate initiatives, many local or team-specific
leadership training programs were set up. An initiative worth
highlighting is the training program in the Belgian opera-
tions department on ‘Communicating with impact’ (for line
supervisors and line responsibles) and ‘Leadership skills’ (for
managers).
In the ‘Communicating with impact’
training, we got a very practical
insight in people leadership skills.
The interactive role play was a great
way to learn how to give feedback
to colleagues
Vital Cracco
Warehouse supervisor
3.3 Leadership development
Annual talent development reviews, assessing the perfor-
mance and future potential of our employees, are an important
instrument to identify the development actions or career
moves people need in order to move and grow further in the
organization. The Barco Leadership Compass provides the
worldwide framework for this review by outlining clear expec-
tations in three domains: thought leadership, result leadership
and people leadership. As a result the Barco leaders know what
is expected and can develop their leadership skills based on
a set of well-defined competences. In 2021, 31% of leaders
went through a formal review.
Barco leadership
compass
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02 SUSTAINABILITY
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03 SUSTAINABILITY
PERFORMANCE
04 REPORTING
ON EU TAXONOMY
05 MANAGING
SUSTAINABILITY
4. Diversity & inclusion
Barco’s open and inclusive culture was further
supported and strengthened in 2021. We keep on
striving for more diverse teams in terms of culture,
nationality, gender, etc. In the meeting of September
2021, our Board of Directors underlined the
importance of diversity and inclusion as a catalyst
for creativity and innovation. As a result, diversity and
inclusion will be treated as a highly material topic.
In the fourth quarter of 2021 a workstream lead and
executive sponsor have been assigned to accelerate
on this topic. They will set out a roadmap and action
plan in the course of 2022.
Diversity by gender
% of heads
Diversity by age in 2021
% of heads
Diversity by nationality in 2021
28%
15%
29%
28%
17%
29%
27%
16%
50%
2019 2020 2021
% women overall
% women in senior management
% women in Board
9% under 30 years
63% between 30 and 50
28% above 50 years
44
Number of
nationalities in the
global workforce
30
40
10
20
50
Barco Integrated report 2021
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STATEMENT
02 SUSTAINABILITY
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03
SUSTAINABILITY
PERFORMANCE
04
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ON EU TAXONOMY
05
MANAGING
SUSTAINABILITY
4.1. Diversifying teams
In 2021, we oered training to promote team diversification.
In a dedicated training course, people learned about optimal
conduct when working together in multicultural teams, in
an international environment. The training greatly contrib-
uted to a better in-team spirit. An “Insights” workshop made
employees look at preferred behavior, better collaboration, and
optimal understanding. We also kicked o a monthly ‘world-
wide onboarding’ initiative in 2021. Next to guiding our new
employees in and around Barco, this is also a good platform
to experience the diversity of the Barco teams and get to know
international talent from dierent cultures in our organization.
We steer actively towards diversity within the highest gov-
ernance bodies. We monitor, assess and evaluate gaps and
areas for improvement in the composition of our Board of
Directors and of the Core Leadership Team in terms of gen-
der, age, capabilities, expertise, educational and professional
experience as well as nationality. In April 2021, Lieve Creten
was appointed as member of the Board of Directors, resulting
in an equal board composition in terms of gender.
4.2 Equal pay monitoring
Barco values equality between men and women and believes
this should be reflected in rewards. Our Job Grading Policy
dictates that the salaries be based on a functional level and not
assigned individually, ensuring that there is no material wage
gap between women and men. Furthermore, promotions
and new hires are a shared responsibility between the HR
department and the managers. This extra pair of eyes watching
over all processes is another sanity check for equal payment.
In Belgium, an annual sanity check is done on the salaries of
men and women, monitoring the equal pay strategy per func-
tion level. In 2021, the results of this analysis were discussed
with the Belgian workers council, and they concluded there
was no significant gap and no further action was needed.
Barco Integrated report 2021
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AMBITION
STATEMENT
02 SUSTAINABILITY
STRATEGY
03
SUSTAINABILITY
PERFORMANCE
04
REPORTING
ON EU TAXONOMY
05
MANAGING
SUSTAINABILITY
5. Labor practices & human rights
Respect for human rights has always been a fundamental value for Barco. That is why we increasingly approach
this topic in a more structured and elaborate way.
5.1 Formulating our human rights pledge
We look at human rights from three dierent angles: Barco as
an employer, Barco as a customer and Barco as a supplier. Our
human rights pledge covers these three angles. As the guiding
principles for the pledge, we used the Universal Declaration
of Human Rights, the International Labor Organization (ILO),
the Declaration on Fundamental Principles and Rights at
Work, The UN Guiding Principles on Business and Human
Rights and The OECD Guidelines for Multinational Enterprises.
The pledge, approved by our CEOs in 2021, complements
the already existing Environment, Health, Safety and Security
pledge. These two documents form the cornerstone of our
vision, commitment and actions on how we deal with human
rights in our own organization.
5.2 Identifying salient human rights risks in
own operations
In 2021, we defined the salient human right risks in Barco’s
own operations, using the RBA Code of Conduct (Responsible
Business Alliance, version 7.0 2021) as input. This code gives
clear guidance to cover all possible risks related to human
rights. We asked representatives of dierent organizations (HR,
Legal, Compliance, Communication) to score the likelihood
and potential impact of the human rights topics mentioned in
the RBA code. Based on the consolidated results of their inputs,
we defined the three salient risks for Barco’s own operations:
discrimination, protection of identity and non-retaliation, and
emergency preparedness. For each of these salient risks we
have identified the Barco team or department that is account-
able for tracking our performance on these topics, and how
to measure and report progress. In 2022, we will set up a
governance structure to audit these results.
5.3 Grievance mechanism
Our employees can report any case of human rights violation
to ethics@barco.com. Every case is investigated diligently. A
remediation procedure in line with national legislation is fore-
seen, if applicable. The grievance mechanism will be adjusted
to ensure compliance with the EU directive nr. 2019/1937 on
the protection of persons who report breaches of Union law
(‘Whistleblowers Directive’) upon its implementation in the EU
member states. More information can be found in the Ethics
& compliance chapter of this report.
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STATEMENT
02 SUSTAINABILITY
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03
SUSTAINABILITY
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04
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ON EU TAXONOMY
05
MANAGING
SUSTAINABILITY
Our targets
Our ambition
We will play an active role in the communities we operate in by upholding the highest ethical
and quality standards and expecting the same from our business partners. We always aim
to deliver added value to our customers through our solutions, services and capabilities
.
In
addition, we help ensure more people can participate in and benefit from the innovation society
.
Primary targets Supporting targets
. Always act lawfully, ethically and
with integrity wherever we operate
Each year, train all our employees in
Standards@Work
. Deliver great customer experience
Measure and drive customer Net Promoter
Score to an above market average score
3. Proactively manage information
security risks
By , obtain an average cybersecurity
maturity (NIST CSF) score of at least .
Each year, add at least one new product line
to the scope of the ISO certificate
4. Engage our suppliers in adopting sus-
tainable business practices
By , have suppliers covering at least %
of our production spend scored on their
sustainability performance
By , enroll all suppliers with sustainability
score < % in improvement plan
Each year, at least % of our production spend
is covered by suppliers undersigning Barco’s
supplier Code of Conduct
Each year, % of new production suppliers are
screened on sustainability by self-assessment
Communities
Barco Integrated report 2021
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02 SUSTAINABILITY
STRATEGY
03
SUSTAINABILITY
PERFORMANCE
04
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ON EU TAXONOMY
05
MANAGING
SUSTAINABILITY
Our roadmap towards sustainable impact:
key initiatives and action plans
1. Customer engagement
“We think with the customer” is one of Barco’s core culture building blocks. Every Barco team works hard
to put that value into practice. Through a mix of business unit-specific initiatives and cross-Barco customer
satisfaction measurements, we aim to become a truly customer-centric organization.
1.1 Cross-Barco customer satisfaction
measurements
In 2018 , a customer satisfaction measurement program was
kicked o, which has now been rolled out across the entire
Barco organization. Today, we have embedded three initiatives
in our standard way of working, which all feed back into each
other to make sure we keep monitoring the most relevant KPIs
and have the insights and take action on what matters most
for the customer:
• Monthly customer journey dashboards per business unit,
based on a mix of both internal and external KPIs, help us
monitor the key touchpoints that matter for the customer
and take action;
• The NPS is now our standard methodology for measuring
customer satisfaction. NPS surveys are sent out on a
quarterly basis to measure overall satisfaction. In addition,
we send out transactional-based NPS surveys that measure
the performance of individual transactions with Barco;
• Customer journey mapping helps us identify critical
touchpoints for the customer.
In the course of 2021, we continuously improved processes
and looked at further leveraging insights into action
:
• We adapted our follow-up processes from period eorts to
always-on follow up;
• We improved database quality and managed to increase
response rate;
• We defined and implemented the processes to leverage
customer insights throughout the organization: product
quality feedback and feature requests are fed back to product
management and quality issues are circled back to the quality
department and product management.
Our eorts resulted in a growing number of responses to
our NPS surveys, making the outcome of the surveys more
reliable and insightful.
At the end of 2021, Barco achieved an NPS of 47, which
equals the NPS score at the end of 2020. While the score
for Healthcare remained stable, we saw fluctuations over the
year with a lower score for the Meeting Experience business
compared to peak 2020 outcomes. That drop was, however,
Customer Net Promoter Score
(relationship NPS)
47
47
2020
2021
20
10
40
50
30
oset by solid rise in the results for our Immersive Experience
business. A score above 50 is considered excellent and that is
also where we want to steer the company’s rating.
Barco Integrated report 2021
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02 SUSTAINABILITY
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03
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04
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ON EU TAXONOMY
05
MANAGING
SUSTAINABILITY
1.2 Business unit-specific initiatives
In addition to the organization-wide approach to measure and
improve customer engagement, our business units – as well as
Barco sites around the globe – also take action to strengthen
the bonds with their clients. You’ll find more examples of busi
-
ness unit-specific initiatives in the ‘Entertainment’, ‘Enterprise’
and ‘Healthcare’ chapters in the core of our Integrated report.
Because ‘customer engagement’ is so pivotal in everything
that we at Barco do, we’ve also included a summary of our
approach in the general ‘market’ section of our integrated
report.
Improving the customer experience guided by NPS:
how the Americas Project Management Office team
is embracing feedback and taking actions
Our Project Management Oce (PMO) in Atlanta
manages installations, handles shipments, over-
sees production and makes sure everything is
installed on schedule. As they have continuous
and intense contact with customers and part-
ners, customer engagement is key. In 2020, they
started measuring their performance in that field.
“Our first NPS survey yielded a score of 44. Not
bad, but not good enough for us,” said Marcos
Oliveira, Director Project Management Oce
Americas. “From the feedback we learned that
our clients didn’t really feel involved, which led
to frustration.”
To put customers really at the heart of what
they’re doing, Marcos and his team have adapted
several processes. Today, they communicate
more frequently and more openly than before.
“We have increased the number of contact
moments with customers, created a template
to ensure a smooth project handover from sales
to the project oce and built an internal web
portal that enables the team to learn from previ-
ous experiences and stay motivated. The results:
happier customers and a happier Barco team.”
We are now thinking more from
a customer mindset, rather than
from an engineer’s mindset
.
It is
our job to make our customers
shine. And this approach has
clearly paid o
.
At the time of
writing, we have reached an NPS
of 77, which is a great joint eort
from the PMO team and Field
Services team.
Marcos Oliveira
Director Project Oce Americas
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04
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2.1 Product quality
In line with our mission to enable bright outcomes, Barco
aims to oer products and solutions that ensure top quality
over their entire lifetimes. Barco has always been considered
an A brand that delivers quality, yet we want to continuously
raise the bar in order to consistently meet and even exceed
customers’ quality expectations. That commitment is strongly
expressed in our global quality policy.
Quality management system
The drive to realize our quality policy and ensure that every
product – hardware and software – that we launch is of the
highest quality, is ingrained in a company-wide quality man-
agement system. This system defines the standard Barco
processes – from product planning, design and development,
manufacturing and sales all the way to customer service. One
of the key aspects of the system is the definition of clear roles
and responsibilities and the authority of those responsible
for product quality throughout the entire product life cycle.
Barco’s quality management system is audited annually and
certified according to international certification standards:
• ISO 9001 quality management system (for Barco sites in US,
Germany, India, Italy, China, Norway, Taiwan and Belgium);
• ISO 13485 quality management system specifically for
the medical device industry (for Barco sites in US, China,
Belgium, Italy and South Korea).
2. Product quality, safety & security
Quality organization
Our commitment to quality and customer satisfaction is also
reflected in Barco’s quality organizational structure. Each busi-
ness unit has dedicated quality assurance responsibles who
supervise process and product quality. In close collaboration
with the business unit management teams, they monitor qual-
ity-related indicators and spearhead improvement initiatives.
Together with the quality responsibles assigned to each manu-
facturing plant and the supplier quality responsibles, they form
a team that is committed to continuously improving product
quality for all our customers.
Q
uality by design
The sustained product quality levels are a result of Barco’s
standardized product design processes, focusing on:
• Compliance with the applicable standards, laws and
regulations, even exceeding them;
• ‘Security by design principle’ to ensure protection against
the rising number of cyberattacks;
• Agile software development principles to ensure that high-
quality software is delivered at the right cadence;
• Close monitoring of key product quality indicators during
the dierent design stages;
• Early and automated product integration and validation;
• Reliable and mature supplier management and
manufacturing processes.
Read more on our design approach, in the ‘innovation
and technology’ section of this report
Closing the loop
The quality journey continues after product launch through a
set of dierent processes and initiatives to integrate feedback
into existing and new products, including:
• iGemba initiatives initiated by employees to raise product
quality;
• The monitoring of customer feedback and satisfaction by
the divisional and regional service team;
• Regular cross-functional quality meetings between quality,
R&D, procurement and service to monitor and assess
product quality indicators. When needed, improvement
activities are initiated in response to quality-related issues;
• A monthly quality dashboard visualizing overall quality
performance and customer feedback.
M
ain achievements of 2021
• Extending the Barco-wide multisite ISO 9001 certificate to
the Taiwan site;
• Successful completion of ISO 13485 certification in the new
manufacturing site in Suzhou;
• IEC 62304 certification in Noida, ensuring compliance with
medical device regulations for software development;
• Transition of the medical devices to the new EU medical
device regulation (MDR).
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02 SUSTAINABILITY
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04
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05
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SUSTAINABILITY
2.2 Product safety
A worldwide focus on product safety
In the past few years, Barco has set up a major program to
ensure that our complete active product database complies
with the hazard-based safety standard, which covers an inte-
grated way of assessing joint functionalities and risks of existing
and innovative technologies. This resulted in timely certifica-
tion for the European and North American markets in 2021.
Various countries in the far East and near East regions now
started transitioning to this product safety standard. Testing
and recertification for those regions is done to provide our
overseas customers with the required country-specific product
safety marks.
Also Brexit has impact on Barco’s product safety and certi-
fication approach as the CE marking, which is seen as the
gold standard for quality in all EU countries, will no longer be
accepted in the UK from 2023 onward. EU product regulations
have been translated to UK specific regulations and all products
and spare parts are in an update program for compliance with
UKCA, the UK product safety certification marks.
Interference as a safety issue
Any product that functions thanks to electrical currents, emits
and is susceptible to electromagnetic interference. While radio
frequency signals that are surrounding us go up in frequency
range, so is the need for our products to be immune to sus-
ceptibility in these higher frequency ranges. Proper functioning
of the product and its safeguards needs to be ensured and
propagation of unwanted signals should be blocked. That is
why Barco is already testing its newly developed products
according to the relevant international immunity standard
before this is a legal requirement.
S
afety throughout the product lifecycle
As early as the concept and prototyping phase, we review the
applicable safety standards. The result of this review is a list
of requirements for critical components, suppliers, product
design, use cases, and manufacturing, obsolescence, and
component change management.
Throughout all product lifecycle stages, our product safety
engineers provide necessary input and execute tests against
the applicable standards in our company lab, according to
the ISO 17025 standard for test laboratories. The assessment is
successful only when the product passes on each requirement
and the test reports are approved by our external certification
partners. As a consequence, we CE-label our products with
the support of a third-party certification mark such as CEBEC
1
or DEMKO.
2
As long as our products are manufactured and/or sold, we
ensure compliance with updated and applicable standards
and requirements. During that time, reports and certification
marks serve as proof that our products adhere to the latest
iterations of continuously evolving safety standards.
Production process safety
The activities of our in-house safety lab also support product
safety protocols regarding production processes. Procedures
concerning the control of nonconformity and corrective
and preventive actions are in place, thus meeting one of the
requirements of the ISO 9001 certification that Barco holds.
Our employees are continuously trained on safety aspects of
the new technologies that Barco uses in its products, as well
as on changing regulatory requirements.
Number of incidents of non-compliance regarding the
health and safety impacts of products and services
1 CEBEC: The CEBEC-mark is a Belgian safety certification mark for low voltage electrical products.
2 DEMKO, initially established as Denmark’s Electrical Equipment Control and one of the founding members of the CENELEC Certification Agreement (CCA) Scheme,
for the mutual acceptance of test results between European countries.
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SUSTAINABILITY
2.3 Product security
With the risk of cybersecurity attacks increasing, organizations
need strict information security governance processes. Barco
has a clear commitment to deliver secure products and ser-
vices to its customers.
Deploying Barco products and services at customers’ premises
poses a series of cybersecurity risks, including:
• Exposing Barco’s intellectual property, which is embedded
in the product/service;
• If connected to the customer’s network, the product/
service can be used as a pivot point to further penetrate
the network;
• Exposure of (personal) data which is processed by the
product/service.
Product security is managed by the product security architects
and experts, who are operating in the business units.
In 2021, we took the following actions to strenghten the secu-
rity of our products:
• ISO 27001 recertification audit
XMS, the cloud management platform to manage and
monitor ClickShare devices, was added to the scope of the
ISO 27001 certification.
• Drafting a product security roadmap
In close cooperation with our Security Oce, all our product
security architects and experts drafted a product security
roadmap that governs the dierent domains where security
is crucial: compliance, development lifecycle, operational
security, sales support, tooling, training, … Given the positive
experience, this roadmap will remain in place and kept-up-
to-date going forward.
• Building a ‘security and privacy’ champions community
By empowering a member of every development team to
act as the security and privacy conscience of the team, we
managed to raise the awareness within the development
teams to critically identify issues as early as possible. When
needed, ‘security and privacy’ champions can escalate issues
towards security experts for extra guidance and they share
best practices amongst each other to boost the ownership
in every team.
• Extending security testing tools
The security scanning tools used in product development
were extended and additional focus was put on integration
in an automated way in our development and deployment
processes.
• Training
The R&D community was trained on the importance of
secure software development to ensure adoption of security
controls in all phases of our development lifecycle.
Our corporate website includes a responsible disclosure policy,
which provides security researchers with clear guidelines on
how to reach out to us about security vulnerabilities detected
in our products. The feedback is carefully handled using a
risk-based approach by our product security incident response
team (PSIRT). In 2021, we received 267 notifications about
potential vulnerabilities (including duplicates) in products or
services, reported by customers, ethical hackers and third-
party pen-testers contracted by Barco.
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3.1 Corporate security
As we are fully aware of the growing importance of corporate
security, we have a clear leadership commitment to cyber-
security, which translates into a Security Organization that
operates along three lines of defense. The cybersecurity pro-
gram is managed by Barco’s Security Oce, the second line
of defense.
Highlights in 2021 included:
• ISO 27001 recertification audit at Barco sites across the
globe.
• Applying a shift-left security approach, e.g. when
introducing our new CRM cloud application (i.e. mobile
security)
• Including data governance in the new global employee
oboarding process
• Introducing a security and privacy business impact
assessment for third parties
• Raising cybersecurity awareness among employees, with
new e-learnings and a phishing simulation exercise
• Continuously increasing our security maturity level, by
investing in people, processes and technology
3. Corporate security and data protection
Number of product lines in scope of ISO
27001
TARGET: + YEARLY
1
2
2
2019
2020
2021
3
4
1
2
5
Average cybersecurity maturity score
NIST CSF*
TARGET :
.
2020
2021
The main actions to improve the NIST CSF security maturity
score in 2022 are:
• Refining cybersecurity incident response
• Increasing management controls on privileged access
• Improving network segmentation
• Revisiting backup and recovery strategies
• Monitoring, preventing, detecting, analyzing, and responding
to cybersecurity treats and incidents
• Enhancing overall patch management
2.19
2.23
2.23
Our security maturity score increased from 2.19 to 2.23 in 2021
(NIST CSF), thanks to all the initiatives described above. By the
end of 2025 we aim to improve that score to 3.4.
* NIST: National Institute of Standards and Technology ; CSF: Cybersecurity
Framework
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0.5
1
1.5
2
2.5
3
3.2 Data governance and privacy
Barco prioritizes the protection and management of personal
data in accordance with GDPR and similar data privacy legisla-
tion outside the EU; e.g., the US HIPAA* regulations. Our data
protection ocer (DPO) is in charge of managing our data
privacy compliance program, which is governed by several
procedures and instructions. She is supported by a team of
privacy liaison ocers (the legal & compliance responsibles,
security & privacy champions and regional knowledge own-
ers) who oversee and ensure compliance with the GDPR on
a day-to-day basis at a local level. Our internal audit depart-
ment supports the DPO to facilitate GDPR compliance with
independent assessments and reporting on the eectiveness
of implemented measures through the testing of controls as
defined in the internal audit plan.
Number of data / GDPR / privacy incidents reported to
data protection authorities
Highlights in 2021 included:
• Including data governance in the new global employee
oboarding process;
• Updating the existing instruction related to personal
data breaches with guidelines for responding to a breach
of protected health information under the US HIPAA
regulations;
• Introducing a security and privacy business impact
assessment for third parties, carried out by the Security
Oce and the DPO;
• Signing data processing agreements with third party cloud
service providers that are involved in the processing of
personal data on behalf of Barco;
• Launching a new data protection e-learning under
Standards@Work;
* US HIPAA: is the Health Insurance Portability and Accountability Act of 1996
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Good financial performance does not conflict with high ethical standards. The DNA that drives business
eciency and compliance is the same: 100% say-do ratio, focus on solving issues rather than pushing them out
or cutting corners, and a relentless drive for process improvement. Barco’s reputation and continued success
depend on the conduct of our employees as well as our business partners. That’s why we put great emphasis
on building a company culture in which ethical conduct and compliance with Barco’s policies and the
applicable regulations are at the core of how we do business.
4.1 Building a true ethics and compliance
culture
We continuously invest in building a structured, company-wide
compliance program, based on our Code of Ethics, which
outlines the basic principles of compliant and ethical behavior
when dealing with colleagues, business partners, company
assets, information, infrastructure, etc. Every manager is
required to sign o on the Code of Ethics annually.
4.2 Compliance Awareness Month
To raise awareness about the Code of Ethics, we organize a
series of activities each year in the month of June – which is
called ‘Compliance Awareness Month’: from distributing post-
ers, sharing blog posts covering ethical topics and publishing
our compliance ocer’s ‘Compliance Year in Review’ letter to
organizing the Compliance Challenge live quiz.
4. Ethics and compliance
4.3 Global compliance manager role
In 2021, the global compliance manager launched a broad
range of initiatives to strengthen compliance in each of the
pillars of our compliance management system. Great eort
was put in updating and finalizing company policies and pro-
cedures in domains such as document retention, employee
oboarding or data privacy, and familiarizing employees
therewith.
In 2021, the Barco Labs team proudly took home the
Compliance Cup.
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4.4 Company-wide Standards@Work training
To boost awareness and know-how on compliance-related
issues among Barco employees, we set up Standards@Work, a
company-wide training program hosted by Barco University,
our in-house training and development centre. The program
includes a growing amount of e-learning courses covering
cybersecurity, data protection, sustainability, quality, safety,
ethics and continuous improvement, which employees are
expected to take within the deadlines set. We strive for a
100% participation rate and actively follow up on employees
with overdue learning assignments. In addition, we organize
in-depth Standards@Work² trainings on topics like anti-cor-
ruption and healthcare regulatory compliance for designated
employees.
In 2021, we prepared a new e-learning course on confiden-
tiality and an in-depth training on competition law. Both will
be launched in 2022.
% employees trained in
Standards@Work (white collars)
YEARLY TARGET: %
99%
98%
99%
2019
2020
2021
60
80
20
40
100
4.5 Promoting a ‘speak up’ culture
Barco wants to actively promote a genuine ‘speak up’ culture
where ethical questions or dilemmas can be raised without
fear of retaliation. Employees who have questions or want to
raise concerns or issues can do so via several channels. Their
direct supervisor or HR business partner is the first line of con-
tact. In addition, any employee can reach out to a member of
the Legal, Risk & Compliance team or the Internal Audit team.
Questions and/or concerns can also be communicated via the
Ethics mailbox (ethics@barco.com), to then be reviewed and
followed up by the Ethics Committee.
Overview and breakdown of the matters addressed via
the Ethics mailbox in 2021
Data privacy
Inappropriate behavior
Conflicts of interest
Total
Resolved: 4
Unresolved: 2
Closed: 2
Data Protection
Quality
Ethics
Safety
Sustainability
Cybersecurity
Continuous
improvement
Data Protection
Quality
Ethics
Safety
Sustainability
Cybersecurity
Continuous
improvement
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4.6 Governmental investigations
Since Barco conducts business across the world, our opera-
tions are scrutinized by governmental authorities in dierent
countries from time to time. Below we indicate pending and
ongoing investigations to the best of our knowledge.
• In India, the Directorate of Revenue Intelligence is
investigating the export of components from Barco’s factory
in India, which allegedly fall under the scope of Indian
SCOMET export regulations and would require an export
license. Barco contests the applicability of SCOMET export
regulations and filed a writ with the High Court of Delhi. Due
to the covid-19 epidemic, the hearing has been repeatedly
delayed.
4.7 Membership of associations
Barco is strongly integrated into local and professional initia-
tives as well as communities that are relevant for its activities.
We support these initiatives and communities in various ways
– as a founding partner, through directorship, delegation of
employees to work groups, membership fees, etc. Below is a
non-exhaustive list of the various organizations and associa-
tions we are a member of:
• Industry and trade associations and professional networks:
Agoria, Belgisch Elektrotechnisch Comité (BEC), COCIR,
Laser Illuminated Projector Association (LIPA), BELIR,
Belrim, Beltug, IBJ, VONK, Executive Global Network,
Communication Community, Vlaams Economisch Verbond
(VEV), EIT Health,...
• Non-profit organizations supporting:
- local entrepreneurship, like Hangar K start-up incubator,
a joint initiative of education institutions and the city of
Kortrijk that supports start-ups and young entrepreneurs
in the educational and gaming technology domains;
- innovative research within the technology or sustainability
sectors, such as Flanders Make, Flanders.healthTech and
The Shift;
- international exchange and and trade including Flemish-
Chinese, American, Belgo-Indian, Belgian American
Chambers of Commerce, Belgian Luxembourg Chamber
of Commerce for Russia & Belarus and CanCham Belux.
• Advocacy organizations, like Voka.
The annual membership fees for most of the above organi-
zations and associations range from 250 to 5,000 euro. Only
a few require membership fees ranging between 20,000 and
30,000 euro.
Barco does not make donations or other contributions of any
kind to political parties.
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In order to meet our customers’ expectations for high-quality, innovative products, we rely on service and
manufacturing partners from around the world. Sustainability is an inherent part of our global procurement
mission and strategy: together with our partners, we continue to drive responsible and ethical behavior and
high standards across our supply chain.
5.1 Procurement sustainability policy
Barco has outlined its sustainability commitments in a pro-
curement sustainability policy, which describes how we want
to collaborate with our suppliers in a responsible way: respect
international Human Rights and Labor regulations, meet prod-
uct compliance requirements, select and evaluate suppliers in a
fair way, raising awareness on the importance of sustainability,
... The policy will be made available on our website and shared
with all our suppliers.
5. Supply chain responsibility
5.2 Barco’s supply base
At Barco, we buy a wide range of components, from plastics,
electronic components and sheet metal to finished products,
from many dierent suppliers located in many dierent coun-
tries. As we deal with many suppliers, we have categorized
them into four categories (key, key+, core and other) based
upon supply risk and cost relevance to Barco. The catego
-
rization enables us to define a targeted scope and supplier
management activities for each category. For each category,
we have established dierent levels of engagement. “Major
suppliers” cover the key, key+ and core categories.
2021: a continued test for supply chain resilience
2020 proved to be a real test for Barco’s supply chain resil-
ience, given the trade wars and regional/global lockdowns
resulting from the covid-19 pandemic. While business regained
momentum in 2021, on- and o- lockdowns kept disrupting
the supply chain, resulting in shortages in dierent commodi-
ties which further stress-tested our supply chain resilience. We
have been able to largely mitigate the impact, in part thanks
to our strong, long-term supplier relationships and our agile,
proactive approach.
In 2021 Barco had 144 major suppliers,
covering 84% of our total production
spend. The regional spread of of that spend
was 64% in APAC, 26% in EU and 10% in
the rest of the world.
84%
144 suppliers
APAC: 64%
EU: 26%
Rest of the world:
10%
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5.3 Setting clear standards for our suppliers
The key to a high-standard supply chain is ensuring that
our suppliers know our expectations, including those in the
field of sustainability. We adhere to three important sustain-
ability standards: the Barco Code of Conduct for suppliers,
the Product Compliance requirements and the Responsible
Minerals Sourcing policy.
Barco Code of Conduct for suppliers
We require all our suppliers to comply with the Barco Code
of Conduct for suppliers, which is fully aligned with the RBA
Code of Conduct (Responsible Business Alliance).
The share of major suppliers who have committed to the Barco
Code of Conduct for suppliers or have a similar code, is tracked
as a monthly KPI in the Global Procurement dashboard. At
the end of 2021, 83% of our production spend was covered
by a signed declaration of compliance with the Barco Code
of Conduct for suppliers.
In 2021, we updated the code to ensure that it’s fully in line with
the RBA Code of Conduct Version 7.0. We have renewed the
commitment of our suppliers for the updated code.
Product Compliance requirements
Every component that our suppliers deliver to Barco must
comply with the Barco Product Compliance requirements,
which includes compliance with dierent worldwide regula-
tions (such as RoHS10 and REACH, ecodesign requirements,
WEEE), industry standards and additional criteria that we have
defined. Within the Barco product compliance requirements,
we also ask compliance with the Barco substance list, in which
we restrict the use of specific chemicals or require declaration
of specific substances. With the implementation of this list, we
go beyond current legislation. We urge our suppliers to pro-
vide Full Material Disclosures (FMDs) of chemical substances
contained in products. In 2021, 82.5% of active components
were covered by FMDs.
Responsible Minerals Sourcing policy
Managing conflict minerals is part of Barco’s corporate respon-
sibility. Just like many of our stakeholders, we are concerned
about human rights violations in dierent forms (child labor,
human-tracking, forced labor etc.) as well as armed conflicts
causing extreme violence across so-called “Conflict-Aected
and High-Risk Areas” (CAHRAs). We recognize the risk related
to illegal extraction and trade of materials such as tin, tungsten,
tantalum, gold and cobalt.
Our Responsible Minerals Sourcing policy is aligned with the
“OECD Due Diligence Guidance for Responsible Chains of
Minerals from Conflict-Aected and High-Risk Areas”. Our
in-scope suppliers (i.e. suppliers of products containing tin,
tungsten, tantalum, gold or cobalt) are expected to complete
the Conflict Minerals Reporting Template (CMRT) and submit
it to Barco. In 2021, 100% of in-scope suppliers responded to
the CMRT. We perform a detailed responsible minerals risk
analysis on the data received through cross referencing and
close collaboration with members of the Responsible Minerals
Initiative (RMI).
In 2021, we also proceeded mapping the transparency of our
supply chain regarding cobalt in anticipation of future regula-
tion and customer expectations.
% of production spend covered by signed
Code of Conduct for suppliers
YEARLY TARGET: %
83%
83%
83%
2019
2020
2021
75
100
25
50
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All potential production
suppliers
All key+ & core suppliers All major suppliers
Supplier self assessment
document including
sustainability questions
Supplier Performance Review
including sustainability score
Webinars and e-learnings
Supplier innovation days
5.4 Further embedding sustainability in the procurement process
We encourage our suppliers to share our values and expect
them to meet our mandatory ethical, labor and environ-
mental standards. In order to ensure the level of engagement
required, we have further integrated sustainability into every
step of the procurement process.
A. Supplier scouting
The supplier self-assessment document includes sustainabil-
ity-related questions, which are reviewed and form the basis
for open discussions when a gap between supplier behavior
and our expectations is detected at first glance. In 2021, 100%
of new production suppliers were screened using the supplier
self-assessment.
B. Supplier onboarding
In 2020, more sustainability criteria were added to the new
supplier selection report for new component suppliers. We
continued to use these criteria to increase awareness on sus-
tainability during the onboarding process.
C. Purchase contracts
Sustainability clauses are part of Barco’s terms and conditions
(T&Cs) for purchase as well as our master supply agreements
(MSAs) (i.e. contracts with major suppliers). In 2021, 89% of
production spend was covered by signed contracts with a
sustainability clause, i.e. signed MSAs or T&Cs.
SCOUTING ONBOARDING PURCHASE
CAPACITY
BUILDING
PERFORMANCE
MONITORING
Embedding sustainability in the procurement process
New critical production
suppliers
All suppliers
New supplier selection
report including mandatory
sustainability criteria
Terms & conditions
of purchase including
sustainability clause (all
purchase orders)
Contract including
sustainability clause (for
important spends)
SCOPETOOLS
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Sustainability is a fixed topic in every business
review meeting
.
In that meeting we discuss
one-on-one with our suppliers how they
performed in the last year
.
We review topics
such as quality, cost, (cyber-) security and
sustainability
.
A scorecard that blends
quantitative and qualitative data into a score,
provides a clear measure of that performance
and is a perfect starting point to launch
remediation actions where needed
.
Johan Kesteloot
Procurement executive
D. Supplier performance monitoring
In the annual performance review, suppliers are scored on
their performance in sustainability domains such as prod-
uct compliance requirements, adherence to Barco’s Code
of Conduct and transparency (the provision of CMRTs and
FMDs). Suppliers are encouraged to proactively share their
progress regarding sustainability in their operations and supply
chains, and to share innovations that could help us improve
% of production spend covered by
supplier sustainability score
TARGET : %
44%
58%
2020
2021
60
80
20
40
100
the sustainability impact of our products. In 2021, suppliers
covering 58% of our production spend were scored on their
sustainability performance. This is 14 percentage points more
than in 2020 and on track towards our 2023 target of 70%.
Barco also performs audits at existing as well as new suppliers.
These audits currently focus on quality, checking for quality
compliance and predominantly focused to assess process
risks that could result in quality defects. In 2021, 41 supplier
audits were performed, an increase against 2020 partly due to
the growing supply base to support our local manufacturing
mainly in APAC.
Number of supplier quality audits
#
38
35
41
2019
2020
2021
20
30
10
40
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Proud to create an intelligent
and sustainable planet – together
Embedded computing manufacturer
Advantech has been a trusted Barco
supplier for over 10 years now. They
co-create high-quality solutions for,
among others, the Large Video Wall
business, taking into account our
ecoscoring methodology. Did our tool
change their view to and approach of
new product design? We asked the team!
“The ecoscoring approach was quite new to
us and, we must admit, quite a challenge as
well,” says Dirk Finstel, Associate Vice President
Embedded IoT Europe at Advantech. “Still, we
soon started taking into account all four criteria
of the ecoscoring system in the earliest stage of
new product development. The tool now acts
as a guideline for us to continuously optimize
our products. That has led to some great results
already.”
“In the meantime, Advantech has established
a corporate ESG strategy including similar
ecodesign goals,” says Jaap Breepoel, customer
program manager at Advantech. The company
has worked hard, in the past few years, to plant
the seeds of corporate sustainability into its sys-
tem: “Barco’s ecoscoring methodology and all
the initiatives that they take in the field of sus-
tainability truly inspire us. We consider them a
pioneer in the field and are proud to enable an
intelligent and sustainable planet together with
them.”
E. Capacity building
To ensure that our suppliers understand our sustainability
standards and learn how to act upon them, we train them
and inform them about developments in several sustainability
domains, such as environmental compliance, ecodesign and
conflict minerals.
5.4 Training our sta
In 2021, we organized a dedicated training course for all com-
modity procurement executives, focusing on how to coach
suppliers to improve environmental compliance data.
5.5 Plans for 2022 and beyond
In 2022, we will continue our journey from awareness to
cooperative improvement of our suppliers’ sustainability
performance. The new Barco Code of Conduct will facilitate
the discussion with our suppliers. By engaging with suppliers
who got a score lower than 70% in the annual performance
reviews, we expect to understand the roadblocks and set up
improvement plans, in order to boost their performance.
Our ambition for 2022 and beyond is to upgrade our supplier
sustainability program to an advanced level, as defined in our
sustainability roadmap. We will also tune our actions in order
to be compliant with the European Due Diligence Act and
provide further information to our suppliers.
We soon started taking
into account all four
criteria of the ecoscoring
system in the earliest
stage of new product
development. The tool
now acts as a guideline
for us to continuously
optimize our products.
Dirk Finstel
Associate Vice President
Embedded IoT Europe at Advantech
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At Barco, it is our ambition to help ensure more people can participate in and benefit from a prospering society,
regardless of their backgrounds. We focus our support on the areas of education and entrepreneurship. We
therefore connect our employees with purpose, leveraging their engagement, expertise and skills, and partner
with non-profits and social enterprises, targeting long-lasting impact. Beneficiary groups are young and
underserved people, with the prime focus on the communities where we live and work. In 2021, Barco invested
198 k€ in community initiatives around the world.
6. Community engagement
6.1 2021: the covid-19 health crisis kept
impacting our communities
After a particularly challenging 2020, the covid-19 pandemic
kept impacting communities worldwide in 2021. Especially
India was hit hard in April and May 2021, which led to a heart-
warming wave of support from Barco teams in every corner
of the world. Colleagues from Belgium, China and Taiwan, for
example, donated money to purchase oxygenerators, which
were then shipped to India.
At our Indian oces in Noida, multiple initiatives were taken
to ensure the health and safety of the local Barco teams
and their families: from setting up a helpdesk and providing
access to testing, medical care, oxygen and medical supplies
through to vaccination and an employee assistance program.
Read the testimony of Jayati, HR Director of Barco India
6.2 Closing the education gap around the
world
Education is one of the keys to escaping poverty. Over the
past decade, Barco took several initiatives to increase access
to education and school enrollment rates around the globe.
In 2021, the covid-19 crisis urged us to slightly reshue our
focus, especially in India, to deliver more emergency support.
• We continued to support the Indian NGO Sakshi,
which founded the Barco Sakshi Education Center for
underprivileged children in Noida, where our site is located.
After supporting the construction in 2017, we keep helping
the school through various initiatives.
• For several years now, we have been partnering with
Close the Gap – a social enterprise that aims to bridge the
digital divide in developing countries by oering IT devices
donated by companies to projects. Since the start of our
partnership with Close the Gap, Barco has donated 2,831
pieces of IT equipment. In 2021, we donated 535 devices
of which a part has been used by Digital for Youth, a Close
the Gap organization that collects laptops from companies,
refurbishes them and distributes them to vulnerable young
people in Belgium.
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• For our emerging leadership program, Barco kept partnering
with StreetwiZe, a unique talent development provider that
develops high-impact learning products to companies,
inspired by the complex and competitive reality of street
communities. StreetwiZe invests 100% of their profits in
Mobile School, an organization that provides non-formal
education to street youth and helps them grow into positive
contributors to society.
6.3 Ensuring healthy lives and promoting
wellbeing
“Ensure the best possible health outcomes to as many people
as possible” is the mission of our Healthcare division. More
than developing solutions to achieve that aim, we also support
organizations that provide access to good healthcare services
around the world. Initiatives taken in 2021 include:
• Like in previous years, we helped CanSupport, India’s
largest free home-based palliative care program. Besides
donating money to fund mobile teams, volunteering at
CanSupport daycare centers or organizing activities with
young cancer patients, we also ran sessions on mental
health for CanSupport sta.
• Employees at the Belgian headquartered donated blood to
the Red Cross in August.
• In October – Breast Cancer Awareness Month – we
launched the ‘Illuminating the breast health journey’
campaign to highlight the importance of early detection
and inform and support people suering from breast cancer.
In addition, we sold Pink ribbons and encouraged employees
to ‘wear pink’ on Wednesdays.
• We donated medical displays to help improve diagnosis in
a hospital in North-Nigeria, via Belgian NGO Kitanda, and to
a local hospital in Croatia that had been severely damaged
by an earthquake.
6.4 Employee-driven charity initiatives
The ‘we care’ value so typical of the Barco culture is also
reflected in the charity initiatives set up by our own people.
Just a few examples:
• In Taiwan, biscuit boxes were sold from Children Are Us
bakery, a group of parents that provides children with
intellectual development disorders access to education.
• The Barco team in Norway supported a range of dierent
initiatives, raising money for the rehabilitation of prisoners
and for vocational rehabilitation, for the delivery of Christmas
dinners to poor or lonely people and to support people
facing mental health disorders and substance use problems.
• In line with the mission of our Entertainment division,
Barco also wants to promote cultural participation among
the underprivileged. In 2021, we teamed up with Film Fest
Ghent and local charity Enchanté in Belgium, donating
2,000 cinema tickets to people in poverty.
• In Belgium, we collected toys at our headquarters in Kortrijk,
which were then donated to underprivileged children.
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04
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05
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Reporting on
EU taxonomy
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02
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03
SUSTAINABILITY
PERFORMANCE
1. Background
A key objective of the European Commission’s (‘Commission’)
action plan on financing sustainable growth is to reorient cap-
ital flows towards sustainable investment and ensure market
transparency. To achieve this objective, the Commission called
for the creation of an EU classification system for sustainable
activities, i.e. an EU taxonomy.
Regulation (EU) 2020/852 (the ‘Taxonomy Regulation’) was
published in the Ocial Journal of the European Union on 22
June 2020 and entered into force on 12 July 2020. It aims to
define environmentally sustainable activities. The Taxonomy
Regulation is an important piece of legislation for enabling and
scaling up sustainable investment and thus implementing the
European Green Deal, including an economy that works for
people and ensures a just transition that creates employment
and leaves nobody behind. Notably, by providing companies,
investors and policymakers with the definitions of which
economic activities can be considered as environmentally
sustainable, it is expected to help shift investments where they
are most needed.
Article 8(2) of Regulation (EU) 2020/852 requires non-financial
undertakings to disclose information on the key performance
indicators related to the proportion in their turnover of environ-
mentally sustainable economic activities (‘Taxonomy-aligned
activities’) and the proportion of their capital expenditure
(‘CapEx’) and their operating expenditure (‘OpEx’) related to
assets or processes associated with environmentally sustain-
able economic activities.
As indicated in the Delegated Regulation of (EU) 2021/2178,
non-financial undertakings shall only disclose the proportion
of Taxonomy-eligible and Taxonomy non-eligible economic
activities in their total turnover, capital and operational expen-
diture and the qualitative information for reporting year 2021.
Barco considers its economic activities to have the potential
to significantly contribute to the Enviromental’s objectives
(Eligible) as stated in the EU Taxonomy Climate Delegated
Act. Barco’s turnover is linked to most of the economic sec-
tors listed in the TEG technical report. Evaluating the Barco
scope 3 CDP reporting (representing the scope 2 emissions
of our customer) and Barco SBTi commitment, further sup-
ported by discussions with peers and industry associations
lead to the following conclusion: Barco products potentially
substantially contribute to climate mitigation by enabling other
activities to achieve GHS emission reductions e.g. our (laser)
cinema projectors play an important role in making build-
ings and fixed installed products more energy ecient, our
Clickshare product enables remote collaboration hence less
travel, the Company’s computer servers are covered by the
ICT economical activity.
Applying the NACE codes and the freedom provided in the
dierent TSC and DNSH criteria to compare product LCA per-
formance to the market benchmarks support this conclusion.
Further elaboration on the economic sectors and technical
criteria supporting those sectors in the future might change
our current conclusion. If this would be the case Barco will
update the results reported over 2021 accordingly.
This reporting year should be considered as a transitionary year
preparing Barco for detailed alignment reporting over FY2022.
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2.1 Economic activity - turnover
Article 1 of the EU Taxonomy Regulation defines a taxono-
my-eligible economic activity as an economic activity that
is listed under the applicable technical screening criteria irre-
spective of whether that economic activity meets any or all
of the technical screening criteria.
The EU Taxonomy Regulation article 10 qualifies an eco-
nomic activity as contributing to climate change mitigation
if that activity contributes substantially to the stabilization of
greenhouse gas concentrations consistent with the long-
term temperature goal of the Paris Agreement through the
avoidance or reduction of greenhouse gas emissions or the
increase of greenhouse gas removals, including through pro-
cess innovations or product innovations, for instance in low
carbon technologies.
Barco oers products that have the potential to qualify as con-
tributing to climate change mitigation
1
, where these products
support the transition to a climate-neutral economy consistent
with the IPCC pathway to limit the temperature increase to
1,5°C above pre-industrial levels of our customers.
Determination of Barco relevant economical activities is based
on NACE code registration and validation of the economic
activity. The following applicable economic activity as defined
in the delegated act applies:
C - Manufacturing
C26 Manufacture of computer, electronic and optical products
and C27 Manufacture of electrical equipment, qualifying as
manufacture of other low carbon technologies
For turnover reporting purposes, the following parameters
were applied:
1. Turnover in accordance with International Financial
Reporting Standards (IFRS), as adopted for use by the EU. We
refer to note ‘Significant accounting principles 1.11. Revenue
recognition’ for the accounting principles applied.
2. Turnover related eligible activities: turnover linked to Barco
solutions that have a direct footprint impact during the usage
stage and are covered by NACE code C26 or C27. These
are defined as: turnover generated by hardware products
consuming electricity and project
2
revenues (see note 3 of
the financial report).
3. Turnover related non-eligible activities: turnover linked to
Barco solutions that have no direct footprint impact during
the usage stage. These solutions are turnover from software,
licenses, or services.
This results in the following quantitative data:
2. Taxonomy-eligible
1 EU taxonomy regulation defining substantial contribution to climate change adaptation is currently not applicable to Barco solution portfolio.
2 Projects are system installations that consist of multiple hardware products and related system installation, technical support based on end customer specifications.
All project sales are hardware product related.
3 Activity that places hardware products on the market that has specific climate impact throughout the product lifetime (CO
2
footprint).
We refer to note 3. Income from operations (EBIT) for a break-
down of Barco’s sales per type of sales: product, project and
service sales.
Economic activity Activity discription
Absolute Turnover
(in thousands of euro) Proportion
KPI – eligible activities
Manufacture of other low carbon technologies
eg.
H
ardware products
Product & project sales: , %
KPI – non-eligible activities
Other out of scope solutions eg. Software,
service
Service sales: , %
Total turnover , %
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2.2 CapEx and OpEx related to eligible activities
CapEx
The definition of KPI CapEx is available in Annex I 1.1.2 of DA
C(2021) 4987 and is fully in line with the reporting frame-
work defined in the financial note on Significant accounting
principles’ 5. Property, plant and equipment’ and ‘6. Leases’.
The total amount of CapEx is reported in note 9.2. ‘Tangible
fixed assets’. The total amount equals the eligible CapEx as the
total amount of CapEx relates solely to assets or processes
associated with Barco economic activities defined in section
“Taxonomy-eligible economic activity - Turnover”.
Capital expenditure for tangible assets in 2021, excluding
the impact of leased buildings, amount to 18 million euro.
Major investments in 2021 concern the new factory in China,
Suzou, both facility and production related (8 million euro) and
machinery and tooling linked to new development projects
(2.5 million euro).
O
pEx
The definition of KPI OpEx is available in Annex I 1.1.3 of DA
C(2021) 4987. At this moment of time there is no clear defi-
nition of OpEx under the IFRS framework, hence definition
referred to in the EU Taxonomy is applied. Nevertheless for
eligibility reporting one shall consider OpEx to cover direct
non-capitalised costs that relate to research and development,
building renovation measures, short-term lease, maintenance
and repair, and any other direct expenditures relating to the
day-to-day servicing of assets of property, plant and equip-
ment by the undertaking or third party to whom activities
are outsourced that are necessary to ensure the continued
and eective functioning of such assets. Translated to Barco
expenses only the cost related to research and development is
considered material and therefore included in the table below
as eligible OpEx.
Research and development expenses include all internal and
external costs related to research and development projects
and investments linked to the Company’s product roadmap.
We refer to note 3. (a) Research and development expenses
on p. 38
KPI Absolute value (in thousands of euro) Proportion
KPI related to capital expenditure (CapEx) – Eligibility denominator
,
%
KPI related to operating expenditure (OpEx) – limited to R&D
expenses, Eligibility denominator
,
%
Total turnover %
General note: as not all EU Taxonomy environmental objectives have been assigned technical screening criteria, Barco will
proactively follow up on the new EU taxonomy development and will adapt its disclosure accordingly.
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3. Towards taxonomy alignment reporting
EU taxonomy expects alignment with the technical screening criteria and compliance with the minimum,
primarily social, safeguards. Barco has already processes in place to ensure alignment compliance of products
and allow reporting.
3.1 Barco’s ecoscore – our response to the
technical screening criteria assessment
Barco ecoscore framework is annually updated to keep pace
with evolving regulatory evolutions. Version 6 of the tool
incorporates the technical screening criteria related to Climate
mitigation. Next to this the corresponding DNSH (Do Not
Significant Harm) criteria are also embedded in the framework.
The ensures all future product developments are evaluated in
a standardized and auditable way linking Barco ECO labeled
products one to one to EU Taxonomy alignment. The future
circularity criteria will also be implemented in the ecoscore
framework ones published
3.2 Minimum safeguards
Barco carries out economic activities across the globe in a
responsible and respectful way. In doing so, it is committed to
comply with the minimum safeguards referred to in article 18
of the EU regulation nr. 2020/852 of 18 june 2020 on the estab-
lishment of a framework to facilitate sustainable investment.
It has therefore implemented and will continue to implement
procedures to ensure the alignment of its activities with the
OECD Guidelines for Multinational Enterprises and the UN
Guiding Principles on Business and Human Rights, includ-
ing the principles and rights set out in the eight fundamental
conventions identified in the Declaration of the International
Labour Organisation on Fundamental Principles and Rights
at Work and the International Bill of Human Rights (“the
Guidelines”).
These procedures seek to incorporate into Barco’s activities
the principles and standards for responsible business conduct,
laid down in the Guidelines’ chapter General Policies as well
the specific chapters covering domains such as human rights,
environment, consumer interests, competition or taxation.
The Integrated report, and in particular the PPC report explains
how Barco promotes responsible business conduct in all its
operations:
• For the environment: the section ‘Planet’ is dedicated to
Barco’s eorts to protect the environment by continuously
reducing our environmental impact in our own operations
but also during customer use of products and at the end of
life
• For our employees: the section ‘People’ describes how
Barco fosters authentic and respectful employment and
industrial relations, safeguards the human rights of Barco’s
own employees, promotes inclusion and protects individuals’
health and safety.
• For our suppliers, our customers and the communities in
which we operate: the ‘Communities’ section details actions
Barco has undertaken in the current year(s) to live up to
the expectations of the external stakeholders: engaging
with customers to serve them with top products, in quality,
safety and security, ensuring proper data security, taking up
responsibility to ensure transparency and sustainability in its
supply chain, and acting with integrity and ethics
• The section ‘Ethics and Compliance’ summarises the
measures implemented to combat bribery, bribe solicitation
and extortion in the activities in which Barco is involved,
and to ensure fair competition on the marketplace. The
company’s compliance management system aims to ensure
compliance of its activities with all applicable laws, including
the tax laws of the countries in which it operates.
Barco is committed to living up to its ambitions and to creating
transparency towards all its stakeholders. Actual performance
is reported externally at least annually in the Integrated annual
report and internally managed in monthly and quarterly man-
agement meetings thriving for continuous improvement.
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Managing
sustainability
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Governance keeps our corporate sustainability strategy on
track. It ensures that our strategy remains eective, and that
accountability for our results sits right at the top of our com-
pany. Our sustainability governance model is explained on
the Barco website.
In 2021, we further optimized the functioning of the Executive
sustainability steering committee. We now work with a
permanent team (Chief Executive Officer, Chief Human
Resources Ocer, Chief Financial Ocer, Senior Vice President
Operations) and, depending on the topic, other executive
members are invited (Business unit heads, Chief Technology
Ocer, Chief Digital & Information Ocer, Group General
Counsel). The meeting frequency increased from four to six
times per year.
1. Sustainability governance
and responsibility
SUSTAINABILITY
WORKSTREAMS &
AMBASSADORS
GROUPS
SUSTAINABILITY
OFFICE
BOARD OF DIRECTORS
AUDIT COMMITTEE
CORE
LEADERSHIP TEAM
SUSTAINABILITY
WORKSTREAMS &
AMBASSADOR
GROUPS
SUSTAINABILITY
OFFICE
SUSTAINABILITY
OFFICE
EXECUTIVE SUSTAINABILITY
STEERING COMMITTEE
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2. Stakeholder engagement
Barco attaches great importance to stakeholder engagement.
After all, outside views help us identify and prioritize emerg-
ing issues and better align our strategy, actions and policies
with the interests of our key stakeholder groups: customers,
employees, investors, suppliers and (non-) governmental
organizations. In addition, stakeholders can provide valuable
feedback on our performance and other aspects of our activ-
ities, like transparency.
At Barco, every department is responsible for identifying and
engaging with its stakeholders (i.e. those they aect or are
aected by). Barco’s corporate functions provide the depart-
ments with a framework for stakeholder engagement (i.e.
stakeholder identification and classification, guidelines for
stakeholder communication, etc.). By continuing to standard
-
ize the process of interacting with our stakeholders, we can
mitigate risks, identify new business opportunities and improve
financial results. Our engagement approach for each key
stakeholder group is outlined on the Barco website. The dif-
ferent engagement activities to date indicate no real concerns
with respect to our sustainability management approach and
performance.
In 2020, we organized a comprehensive stakeholder engage-
ment process, involving external stakeholders of all categories
as well as internal stakeholders, as input for our materiality
assessment. In total, 111 stakeholders participated in the sur-
veys and interviews. The results have also been used to shape
our activities and focus in 2021.
In June 2021, we set up a poll on the Barco corporate web-
site, asking which sustainability topics matter most to our
stakeholders when choosing a Barco product. In total 3,300
stakeholders participated in the survey. The results gave us a
deeper understanding of how we can create more value for
our stakeholders. These insights are being used to shape our
R&D, product management and marketing activities.
Customers Employees Investors Suppliers (Non-) governmental organizations
1 Customer engagement Customer engagement Financial resilience Innovation management Climate change & energy
2 Product quality, safety & security Employee engagement Sustained profitable growth Product quality, safety & security Information security & data protection
3 Innovation management Product quality, safety & security Market reach Business ethics Innovation management
4 Financial resilience Innovation management Product quality, safety &
security
Customer engagement Product stewardship
5 Information & data protection Brand Corporate governance Financial resilience / Sustained profit-
able growth
Employee health, safety & wellbeing
Top 5 material topics by stakeholder group (2020 assessment)
A description of these topics can be found on the Barco website.
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We believe collaboration across the private sector and
multi-stakeholder engagement is required to catalyze soci-
ety’s transition to a more sustainable future. Barco actively
participates in several external initiatives that promote sustain-
ability, such as the Science Based Targets initiative, The Shift
and others. A description of the main initiatives and associa-
tions that we currently participate in is available on our website.
3. External initiatives
(platforms and commitments)
4. Certifications
In order to assure our stakeholders that our management
systems meet international industry-specific standards, they
are audited annually and certified according to international
certification standards:
• ISO 9001 quality management system (for Barco sites in US,
Germany, India, Italy, China, Norway, Taiwan and Belgium)
• ISO 13485 quality management system specifically for
the medical device industry (for Barco sites in US, China,
Belgium, Italy and South Korea)
• ISO 14001 environmental management system (for Barco
sites in Belgium, China, India and Italy)
• ISO 27001 information security management system (for
Barco sites in Belgium, India and Taiwan)
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2021 2020 2019 2018 RANKING
NA* B
B- B
NA
NA* GOLD
GOLD SILVER
Top 5% of companies evaluated
A AA
A A
Top 30% of the Electronic Equipment, Instruments & Components industry
C+ (Prime) C+ (Prime)
C+ PRIME NA
Top 20% of the Electronic Devices & Appliances industry
. (low risk) . (low risk)
NA NA
28th out of 127 in the Electronics Equipment subindustry
/ (robust) NA
NA NA
Top 15% of Technology-Hardware sector
5. External evaluations
Barco is rated by several independent organizations on its sustainability performance. We actively
participate in the following initiatives:
A description and up-to-date status of these evaluations can be found on the Barco website.
* At the time of publication the rate for the reporting year was not yet disclosed.
Vigeo Eiris
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barco.com ENABLING BRIGHT OUTCOMES
Group management
Beneluxpark 21
BE-8500 Kortrijk
Tel.: +32 (0)56 23 32 11
Registered oce
President Kennedypark 35
BE-8500 Kortrijk
Tel.: +32 (0)56 23 32 11
Stock exchange
Euronext Brussels
Financial information
More information is available from the
Group’s Investor Relations Department:
Carl Vanden Bussche
Vice President Investor Relations
Tel.: +32 (0)56 26 23 22
E-mail: carl.vandenbussche@barco.com
Copyright © 2022 Barco NV
All rights reserved
Realization
Barco Corporate Marketing & Investor Relations Oce
Focus Advertising
Barco
Beneluxpark 21
8500 Kortrijk – Belgium
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03 SUSTAINABILITY
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2021
Integrated
annual
report
Financial report
Table of contents
01 Barco consolidated.................................6
Notes to the consolidated financial statements..........24
Supplementary statements
...........................
90
B
arco NV...........................................92
02 Information about the share ...................... 96
Key figures for the shareholder ........................97
Shareholder structure............................... 101
Barco’s investment case.............................103
This is the Financial section of Barco’s 2021
Integrated annual report. Other sections
are available via the download center at
ir.barco.com/2021.
CORE
MORE
• Governance & risk report
• Report on planet - people - communities
• Financial report
ANNEX
• Integrated Data Pack
• Glossary
• GRI Content index
• Assurance report
Barco Integrated report 2021
2
FIN
Financial report
01 BARCO
CONSOLI
DATED
02 INFORMATION
ABOUT TH
E SHARE
IFRS Financial Statements
Introduction
This chapter of the Annual Report contains the IFRS audited
consolidated financial statements including the notes thereon,
prepared in accordance with the International Financial
Reporting Standards as adopted by the European Union.
The chapter ‘Our results’ provides an analysis of trends and
results of the 2021 financial year, and is based on the IFRS
consolidated financial statements and should be read in con-
junction with these statements.
Barco Integrated report 2021
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FIN
Financial report
01 BARCO
CONSOLI
DATED
02 INFORMATION
ABOUT TH
E SHARE
Table of contents
Barco Consolidated
Consolidated statement of income ..........................................................................6
Statement of comprehensive income
........................................................................7
Consolidated balance sheet.................................................................................
8
Co
nsolidated statement of cash flow.........................................................................
9
Co
nsolidated statement of changes in equity ................................................................10
Significant IFRS accounting principles
.......................................................................12
IFRS accounting standards adopted as of 2021 ...............................................................19
IFRS accounting standards issued but not yet eective as of 2021 ...............................................19
Critical accounting judgments and key sources of estimation uncertainty........................................
20
N
otes to the consolidated financial statements
1.
C
onsolidated companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
24
2. Operating Segments information .....................................................................27
3. I
ncome from operations (EBIT).......................................................................
35
4. R
evenues and expenses by nature ....................................................................41
5. R
estructuring and impairment costs ..................................................................
43
6. I
ncome taxes ......................................................................................
44
7.
E
arnings per share ..................................................................................
45
8.
Goodwill
..........................................................................................
46
9. Other intangible and tangible fixed assets..............................................................49
1
0
.
D
eferred tax assets – deferred tax liabilities.............................................................
55
1
1
.
I
nvestments and interest in associates ................................................................57
12. Inventory ..........................................................................................60
13. Amounts receivable and other non-current assets ......................................................62
14. Net financial cash/debt ..............................................................................64
15. Other long-term liabilities............................................................................69
16. Equity attributable to equity holders of the parent.......................................................70
Barco Integrated report 2021
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FIN
Financial report
01 BARCO
CONSOLI
DATED
02 INFORMATION
ABOUT TH
E SHARE
17. Non-controlling interest .............................................................................73
18. Trade payables and advances received from customers .................................................76
1
9
.
Provisions
.........................................................................................7
7
2
0
.
R
isk management - derivative financial instruments
.....................................................
82
2
1
. R
ights and commitments not reflected in the balance sheet .............................................
88
2
2
.
R
elated party transactions
...........................................................................
88
2
3
. C
ash flow statement: eect of acquisitions and disposals ................................................
89
2
4
. E
vents subsequent to the balance sheet date...........................................................
89
Supplementary statements .................................................................................. 90
Free Cash Flow ........................................................................................90
Return on Operating Capital Employed ...................................................................91
Supplementary information.................................................................................. 92
Barco NV
B
alance sheet after appropriation
........................................................................
93
I
ncome statement
....................................................................................
.
9
4
P
roposed appropriation of Barco NV result ................................................................
95
Barco Integrated report 2021
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FIN
Financial report
01 BARCO
CONSOLI
DATED
02 INFORMATION
ABOUT TH
E SHARE
In thousands of euro Note
Sales , 804,288 770,083 1,082,570
Cost of goods sold -516,803 -486,300 -653,274
Gross profit 287,485 283,783 429,295
Research and development expenses (a) -101,338 -102,610 -119,389
Sales and marketing expenses (b) -116,240 -112,329 -142,517
General and administration expenses (c) -47,858 -50,362 -57,632
Other operating income (expense) - net (d) -2,676 -8,302 280
Adjusted EBIT (a) 19,373 10,180 110,038
Restructuring and impairments -6,420 -14,513 -
EBIT 12,953 -4,332 110,038
Interest income 713 1,845 7,648
Interest expense -1,823 -1,965 -1,866
Income before taxes 11,843 -4,453 115,820
Income taxes -2,132 - -20,848
Result after taxes 9,711 -4,453 94,973
Share in the result of joint ventures and associates 48 -276 1,566
Net income 9,759 -4,729 96,539
Net income attributable to non-controlling interest 878 -335 1,176
Net income attributable to the equity holder of the parent 8,881 -4,393 95,363
Earnings per share (in euro) (b)
Diluted earnings per share (in euro)
Consolidated Statement of Income
(a) Management considers adjusted EBIT to be a relevant performance measure in order to compare results over the period 2019 to 2021, as it excludes adjusting items.
Adjusting items include restructuring costs and impairments. We refer to note 5 restructuring and impairment costs.
(b) Earnings per share, restated for the stock split as implemented on 1/07/2020.
Barco Integrated report 2021
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Financial report
01 BARCO
CONSOLIDATED
02 INFORMATION
ABOUT THE SHARE
In thousands of euro Note
Net income
Exchange differences on translation of foreign operations: (a) 28,894 -29,625 5,250
Cash flow hedges:
Net gain/(loss) on cash flow hedges 485 62 -165
Income tax -87 -15 30
Net gain/(loss) on cash flow hedges, net of tax 398 46 -135
Other comprehensive income/(loss) to be recycled through profit and loss in subsequent periods 29,292 -29,579 5,114
Remeasurement gains/(losses) on defined benefit plans 10,000 37 -11,337
Deferred tax on remeasurement gains/(losses) on defined benefit plans -2,500 -9 2,834
Actuarial gains or losses, net of tax 7,500 28 -8,503
Changes in the fair value of equity investments through other comprehensive income 9,945 18,331 1,852
Other comprehensive income/(loss) not to be reclassified to profit or loss in subsequent periods 17,445 18,358 -6,650
Other comprehensive income/(loss) for the period, net of tax effect 46,737 -11,221 -1,536
Attributable to equity holder of the parent 44,382 -8,764 -1,075
Attributable to non-controlling interest 2,355 -2,457 -461
Total comprehensive income/(loss) for the year, net of tax 56,496 -15,950 95,003
Attributable to equity holder of the parent 53,263 -13,157 94,288
Attributable to non-controlling interest 3,233 -2,793 715
Statement of comprehensive income
The accompanying notes are an integral part of this income statement.
(a) Translation exposure gives rise to non-cash exchange gains/losses. Examples are foreign equity and other long-term investments abroad. These long-term investments give rise to periodic translation gains/losses that are non-cash in nature until the investment
is realized or liquidated. The comprehensive income line commonly shows a positive result in case the foreign currency appreciates versus the Euro in countries where investments were made and a negative result in case the foreign currency depreciates.
In 2021, the positive exchange dierences in the comprehensive income line were mainly booked on foreign operations held in Hong Kong Dollar, US Dollar, Chinese Yuan and Indian Rupee (see note 16.4). In 2020, the negative exchange dierences
in the comprehensive income line were mainly booked on foreign operations held in Hong Kong Dollar, US Dollar, Indian Rupee and Norwegian Krone. In 2019, the positive exchange dierences in the comprehensive income line were mainly booked
on foreign operations held in US Dollar, Chinese Yuan and Hong Kong Dollar.
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Consolidated balance sheet
In thousands of euro Note
Dec
Dec
Dec
Assets
Goodwill 105,612 105,612 105,612
Other intangible assets .
Land and buildings .
Other tangible assets . 48,285 49,254 51,804
Investments and interest in associates 68,008 106,942 43,288
Deferred tax assets 64,155 62,811 60,116
Other non-current assets 6,849 5,870 4,018
Non-current assets 388,938 433,662 392,972
Inventory 175,496 175,390 168,983
Trade debtors 156,977 146,138 195,358
Other amounts receivable 16,211 17,789 25,669
Short term investments 2,763 3,175 24,748
Cash and cash equivalents 351,571 235,402 357,035
Prepaid expenses and accrued income 12,293 6,646 9,409
Current assets 715,311 584,542 781,203
Total assets 1,104,249 1,018,203 1,174,176
In thousands of euro Note
Dec
Dec
Dec
Equity and liabilities
Equity attributable to equityholders of the parent
Non-controlling interests 41,031 37,798 40,590
Equity 734,814 697,107 740,650
Long-term debts 34,366 35,854 40,225
Deferred tax liabilities 3,823 4,745 7,575
Other long-term liabilities 48,860 43,286 27,031
Long-term provisions 31,175 40,156 42,428
Non-current liabilities 118,224 124,042 117,259
Current portion of long-term debts 10,218 9,187 12,469
Short-term debts - 86 -
Trade payables 113,979 70,299 128,914
Advances received from customers 54,105 42,375 69,515
Tax payables 4,963 7,478 9,893
Employee benefit liabilities
(a) 39,550 32,284 54,652
Other current liabilities
Accrued charges and deferred income 14,823 12,646 8,795
Short-term provisions 8,537 13,720 18,759
Current liabilities 251,211 197,054 316,266
Total equity and liabilities 1,104,249 1,018,203 1,174,176
The accompanying notes are an integral part of this statement.
(
a)
E
mployee benefit liabilities are short term obligations and consist mainly of salaries, bonuses and holiday payments
.
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Consolidated statement of cash flow
In thousands of euro Note
Cash flow from operating activities
Adjusted EBIT 19,373 10,180 110,038
Restructuring -8,204 -9,536 -13,717
Depreciations of tangible and intangible fixed assets , 39,136 43,383 42,984
(Gain)/Loss on tangible fixed assets 196 170 -1,024
Share options recognized as cost (d), 3,067 2,907 2,147
Share in the profit/(loss) of joint ventures and associates 48 -276 1,566
Gross operating cash flow 53,616 46,829 141,995
Changes in trade receivables -4,918 41,391 -32,160
Changes in inventory 4,432 -12,260 -32,989
Changes in trade payables 42,825 -59,936 23,404
Other changes in net working capital 13,195 -23,960 15,618
Change in net working capital 55,534 -54,764 -26,126
Net operating cash flow 109,150 (7,936 ) 115,868
Net operating cash flow
Interest received 713 1,845 7,648
Interest paid -1,823 -1,965 -1,866
Income taxes
(a) -8,386 -10,398 -13,053
Cash flow from operating activities 99,654 -18,454 108,597
In thousands of euro Note
Cash flow from investing activities
Purchases of tangible and intangible fixed assets
-18,787
-14,980 -20,169
Proceeds on disposals of tangible and intangible fixed assets
Proceeds from (+), payments for (-) short term investments
Acquisition of Group companies, net of acquired cash
.
,
Other investing activities
(b)
-55,530 -41,285
Dividends from joint ventures and associates
Cash flow from investing activities (including acquisitions
and divestments)
-45,958 32,982
Cash flow from financing activities
Dividends paid
-20,560
-33,354 -28,680
Capital increase
Sale/(purchase) of own shares
-4,472
Payments (-) of long-term liabilities
-12,758
-11,235 -22,359
Proceeds from (+), payments of (-) short-term liabilities
Cash flow from financing activities
-35,500
-39,634 -41,218
Net increase/(decrease) in cash and cash equivalents
-104,045 100,362
Cash and cash equivalents at beginning of period
Cash and cash equivalents (CTA)
-17,588 4,866
Cash and cash equivalents at end of period
The accompanying notes are an integral part of this statement.
(a) In 2020 € 5.9 m withholding taxes were paid on dividends distributed from subsidiaries of Barco.
(b) ‘Other investing activities’ in 2021 relate mainly to cash inflows/(outflows) from entities in which Barco owns less than 20% of the shares (55 million euro in 2021, -52.3 million euro in 2020 and -30.1 million euro in 2019) (see note 11 and 9.1).
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Consolidated statement of changes in equity
In thousands of euro Note
Share
capital and
premium
Retained
earnings
Share-based
payments
Cumulative
translation
adjustment
Cash flow
hedge
reserve Own shares
Equity
attributable to
equityholders
of the parent
Non-
Controlling
Interest Equity
Balance on January
Net income - 95,363 - - - - 95,363 1,176 96,539
Dividend - -28,680 - - - - -28,680 - -28,680
Capital and share premium increase 360 - - - - - 360 - 360
Other comprehensive income (loss) for the period, net of tax - -6,260 - 5,320 -135 - -1,075 -461 -1,536
Deferred tax liability recognized on adoption IFRIC (a) - -6,500 - - - - -6,500 - -6,500
Share-based payment - - 2,147 - - - 2,147 - 2,147
Exercise of options (b) - - - - - 6,428 6,428 - 6,428
Dividend received - 366 - - - - 366 - 366
Increase in ownership interest, without change in control (c) - -1,617 - - - - -1,617 -1,815 -3,432
Decrease in ownership interest, without change in control (d) - - - - - - - 39,913 39,913
Balance on December 202,401 554,479 11,193 -37,522 -1,157 -29,334 700,060 40,590 740,650
Balance on January 202,401 554,479 11,193 -37,522 -1,157 -29,334 700,060 40,590 740,650
Net income - -4,393 - - - - -4,393 -335 -4,729
Dividend - -33,354 - - - - -33,354 - -33,354
Capital and share premium increase 482 - - - - - 482 - 482
Other comprehensive income (loss) for the period, net of tax - 18,361 - -27,171 46 - -8,764 -2,457 -11,221
Share-based payment - - 2,907 - - - 2,907 - 2,907
Exercise of options (b) - - - - - 2,371 2,371 - 2,371
Balance on December 202,883 535,093 14,100 -64,693 -1,111 -26,963 659,309 37,798 697,107
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In thousands of euro Note
Share
capital and
premium
Retained
earnings
Share-based
payments
Cumulative
translation
adjustment
Cash flow
hedge
reserve Own shares
Equity
attributable to
equityholders
of the parent
Non-
Controlling
Interest Equity
Balance on January
Net income - 8,881 - - - - 8,881 878 9,759
Dividend (b) - -33,388 - - - - -33,388 - -33,388
Capital and share premium increase (b) 14,504 - - - - - 14,504 - 14,504
Other comprehensive income (loss) for the period, net of tax - 17,197 - 26,787 398 - 44,382 2,355 46,737
Share-based payment - - 4,567 - - - 4,567 - 4,567
Exercise of options (b) - - - - - 6,714 6,714 - 6,714
Share buy-back - - - - - -11,186 -11,186 - -11,186
Balance on December 217,387 527,783 18,667 -37,906 -713 -31,435 693,783 41,031 734,814
The accompanying notes are an integral part of this statement.
(a) Uncertainty over income tax treatments has been applied from 1 January 2019. The group has reviewed their tax positions taken in the financial statements and in the tax filings and how these are supported. In addition, the group has assessed how the
taxation authorities might make their examinations and how issues that might arise from examinations could be resolved. Based on this assessment, a deferred tax liability was recorded in equity for an amount of 6.5 million euro on January 1
st
, 2019.
(b) See note 16.
(
c)
S
ee note 17
.
(d) Three minority shareholders have contributed in the capital of Cinonic Ltd, totaling 45% of total contributions of USD 100 million. As of 1 January 2019, these capital contributions all give right to 45% in the Cinionic legal entities’ equity and result. Barco
remains in control. Per 1 January 2019, the 45% stake in the capital contribution of USD 100 million is shown as non-controlling interest (39.9 million euro). See note 17.
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Significant IFRS accounting principles
1. Accounting principles
1.1. Statement of compliance and basis of presentation
The consolidated financial statements of the Barco Group
have been prepared in accordance with International Financial
Reporting Standards (IFRS), as adopted for use by the EU. All
standards and interpretations issued by the International
Accounting Standards Board (IASB) and the International
Financial Reporting Interpretations Committee (IFRIC) eec-
tive year-end 2020 and adopted by the European Union are
applied by Barco.
The consolidated financial statements are presented in thou-
sands of euro and are prepared under the historical cost
convention, except for the measurement at fair value of invest-
ments, pension estimates and derivative financial instruments.
The financial statements were authorized for issue by the board
of directors on 7 February 2022. The chairman has the power
to amend the financial statements until the shareholders’ meet-
ing of 28 April 2022.
1.2. Principles of consolidation
General
The consolidated financial statements comprise the financial
statements of the parent company, Barco NV (registered oce:
35 President Kennedypark, 8500, Kortrijk, Belgium), and its
controlled subsidiaries and joint ventures, after the elimination
of all intercompany transactions.
S
ubsidiaries
Subsidiaries are consolidated from the date the parent
obtains control until the date control ceases. Acquisitions of
subsidiaries are accounted for using the purchase method
of accounting. Control exists when Barco is exposed, or has
rights, to variable returns from its involvement with the investee
and has the ability to aect those returns through its power
over the investee. The financial statements of subsidiaries are
prepared according to the parent’s company reporting sched-
ule, using consistent IFRS accounting policies.
Non-controlling interests
Non-controlling interests represent the portion of profit or
loss and net assets not held by the Group and are presented
separately in the income statement and within equity in the
consolidated balance sheet, separately from shareholder’s
equity.
Investments in associated companies and joint ventures
The company has investment in joint ventures when it shares
joint control with other investments, and it has rights to the
net assets of these joint ventures. Investments in associated
companies over which the company has significant influence
(typically those that are 20-50% owned) and joint ventures
are accounted for under the equity method of accounting
and are initially recognized at cost. Thereafter the carrying
amount of the investment is adjusted to recognize changes
in the Group’s share of net assets of the associate since the
acquisition date. The statement of profit or loss reflects the
Group’s share of the results of operations of the associate, in
‘other operating income’ for associated companies and joint
ventures with closely related business and in the line ‘share in
the result of joint ventures and associates’ for all other associ-
ated companies and joint ventures. Investments in associated
companies and joint ventures are presented as non-current
asset on the face of the balance sheet on the line ‘investments
and interest in associates’.
2. Goodwill
Goodwill represents the excess of the cost of the acquisition
over the fair value of identifiable net assets and contingent
liabilities of a subsidiary or associated company at the date
of acquisition.
Goodwill is carried at cost less any accumulated impairment
losses.
3. Research and development costs
Research and development costs are expensed as incurred,
except for development costs, which relate to the design and
testing of new or improved materials, products or technol-
ogies, which are capitalized to the extent that it is expected
that such assets will generate future economic benefits and
the recognition criteria of IAS38 are met. Shorter life cycles,
unpredictability of which development projects will be suc-
cessful, and the volatility of technologies and the markets in
which Barco operates led the Board of Directors to conclude
that Barco’s development expenses since 2015 no longer meet
the criteria of IAS38.57. As the criteria of IAS38.57 are no longer
fulfilled, capitalization of development expenses as of 2015
was not allowed.
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4. Other intangible assets
Intangible assets acquired separately are capitalized at cost.
Intangible assets acquired as part of a business combination
are capitalized at fair value separately from goodwill if the fair
value can be measured reliably upon initial recognition and
are amortized over their economic lifetimes. Other intangible
assets are amortized on a straight-line basis not exceeding
7 years.
5. Property, plant and equipment
Property, plant and equipment are stated at cost less accu-
mulated depreciation and accumulated impairment losses.
Generally, depreciation is computed on a straight-line basis
over the estimated useful life of the asset. When there is an
indication that the item of property, plant and equipment is
impaired, the carrying amounts are reviewed to assess whether
they are recorded in excess of their recoverable amounts,
and where carrying values exceed this estimated recoverable
amount, assets are written down to their recoverable amount.
Estimated useful life is:
- buildings 20 years
- installations 10 years
- production machinery 5 years
- measurement equipment 4 years
- tools and models 3 years
- furniture 10 years
- oce equipment 5 years
- computer equipment 3 years
- vehicles 5 years
- demo material 1 to 3 years
- leasehold improvements and finance leases: cfr underlying
- asset, limited to outstanding period of lease contract
A property, plant or equipment item is derecognized upon
disposal or when no future economic benefits are expected
from its use or disposal. Any gain or loss arising on de-recog-
nition of the asset is included in profit or loss in the year the
asset is derecognized.
6. Leases
The Group has adopted IFRS16 Leases on the Group’s financial
statements from 1 January 2019 and has applied the modified
retrospective approach from 1 January 2019.
Assets, representing the right to use the underlying leased
asset, are capitalized as property, plant and equipment at cost,
comprising the amount of the initial measurement of lease
liability, any lease payments made at or before the commence-
ment date less any lease incentives received, any initial direct
costs and restoration costs. The corresponding lease liabilities,
representing the net present value of the lease payments, are
recognized as long-term or current liabilities depending on the
period in which they are due. Leased assets and liabilities are
recognized for all leases with a term of more than 12 months,
unless the underlying asset is of low value.
The lease payments are discounted using the lessee’s incre-
mental borrowing rate, being the rate that the lessee would
have to pay to borrow the funds necessary to obtain an asset
of similar value in a similar economic environment with similar
terms and conditions. The interest rate implicit in the lease
could not be determined.
Lease interest is charged to the income statement as an inter-
est expense.
Leased assets are depreciated, using straight-line depreciation
over the lease term, including the period of renewable options,
in case it is probable that the option will be exercised.
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7. Investments - financial assets at fair value through
profit and loss or other comprehensive income
Investments are treated as financial assets at fair value through
profit and loss or other comprehensive income and are initially
recognized at cost, being the fair value of the consideration
given.
Subsequent fair value recognition through profit and loss or
other comprehensive is determined at moment of initial recog-
nition. For investments quoted in an active market, the quoted
market price is the best measure of fair value. For investments
not quoted in an active market, the carrying amount is the
historical cost, if a reliable estimate of the fair value cannot
be made. An impairment loss is recorded when the carrying
amount exceeds the estimated recoverable amount. These
investments are presented on the balance sheet on the line
‘Investments and interest in associates’.
Short-term investments are cash deposits with a maturity at
inception in excess of 3 months and are intended to be held
to maturity less than one year (solely payment of principle
and interest). They are recognized at cost, with the associated
revenue in interest income.
8. Other non-current assets
Other non-current assets include long-term interest-bearing
receivables and cash guarantees. Such long-term receivables
are accounted for as loans and receivables originated by the
company and are carried at amortized cost. An impairment loss
is recorded when the carrying amount exceeds the estimated
recoverable amount.
9. Financial assets
The Group classifies its financial assets in the following cat-
egories: financial assets at fair value and financial assets at
amortized cost. The classification depends on the entity’s
business model for managing the financial assets and the
contractual terms of the cash flows. Management determines
the classification of its financial assets at initial recognition.
Regular purchases and sales of financial assets are recognized
on the trade date – the date on which the Group commits to
purchase or sell an asset.
At initial recognition, the Group measures a financial asset
at its fair value plus, in the case of a financial asset not at fair
value through profit or loss, transaction costs that are directly
attributable to the acquisition of the financial asset. Transaction
costs of financial assets carried at fair value through profit or
loss are expensed in profit or loss.
Financial assets (such as loans, trade and other receivables,
cash and cash equivalents) are subsequently measured at
amortized cost using the eective interest method, less any
impairment if they are held for collection of contractual cash
flows where those cash flows represent solely payments of
principal and interest.
Trade and other receivables after and within one year are
recognized initially at fair value and subsequently measured
at amortized cost, i.e. at the net present value of the receiv-
able amount, using the eective interest rate method, less
allowances for impairment. The Group assesses on a for-
ward-looking basis the expected credit loss associated with its
financial assets carried at amortized cost. For trade receivables,
the Group applies the simplified approach permitted by IFRS 9
Financial instruments, which requires expected lifetime losses
to be recognized from initial recognition of the receivables.
The amount of the allowance is deducted from the carrying
amount of the asset and is recognized in the income statement
within other operating income.
10. Inventories
Inventories are stated at the lower of cost or net realiz-
able value
. Cost is determined on a first in first out (FIFO)
or weighted average basis. Net realizable value is the esti
-
mated selling price in the ordinary course of business less
the estimated costs of completion and the estimated costs
of completing the sale.
In addition to the cost of materials and direct labor, the rel-
evant proportion of production overhead is included in the
inventory values.
Write os on inventories are applied on slow-moving inven-
tory. The calculation of the allowance is based on consistently
applied write o rules, which depend on both historical and
future demand, of which the latter is subject to uncertainty
due to rapid technological changes.
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11. Revenue recognition
We apply the five-step model to account for revenue arising
from contracts with customers. Revenue is recognized at an
amount that reflects the consideration to which we expect
to be entitled in exchange for transferring goods or services
to a customer.
(a) Sale of goods
Contracts with customers to sell equipment has only 1 perfor-
mance obligation. Revenue recognition occurs at a point in
time, when control of the asset is transferred to the customer,
generally on delivery of the goods. The Group has following
warranty options: the Group provides warranties for general
repairs of which the Group determined that such warranties
are assurance-type warranties which are accounted for under
IAS 37 Provisions, Contingent Liabilities and Contingent Assets.
(b) Rendering of services
The Group provides services within all segments. These
services are sold either on their own in contracts with the
customers or bundled together with the sale of equipment
to a customer. The Group accounts for the equipment and
service as separate deliverables of bundled sales and allocates
consideration between these deliverables using the relative
stand-alone selling prices. The Group recognises service rev-
enue by reference to the stage of completion. The Group
recognises the services over time given that the customer
simultaneously receives and consumes the benefits provided
by the Group. Consequently, the Group recognises revenue
for these service contracts/service components of bundled
contracts over time rather than at a point of time.
(c
) Projects
For revenue out of projects, the percentage of completion
method is used, provided that the outcome of the project can
be assessed with reasonable certainty. These projects generally
have a lifetime of less than one year.
12. Government grants
Government grants related to research and development proj-
ects and other forms of government assistance are recognized
as income upon irreversible achievement and by reference to
the relevant expenses incurred.
13. Trade debtors and other amounts receivable
Trade debtors and other amounts receivable are shown on
the balance sheet at amortized cost (in general, the original
amount invoiced) less an allowance for doubtful debts and
less an amount for expected credit losses. The allowance for
doubtful debts is recorded in operating income when it is prob-
able that the company will not be able to collect all amounts
due. Allowances are calculated on an individual basis, based on
an aging analysis of the trade debtors. For the determination of
the expected credit loss, the Group has applied the simplified
approach and records lifetime expected losses on all trade
receivables. This amount is determined on a portfolio basis.
14. Cash and cash equivalents
Cash and cash equivalents consist of cash on hand and bal-
ances with banks and short-term investments with an original
maturity date or notice period of three months or less. It is
the Group’s policy to hold investments to maturity. All invest-
ments are initially recognized at fair value, which is the cost
at recognition date.
15. Provisions
Provisions are recorded when the Group has a present legal or
constructive obligation as a result of a past event, it is probable
that an outflow of resources embodying economic benefits
will be required to settle the obligation and a reliable estimate
can be made to the amount of the obligation.
The Group recognizes the estimated liability to repair or
replace products still under warranty at the balance sheet date.
The provision is calculated based on historical experience of
the level of repairs and replacements.
A provision for restructuring is only recognized when the
Group has approved a detailed and formal restructuring plan,
and the restructuring has either commenced or has been
announced to those aected by the plan before the balance
sheet date.
On the line item ‘Long-term provisions’, the company pres
-
ents the net liability relating to the post-retirement benefit
obligations which includes the Belgian defined-contribution
pension plans that are by law subject to minimum guaranteed
rates of return. Pension legislation was amended at the end
of 2015 and defines the minimum guaranteed rate of return
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as a variable percentage linked to government bond yields
observed in the market as from 1 January 2016 onwards. For
2021 the minimum guaranteed rate of return remains the same
as in 2020 and 2019, i.e. 1.75% on employer contributions and
employee contributions. We refer to note 19 for more detailed
information. As a consequence, the defined contribution plans
have been accounted for as defined benefit plan.
16. Equity – costs of an equity transaction
The transaction costs of an equity transaction are accounted
for as a deduction from equity, net of any related income tax
benefit.
17. Interest-bearing loans and borrowings
All loans and borrowings are initially recognized at cost, being
the fair value of the consideration received net of issue costs
associated with the loan/borrowing. Subsequent to initial rec-
ognition, interest-bearing loans and borrowings are stated
at amortized cost using the eective interest rate method.
Amortized cost is calculated by taking into account any issue
costs and any discount or premium on settlement.
The eective interest method is a method of calculating the
amortized cost of a financial liability and of allocating interest
expense over the relevant period. The eective interest rate is
the rate that exactly discounts estimated future cash payments
(including all fees and points paid or received that form an
integral part of the eective interest rate, transaction costs and
other premiums or discounts) through the expected life of the
financial liability, or (where appropriate) a shorter period, to
the net carrying amount on initial recognition.
When a financial liability measured at amortized cost is mod-
ified without this resulting in derecognition, a gain or loss is
recognized in profit or loss. The gain or loss is calculated as
the dierence between the original contractual cash flows and
the modified cash flows discounted at the original eective
interest rate.
18. Trade and other payables
Trade and other payables are stated at amortized cost, which
is the cost at recognition date. This is an approximation of
the fair value.
19. Employee benefits
Employee benefits are recognized as an expense when the
Group consumes the economic benefit arising from service
provided by an employee in exchange for employee benefits,
and as a liability when an employee has provided service in
exchange for employee benefits to be paid in the future.
Foreign currency rates
Currency
December , December , December ,
Closing rate Average rate Closing rate Average rate Closing rate Average rate
CNY
.
.
.
.
.
.
INR .
.
.
.
. .
USD . . . . . .
20. Transactions in foreign currencies
Transactions in foreign currencies are recorded at the rates
of exchange prevailing at the date of transaction or at the
end of the month before the date of the transaction. At the
end of the accounting period the unsettled balances on for-
eign currency receivables and liabilities are valued at the rates
of exchange prevailing at the end of the accounting period.
Foreign exchange gains and losses are recognized in the
income statement in the period in which they arise.
21. Foreign Group companies
In the consolidated accounts, all items in the profit and loss
accounts of foreign subsidiaries are translated into euro at the
average exchange rates for the accounting period. The balance
sheets of foreign group companies are translated into euro
at the rates of exchange ruling at the year-end. The resulting
exchange dierences are classified in a separate component of
‘other comprehensive income’, until disposal of the investment.
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22. Derivative financial instruments
Derivative financial instruments are recognized initially at cost,
which is the fair value of the consideration given (in the case of
an asset) or received (in the case of a liability) for it. Subsequent
to initial recognition, derivative financial instruments are stated
at fair value. The fair values of derivative interest contracts
are estimated by discounting expected future cash flows
using current market interest rates and yield curve over the
remaining term of the instrument. The fair value of forward
exchange contracts is estimated using valuation techniques
which include forward pricing and swap models at the balance
sheet date.
Derivative financial instruments that are either hedging instru-
ments that are not designated or do not qualify as hedges
are carried at fair value with changes in value included in the
income statement.
Where a derivative financial instrument is designated as a
hedge of the variability in cash flows of a recognized asset
or liability, or a highly probable forecasted transaction, the
eective part of any gain or loss on the derivative financial
instrument is recognized directly in ‘other comprehensive
income’ with the ineective part recognized directly in profit
and loss.
Financial assets and liabilities are oset and the net amount is
reported in the balance sheet when there is a legally enforce-
able right to oset the recognized amounts and there is an
intention to settle on a net basis or realize the asset and settle
the liability simultaneously.
23. Income taxes
Current taxes are based on the results of the Group companies
and are calculated according to local tax rules.
Deferred tax assets and liabilities are determined, using the
liability method, for all temporary dierences arising between
the tax basis of assets and liabilities and their carrying values
for financial reporting purposes. Tax rates used are expected to
apply to the period when the asset is realized or the liability is
settled, based on tax rates and tax laws that have been enacted
or substantially enacted at the balance sheet date.
Deferred tax assets are recognized for all deductible temporary
dierences, carry-forward of unused tax credits and unused
tax losses, to the extent that it is probable that taxable profit
will be available against which the deductible temporary dif-
ferences, carry-forward of unused tax credits and tax losses
can be utilized. The carrying amount of deferred income tax
assets is reviewed at each balance sheet date and reduced
to the extent that it is no longer probable that sucient tax-
able profit will be available to allow all or part of the deferred
income tax asset to be utilized.
Deferred income tax assets and deferred income tax liabilities
are oset, if a legally enforceable right exists to set o current
tax assets against current income tax liabilities and the deferred
income taxes relate to the same taxable entity and the same
taxation authority.
The Group reviews their tax positions taken in the financial
statements and in the tax filings and how these are supported.
In addition, the Group assesses how the taxation authorities
might make their examinations and how issues that might arise
from examinations could be resolved. Based on this assess-
ment, a deferred tax liability is determined in line with IFRIC 23.
24. Impairment of assets
Goodwill is reviewed for impairment at least annually. For other
tangible and intangible assets, at each balance sheet date,
an assessment is made as to whether any indication exists
that assets may be impaired. If any such indication exists, an
impairment test is carried out in order to determine if and to
what extent an impairment is necessary to reduce the asset
to its recoverable amount (which is the higher of (i) value in
use and (ii) fair value less costs to sell). The fair value less costs
to sell is determined as (i) the fair value (that is the price that
would be received to sell an asset in an orderly transaction in
the principal market at the measurement date under current
market conditions) less (ii) the costs to sell while value in use
is the present value of the future cash flows expected to be
derived from an asset. Recoverable amounts are estimated for
individual assets or, if this is not possible, for the cash-gener-
ating unit (CGU) to which the assets belong. An impairment
loss is recognized whenever the carrying amount of an asset
or its cash-generating unit exceeds its recoverable amount.
Impairment losses are recognized in the income statement.
Reversal of impairment losses recognized in prior years is
included as income when there is an indication that the impair-
ment losses recognized for the asset are no longer needed
or the need has decreased, except for impairment losses on
goodwill, which are never reversed.
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25. Share-based payment
Barco created warrants and stock options for sta and directors
as well as for individuals who play an important role in the
company. According to the publication of IFRS 2, the cost of
share-based payment transactions is reflected in the income
statement.
The warrants and stock options are measured at grant date,
based on the share price at grant date, exercise price, expected
volatility, dividend estimates, and interest rates. Warrant cost
is taken into result on a straight-line basis from the grant date
until the end of the vesting period.
26. Earnings per share
The Group calculates both basic and diluted earnings per share
in accordance with IAS 33, Earnings per share. Under IAS 33,
basic earnings per share are computed using the weighted
average number of shares outstanding during the period.
Diluted earnings per share are computed using the weighted
average number of shares outstanding during the period plus
the dilutive eect of warrants outstanding during the period.
As diluted earnings per share cannot be higher than basic
earnings per share, diluted earnings per share are kept equal
to basic earnings per share in case of negative net earnings.
27. Discontinued operations and non-current assets
held for sale
A discontinued operation is a component of the Group that
either has been disposed of, or is classified as held for sale
and represents a separate major line of business and is part
of a single coordinated plan to dispose of a separate major
line of business or is a subsidiary acquired exclusively with a
view to resale.
The Group classifies a non-current asset (or disposal group) as
held for sale if its carrying amount will be recovered principally
through a sale transaction rather than through continuing use.
The criteria for held for sale classification is regarded as met
only when the sale is highly probable and the asset or disposal
group is available for immediate sale in its present condition.
Management must be committed to the sale expected within
one year from the date of the classification. Property, plant
and equipment and intangible assets are not depreciated or
amortized once classified as held for sale.
Immediately before classification as held for sale, the Group
measures the carrying amount of the asset (or all the assets
and liabilities in the disposal group) in accordance with appli-
cable IFRS. Then, on initial classification as held for sale,
non-current assets and disposal groups are recognized at the
lower of their carrying amounts and fair value less costs to sell.
Impairment losses are recognized for any initial or subsequent
write-down of the asset (or disposal group) to fair value less
costs to sell.
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IFRS accounting standards
adopted as of 2021
IFRS accounting standards
issued but not yet effective as of
2021
The Group applied for the first-time certain standards and
amendments, which are eective for annual periods beginning
on or after 1 January 2021. The Group has not early adopted
any other standard, interpretation or amendment that has been
issued but is not yet eective.
• Amendments to IFRS 4 Insurance Contracts – deferral of
IFRS 9, eective 1 January 2021
• Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16
Interest Rate Benchmark Reform – Phase 2, effective
1 January 2021
• Amendment to IFRS 16 Leases covid-19-Related Rent
Concessions , eective 1 June 2020, with early application
permitted
None of these IFRS standards issued have an impact on Barco’s
financials.
St
andards issued but not yet eective
The standards and interpretations that are issued, but not yet
eective, up to the date of issuance of the Group’s financial
statements are disclosed below. The Group intends to adopt
these standards and interpretations, if applicable, when they
become eective.
• Amendment to IFRS 16 Leases covid-19-Related Rent
Concessions beyond 30 June 2021 (eective 01/04/2021,
with early application permitted)
• Amendments to IAS 1 ‘Presentation of Financial Statements:
Classification of Liabilities as current or non-current’, eective
1 January 2023
• Amendments to IFRS 3 Business Combinations; IAS
16 Property, Plant and Equipment; IAS 37 Provisions,
Contingent Liabilities and Contingent Assets as well as
Annual Improvements, eective 1 January 2022
• Amendments to IAS 1 Presentation of Financial Statements
and IFRS Practice Statement 2: Disclosure of Accounting
policies, eective 1 January 2023
• IFRS 17 ‘Insurance contracts’, eective 1 January 2023
• Amendments to IAS 8 Accounting policies, Changes in
Accounting Estimates and Errors: Definition of Accounting
Estimates, eective 1 January 2023
• Amendments to IAS 12 Income Taxes: Deferred Tax related
to Assets and Liabilities arising from a Single Transaction,
eective 1 January 2023
None of the IFRS standards issued, but not yet eective are
expected to have a material impact on Barco’s financials
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Critical accounting judgments and key sources of estimation uncertainty
General business risks
Over the year 2021 and 2020, the economic impact of the
pandemic related to the covid-19 virus has been aecting
businesses all over the world – Barco included. We refer to
the chapter ‘Risk factors’ (see Corporate Governance & Risk
report page 33 – 54) for an overview of the risks aecting
businesses of the Barco Group.
The risks described in this chapter are not the only risks facing
the Company. Additional risks and uncertainties not currently
known to the Company or that the Company currently deems
to be immaterial also may materially adversely aect its busi-
ness, financial condition and/or operating results.
E
xtra risk section regarding the consequences and impact
of the covid-19 pandemic
Since Q1 2020, the covid-19 pandemic has been aecting
businesses all over the world – including Barco.
Risk description
The public health crisis caused by the covid-19 pandemic, as
well as measures taken in response to contain or mitigate the
pandemic, have had, and are expected to continue to have,
certain negative impacts on Barco’s business including, without
limitation, the following:
• The demand, reflected by impact on orders and sales mainly
in Barco’s Entertainment and Enterprise division
• Supply constraints, reflected by impact on sales mainly in
Barco’s Healthcare division
• The profit and loss and operating results
• Cash flows (mainly in 2020)
Approach:
In this section, Barco addresses its risk mitigation plan related
to the covid-19 pandemic impact.
Overall approach
Since the start of the corona virus outbreak (in China in January
2020) Barco has set up a dedicated global response team
that is monitoring and supporting Barco’s operations and is
focusing both on the safety and health of its employees, as
well as on ensuring business continuity.
Measures to keep employees safe
• Hygiene, social distancing and track-and-trace measures
En
suring health and safety in the working environment has
remained a top priority in 2021. Following the lessons learned
in 2020, we were able to prepare and respond in an agile
and upfront way. The global response team reviewed the
worldwide pandemic impact, the legal obligations and the
global communication on measures taken within the Barco
premises. We refer to the 'Planet, people and communities'
chapter 2. Employee, health & wellbeing for more details on
the team's focus points.
A wide range of measures aimed at avoiding the spread of
the covid-19 virus were set in place. This included warning
employees in the case of an infection, ensuring social
distancing, ventilation, homeworking, and many others.
These measures were largely successful, but could not
prevent the Barco Noida site from being hit severely when
covid-19 infections in India peaked in the first semester of
2021.
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• Hybrid way of working
Some of Barco’s oces have been (partially) closed for short
periods during 2020 and 2021. As far as regulations and
the local situation allowed, the company applied unlocking
measures and started bringing back employees while
still taking into account local or regional regulations and
recommendations. The company implemented a hybrid
way of working with an alternate home-work protocol for
its white collars. All oces have been updated according to
the strengthened social distancing and sanitary measures
to ensure a covid-proof and flexible work environment.
Operations and supply chain
2020 proved to be a real test for Barco's supply chain resilience,
given the trade wars and regional/global lockdowns resulting
from the covid-19 pandemic. While business regained momen-
tum in 2021, there were still the occasional sudden lockdowns
disrupting the supply chain. The new worldwide shortages
in dierent commodities in 2021, tested even more Barco's
supply chain resilience. Barco's strong, long-term supplier
relationships and agile approach have proven to be key to find
solutions to the shortages in many cases. Nevertheless, Barco's
order to sales conversion was and will not be fully immune for
the impact of supply chain constraints.
Business health
In the first quarter of 2020 and as a result of lockdowns in
China, Barco’s sales in China were halted during February and
gradually resumed as of March. Since then, the covid-19 pan-
demic has spread internationally, with negative eects mainly
in Barco’s Entertainment and Enterprise markets.
The negative impact was caused by both the economic
impact of the pandemic on some of its markets as well as
by the lockdown measures and related restrictions. In 2021
supply chain disruptions, including higher component prices,
increased freight broker rates and higher logistics costs nega-
tively impacted the company's results.
Barco remained focused on business continuity and protection
of the business health.
The company executed on a plan to align both its activity rate
and spending with the impacts of the pandemic by resetting
indirect cost levels, next to temporary measures and resource
redeployments. It also implemented price increases across
its portfolio and regions, which expect to benefit gross profit
margin as of the first half of 2022.
• Aligning activity rate with market realities and customer
demand
Consequently, the company has implemented temporary
work arrangements and economic unemployment measures
for both white and blue collars, in conformity with country
specific legal frameworks, support mechanisms and
regulations, mainly in 2020 and to a limited extent in the
first half of 2021. The new work conditions varied depending
on the region, and Barco’s covid-19 response team reviewed
the situation site by site, with the same objective to ensure
business continuity while also considering all applicable
covid regulations.
The activity rate and cost containment measures also include
ensuring a strong commitment to our customers through
sales and servicing.
• Adjusting the cost base and discipline in discretionary
spending
These measures – which can be adjusted again in line with
future changes in the pandemic situation - also entailed
shifts in the planned investment patterns on selected long-
term initiatives in 2020 and a sustained strict discipline on
discretionary spending.
The Company made deliberate choices on the continuation
and timetable of selected development projects based on
current needs in the market and adjusting internal support
levels in function of the focus shift. Furthermore, the
Company was able to apply for wage grants under the newly
enacted covid-19 relief legislation in APAC, Canada and the
US (Cinionic) in 2020.
St
rong funding and liquidity structure in place
Barco has a strong balance sheet and ample liquidity. We
refer to note 14 for more details on Barco’s net cash position.
Barco has sucient headroom to enable it to conform to cov-
enants on its existing borrowings. The Group complied with
all requirements of the loan covenants on its available credit
facilities throughout the reporting period.
While the future may still bring some levels of headwind,
Barco’s strong funding and liquidity structure in place should
be more than sucient to ensure the going concern of the
company. In addition, we refer to note 8 where we explain
how we tested goodwill and all other non-current assets for
impairment and concluded no impairment losses need to be
recognized.
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Key sources of estimation uncertainty
In view of the uncertainty caused by the covid-19 global pan-
demic and the extent and duration of the impacts that it had
and still has, in particular on the global cinema, events and
Enterprise business as well as the Company’s customers, sup-
pliers and employees, there is potential for future credit losses
on receivables, inventory write downs, impairments of goodwill
and valuation allowances against deferred tax assets that are
based on future performance of the Company’s business.
• Deferred tax assets are recognized for the carry-forward of
unused tax losses and unused tax credits to the extent that it
is probable that future taxable profit will be available against
which the unused tax losses and unused tax credits can be
utilized. In making its judgment, management considers
elements such as long-term business strategy, including
impact of covid on Barco’s long term profitability prognoses
and tax planning opportunities (see note 10 ‘Deferred tax
assets – deferred tax liabilities’).
• Uncertain tax positions: The Group reviews their tax positions
taken in the financial statements and in the tax filings and
how these are supported. In addition, the Group assesses
how the taxation authorities might make their examinations
and how issues that might arise from examinations could be
resolved. Based on this assessment, a deferred tax liability is
determined in line with IFRIC 23. (see note 10 ‘Deferred tax
assets – deferred tax liabilities’).
• Impairment of goodwill: The Group tests the goodwill
for impairment annually or more frequently if there are
indications that goodwill might be impaired
.
As a result
of the events and factors described above, the Company
performed a quantitative goodwill impairment test in June
2021 and the annual impairment test in the last quarter of
2021. (see note 8.’Goodwill’). The outcome of the goodwill
impairment test performed at half year 2021 and the last
quarter of 2021, did not result in an impairment loss.
• Write offs on inventories: Inventories are stated at the
lower of cost or net realizable value. The calculation of
the allowance for slow-moving inventory is based on
consistently applied write o rules, which depend on both
historical and future demand, of which the latter is subject
to uncertainty due to rapid technological changes. On
top of the minimum rules, more severe rules are applied in
case of for example the decision to stop a business unit or
product line. The remaining inventory on hand is in that case
analyzed and reserved as appropriate. Inventory allowances
are only reversed in case the above rules no longer apply or
the written o inventory is sold or scrapped. (see note 12.
Inventory)
• Current expected credit losses: The Group assesses on a
forward-looking basis the expected credit loss associated
with its financial assets carried at amortized cost. For trade
receivables, the Group applies the simplified approach
permitted by IFRS 9 Financial instruments, which requires
expected lifetime losses to be recognized from initial
recognition of the receivables.
The ability of the Company to collect its accounts receivable
balances is dependent on the viability and solvency of
its business partners, distributors and resellers, which
is influenced by business behavior, which is on its turn
influenced by consumer behavior and general economic
conditions. Customers may experience financial diculties
that could cause them to be unable to fulfill their payment
obligations to the Company.
The Company develops its estimate of credit losses by type
of business and customer type, number of days overdue
and historical loss rates which are then adjusted for specific
receivables that are judged to have a higher than normal
risk profile after taking into account management’s internal
credit assessment, as well as macro-economic and industry
risk factors.
M
oreover, the Company has a credit insurance in place for
specific higher risk cinema contracts and the Company has
reached extended payment plans, which have been honored
over 2021. The remaining overdue balances with its cinema
customers per 31 December 2021 are limited and the related
extended payments plans are being honored.
For the year ended December 31, 2021, the Company could
reverse part of the provision for current expected credit
losses (2021: +0.4 million euro profit) reflecting a lower credit
risk of its customers related accounts receivable compared
to the same period last year. The extra provision recorded
in 2020 (1.5 million euro) reflected a reduction in the credit
quality of specific cinema customers related accounts
receivable as a result of the covid-19 global pandemic.
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Accounting treatment of development expenses
Shorter life cycles, unpredictability of which development proj-
ects will be successful, and the volatility of technologies (more
and more software development) and markets in which Barco
operates led the Board of Directors to conclude that Barco’s
development expenses do not meet the criteria of IAS38.57. As
the criteria of IAS38.57 are not fulfilled, our accounting policy,
with respect to research and development costs, does not
allow the capitalization of development expenses.
Defined benefit obligations
Defined benefits: the cost of the defined benefit pension plan
(see note 19) and the present value of the pension obligation
are determined using actuarial valuations. An actuarial valua-
tion involves making various assumptions that may dier from
actual developments in the future. These include the determi-
nation of the discount rate, future salary increases, mortality
rates and future pension increases. Due to the complexities
involved in the valuation, and its long-term nature, a defined
obligation is highly sensitive to changes in these assumptions.
All assumptions are reviewed on reporting date.
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Notes to the consolidated financial statements
Country of Incorporation Legal Entity Registered Office %
Europe, Middle East and Africa
Belgium Barco Coordination Center NV Beneluxpark , Kortrijk BELGIUM
Belgium Barco Integrated Solutions NV Beneluxpark , Kortrijk BELGIUM
Belgium Cinionic bv Beneluxpark , Kortrijk BELGIUM
France Barco SAS avenue Georges Clémenceau, Immeuble “Le Plein Ouest”, Nanterre FRANCE
Germany Barco Control Rooms GmbH Greschbachstrasse a, Karlsruhe GERMANY
Germany Barco GmbH Greschbachstrasse a, Karlsruhe GERMANY
Italy Barco S.r.l. Via Monferrato , Corsico-MI ITALY
Italy FIMI S
.r.l. V
ia Vittor Pisani n
.
, Milano ITALY
Netherlands Barco B.V. Zuidplein , WTC Tower H, Floor , XV Amsterdam NETHERLANDS
Norway Barco Fredrikstad AS Habornveien , Gamle Fredrikstad NORWAY
Poland Barco Sp. z o.o. Annopol , - Warsaw POLAND
Russia Barco Services OOO Office , Floor , Kondratyuka str
., , Moscow RUSSIAN FEDERATION
Spain Barco Electronic Systems, S
.A. Travessera de les Corts , Entlo. a, Barcelona SPAIN
Sweden Barco Sverige AB c/o Grant Thornton, Box , Göteborg SWEDEN
United Arab Emirates* Barco Middle East L.L.C. Concord Tower, Suite , PO Box , Dubai Media City, Dubai UNITED ARAB EMIRATES
United Kingdom Barco Ltd. Building , Doncastle Road, RG PE Bracknell, Berkshire UNITED KINGDOM
1. Consolidated companies
1.1 List of consolidated companies on 31 December 2021
(*) Barco has control over the relevant activities of the entity by virtue of a contractual agreement with the local investor
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Country of Incorporation Legal Entity Registered Office %
Americas
Brazil Barco Ltda. Av. Ibirapuera, , ° andar, conj , Torre II, Moema, - São Paulo BRAZIL
Canada MTT Innovation Incorporated Suite , Thurlow Street, VE C Vancouver, BC CANADA
Colombia Barco Colombia SAS Carrera , n° -, Torre Zimma Oficina , Bogota COLOMBIA
Mexico Barco Visual Solutions S
.A.
de C
.V. M
ariano Escobedo No
.
Piso Col
.
Anzures, C
.P.
D
.F.
México MEXICO
Mexico Barco Cine Appo Mexico, S
.A.
de C
.V. A
rtemio del Valle Arizpe , ndo piso, Col del Valle, CP New Mexico city (CDMX) MEXICO
United States Barco, Inc. Orange Street, Wilmington DE UNITED STATES
United States Cinionic Inc
.
White Rock Road, Suite , Rancho Cordova CA UNITED STATES
Asia-Pacific
Australia Barco Systems Pty. Ltd. Rocklea Drive, VIC Port Melbourne AUSTRALIA
Australia Cinionic Pty
. L
td
. C
/- Accru Melbourne Pty Ltd, Camberwell Road, VIC Hawthorn East AUSTRALIA
China Barco Trading (Shanghai) Co., Ltd. Room , No. , Fenyang Road, Shanghai CHINA
China Barco Visual (Beijing) Electronics Co
., L
td
. N
o
.
Changsheng Road, Zhong Guan Cun Science Park, Chang Ping District, Beijing CHINA
China Barco Visual (Beijing) Trading Co., Ltd.
N
o
.
Changsheng Road, Chang Ping Park, Zhong Guan Cun Science Park, Chang Ping District,
Beijing CHINA
China Barco China Electronic Visualization Technology (Nanjing) Co
., L
td
. N
o
.
, Hengtong Road Nanjing development zone, Nanjing, Jiangsu CHINA
China Barco (Suzhou) Healthcare Technology Co., Ltd. No., Sutong Road, Suzhou Industrial Park, Suzhou CHINA
China Barco (Suzhou) Technology Co., Ltd Room ()-, Modern Logistics Building, No. , Modern Avenue, Suzhou.
Hong Kong Barco Ltd. Suite -, /F, Prosperity Center, Chong Yip Street, Kwun Tong, Kowloon HONG KONG
Hong Kong Barco Visual Electronics Co., Ltd. Suite -, /F, Prosperity Center, Chong Yip Street, Kwun Tong, Kowloon HONG KONG
Hong Kong Barco China (Holding) Ltd. Suite -, /F, Prosperity Center, Chong Yip Street, Kwun Tong, Kowloon HONG KONG
Hong Kong Cinionic Limited Suite -, /F, Prosperity Center, Chong Yip Street, Kwun Tong, Kowloon HONG KONG
India Barco Electronic Systems Pvt.
Ltd
.
c
/o Perfect Accounting & Shared Services P
.L
td
., E
-, st & nd Floor, Main Market, Hauz Khas,
New Delhi INDIA
Japan Barco Co
., L
td
. Y
amato International Bldg F, -- Heiwajima, Ota-ku, - Tokyo JAPAN
Malaysia Barco Sdn
. Bhd. No. A, Jalan SS/B, Damansara Utama, Petaling Jaya, Selangor MALAYSIA
Singapore Barco Singapore Private Limited G Pasir Panjang Road Interlocal Center, Singapore SINGAPORE
South Korea Barco Korea Ltd. Youngdong-daero -gil, Gangnam-gu, Seoul KOREA, REPUBLIC OF
Taiwan Barco Limited F., No. , Xinzhan Rd., Banqiao Dist., New Taipei City TAIWAN, PROVINCE OF CHINA
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1.2 List of equity accounted companies on 31 December 2021
Exemption of publishing financial statements and management
report according German legislation §264 Abs. 3 HGB :
Following subsidiary-companies will be released of publishing
their financial statements and management report 2021:
• Barco GmbH
• Barco Control Rooms GmbH
These companies are included in the consolidation scope of
Barco Consolidated 2021 as listed above.
1.3 Acquisitions and divestments
Barco did not close any acquisition or divestment agreements
in 2021, 2020 and 2019.
Country of Incorporation Legal Entity Registered Office %
Americas
United States CCO Barco Airport Venture LLC Corporation Trust Center, Orange Street, Wilmington DE UNITED STATES
Asia-Pacific
China CFG Barco (Beijing) Electronics Co., Ltd.
No. Changsheng Road, Zhong Guan Cun Science Park, Chang Ping District, Beijing
CHINA
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2. Operating Segments information
2.1. Basis of operating segments information
• Entertainment
1
: The Entertainment division comprises
two business units:
-
Cinema oers the industry’s most complete range of
laser and lamp-based cinema projectors, including image
processing and audio solutions. Barco’s cinema oering is
marketed via Barco CFG (for China) and Cinionic (for rest
of the world), which combines the projection technology
with consultancy, installation, financing, monitoring and
maintenance services.
-
The Immersive Experience business unit (formerly named
“Venues and Hospitality”) offers solutions tailored to
the specific needs of large venues, live events, themed
entertainment (museums, theme parks, etc.) and
simulation applications: projection, image processing
and a modular support service solution.
• Enterprise: The Enterprise division comprises two
business units:
-
Meeting Experience (MX) (formerly known as “Corporate”)
oers collaboration and visualization technologies for
a smart workplace or learning environment: ClickShare
wireless conference and presentations systems, installation
projectors, video walls, weConnect Virtual Classroom,
image processors as well as services.
-
Large Video Walls (formerly known as “Control Rooms”)
offers a package of solutions to help control room
operators make well-informed decisions: video walls,
video wall controllers, control room software and a full
suite of support services.
• Healthcare: The Healthcare division comprises two
business units:
-
Diagnostic imaging oers an extensive line-up of high-
precision medical display systems for disciplines including
radiology, mammography, dentistry, pathology and clinical
review imaging, plus a full suite of support services.
-
Surgical and Modality brings together two activities with
great synergy potential, as they target the same end-
customers (often ORs) and require the same go-to-market
strategy. (The modality activity was previously combined
with the Diagnostics Imaging activity.) The oering of this
business unit includes the company’s digital operating
room portfolio (hardware + video-over-IP-technology),
custom medical displays for modality imaging and a full
suite of support services.
No operating segments have been aggregated to form the
above reportable operating segments.
The Board of Directors monitors the results of each of the three
divisions separately, so as to make decisions about resource
allocation and performance assessment and consequently,
the divisions qualify as operating segments. These operating
segments do not show similar economic characteristics and
do not exhibit similar long-term financial performance, there-
fore cannot be aggregated into reportable segments. Division
1 The projection activity related to virtual reality solutions has been transferred since 2020 from the Enterprise division to the Entertainment division to further optimize
the development and commercialization. With a sales contribution of approximately 8 million euro per semester, this transfer is not considered material, and therefore
the 2019 financials are not restated.
performance is evaluated based on EBITDA. Group financing
(including finance costs and finance revenue) and income
taxes are managed on a group basis and are not allocated to
the operating divisions.
The modification in the management structure and the core
leadership team in 2021 have no impact on the identification
of the operating segments
.
Transfer prices between operating segments are on an arm’s
length basis in a manner similar to transactions with third
parties.
We refer to ‘Our markets’ for more explanation on the activities
performed by each division.
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In thousands of euro Variance - Variance -
Net sales , .% , .% , .% .% -.%
Cost of goods sold -, -
.
% -, -
.
% -, -
.% .% -
.
%
Gross profit , .% , .% , .% .% -.%
EBITDA , .% .% , .% .% -.%
Depreciation TFA and (acquired) intangibles , .
% ,
.
% ,
.
% -
.
% .
%
Adjusted EBIT , .% -, -.% , .% -.% -.%
Capital expenditures TFA and software , .% , .% , .% -.% .%
Interest in associates , , ,
Segment assets , , ,
Segment liabilities , , ,
The Entertainment division delivered 6% sales growth in 2021,
following a soft 2020, explained by the impact of covid-19
on the Entertainment markets. Both cinema and immersive
experience activities contributed to the year-over-year growth,
linked to reopening of cinema theaters in the second half of
the year in most regions globally, and recovery in immersive
experience, thanks to greater demand from museums, pro-
jection mapping and theme parks.
Price increases could mitigate the impact of higher component
and freight costs, as a result of component scarcity, result-
ing in 1.2 percentage points increase in gross profit margin.
Together with indirect expense control, this resulted in a signif-
icant improvement in EBITDA (+ 21 million euro) and EBITDA
margin (+6.9%).
We refer to Our results and Risk management and control
processes for more explanation.
2.2. Entertainment
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In thousands of euro Variance - Variance -
Net sales 233,090 100.0% 216,794 100.0% 358,671 100.0% 7.5% -39.6%
Cost of goods sold -124,529 -53
.4% -
111,601 -51
.5% -1
75,402 -48
.
9% 11
.6% -
36
.4%
G
ross profit 108,561 46.6% 105,193 48.5% 183,269 51.1% 3.2% -42.6%
EBITDA 14,645 6.3% 18,246 8.4% 74,051 20.6% -19.7% -75.4%
Depreciation TFA and (acquired) intangibles 9,408 4
.0
% 10,033 4
.6% 1
5,339 4
.3% -
6
.2% -
34
.6%
Ad
justed EBIT 5,237 2.2% 8,214 3.8% 58,712 16.4% -36.2% -86.0%
Capital expenditures TFA and software 2,706 1.2% 3,436 1.6% 8,428 2.3% -21.2% -59.2%
Interest in associates 9,557
Segment assets 202,365 137,786 168,275
Segment liabilities 81,053 53,299 78,147
2.3. Enterprise
The Enterprise division saw a gradual recovery over the year
and a strong fourth quarter, resulting in a year-over-year
increase in sales of 7.5%. Gross profit margin ( -1.9 percentage
points) was pressured by higher transport costs and com-
ponent shortages, together with selective investments in
commercialization and re-initiation of core portfolio develop-
ment, this resulted in a EBITDA margin of 6.3%, 2.1 percentage
points lower than last year.
The lower sales from 2019 to 2021 can be explained by the
impact of covid-19 on the Enterprise markets.
We refer to Our results and Risk management and control
processes for more explanation.
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2.4. Healthcare
Conversion of solid order growth to sales lagged in Healthcare,
resulting in flat year-over-year sales, partly hampered by
delayed deliveries caused by transport and component
scarcity.
Component and transport shortages and lagging sales price
increases pressured gross profit margins (- 3.3 percentage
points), resulting in 8.6% EBITDA margin, down 4.8 percentage
points year-over-year.
Higher capital expenditure in 2021 compared to previous years,
concern the new factory in China, Suzhou, both facility and
production (8 million euro).
We refer to Our results and Risk management and control
processes for more explanation.
In thousands of euro Variance - Variance -
Net sales , .% , .% , .% -.% -.%
Cost of goods sold -, -
.
% -, -
.
% -, -
.
%
.
%
.
%
Gross profit , .% , .% , .% -.% -.%
EBITDA , .% , .% , .% -.% -.%
Depreciation TFA and (acquired) intangibles ,
.% ,
.
% ,
.% -
.
%
.
%
Adjusted EBIT , .% , .% , .% -.% -.%
Capital expenditures TFA and software , .% , .% , .% .% -.%
Segment assets , , ,
Segment liabilities , , ,
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2.5. Reconciliation of segment information with group information
In thousands of euro
External sales
Entertainment , , ,
At a point in time revenues , % , % , %
Over time revenues , % , % , %
Enterprise , , ,
At a point in time revenues , % , % , %
Over time revenues , % , % , %
Healthcare , , ,
At a point in time revenues , %
,
% , %
Over time revenues , % , % , %
Total external sales segments , , ,,
At a point in time revenues , % , % , %
Over time revenues , % , % , %
Net Income
EBITDA
Entertainment , ,
Enterprise , , ,
Healthcare , , ,
Depreciation and other amortizations
Entertainment , , ,
Enterprise , , ,
Healthcare , , ,
Adjusted EBIT
Entertainment , -, ,
Enterprise , , ,
Healthcare , , ,
Total adjusted EBIT , , ,
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In thousands of euro
Restructuring and impairments -, -, -
EBIT , -, ,
Interest income (expense) - net -, - ,
Income/(loss) before taxes , -, ,
Income taxes -, - -,
Result after taxes , -, ,
Share in the result of joint ventures and associates - ,
Net income , -, ,
Net income attributable to non-controlling interest - ,
Net Income attributable to
the equity holder of the parent
, -, ,
Assets
Segment assets
Entertainment , , ,
Enterprise , , ,
Healthcare , , ,
Total segment assets , , ,
Deferred tax assets , , ,
Short term investments , , ,
Cash and cash equivalents , , ,
Other non-allocated assets , , ,
Total assets ,, ,, ,,
The total over time revenues relate to project sales mainly in the Enterprise division and to recurring service revenues generated on maintenance contracts.
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In thousands of euro
Liabilities
Segment liabilities
Entertainment , , ,
Enterprise , , ,
Healthcare , , ,
Total segment liabilities , , ,
Equity attributable to equityholders of the parent , , ,
Non-controlling interest , , ,
Long-term debts , , ,
Deferred tax liabilities , , ,
Current portion of long-term debts , , ,
Short-term debts - -
Other non-allocated liabilities , , ,
Total equity and liabilities ,, ,, ,,
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2.6. Geographic information
Management monitors sales of the Group based on the regions
to which the goods are shipped or the services are rendered in
three geographical regions Europe, Americas (North-America
and LATAM) and Asia-Pacific (APAC).
We refer to the ‘Comments on the Group results’ for a split of
revenue from external customers based on the geographical
location of the customers to whom the invoice is issued.
There is no significant (i.e. representing more than 10% of
the Group’s revenue) concentration of Barco’s revenues with
one customer.
Sales to Belgium represent 21 million euro of the Group revenues
in 2021 versus 23 million euro in 2020 and 36 million in 2019.
Below table gives an overview of the assets per region and
the most important capital expenditures in non-current assets
per region:
In thousands of euro
Net sales
Europe
,
.
% ,
.
% ,
.
%
Americas
,
.
% ,
.
% ,
.
%
Asia-Pacific
,
.
% ,
.
% ,
.
%
Total
, % , % ,, %
Total assets
Europe , .%
, .% ,
.%
Americas , .%
, .
% ,
.
%
Asia-Pacific , .%
, .% , .%
Total ,, %
,, % ,, %
Purchases of tangible and intangible fixed assets (excl. IFRS )*
Europe , .%
, .% ,
.%
Americas , .%
, .% , . %
Asia-Pacific , .%
, .% , .%
Total , %
, % , %
(*) As included in the consolidated statement of cash flow.
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3. Income from operations (EBIT)
Topline increased 4.4% from 2020 to 2021. Although sales
were up year-over-year in all divisions, prolonged pandemic
induced restrictions and component shortages continued to
cause delays in converting orders to sales. Component and
transport scarcity caused higher transport and broker costs and
restrict production and sales (volume) eciency, pressuring
gross profit margins, down 1.1 percentage points versus 2020.
In absolute numbers the higher topline compensates for the
lower gross profit margins and is 3.7 million euro higher than
last year.
In 2020 the low topline (-28.9% compared to 2019), is caused
by the negative impact of the covid-19 pandemic on Barco’s
Entertainment and Enterprise markets. The lower gross profit
margin in 2020 (down 2.8 percentage points versus 2019) is
primarily resulting from negative mix eect (lower Enterprise
sales), higher logistic costs and indirect overhead costs weigh-
ing on the lower topline.
Indirect costs in 2021 were kept stable versus 2020, a result of
extending cost containment measures with selective invest-
ments in research and development and commercialization
to defend and extend the Company’s market position. The
lower level of indirect costs in 2020 and 2021 (-17% below
2019 level), as a result of measures taken to align the activity
rate with market realities and customer demand, could not
compensate for the margin losses resulting from the lower
topline compared to 2019, resulting in an adjusted EBIT margin
of 2.4 % in 2021 and 1.3% in 2020, compared to 10.2% in 2019.
EBIT in 2021 includes restructuring costs as a result of the
changes in organizational structure, announced in the second
half of 2021, and a number of cost down measures across
dierent countries and functions.
EBIT in 2020 include restructuring and impairment costs
related to the closure of the Taiwanese Unisee Liquid Crystal
Module (LCM) production factory and to reorganizations in
the Entertainment and Enterprise divisions caused by the eco-
nomic impact of the covid-19 pandemic (14.5 million euro).
EBIT in 2019 does not include any adjusting items.
For more details on adjusting items we refer to note 5.
Restructuring and impairment.
In thousands of euro
Sales ,
, ,,
Cost of goods sold -,
-, -,
Gross profit ,
, ,
Gross profit as % of sales
.
%
.% .%
Indirect costs -,
-, -,
Other operating income (expenses) - net -,
-,
Adjusted EBIT ,
, ,
Adjusted EBIT as % of sales .%
.
%
.
%
Restructuring and impairments -,
-, -
EBIT ,
-, ,
EBIT as % of sales
.
%
-.% .%
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The impact of the pandemic and supply constraints on the
company’s topline and gross profit margins in 2021 continued
to weigh on the EBITDA margin and halted the company’s
trajectory (until 2019) of continued profit improvement. In
2021 EBITDA margin is 7.3% on sales, compared to 7% in 2020
and 14.1% in 2019.
In 2021 depreciations are 4 million lower than in 2020, as
2020 included an impairment on acquired know how of
3.5 million euro.
In thousands of euro
Product sales , % , % , %
Project sales , % , % , %
Service sales , % , % , %
Sales , , ,,
Major part of the sales relates to product sales (in 2021: 83%,
in 2020: 83%, in 2019: 84%). Project sales remained stable at
7-8% of total sales over the years and include combined sales
from products, installations and services. Most of these project
sales have a lifetime of less than one year. The share of service
sales in 2021 is 9% of total sales (2020:10%, 2019: 9%).
We refer to note 2. Segment Information and to the chapter
‘Our results’ for more explanation on sales and income from
operations.
Total product and project sales amount to 728.5 million euro
in 2021. We refer to note on EU taxonomy on p. 59 PPC report
for the Company’s EU taxonomy eligible turnover in 2021.
In thousands of euro Note
Adjusted EBIT , , ,
Depreciations and amortizations
, , ,
EBITDA , , ,
EBITDA as % of sales .% .% .%
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In thousands of euro
Research and development expenses (a) -, -, -,
Sales and marketing expenses
(b) -, -, -,
General and administration expenses (c) - , -, -,
Indirect costs -, -, -,
Other operating income (expenses) - net (d) -, -,
Indirect costs and other operating income (expenses) - net -, -, -,
Indirect costs and other operating income (expenses) - net
Indirect costs in 2021 are in line with 2020, a result of extending
cost containment measures while sustaining investments in
strategic projects.
Other operating expense, net in 2021 amounts to 2.7 million
euro, which is 5.9 million euro lower than in 2020, as a result of
1.4 million euro lower bad debt and other provisions needed,
3 million lower exchange losses and 1.9 million euro gain
realized on the sale of a building in Germany (see (d)).
In 2020, indirect costs are significantly lower compared to
2019 as a result of measures taken to align the activity rate
with market realities and customer demand. The company has
implemented temporary work arrangements and economic
unemployment measures for both white and blue collars, in
conformity with country specific legal frameworks, support
mechanisms and regulations. These measures also entailed
shifts in the planned investment patterns on selected long-
term initiatives and a sustained strict discipline on discretionary
spending.
Both in 2021 and 2020, the negative impact on the company’s
topline versus 2019 was higher than the reduction in indirect
costs via cost measures could compensate for. Consequently,
indirect costs as percentage of sales, despite a decline of 54.2
million euro versus 2019, are still higher than the 2019 level:
33% of sales in 2021 and 34.5% of sales in 2020 compared to
29.5 % of sales in 2019.
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(a) Research and development expenses
Research and development activities are spread over the divisions as follows:
In thousands of euro % of sales % of sales % of sales
Entertainment
, % , % , %
Enterprise
, % , % , %
Healthcare
, % , % , %
Total research & development expenses
, , ,
In thousands of euro % of sales % of sales % of sales
Sales and marketing expenses
, .% , .% , .%
In 2021 research and development expenses represent 12.6% of
sales in 2021 (13.3% in 2020; 11.0% in 2019). The lower absolute
level of research and development expenses compared to 2019
is the result of continued cost containment measures taken as
response to the covid crisis. The Company, however, continues
investments in its product roadmap to sustain and extend the
Company’s technology leadership position.
Only the cost related to research and development is consid-
ered material and therefore included in EU taxonomy eligible
OpEx. We refer to note on EU taxonomy on p. 60 of PPC report
for the EU taxonomy eligible opex in 2021.
Sales and marketing expenses include all indirect costs related
to the sales organization which are not billed as part of a prod-
uct or service to the customer as well as the costs related to
regional or divisional marketing activities. Sales and marketing
expenses in 2021 are almost 4 million euro higher than 2020,
as a result of selective commercial investments to defend and
extend the Company’s market position. Compared to 2019 this
is an absolute decrease, but relative increase, explained by the
impact of the covid-19 pandemic on the company’s sales and
related cost measures taken.
(b) Sales and marketing expenses
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(c) General and administration expenses
General and administration expenses include the costs related
to information technology, finance, general and divisional
management, human resources, legal and investor relations.
Expenses in 2021 and 2020 have decreased with almost 10 mil-
lion euro compared to 2019, as a result of the covid-19 related
measures taken (including no bonus) and the execution of the
2018 restructuring plan (full year impact as of 2020). The rela-
tive increase in general and administration expenses compared
to 2019 is the result of the decrease in topline (compared to
2019) exceeding the impact of the cost measures taken.
Steady investments in IT systems over the past years have
led to IT costs (including amortizations on SAP ERP system)
representing the major part of G&A expenses (2021: 47%, 2020:
45%, 2019: 40%).
In thousands of euro % of sales % of sales % of sales
General and administration expenses
, .% , .% , .%
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(d) Other operating income (expense) – net
(a) As of July 2018, BarcoCFG is accounted for under the equity
method. The 49% share in the net result of BarcoCFG is
represented in EBITDA. See note 11. As a result of the covid-
19 global pandemic impact on the cinema business, also
the results of the Chinese cinema joint-venture are in 2021
and 2020 lower than in 2019.
In thousands of euro
Share in the result of BarcoCFG (a) , , ,
Bad debt provisions (net of write-offs and reversals of write-offs) (b) -,
Cost of share-based payments -, -, -,
Exchange gains and losses (net) - -, -,
Other provisions (net of additions and reversals of provisions) (c) -, -,
Bank charges - - -
Customer financial discounts - - -
Gains/(Loss) on disposal of tangible fixed assets , ,
Other (net) -, , -
Other operating income (expense) -, -,
(b) For the year ended December 31, 2021, the Company could
reverse part of the provision for current expected credit
losses (2021: + 0.4 million euro profit) reflecting a lower
credit risk of its customers related accounts receivable
compared to the same period last year. The extra provision
recorded in 2020 (1.5 million euro) reflected a reduction
in the credit quality of specific cinema customers related
accounts receivable as a result of the covid-19 global
pandemic.
(c) We refer to note 19. Provisions
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4. Revenues and expenses by nature
The table below provides information on the major items
contributing to the adjusted EBIT, categorized by nature.
Material costs in 2021 increased as percentage of sales com-
pared to previous years, impacted by higher component prices
linked to supply shortages.
Personnel cost in 2021 is 5.9 million euro higher than 2020,
but still 46 million euro lower than 2019 as a result of tempo-
rary measures and executed restructuring lay-os (see note
5. Restructuring and impairments) to align costs with lower
demand as a result of the impact of the covid-19 pandemic
on the Company’s markets. The Company has implemented
temporary work arrangements and economic unemploy-
ment measures as of 2020 for both white and blue collars, in
conformity with country specific legal frameworks, support
mechanisms and regulations.
The increase compared to 2020 can be explained by reduced
unemployment measures, lower wage subsidies received and
merits (see ‘Remuneration report for financial year 2021’ in cor-
porate governance chapter). The Company was able to apply
for wage grants under the enacted covid-19 relief legislation
in APAC and Canada for 0.2 million euro (2020: 3.4 million
euro, then also including Cinionic US).
As of 2020 these measures also entailed shifts in the planned
investment patterns on selected long-term initiatives and a
sustained strict discipline on discretionary spending (e.g. travel,
marketing spend, consulting, ...). The Company made delib-
erate choices on the continuation and timetable of selected
development projects and adjusted internal and external sup-
port levels in function of the focus shift. This has resulted in
8 million euro (2020: 32.7 million euro) lower services and
other costs.
In thousands of euro
Variance
-
Variance
-
Sales
, , ,, % -%
Material cost
-, -% -, -% -, -% % -%
Services and other costs
-, -% -, -% -, -% -% -%
Personnel cost (a)
-, -% -, -% - , -% % -%
Depreciation property, plant, equipment and software
-, -% -, -% -, -% -% %
Other operating income (expense) - net (note )
-, % -, -% %
Adjusted EBIT
, % , % , % % -%
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a) Personnel cost
In thousands of euro
Wages and salaries -, -, -,
Social security contributions -, -, -,
Pension expense for defined benefit plans -, -, -,
Temporary labour -, -, -,
Recruiting expenses -, -, -,
Other personnel cost -, -, -,
Personnel cost -, -, -,
In thousands of euro
Barco NV (parent company) , , ,
Other subsidiaries , , ,
Total average number of full time equivalents , , ,
Personnel cost includes the cost for temporary personnel for
an amount of 1.7 million euro (in 2020: 2.4 million euro, in
2019: 5.3 million euro).
The average number of fulltime equivalents can be split as
follows:
Average number of employees in 2021 was 3,140 (versus 3,519
in 2020; 3,590 in 2019), including 2,555 white-collars (in 2020:
2,738, in 2019: 2,688) and 585 blue-collars (in 2020: 781, in
2019: 902).
Full time equivalents at year end 2021 amount to 3,133 (versus
3,317 end of 2020; 3,646 end of 2019), including 2,568 white
collars (2020: 2,671, in 2019: 2,728) and 565 blue collars (in
2020: 646, in 2019: 918).
In 2020, the Company has implemented temporary work
arrangements and economic unemployment measures for
both white and blue collars, in conformity with country specific
legal frameworks, support mechanisms and regulations. In
2021 temporary measures were extended for a limited period,
during the first half year only in conformity with country spe-
cific legal frameworks and more structural measures were
taken. As of the second half of the year, the Company noted
an increased number of voluntary leavers, though there is a
lagging eect on the replacements of those positions. This
explains the low number of full time equivalents at year-end,
while the personnel costs were still higher than in 2020.
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5. Restructuring and impairment costs
The table below shows the restructuring and impairment costs
recognized in the income statement.
Restructuring costs include cash costs (mainly lay-o costs)
(2021: 4.9 million euro, 2020: 7.2 million euro and non-cash
impairment costs (2021: 1.5 million euro, 2020: 7.3 million euro).
As a result of the redesign of the organization organization,
announced in the second semester, and a number of cost
down measures across dierent countries and functions the
Company has recorded 4.9 million euro of restructuring (cash)
costs in 2021. The non-cash costs of 1.5 million euro relate to
the remaining fair value of share options of former leadership
team members, accounted for the moment they stopped pro-
viding services to the Company.
Restructuring cash costs include a provision for severance
of 0.5 million euro per 31 December 2021 (see note 19.
Provisions), expected to be paid in 2022. In 2021, 8.2 million
euro of restructuring was paid.
Restructuring costs in 2020 relate to the closure of the
Taiwanese Unisee LCM (Liquid Crystal Module) production fac-
tory and to reorganizations in the Entertainment and Enterprise
divisions, caused by the economic impact of the pandemic
on our markets, with the purpose to adjust cost levels to the
lower topline but also with the aim to have the right focus
and structure in place after the global crisis. All 412 people
impacted were informed before the end of 2020. Restructuring
cash costs include a provision for severance of 3.7 million euro
per 31 December 2020 (see note 19. Provisions) paid in 2021.
In 2020, 9.5 million euro of restructuring was paid.
As the company decided to move to a more cost competitive
and next generation UniSee platform, the industrialization
process came to a pivotal moment. After careful evaluation
of the options, Barco’s management decided to outsource
UniSee LCM-production as of the second half of 2020 and to
phase out the inhouse UniSee LCM-production activity in its
Taiwanese factory in the second half of 2020. All impacted
people (232) left the company by the end of 2020. The deci-
sion has resulted in mainly non-cash restructuring costs related
to the closure of the factory and impairment of the machinery
and equipment (see note 9.2 Tangible fixed assets).
There are no restructuring and impairment costs in 2019.
In thousands of euro Note
Restructuring (cash): -, -,
Non-cash: -, -,
Total restructuring and impairments -, -,
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6. Income taxes
(a)
Deferred tax recognized on undistributed earnings of
subsidiaries which are expected to be distributed in the
foreseeable future.
(b)
Tax positions taken in the financial statements and in the
tax filings and how these are supported, as well as how the
taxation authorities might make their examinations and how
issues that might arise from examinations could be resolved,
are reviewed. Based on this assessment, a deferred tax lia-
bility is determined in line with IFRIC 23. A reversal on the
deferred tax liability is taken when the uncertain tax position
is no longer in place as a result of an occurred tax exam-
ination or expiration of the examination period.
(c)
Includes withholding taxes on dividends received and tax
impact of intragroup dividends that did not enjoy a dividend
received exemption regime to their full extent.
(d)
Deferred tax assets not recognized on tax losses/credits or
tax losses/credits carried forward when assessment shows
it is not probable that these tax benefits can be utilized in
the near future, mainly in Barco NV (Belgium). We refer to
note 10. In 2020, this also related to an impairment on the
deferred tax assets set up in relation to tax losses carried
forward in Barco Taiwan Technology Ltd., linked to the
decision to close the factory and liquidate the legal entity.
(e)
Capital loss incurred on the liquidation of Barco Taiwan
Technology Ltd.
In thousands of euro Note
Current versus deferred income taxes
Current income taxes -, -, -,
Deferred income taxes , , -,
Income taxes -, - -,
Income taxes versus income before taxes
EBIT , -, ,
Interest income (expense) - net -, - ,
Income before taxes , -, ,
Income taxes -, - -,
Effective income tax rate % .% - .%
Income before taxes , -, ,
Theoretical tax rate % % %
Theoretical tax credit/(cost) -, , -,
Innovation income deduction (IID) , , ,
Effect of different tax rates in non-Belgian affiliates ,
Changes in deferred tax on undistributed earnings (a) -,
Uncertain tax treatment (b) , ,
Income not taxed
Other income exempt from tax (mainly government grants) , , ,
Non deductible expenses
Dividends received (c) - -, -,
Other non-deductible expenses -, -, -,
Effect of change in expected tax rate on deferred taxes
Tax adjustments related to prior periods - , ,
Deferred tax assets, derecognized in current year (d) -, -, -
Set-up/use of deferred tax assets, not recognized in prior years ,
Realized capital loss on investment in affiliates (e) ,
Taxes related to current income before taxes -, - -,
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7. Earnings per share
In thousands of euro
Net income/(loss) attributable to the equity holder of the parent , -, ,
Weighted average of shares ,, ,, ,,
Basic earnings per share . -. .
Net income/(loss) attributable to the equity holder of the parent , -, ,
Weighted average of shares (diluted) ,, ,, ,,
Diluted earnings per share (a) . -. .
(a) The dierence between the weighted average of shares
and weighted average of shares (diluted) is due to exer-
cisable warrants, which are in the money (which means
that the closing rate of the Barco share was higher than
the exercise price).
For more detailed information concerning the shares and
warrants, we refer to note 16.
At Barco’s Extraordinary General Shareholder’s Meeting, of
30 April 2020, the shareholders have approved the share split
by a factor seven (7), eective as of 1 July 2020. The purpose
of the share split is to enhance accessibility and to improve
the liquidity of the Barco share. As a result of this share split,
Barco’s total capital is represented by 91,487,438 shares as from
1 July 2020. Each of these shares confers one voting right at
the General Meeting. The new split shares (please note: new
ISIN code BE0974362940) are traded on the Euronext Brussels
regulated market from 1 July 2020 onwards. Therefore, the
earnings and diluted earnings per share as of 31 December
2019 are for comparison reasons recalculated for the new
number of shares.
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8. Goodwill
There are no changes to goodwill in 2019, 2020 and 2021 and
the impairment tests on goodwill in the 3 years did not result
in any impairment.
As a result of the covid-19 global pandemic described in the
section ‘Critical accounting judgments and key sources of
estimation uncertainty’ on page 22, the Company performed
a quantitative goodwill impairment test per 30 June 2021 and
again per 31 December 2021.
The test was performed on a cash-generating unit level by
comparing each unit’s carrying value, including goodwill, to
its value-in-use.
The value-in-use of each reporting unit was assessed using a
discounted cash flow model based on management’s revised
budget on division level for the year and estimated long-term
projections covering a five-year period. Consistently with its
yearly impairment test, the Company adjusts the divisional
management cash flow projections for future years to more
conservative levels in view of the level of uncertainty. An appro-
priate level of conservatism compared to previous reporting
periods was applied, in 2021 and 2020, to the updated impair-
ment testing, to take into account covid-19 related uncertainty.
The outcome of the goodwill impairment tests performed did
not result in any impairment loss.
See below for explanations on the impairment testing
performed.
In thousands of euro
At cost
, , ,
Impairment , , ,
Net book value , , ,
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Goodwill by cash-generating unit
On acquisition, goodwill acquired in a business combination
is allocated to the cash-generating unit which is expected to
benefit from that business combination. These cash-gener-
ating units correspond to the division level for Entertainment,
Healthcare and Enterprise. Therefore, impairment testing is
Cash-generating units in thousands of euro -
Entertainment ,
Enterprise ,
Healthcare ,
Total goodwill (net book value) ,
performed at the level of the cash-generating units as pre-
sented below.
The carrying amount of goodwill (after impairment) has been
allocated to the cash-generating units as follows:
The allocation remained the same over 2021, 2020 and 2019.
The Group performed its annual impairment test in the fourth
quarter of 2021 consistently with prior years.
The Group looks at the relationship between its market cap
-
italization and its book value, amongst other factors, when
reviewing the indicators of impairment. At 31 December 2021,
the market capitalization of the Group was more than two
times the amount of equity of the Group. As such, this general
test does not show an indication for impairment.
The annual impairment tests were performed for each
cash-generating unit. The recoverable amount for each of
the cash-generating units has been determined based on a
value-in-use calculation using cash flow projections generated
by management covering a five-year period. Due to the level
of uncertainty of future years, these financial projections have
been adjusted to more conservative levels for the purpose of
our impairment testing.
The pre-tax discount rate applied to projected cash flows is
8.7% (2020: 8.7%, 2019: 6.5%) and cash flows beyond the five-
year period are extrapolated using a conservative growth rate
of 0% (2020: 0%, 2019: 0%).
The amount by which the unit’s recoverable amount exceeds
its carrying amount is 42 million euro in Entertainment (27
million euro in 2020), 97 million euro in Enterprise (214 million
euro in 2020) and 142 million euro (179 million euro in 2020)
in Healthcare.
Healthcare and Enterprise remain to have substantial head-
room. The drop in 2021 versus 2020 is the result of the level
of conservatism applied in the EBITDA % (average of the last 3
years), which includes one extra covid impacted year.
In Entertainment the headroom remains at a lower level than
the other two divisions, however improved versus last year. The
lower level is explained by the higher impact of covid on the
Entertainment markets and the level of conservatism applied,
assuming no sales growth starting from 2021 sales level.
In all three years, the carrying amounts include the impact of
the right-of-use assets resulting from the application of IFRS 16.
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A sensitivity analysis is performed on all cash-generating units
with respect to the discount rate (see Sensitivity to changes in
assumptions – Discount rate). For forward looking statements
on sales and EBITDA, we refer to the company report of this
annual report.
The assumptions of the annual impairment test are consistent
with external sources.
For none of the cash-generating units management identified
an impairment loss after the impairment test.
Key assumptions used in value-in-use calculations
The calculation of value-in-use for all cash-generating units
is most sensitive to the following assumptions:
•
S
ales growth rate used during the projection period;
• EBITDA;
• Growth rate used to extrapolate cash flows beyond the
budget period;
• Discount rate;
The assumptions are shown in below table:
Sensitivity to changes in assumptions
Per 31 December 2021, only a change in EBITDA margin
could result in impairment losses. The implications of the key
assumptions for the recoverable amount are discussed below:
EBITDA percentage on sales – Management has considered
the possibility of lower than projected EBITDA percentages
on sales.
For Entertainment, Enterprise and Healthcare a reduction of
the EBITDA percentage in the last year of the projected period
of respectively more than 1.6%, 6% and 7% would result in an
impairment.
Discount rate - Management has considered the possibility
of a significant higher weighted average cost to test the sen-
sitivity. For none of the cash-generating units this leads to an
impairment.
Growth rate estimate (beyond the projection period) – For all
divisions, no reasonable possible change in the growth rate,
used to extrapolate beyond the projection period, would result
in an impairment.
Entertainment Enterprise Healthcare
Sales growth rate used during the projection period .% .% .%
EBITDA as % of sales .
%
.
%
.
%
Growth rate estimates
.
%
.
%
.
%
Discount rate .% .% .%
Sales growth rate used during the projection period – Sales
growth rate used over the projected period has been kept
conservatively at zero percent for all cash-generating units,
since even then there is no risk for impairment.
EBITDA as percentage of sales – EBITDA as percentage of
sales is based on average percentages over the three years
preceding the start of the budget period for all divisions. The
EBITDA percentage has been kept conservatively flat over the
projected period, except for Entertainment, where it is more
realistic to take an average of the pre-covid EBITDA level of
2018 and 2019 (8.2%) as of 2023.
Growth rate estimates – The long-term rate used to extrapo-
late the projection has been kept conservatively at zero % for
all cash-generating units.
Discount rate – Discount rate reflects the current market
assessment of the risks specific to Barco Group. The discount
rate was estimated based on a (long-term) pre-tax cost of
capital, the risks being implicit in the cash flows. It was deter-
mined on group level.
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9. Other intangible and tangible fixed assets
9.1 Other intangible assets
In thousands of euro
Software
Customer
Relations Know how
Other
Intangible Assets
Other
Intangible
assets under
construction Total Total Total
At cost
On January , , , , , , ,
Expenditure , - - - - , , ,
Sales and disposals -, - - - - -, -, -
Acquisition of subsidiaries - - - - - - - ,
Transfers - - - - - - -
Translation (losses)/gains , - , -, ,
On December , , , , - , , ,
Amortizations and impairment
On January , , , , - , , ,
Amortization , - , - , , ,
Impairment - - - - - - , -
Sales and disposals -, - - - - -, -, -
Transfers - - - - - - -
Translation (losses)/gains , - , -, ,
On December , , , , - , , ,
Carrying amount
On January , - , , , ,
On December , - , - , , ,
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Barco’s intangibles mainly include SAP ERP software and
remaining book value of acquired know how.
In 2021, capital expenditures for intangible assets amount to
1.2 million euro (2020: 2 million euro, 2019: 3.1 million euro),
mainly related to new customer relationship management
(CRM) software. Expenditures in 2020 and 2019 were mainly
related to SAP ERP software licenses.
Disposals in 2021 and 2020 relate to fully amortized IT software
which is no longer used.
In 2019, the acquired know how for caresyntax (8.9 million
euro) is included in the table above in the line ‘acquisition of
subsidiaries’. On April 9 th, 2019 Barco announced a joint devel-
opment, a software distribution and integrator agreement, with
caresyntax®, leader in vendor-neutral software solutions for
surgical automation, analytics and AI, alongside participating
in the company’s round of growth equity financing.
The investment payment was recorded as an intangible asset
(acquired know how) and is amortized over 5 years. No equity
instrument has been recognized because of the premium paid
over the fair value of the shares at acquisition date.
In 2020 the impairment test resulted in an impairment of 3.5
million euro on the acquired know how for caresyntax.
The impairment cost is included in research and development
expenses in 2020.
The Group performed its annual impairment review on acquired
intangibles in the fourth quarter of 2021 consistently with prior
years. Special attention was paid to the potential impact of
covid-19. The test concluded no impairments.
Barco does not hold intangible assets with indefinite lifetime.
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9.2. Tangible fixed assets
In thousands of euro
Land and
buildings
Plant,
machinery and
equipment
Furniture,
office
equipment
and vehicles
Other
property, plant
and equipment
Assets under
construction
Total Other
tangible assets Total Total Total
At cost
On January , , , , , , , , ,
Expenditure* , , , , , , , ,
Sales and disposals -, -, -, - - -, -, -, -,
Change in accounting principle (IFRS ) - - - - - - - - ,
Transfers , , -, -, - - -
Translation (losses)/gains , , , , -, ,
On December , , , , , , , , ,
Depreciation and impairment
On January , , , , - , , , ,
Depreciation , , , , - , , , ,
Impairment - - - - - - - , -
Sales and disposals -, -, -, - - -, -, -, -,
Transfers - - - - - - -
Translation (losses)/gains , - , , -,
On December , , , , - , , , ,
Carrying amount
On January , , , , , , , , ,
On December , , , , , , , , ,
(*) Expenditures in 2020 and 2021 also include the additions for IFRS 16.
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Capital expenditures for tangible assets in 2021, excluding the
impact of IFRS 16, amount to 16.3 million euro. Major invest
-
ments in 2021 concern the new factory in China, Suzhou, both
facility and production related (2021: 8 million euro; 2020: 3.3
million euro). Other facility related capex in 2020 relate to the
software lab in Noida (1.9 million euro) and heating, ventilation
and airco investments in the Kortrijk and Duluth facilities (1.1
million euro). Facility related capex in 2019 was mainly in the
Taiwan factory (2019: 4.1 million euro).
In addition, capital expenditures include machinery and tooling
linked to new development projects (2021: 2.5 million euro;
2020: 3.6 million euro; 2019: 1.5 million euro) and IT hardware
equipment (2021: 2.4 million euro; 2020: 1.6 million euro; 2019:
2.5 million euro).
The main tangible fixed assets on the balance sheet, realized
in the period 2015 – 2019, relate to the headquarters of Barco
and the extended operations facility for 50 million euro.
The total amount of capital expenditure, excluding the impact
of leased buildings, amounting to 18 million euro in 2021 equals
the EU taxonomy eligible CapEx as the total amount of CapEX
relates solely to assets or processes associated with Barco
economic activities defined in section “Taxonomy-eligible”.
We refer to note on EU taxonomy on p. 60 PPC report.
Disposals in 2021 mainly relate to old machinery & equipment
and furniture, which are no longer in use and fully written
down, and the sale of part of the land and building in Karlsruhe.
Disposals in 2020 mainly relate to the closure of the Taiwan
factory, together with old machinery. The closure of the
Taiwanese Unisee LCM-production factory in the second
half of 2020 resulted in an impairment of 5
.8 m
illion euro
mainly related to the machinery and equipment (see note 5.
Restructuring and impairments). The closure was linked to the
decision to outsource the Unisee LCM panels.
Disposals in 2019 mainly relate to old machinery & equipment,
which are no longer in use and to the sale of the remaining
part of the land and building in Poperinge.
The Company considered the potential impact of covid-19 on
the utilization levels of its factories and potential impairment of
its machinery and equipment. The analysis did not conclude
an impairment. See ‘Critical accounting judgements and key
sources of estimation uncertainty’ for more explanation on
the impact of covid-19 on Barco’s operations.
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Leases
This note provides more information for leases where the
Group is a lessee.
The balance sheet shows the following amounts relating to
leases:
In thousands of euro
Buildings Vehicles Total Total Total
On January , , , , ,
New leases or extensions of current leases , , , , ,
Termination of leases -, -, -, -, -
Translation (losses)/gains , , -,
On December , , , , ,
Depreciation and impairment
On January -, -, -, -, -
Depreciation -, -, -, -, -,
Termination of leases , , , ,
Translation (losses)/gains - - - -
On December -, -, -, -, -,
Right-of-use assets
On January , , , , ,
On December , , , , ,
Additions to the right-of-use assets during 2021 were 10.7
million euro (2020: 11 million euro; 2019: 4.4 million euro)
split over leased buildings (2021: 9 million euro; 2020: 7.6 mil-
lion euro) and leased vehicles (2021: 1.7 million euro; 2020:
3.4 million euro). The additions are both renewals of existing
lease agreements as well as new lease agreements in China,
Taiwan and US over a lease period of respectively 2 years, 3
years and 4 years.
We refer to note 14 for more information on the lease liabilities.
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The statement of profit or loss shows the following amounts relating to leases:
The total cash outflow for leases in 2021 was 9.7 million euro
(2020: 10.8 million euro; 2019: 10.6 million euro).
In thousands of euro DEC DEC DEC
Buildings -, -, -,
Vehicles -, -, -,
Total depreciation charge of right-of-use assets -, -, -,
Interest expense (included in finance cost) -, -, -,
Expense relating to short-term leases - - -
Expense relating to leases of low-value assets that are not shown above as short-term leases - - -
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10. Deferred tax assets – deferred tax liabilities
The deferred tax asset and liability balance comprises temporary
dierences attributable to:
Assets Liabilities Net asset/(liability)
In thousands of euro
Tax value of loss carry forwards , , , - - - , , ,
Tax value of tax credits , , , - - - , , ,
Provisions , , , - - - , , ,
Inventory , , , - - - , , ,
Deferred revenue , , , - - - , , ,
Tangible fixed assets and software , , , - - - ,
Employee benefits , , - -, ,
Trade debtors - - -
Other investments - - -
Uncertain tax positions (IFRIC ) - - - -, -, -, -, -, -,
Patents, licenses, ...
- - - -
, -, -, -, -, -,
Other items -, - - - -,
Gross tax assets/(liabilities)
, , , -, -, -, , , ,
Offset of tax
-, -, -, , , , - - -
Net tax assets/(liabilities)
, , , -, -, -, , , ,
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Movements in the deferred tax assets / (liabilities) arise from the following:
On top of the tax losses and tax credits for which a net deferred
tax is recognized (net deferred tax asset of respectively 20.1
million euro and 16.7 million euro), the Group owns tax losses
carried forward and other temporary dierences on which
no deferred tax asset is recognized amounting to80 million
euro as of 31 December 2021 (42 million euro in 2020) (result-
ing in a non-recognized deferred tax asset of20.8 million
euro (11.5 million euro in 2020)) and unutilized capital losses
carried forward in the US on which no deferred tax asset is
recognized amounting to 4.4 million euro (30.5 million euro in
2020) (resulting in a non-recognized deferred tax asset of1.1
million euro (7.4 million euro in 2020)). Deferred tax assets
have not been recognized on these items because it is not
In thousands of euro As at January Recognized through income statement Recognized through OCI Exchange gains and losses As at December
Tax value of loss carry forwards , -, - ,
Tax value of tax credits , , - ,
Provisions , -, -, ,
Inventory , -, - ,
Deferred revenue , , - ,
Tangible fixed assets and software - ,
Employee benefits - ,
Trade debtors - -
Other investments - -
Uncertain tax positions (IFRIC ) -, - - -,
Patents, licenses, ... -, - - -,
Other items - -
Net deferred tax , , -, , ,
probable that taxable profit will be available in the near future
against which the benefits can be utilized, or that tax assets
will be utilized within their statue of limitations. The tax losses
carried forward and other temporary dierences on which no
deferred tax asset is recognized have no expiration date, except
for US capital losses carried forward which will expire in 2023.
Deferred tax assets recognized primarily relate to the tax value
of loss carry forwards, dividend received exemption carry for-
wards and other tax credits and almost fully relate to Belgium.
In assessing the realization of deferred tax assets, management
considers whether it is probable that some portion or all of
the deferred tax assets will be realized within the foreseeable
future. The ultimate realization of deferred tax assets is depen-
dent upon the generation of future taxable profit during the
periods in which those temporary dierences become deduct-
ible. Management considers the scheduled reversal of deferred
tax liabilities, projected future taxable profit and foreseeable
tax events in making this assessment. In 2020 and 2021, the
covid-19 impact on future taxable profit was factored in in the
realization assessment. A time period of 5 years is considered.
In order to fully realize the deferred tax asset, the Group will
need to generate future taxable profit in the countries where
the net operating losses were incurred. Based upon the level
of historical taxable income and projections for future taxable
profit over the periods in which the deferred tax assets are
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deductible, management believes as at 31 December 2021, it
is probable that the Group will be able to utilize these deferred
tax assets.
Barco has not recognized income taxes on undistributed
earnings of its subsidiaries which will not be distributed in the
foreseeable future. The cumulative amount of undistributed
earnings on which the Group has not recognized income taxes
was approximately 504 million euro at December 31, 2021
(2020: 478 million euro, 2019: 491 million euro).
11. Investments and interest in associates
(a) Investments
Investments include entities in which Barco owns less than
20% of the shares. These are accounted for as fair value
through profit and loss or other comprehensive income
instruments, as determined at moment of initial recog
-
nition, which implies that the Group measures these
investments on a fair value basis with dierences in fair value
reflected in profit and loss or other comprehensive income.
Interest in associates represents entities in which Barco owns
between 20% and 50% of the shares.
The decrease in investments from 2020 to 2021 is related to a
sold minority stake, below regulatory threshold levels. The sale
resulted in 55 million euro cash-in in 2021, reflected in the line
‘other investing activities’ in the cash flow statement and 25.2
million euro gain realized since the moment of acquisition,
In thousands of euro
Investments (a) , , ,
Interest in associates (b) , , ,
Investments and interest in associates , , ,
In thousands of euro
Opening net assets January , ,
Additions - , ,
Divestments -, - -
Other comprehensive income , , ,
Translation gains/(losses)
,
-,
-
Closing net assets December , , ,
which was over the periods until divestment reflected in other
comprehensive income reserve. The investments are measured
at market price. For investments that are publicly quoted in an
active market, the quoted market price is the best measure
of fair value (level 1). The remeasurement at fair value per 31
December 2021 versus the carrying amount, amounted to
9.9 million euro, including the gain realized on the divested
minority stake and is reflected in other comprehensive income.
The increase in investments from 2019 to 2020 is related to
acquired minority stakes, below regulatory disclosure thresh-
old levels. The remeasurement at fair value per 31 December
2020 versus the carrying amount amounted to 18.3 million
euro and is reflected in other comprehensive income (2019:
1.9 million euro).
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(b) Interest in associates
Interest in associates, in 2021 - 2019, reflects the equity invest-
ment in BarcoCFG and CCO Barco Airport Venture.
The Group’s share of the assets and liabilities as at 31
December 2021 and 2020 and income and expenses of the
joint ventures and associates for the year ended 31 December
2021 and 2020, which are accounted for using the equity
method:
Summarized balance sheet
In thousands of euro
Barco CFG
D EC
CCO
D EC
Total
D EC
Barco CFG
D EC
CCO
D EC
Total
D EC
Cash and cash equivalents , , , , , ,
Other current assets , , , , , ,
Total current assets , , , , , ,
Non-current assets , , , , , ,
Other current liabilities , , , , , ,
Total current liabilities , , , , , ,
Other non-current liabilities - -
Total non-current liabilities - -
Net assets , , , , , ,
Reconciliation to carrying amounts:
Opening net assets January , , , , , ,
Profit/(loss) for the period , , , - ,
Other comprehensive income (CTA) , , , - -, -,
Dividends paid -, - -, -, - -,
Closing net assets , , , , , ,
Group’s share in % % % % %
Group’s share , , , , , ,
Carrying amount , , , , , ,
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Summarized statement of comprehensive income
In thousands of euro
Barco CFG
D EC
CCO
D EC
Total
D EC
Barco CFG
D EC
CCO
D EC
Total
D EC
Profit/(loss) for the period , , , - ,
Other comprehensive income (CTA) , , , - -, -,
Total comprehensive income , , , , -, ,
Group’s share in % % % % %
Group’s share in profit/(loss) for the period , , , - ,
Share in the result of joint ventures and associates - -
Included in other operating income d , , , ,
The Group has no contingent liabilities or capital commit-
ments in relation to its associates as at 31 December 2021,
2020 and 2019.
For all equity accounted investments, the parent’s or other
investor’s consent is required to distribute its profits; which
is not decided at the reporting date. The equity accounted
investments did not recognize items in other comprehensive
income.
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12. Inventory
In 2021, as a result of the higher sales volume in the fourth
quarter (+29% yoy), finished goods inventory has decreased
significantly compared to 2020, which was oset by increased
raw materials inventory, caused by the emerging supply
constraints in the second semester. The supply scarcity has
resulted in an acceleration of the Company’s raw material
purchases and higher raw material prices (see note 18). Total
inventory and inventory turns remained stable compared to
last year.
In 2020, as a result of the covid pandemic crisis, the company
experienced disruptions to its ability to operate production
facilities in some countries in the months of March and April
but recovered near full operational capacity afterwards. In
order to anticipate on potential disruptions, safety stocks were
temporarily increased. As from the second quarter onwards,
In thousands of euro
Raw materials and consumables , , ,
Work in progress , , ,
Finished goods , , ,
Write-off on inventories -, -, -,
Inventory , , ,
Inventory turns
.
.
.
the covid-19 pandemic started to spread internationally and
impacted most of the markets Barco operates in, resulting in
a lower and changing customer demand. As a result of the
lock-down measures and related restrictions predictability of
customer demand dropped. While the Company decelerated
significantly on its purchases (see note 18), the combination of
these impacts resulted in high year-end inventory levels and
lower inventory turns especially in the Entertainment division,
where the cinema and events business were impacted the
most. Inventory turns decreased to 2.3, compared to 3.2 in
2019.
Inventory levels in the company vary depending on the oper-
ating segment within Barco. Operating segments selling more
hardware products compared to software or project sales
generally have higher inventory levels.
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In thousands of euro Turns Turns Turns
Entertainment , . , . , .
Enterprise ,
.
,
.
,
.
Healthcare ,
.
,
.
,
.
Total inventory and turns , . , . , .
Raw materials inventory increased in all three divisions as a
result of accelerated purchases in view of component short-
ages. In Entertainment and Enterprise the increase in raw
materials inventory was oset by a higher decrease in finished
goods inventory, thanks to higher fourth quarter sales than in
2020. In Healthcare raw material inventory has increased more
than in the other divisions, as, next to the impact of compo-
nent shortages, the Company has purchased raw materials
upfront under the form of a last-time-buy order for compo-
nents for which the supplier decided to stop the production.
We refer to chapter ‘Critical accounting judgements and key
sources of estimation uncertainty’ for more explanation on
the impact of covid-19.
Inventories are stated at the lower of cost or net realizable
value. The calculation of the allowance for slow-moving inven-
tory is based on consistently applied write-o rules, which
depend on both historical and future demand, which were
both impacted by the covid-19 pandemic in 2020 and resulted
in higher write-os recognized as expense (11.6 million euro,
1.5% of sales). In 2021 write-os recognized as expense (5.3
million euro, 0.7% of sales) are lower than in 2020, thanks
to sold and re-used written-o inventory, triggered by com-
ponent shortages. The write-o balance decreased in 2021
as the lower write-os in profit and loss are partly oset by
scrapped inventories.
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In thousands of euro
Trade debtors - gross , , ,
Trade debtors - bad debt reserve
(a)
-, -, -,
Trade debtors - net
(b)
, , ,
V.A.T. Receivable , , ,
Taxes receivable , , ,
Interest receivable ,
Currency rate swap (note ) , , ,
Other , , ,
Other amounts receivable , , ,
Other non-current assets
(c)
, , ,
Number of days sales outstanding (DSO)
13. Amounts receivable and other non-current assets
Per 31 December 2021, the number of days sales outstanding
decreased to 56 days (67 days in 2020 and 55 in 2019) back at
pre-covid levels thanks to focused overdue collection and cus-
tomers (mainly in cinema) honoring the agreed payment plans.
The increase in number of days sales outstanding in 2020 was
the result of higher overdues, mainly from cinema customers,
caused by the covid-19 global impact on the cinema markets.
For the year ended December 31, 2021, the Company could
reverse part of the provision for current expected credit losses
(2021: + 0.4 million euro profit) reflecting a lower credit risk
of its customers related accounts receivable compared to the
same period last year. The extra provision recorded in 2020
(1.5 million euro) reflected a reduction in the credit quality of
specific cinema customers related accounts receivable as a
result of the covid-19 global pandemic.
The bad debt reserve in proportion to the gross amount of
trade debtors has decreased to 2.5% (2020: 2.9%, 2019: 1.4%).
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In thousands of euro
On January -, -, -,
Additional provisions - -, -
Amounts used
Amounts unused
Translation (losses) / gains - -
On December -, -, -,
(a) Movement in bad debt reserve:
In thousands of euro
Not due , , ,
Overdue less than days , , ,
Overdue between and days , , ,
Overdue between days and days , , ,
Overdue more than days , , ,
Total gross , , ,
Bad debt reserve -, -, -,
Total , , ,
(b) At 31 December 2021 the ageing analysis of trade debtors is as follows:
In 2021, total overdue trade receivables amount to 22.7 million
euro (2020: 39.4 million euro, 2019: 29.8 million euro), resulting
in 9 days overdue DSO (2020: 19 days, 2019: 9 days), back to
pre-covid levels.
The increase in overdue amounts and long outstanding
overdues in 2020 was mainly from the Company’s cinema
customers. The Company was able to reach extended payment
plans, which were honored by the major part of its customers
in 2021, resulting in a decrease of the Company’s overdues.
The Company has a credit insurance in place for specific
higher risk cinema contracts and for cinema customers with
overdues. During 2021, the Company did not need to exercise
its rights under the insurance as the customers, for which the
credit insurance is in place, paid timely.
Part of the overdue amounts are linked to service contracts, for
which payments are delayed or service period was extended,
mainly in 2020, in view of the cinemas being closed for busi-
ness. Potential payment risk and the actual service period were
considered when recognizing revenue out of these service
contracts.
In assessing the potential credit risk and the need for recording
a bad debt reserve on expected credit losses, the Company
has taken into account the credit insurance in place, payment
plans being honored and revenue recognition, which explains
the bad debt reserve in 2020 amounting to 54% of the trade
receivables overdue more than 180 days. In 2021, as the sit-
uation more stabilized, bad debt reserve is back at 99% (vs
2020: 54% 2019: 142%)
(c) Other non-current assets
The other non-current assets include mainly cash guarantees
for an amount of 5.6 million euro (2020: 5 million euro, 2019:
3 million euro).
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In thousands of euro
Short term investments (a)
, , ,
Deposits
(a)
, , ,
Cash at bank
(b)
, , ,
Cash in hand
Cash and cash equivalents , , ,
Long-term financial receivables
Long-term debts
(c)
-, -, -,
Current portion of long-term debts
(c)
-, -, -,
Short-term debts
- - -
Net financial cash / (debt) , , ,
14. Net financial cash/debt
At the end of December 2021, Barco’s net cash position
reaches 309.8 million euro, 116 million euro higher compared
to last year (2020: 193.5 million euro, 2019: 329.4 million euro),
a result of the positive free cash flow (78 million euro), sold
investments (55 million euro), dividends paid out (-21 million
euro), share buy back program ( -11 million euro) and use of
own shares for stock options (8 million euro). We refer to the
supplementary statements, note 16 and note 11 for more expla-
nation.
Of the total net financial cash, 352 million euro is cash on the
balance sheet. Additional financial flexibility is provided with
82 million euro of unused bilateral committed credit facilities
with a selected group of commercial banks (see further c). In
addition to significant liquidity, Barco has a well-balanced debt
profile with debt limited to 45 million euro of which 10 million
euro near-term maturities.
The direct available net cash, excluding the cash contributed by
Barco and the minority shareholders in Cinionic (111.3 million
euro)) amounts to 198.5 million euro.
The net financial cash at the end of 2020 amounts to 193.5
million euro, 135.9 million euro lower compared to end 2019,
a result of the negative free cash flow (-36 million euro), div-
idends paid out (-33 million euro), investments (-55 million
euro) and currency impact. We refer to the supplementary
statements, note 16 and note 11 for more explanation.
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(a) Short term investments & Deposits:
The larger deposit amounts in USD and HKD in 2021 are held
in the according home currency of the entities or hedged,
avoiding FX impact in the profit & loss, and optimizing yield
(by avoiding negative yields in EUR).
In thousands of euro
Average
interest rate
Average
interest rate
Average
interest rate
deposits in USD , .% , .% , .%
deposits in CNY ,
.
% , .
% ,
.
%
deposits in INR ,
.
% ,
.
% ,
.
%
deposits in HKD , .% - -
deposits in other currencies , , ,
Total short term investments and deposits , , ,
Short term investments are convertible to known amounts
of cash between three and twelve months from inception.
Deposits are short term (between zero and three months),
highly liquid investments, which are readily convertible to
known amounts of cash.
The short term investments and deposits do not carry a mate-
rial risk of change in valuation.
At closing date, all short term investments and deposits
include:
The decrease in foreign currency deposits in CNY and INR in
2020 compared to 2019, is a result of dividends distributed
from the Company’s aliates in China and India. In view of
the low interest rates on deposits, those dividends were kept
in cash in Euro and Hong Kong Dollar (see b).
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EUR .% .% .%
HKD
.
% .
%
.
%
CNY
.% .
%
.
%
USD .% .% .%
Others
.
%
.%
.
%
EUR , , .
USD , , .
INR , ,
.
Other , , .
Total , , .
(b) Cash at bank:
Cash at bank is immediately available. It is denominated in the
following currencies:
(c) Long-term financial debts:
The Barco Group has a total of 100.5 million euro commit-
ted credit facilities available. The portfolio consists of 2 major
tranches:
• Barco NV and Barco Coordination Center NV (as co-obligors)
signed a number of bilateral committed credit facilities with
a selected group of commercial banks for a total amount of
82.5 million euro, which are undrawn per end of December
2021. The credit facilities have an availability period till
December 2023. Drawings under the facilities have a short-
term tenor.
• Barco NV signed a number of bilateral committed credit
facilities totaling 28 million euro, for the financing of Barco’s
headquarters campus project. Drawings have a long-term
tenor of 15 years following the end of the availability period
(as of the end of 2015). An amount of 18 million euro is
outstanding per 31.12.2021. These commitments carry either
a variable interest rate or have been swapped via derivatives
into fixed rate character.
Barco is meeting all requirements of the loan covenants on
its available credit facilities.
The below table summarizes the long-term financial debts,
including the current portion of long-term financial debts,
per currency:
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The below table gives an overview of the long-term financial
debts including the current portion of long-term financial
debts, per type of interest rate:
The long-term debts (including interests due), excluding the
current portion of the long-term debts, are payable as follows:
Type of interest rate Maturity Dec Dec Dec
Real estate financing:
- variable, swapped into fixed (EU) Later than , , ,
- variable (EU) Later than , , ,
- variable, swapped into fixed (US) Later than - -
Research Development Innovation (RDI) financing:
- fixed, European Investment Bank - - ,
Leasing (IFRS ) , , ,
Other
Total long-term financial debts , , ,
Per December Per December Per December
Payable in , Payable in , Payable in ,
Payable in , Payable in , Payable in ,
Payable in , Payable in , Payable in ,
Payable in , Payable in , Payable in ,
Later , Later , Later ,
Total long-term debts , Total long-term debts , Total long-term debts ,
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The lease liabilities per 31 December are as follows:
In thousands of euro
On January , , ,
New leases or extensions of current leases , , ,
Payments or termination of leases -, -, -,
Translation (losses)/gains , -,
Total lease liabilities on December , , ,
Current , , ,
Non-current , , ,
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In thousands of euro
Other amounts payable
Accrued charges - , ,
Deferred Income
(a)
, , ,
Prepayment customers LT -
Other long-term liabilities , , ,
15. Other long-term liabilities
(a)
Deferred income which will be recognized in revenue
over a longer period than one year, is shown in other
long-term liabilities. It concerns mainly maintenance
contracts sold in the Entertainment division which cover
a long-term liability. The contracts start at the end of
the two years standard warranty period. The increase in
2021 is mainly related to new long term service contracts
mainly in cinema. The increase in 2020, was also caused
by some large cinema contracts concluded in 2019 and
2020, for which major part of the extended warranty
period will be recognized in revenue as of 2022. Some
of these customers concluded yearly service contracts
in the past, which were replaced by long term service
contracts. Due to the impact of covid-19 on cinema
markets globally, less one-year contracts were concluded
in 2020 and 2021.
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In thousands of euro
Share capital , , ,
Share premium , , ,
Share-based payments , , ,
Acquired own shares -, -, -,
Retained earnings , , ,
Cumulative translation adjustment -, -, -,
Derivatives - -, -,
Equity attributable to equity holders of the parent , , ,
16. Equity attributable to equity holders of the parent
1. Share capital, share premium and own shares
The shareholders had in 2021 the choice between a dividend
in cash or dividend in shares. The option to reinvest the gross
dividend over 2020 has resulted in a share premium increase
of 12,410 (000) euro and an increase of the statutory capital
of 417 (000) euro.
As a result, the company’s share capital amounts to 56.3
million euro on 31 December 2021, consisting of 92,170,255
fully paid shares.
In the Extraordinary General Meeting of 25 April 2019, Barco’s
shareholders authorized a share buyback. A first share buyback
program for a period of 6 months, starting on 20 September,
2021 was announced on 16 September, 2021.
Barco acquired 600,000 own shares for a total amount of
11,186 (000) euro in 2021.
Further, Barco sold in total 727,350 own shares in 2021 upon
the exercise of 727,350 stock options with a resulting decrease
of the own shares of 6,714 (‘000) euro and an increase in the
share premium account of 1,676 (‘000) euro.
The number of own shares acquired by Barco NV up to 31
December 2021 therefore decreased to 3,032,682 own shares
(2020: 3,160,032; 2019: 3,376,646 own shares). The share
based payments amount to 18.7 million euro at the end of
2021.
As a result of the share dividend and exercised stock-options
the company’s share premium account per 31 December 2021
amounts to 161 million euro.
2. S
hare-based payments
On 6 December 2021, 2 new option plans have been approved
by the Board of Directors, through which maximum 912,800
stock options could be granted before 31 December 2021.
Each stock option gives right to the acquisition of one (1) share.
In 2021, 882,400 stock options have been granted to employ-
ees and management of the group based upon these option
plans. On 31 December 2021, no options remained available
for distribution under the 2021 stock option schemes
.
St
ock option plans
The total number of outstanding stock options on 31
December 2021 amounted to 2,783,141. The company’s own
shares will be used under the outstanding stock option plan
to fulfill the commitment. During 2021, 727,350 stock options
have been exercised (in 2020, 5,250 warrants and 216,614 stock
options). These stock options may be exercised the earliest
3 years after the allocation date (i.e. the vesting period) over
a period of maximum 10 years and during a couple of fixed
periods over the year. Below is an overview given of the out-
standing warrant and stock option plans:
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Allocation date End term
Exercise price
(in euro)
Balance on
Dec
Granted
in
Exercised
in
Cancelled
in
Expired
in
Balance on
Dec
Stock options
// // . , - - - -, -
// //
.
, - - - - ,
// //
.
, - - - - ,
// // . , - -, - -, -
//
// . , - -, - -, -
// //
.
, - -, - - ,
// //
.
, - - - - ,
//
// . , - -, -, - ,
// //
.
, - -, - - ,
// //
.
, - -, - - ,
//
// . , - -, -, - ,
// //
.
, - -, - - ,
// //
.
, - - - - ,
//
// . , - -, -, - ,
// // . , - -, - - ,
// // . , - -, - - ,
//
// . , - -, -, - ,
// // . , - - -, - ,
// // . , - -, ,
// // . , - -, ,
// //
.
, ,
Total number of stock options ,, , -, - , -,
,,
(1)
Deviation of exercise price as a result of the implementation of the US sub plan
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The cost of these warrant/stock option plans is recognized
over the vesting period on a straight line basis and included
in the income statement in other operating expense. The
warrants/stock options are measured at grant date, based on
the share price at grant date, exercise price, expected volatil-
ity, dividend estimates and interest rates. The warrant/stock
option cost is taken into result on a straight-line basis from
the grant date until the first exercise date. The share-based
payment increased with 4.5 million euro to 18.7 million in 2021
(2020: 2.9 million euro; 2019: 2.1 million euro), 3 million euro
is reflected in other operating income (see note 3 (d) and 1.5
million euro in restructuring, related to the remaining fair value
of share options of the former leadership team, accounted for
the moment they stopped providing services to the Company
(see note 5. Restructuring and impairment costs).
4. Cumulative translation adjustment
In 2021, the exchange dierences on translation of foreign
operations have a net positive impact of 29 million euro, mainly
relating to foreign balances held in Hong Kong Dollar (11.4
million euro), US Dollar (7.8 million euro), Chinese Yuan (6
million euro) and Indian Rupee (1.3 million euro).
5. Derivatives
Derivative financial instruments are disclosed in note 20
.
6
. Ma
in shareholders
3
. R
etained earnings
The change in retained earnings includes the net income of
2021, actuarial profits, change in the fair value of equity invest-
ments, and the distribution of 33.4 million euro dividend, as
approved by the general shareholders meeting of 29 April
2021. The Board of Directors of Barco NV will propose a gross
dividend of 0.4 euro per share out of the available reserves
per 31 December 2021. In 2021 a gross dividend of 0.378 euro
per share was granted on the results of 2020 for which the
shareholders had the option to either receive cash or new
shares of the company, 54.89% opted for shares instead of
cash, resulting in actual pay-out of 20.6 million euro dividend
in 2021. In 2020 0.378 euro per share was paid out.
Before Dilution
Public ,, .%
Titan Baratto NV ,, .%
D NV ,, .%
Norges Bank ,, .%
Barco NV ,, .
%
Total ,, %
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Name Country of incorporation and operation
Cinionic Ltd. Hong Kong % % %
17. Non-controlling interest
The below table represents the proportion of equity interest
held by non-controlling interests:
Overview of the equity attributable to non-controlling interest:
In 2018, Barco decided to set up a strategic partnership,
whereby global, excluding China, cinema related sales,
marketing and service activities were moved to Cinionic. We
refer to note 1.1 for the Cinionic legal entities incorporated.
Three minority shareholders have contributed in the capi-
tal of Cinionic Ltd, totaling 45% of total contributions of USD
100 million. As of 1 January 2019, these capital contributions
all give right to 45% in the Cinionic legal entities’ equity and
result. The financials of Cinionic are fully consolidated in the
Entertainment results in 2019 - 2021. The 45% stake is shown
as non-controlling interest.
In thousands of euro
Cinionic Ltd. , , ,
Total equity attributable to non-controlling interest , , ,
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Below is the consolidated balance sheet of the Cinionic legal
entities as at 31 December 2021, 2020 and 2019
We refer to note 1.1 for more details on the Cinionic legal
entities: Cinionic Limited, Cinionic bv, Barco CineAppo Mexico,
S.A. de C.V., Cinionic Inc. and Cinionic Pty. Ltd.
Assets and Liabilities Cinionic JV
In thousands of euro
Total non-current assets , , ,
Total current assets , , ,
Total assets , , ,
Equity attributable to equityholders of the parent , , ,
Equity attributable to non-controlling interest , , ,
Total equity , , ,
Total non-current liabilities , , ,
Total current liabilities , , ,
Total liabilities , , ,
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Overview of the net income attributable to non-controlling
interest:
Other comprehensive income/(loss) for the period, net of tax
eect, part attributable to non-controlling interest amounts
to 2.3 million euro in 2021, -2.5 million euro in 2020 and
-0.5 million euro in 2019.
Total comprehensive income for the year, net of tax, part attrib
-
utable to non-controlling interest amounts to 3.2 million euro
in 2021, -2.8 million euro in 2020 and 0.7 million euro in 2019.
In thousands of euro
% non-
controlling
Cinionic Ltd. -
Cinionic bv , -
Cinionic Inc
. -
- ,
Barco Cine Appo Mexico, S.A. de C.V. -
Cinionic Pty
. L
td
.
Net income , - ,
Cinionic Ltd.
% - % %
Cinionic bv % , % - %
Cinionic Inc
.
% - % - %
Barco Cine Appo Mexico, S
.A.
de C
.V.
% % - %
Cinionic Pty
. L
td
.
% % - % -
Net income attributable to non-controlling interest - ,
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18. Trade payables and advances received from customers
In thousands of euro
Trade payables (a)
, , ,
Days payable outstanding (DPO)
Advances received from customers
(b)
, , ,
(a) The increase in trade payables in 2021 is the result of higher
raw material purchases (increase in volume, component
prices and transport charges). The higher purchases are
caused by higher sales in the 4
th
quarter (+ 29% year-over-
year) and accelerated purchases in view of component
and transport scarcity and has resulted in higher days
payable outstanding. Payment terms with suppliers were
not extended and there has been no change in payment
behavior towards suppliers.
(b) Higher 4
th
quarter sales in 2021 compared to 2020 also result
in higher advances received from customers. The lower
cinema sales and the financial impact on the Company’s
cinema customers of the closed cinemas worldwide as a
result of the covid-19 pandemic resulted in lower advances
received in 2020. In 2019, higher sales and renewed large
cinema contracts in Cinionic resulted in higher advances
received from customers. Most payment terms of customers
define that 30% of the total invoice needs to be prepaid
before delivery of the goods. All prepaid amounts are
expected to be recognized in revenues over the coming
12 months.
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19. Provisions
In thousands of euro
Balance sheet
Additional
provisions made
Amounts
used
Unused amounts
reversed Transfers
Remeasurement
gains/(losses) on DBO
Translation
(losses) / gains
Balance
sheet
Balance
sheet
Total long-term provision , , -, - , -, , ,
Defined benefit obligations
(b)
, , - - - -, , ,
Technical warranty
(a)
, - -, , - , ,
Other claims and risks
(d)
- - - - -
Total short-term provision , , -, - -, - , ,
Technical warranty
(a)
, - - - -, - , ,
Restructuring provision
(c)
, -, - - - - , ,
Other claims and risks
(d)
, , -, - - - , ,
Provisions , , -, -, - -, , ,
(a) Technical warranty
Provisions for technical warranty are based on historical data of
the cost incurred for repairs and replacements. There are three
dierent technical warranty provisions: provisions related to
‘standard’ (mostly 2 years) warranty period, provisions related to
extended warranty periods and provisions for specific claims/
issues.
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(b) Defined benefit obligations
As per 31 December 2021, 2020 and 2019, the defined benefit
obligations are composed of:
In thousands of euro
Pension plans in Belgium , , ,
Early retirement plans in Belgium
Local legal requirements (mainly Italy, Korea, Japan, Germany, France) , , ,
A small number of individual plans
Total , , ,
Belgian regulations require that the minimum guaranteed
rate of return on employer and participant contributions is
1.75% annually recalculated based on a risk-free rate of 10-year
government bonds. According to IAS19, Belgian defined
contribution plans that guarantee a specified return on con-
tributions classify as defined benefit plans, as the employer
is not responsible for the contribution payments but has to
cover the investment risk until the legal minimum rates appli-
cable. The returns guaranteed by the insurance companies
are in most cases lower than or equal to the minimum return
guaranteed by law. As a result, the Group has not fully hedged
its return risk through an insurance contract and a provision
needs to be accounted for. The plans at Barco are financed
through group insurance contracts. The contracts are bene-
fiting from a contractual interest rate granted by the insurance
company. When there is underfunding, this will be covered by
the financing fund and in case this is insucient, additional
employer contributions will be requested.
IAS 19 requires an entity to recognize a liability when an
employee has provided service in exchange for employee
benefits to be paid in the future. Therefore, pension provisions
are setup. The obligations are measured on a discounted basis
because they are settled many years after the employees ren-
der the related service. A qualified actuary has determined the
present value of the defined benefit obligations and the fair
value of the plan assets. These assets are held by an insurance
company. The projected unit credit method was used to esti-
mate the defined benefit obligations, the defined benefit cost
and the re-measurements of the net liability.
There are 15 defined benefit plans in Barco Belgium, for which
we show below the aggregated view as these do not dier
materially from characteristics, regulatory environment, report-
ing segment or funding arrangement. In accordance with IAS
19 the disclosure is in the form of a weighted average.
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2021, 2020 and 2019 changes in the Belgian defined benefit
obligation and fair value of plan assets:
In thousands of euro
Defined
benefit
obligation
Fair value
of plan
assets
Net
defined
benefit
liability
Defined
benefit
obligation
Fair value
of plan
assets
Net
defined
benefit
liability
Defined
benefit
obligation
Fair value
of plan
assets
Net
defined
benefit
liability
Pension cost charged to P/L
On January , -, , , -, , , -, ,
Service cost , , , , , ,
Net interest expense - - , -,
Decrease due to curtailement - - - -
Sub-total included in profit or loss , - , , - , , -, ,
Benefits paid -, , - -, , - -, , -
Remeasurement gains/losses in OCI
Increase due to effect of transfers - - - -
Return on plan assets (excluding amounts included in net interest expense) -, -, -, -, - -, -,
Actuarial changes arising from changes in demographic assumptions - - - -
Actuarial changes arising from changes in financial assumptions -, -, , , , ,
Actuarial changes arising from changes in methodology - - - -
Actuarial changes arising from experience adjustments -, -, , ,
Sub-total included in OCI -, -, -, , -, - , -, ,
Contributions by employer -, -, -, -, -, -,
On December , -, , , -, , , - , ,
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The 8.4 million euro decrease in net liability in 2021 versus
2020 is mainly coming from increased discount rate (0.8% vs
0.3%) and higher eective return on plan assets, both recorded
via OCI (equity), as change in parameter. The P&L impact of
€ -1.8m is the result of lower discount rate versus minimum
guaranteed future rate of return, which needs to be compen-
sated by the employer.
In 2020 2 million euro net increase in P&L is caused by the
increased service cost as a result of a low discount rate com-
pared to the minimum guaranteed future rate of return, for
which additional employer contributions will be requested.
In 2019 12.2 million euro actuarial change arising from changes
in financial assumptions concerns a change in the discount
rate assumption (see below table). The remeasurement was
reflected in other comprehensive income.
The fair value of the plan assets (112.4 million euro) are fully
invested in insurance policies. In 2021, the target asset mix
didn’t change compared to 2020 and consists of 67.50% gov-
ernment bonds, 14% real estate, 7.5% corporate bonds, 6%
corporate loans and 5% shares.
The principal assumptions used in determining pension obli-
gations for the Group's plans are shown below:
The following overview summarizes the sensitivity analysis
performed for significant assumptions as at 31 December. The
figures show the impact on the defined benefit obligation.
The sensitivity analyses above have been determined based on
a method that extrapolates the impact on the defined benefit
obligation as a result of reasonable changes in key assumptions
occurring at the end of the reporting period. The sensitivity
analyses are based on a change in a significant assumption,
keeping all other assumptions constant. These may not be
representative for an actual change in the defined benefit
obligation, as it is unlikely that changes in assumptions would
occur in isolation of one another.
Discount rate .% .% .%
Future salary increases .% .% .%
Future consumer price
index increases
.
%
.
%
.
%
The following payments are the expected benefit payments
from the plan assets:
The average duration of the defined benefit plan obligation at
the end of the reporting period is 12.3 years (12.6 years in 2020
and 12.5 years in 2019). The expected employer contributions
to the plan for the next annual reporting period amounts to
3.9 million euro (4 million euro in 2021 and 6.0 million euro in
2020); the employee contributions are expected to amount to
1.1 million euro (1.1 million euro in 2021 and 2020).
Early retirement plans are recognized as liability and expensed
when the company is committed to terminate the employment
of the employees aected before the normal retirement date.
In Belgium, a multi-employer plan exists for some blue collars
where payments go into a sectoral fund. As Barco does not
have access to information about the plan that satisfies the
requirements of the standard, the plan is further classified as
a defined contribution plan and expensed as incurred.
In thousands of euro
Discount rate:
.
% decrease , , ,
.
% increase -, -, -,
Future salary change:
.
% decrease -, -, -,
.
% increase , ,
Future consumer price index change:
.% decrease - - -
.
% increase
In thousands of euro
Within the next months , , ,
Between and years , , ,
Between and years , , ,
Total expected payments , , ,
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(c) Restructuring provision
See note 5 Restructuring and impairments. We refer to the
accounting standards on provisions including provisions on
restructuring.
(d) Other claims and risks
This provision relates to disputes with suppliers, pending litiga-
tions and specific customer warranty disputes. Barco cannot
provide details on the specific cases, as this could cause con-
siderable harm to Barco in the particular disputes.
With respect to the contingent liabilities related to former
acquisitions, there is one earn-out capped at 15 million euro
linked to the retention of the former shareholders and future
results for which the future results could not be reliably esti
-
mated at acquisition. The earn-outs will flow through profit and
loss at moment of payment over the earn-out period, which
ends May 25, 2026. Per end 2021, no payments occurred
under this earn-out.
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20. Risk management - derivative financial instruments
General risk factors are described in the director’s report “Risk
Factors”.
Derivative financial instruments are used to reduce the expo-
sure to fluctuations in foreign exchange rates and interest
rates. These instruments are subject to the risk of market
rates changing subsequent to acquisition. These changes are
generally oset by opposite eects on the item being hedged.
Foreign currency risk
Recognized assets and liabilities
Barco incurs foreign currency risk on recognized assets and
liabilities when they are denominated in a currency other than
the company’s local currency. Such risks may be naturally cov-
ered when a monetary item at the asset side (such as a trade
receivable or cash deposit) in a given currency is matched with
a monetary item at the liability side (such as a trade payable
or loan) in the same currency.
Forward exchange contracts and selectively option contracts
are used to manage the currency risk arising from recognized
receivables and payables, which are not naturally hedged.
The balances on foreign currency monetary items are valued
at the rates of exchange prevailing at the end of the accounting
period. Derivative financial instruments that are used to reduce
the exposure of these balances are rated in the balance sheet
at fair value. Both changes in foreign currency balances and
in fair value of derivative financial instruments are recognized
in the income statement.
Forecasted transactions
Barco selectively designates forward contracts to forecasted
sales. Hedge accounting is applied to these contracts. The
portion of the gain or loss on the hedging instrument that will
be determined as an eective hedge is recognized directly in
comprehensive income. As at 31 December 2021, there were
no forward contracts outstanding under hedge accounting
treatment.
Estimated sensitivity to currency fluctuations
Sensitivity to currency fluctuations is mainly related to the
evolution of a portfolio of foreign currencies (mainly USD
and CNY) versus the euro. This sensitivity is caused by the
following factors:
• The fair value of foreign currency monetary items is impacted
by currency fluctuations. In order to eliminate most of these
eects in foreign currencies, Barco uses monetary items
and/or derivative financial instruments as described above,
which are meant to oset the impact of such results to a
major extent.
• As the company has no cash flow hedges in place that aim
at hedging forecasted transactions, a similar fluctuation in
foreign currencies would not have any eect on the equity
position of Barco.
• Profit margins may be negatively affected because an
important part of sales is realized in foreign currencies, while
costs are incurred in a smaller part in these currencies. Barco
has done great eorts throughout the years to increase its
natural hedging ratio in USD (being its main foreign currency
in terms of sales) by increasing its operational costs and by
purchasing more components in this currency. Impact on
adjusted EBIT is currently estimated at -0.8 million euro when
the weighted average rate of a foreign currency basket, that
has an overall overweight of USD & CNY, changes by 20%
versus the euro in a year. The overall natural hedge ratio of
foreign currencies reached a level of 73% in 2021.
• Another impact is the fact that some of Barco’s main
competitors are USD-based. Whenever the USD decreases in
value against the euro, these competitors have a worldwide
competitive advantage over Barco. This impact on operating
result cannot be measured reliably.
Interest rate risk
Barco uses following hedging instruments to manage its inter-
est rate risk:
Swap on outstanding or anticipated borrowing
Barco concluded a series of interest rate swaps with an out-
standing notional amount of 12.1 million euro by means of
a partial hedge for the bilateral real estate leasing (currently
outstanding at 18.0 million euro) for the financing of Barco's
HQ campus starting in 2016. This instrument swaps the variable
interest rate into a fixed 1.76%. These swaps are determined as
an eective hedge of outstanding or anticipated borrowings
and meet the hedging requirements of IAS 39. The fair values
of the eective portion of the hedging instrument are therefore
recognized directly in comprehensive income under hedge
accounting treatment.
Estimated sensitivity to interest rate fluctuations
Management doesn’t expect the short-term interest rate to
increase significantly in the immediate foreseeable future,
which limits the interest exposure on the short-term debt
portfolio.
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With reference to the fair values table below, just over 60%
of Barco’s outstanding long-term debt portfolio has a fixed
interest rate character, which again limits the exposure of the
company to interest rate fluctuations. This ratio increases to
81% when including the swap instruments disclosed above.
Credit risk
Credit risk on accounts receivable
Credit evaluations are performed on all customers requiring
credit over a certain amount. The credit risk is monitored on
a continuous basis. In a number of cases collateral is being
requested before a credit risk is accepted. Specific trade finance
instruments such as letters of credit and bills of exchange are
regularly used in order to minimize the credit risk.
In 2021, Barco continued to conclude credit insurances in
order to cover credit risks on specific customers or large con-
tracts on a case by case basis.
Credit risk on liquid securities and short-term investments
A policy defining acceptable counter parties and the maximum
risk per counter party is in place. Short-term investments are
made in marketable securities, cash holdings or in fixed term
deposits with reputable banks.
Fair values
Set out below is an overview of the carrying amounts of the
Group’s financial instruments that are shown in the financial
statements. In general, the carrying amounts are assumed to
be a close approximation of the fair value.
In thousands of euro
Carrying amount / Fair value (approx.)
Financial assets
Investments at fair value through equity , , ,
Trade receivables , , ,
Other receivables , , ,
Loan and other receivables , , ,
Interest receivable ,
Currency rate swap , , ,
Other non-current assets , , ,
Short term investments , , ,
Cash and cash equivalents , , ,
Total , , ,
Financial liabilities
Financial debts , , ,
Floating rate borrowings , , ,
Fixed rate borrowings , , ,
Other long-term liabilities , , ,
Short-term debts - -
Trade payables , , ,
Other current liabilities , , ,
Other short term amounts payable , ,
Dividends payable , , ,
Currency rate Swap , ,
Interest rate swap , ,
Total , , ,
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The following methods and assumptions were used to estimate
the fair values:
• Cash and cash equivalents and short-term investments,
trade receivables, trade payables, and other current liabilities
approximate their carrying amounts largely due to the short-
term maturities of these instruments.
• Investments are measured at market price. For investments
that are publicly quoted in an active market, the quoted
market price is the best measure of the fair value. The
remeasurement at fair value per 31 December 2021 versus
the carrying amount is reflected in other comprehensive
income.
• Long term fixed rate and variable rate other assets are
evaluated by the Group based on parameters such as interest
rates, specific country risk factors, individual creditworthiness
of the customer and the risk characteristics of the financed
project. Based on this evaluation, allowances are made to
account for the expected losses of these receivables. As at
31 December 2021, the carrying amounts of such receivables,
net of allowances, are assumed not to be materially dierent
from their calculated fair values.
• The fair value of unquoted instruments, loans from banks
and other financial liabilities, obligations under finance leases
as well as other non-current financial liabilities is estimated
by discounting future cash flows using the eective interest
rates currently available for debt on similar terms, credit
risk and remaining maturities. As of 31 December 2021, the
eective interest rate is not materially dierent from the
nominal interest rate of the financial obligation.
• The Group enters into derivative financial instruments with
various counterparties, principally financial institutions with
investment grade credit ratings. Derivatives valued using
valuation techniques with market observable inputs are
mainly interest rate (cap/floor) swaps and foreign exchange
forward contracts. The most frequently applied valuation
techniques include forward pricing and swap models, using
present value calculations. The models incorporate various
inputs including foreign exchange spot and forward rates
and interest rate curves.
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Fair value hierarchy
As at 31 December 2021, the Group held the following financial
instruments measured at fair value:
The Group uses the following hierarchy for determining and
disclosing the fair value of financial instruments by valuation
technique:
Level 1: quoted (unadjusted) prices in active markets for iden-
tical assets or liabilities
Level 2: other techniques for which all inputs which have a
significant eect on the recorded fair value are observable,
either directly or indirectly
Level 3: techniques that use inputs having a significant eect
on the recorded fair value that are not based on observable
market data.
All fair values mentioned in the above table relate to Level 2,
except for the investments which were based on level 1 input.
During the reporting period ending 31 December 2021, there
were no transfers between Level 1 and Level 2 fair value mea-
surements, and no transfers into and out of Level 3 fair value
measurements
In thousands of euro
Assets measured at fair value
Financial assets at fair value through profit or loss
Foreign exchange contracts - non-hedged , , ,
Financial assets at fair value through equity
Investments , , ,
Liabilities measured at fair value
Financial liabilities at fair value through profit or loss
Foreign exchange contracts - non-hedged , ,
Interest rate swap - -
Financial liabilities at fair value through equity
Interest rate swap , ,
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Capital Management
Management evaluates its capital needs based on following
data:
In 2021, the net cash position ended at a level of 309.8 million
euro compared to 193.5 million euro as per end of 2020. We
refer to note 14 for the details on the movement.
The solvency position and other current ratios continue to con-
solidate at healthy levels. Together with the existing committed
credit facilities, management considers that it has secured a
healthy liquidity profile and strong capital base for the further
development of the Group.
In thousands of euro Note
Net financial cash / (debt) , , ,
Equity , , ,
% Net financial cash (debt) / Equity
.
%
.
%
.%
In thousands of euro
Equity , , ,
Total equity and liabilities ,, ,, ,,
% Equity / Total equity and liabilities .% .% .%
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Changes in liabilities arising from financing activities
The long-term liabilities and lease liabilities are together the
long-term debts as shown in the balance sheet. The short-term
liabilities are the total of current portion of long-term debts and
short-term debts, as shown in the balance sheet. The non-cash
changes include impacts from fluctuations in the translation
of foreign operations balances, including intercompany bor-
rowings of which the balances are eliminated at Group level.
In thousands of euro
Non-cash changes
January, Cash flows IFRS movements
Foreign exchange
movement December,
Long-term debts:
Long-term liabilities , -, ,
Long-term lease liabilities , -, , , ,
Short-term debts:
Short-term liabilities , - ,
Short-term lease liabilities , , ,
Total liabilities from financing activities , -, , , ,
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21. Rights and commitments not reflected in the balance sheet
(a) Guarantees given to third parties mainly relate to guarantees
given to customers for ongoing projects, guarantees given to
suppliers for investment projects and to authorities for com-
mitments related to VAT, duties, etc.
(b) The total mortgage includes three loans of 10 million euro
each to fund the headquarter campus. The decrease in net
book value since 2019 is due to depreciation.
22. Related party transactions
During the ordinary course of their business conduct Barco
aliates will also enter into related party transactions. This
includes both service transactions and financing arrangements.
Related party transactions are generally undertaken on an at
arm’s length basis based on Barco’s worldwide transfer pricing
policies. Where appropriate, the arm’s length nature of transac-
tions is tested against benchmarking searches and the results
thereof are shared with tax authorities worldwide in line with
local transfer pricing requirements and regulations.
Barco commits not to use tax structures without economic
substance or make use of jurisdictions for the sole purpose
of tax avoidance. Barco NV, as the ultimate parent entity of
the Barco group, submits the transfer pricing Country-by-
Country (CbC) report in Belgium, thereby disclosing taxes paid
worldwide on a jurisdictional level to the Belgian tax authorities
on an annual basis. Following the implementation of the CbC
reporting in Belgian legislation, submitted CbC reports will
be shared by the Belgian tax authorities with tax authorities
worldwide.
Transactions between the Company and its subsidiaries, which
are related parties, have been eliminated in the consolida-
tion and are accordingly not disclosed in this note. None of
the related parties have entered into any other transactions
with the Group that meet the requirements of IAS 24, ‘Related
party disclosures’. We refer to note 1 Consolidated companies
for an overview of the consolidated and equity accounted
companies.
We refer to the ‘Corporate Governance Chapter’ for informa-
tion with respect to remuneration of directors and members
of the core leadership team.
At the annual shareholders meeting of 29 April 2021, PWC
Bedrijfsrevisoren bv, Culliganlaan 5, 1830 Diegem, was
appointed as statutory auditor of the company for a period
of three years. In 2021, remuneration approved by the Audit
Committee to the statutory auditor for auditing activities
amounted to 310,803 euro. Remuneration paid to the statutory
auditor for special assignments was 161,049 euro.
In thousands of euro Note
Guarantees given to third parties (a) , , ,
Mortgage obligations given as security (b) , , ,
- book value of the relevant assets , , ,
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23. Cash flow statement: eect of
acquisitions and disposals
The following table shows the eect of acquisitions and dis-
posals on the balance sheet movement of the Group.
T
here were no acquisitions and disposals in 2021 and 2020
.
The purchase price in 2019 relates to the last deferred consid-
eration and payment of the last two patent earn-outs on the
2016 MTT acquisition.
We refer to the Cash flow statement.
Goodwill and fair value adjustments arising on the acquisition
of a foreign entity are carried in terms of historical cost using
the exchange rate at the date of the acquisition.
In thousands of euro Aquisitions
Current liabilities ,
Other payables ,
Net-identifiable assets and liabilities -,
Purchase price ,
24. Events subsequent to the balance sheet
date
There are no major events subsequent to the balance sheet
date which have a major impact on the further evolution of
the company.
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Supplementary statements
In thousands of euro
Adjusted EBIT , , ,
Restructuring -, -, -,
Depreciations of tangible and intangible fixed assets , , ,
Gain/(Loss) on tangible fixed assets -,
Share in the profit/(loss) of joint ventures and associates - ,
Gross operating Free Cash Flow , , ,
Changes in trade receivables -, , -,
Changes in inventory , -, -,
Changes in trade payables , -, ,
Other changes in net working capital , -, ,
Change in net working capital , -, -,
Net operating Free Cash Flow , -, ,
Interest received , ,
Interest paid -, -, -,
Income taxes -, -, -,
Free Cash flow from operating activities , -, ,
Purchases of tangible & intangible FA -, -, -,
Proceeds on disposals of tangible & intangible fixed assets ,
Free Cash flow from investing activities -, -, -,
FREE CASH FLOW , -, ,
Free Cash Flow
In 2021 the Company generated 78 million euro positive free
cash flow resulting from higher gross operating cash flow, net
after pay-out of restructuring and reduced working capital.
At the end of December 2021, Barco’s net cash position
reaches 309.8 million euro, 116 million euro higher compared
to last year (2020: 193.5 million euro, 2019: 329.4 million euro),
a result of the positive free cash flow (78 million euro), sold
investments (55 million euro), dividends paid out (-21 million
euro), share buy back program ( -11 million euro) and use of
own shares for stock options (8 million euro). We refer to note
14, note 16 and note 11 for more explanation.
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Balance Sheet
Inventory + accounts receivable – accounts payable over sales
was 27.2% compared to 32.6% in 2020. Net working capital
reduced to 5.8% of sales compared to 10% in 2020, as a result
of higher trade payables (see note 18), customer advances
received (see note 18), reduced DSO from 67 days to 56 days
(see note 13) and stable inventory (see note 12).
In 2020 working capital was higher than 2019, caused by
lower trade payables and high inventory levels, mainly in
Entertainment, a combined eect of build-up safety stocks
at the start of and lower and changing customer demand after
the international spread of the covid-19 pandemic followed
by braked purchases.
In thousands of euro Note
Trade debtors , , ,
Inventory , , ,
Trade payables -, -, -,
Other working capital -, -, -,
Working capital , , ,
Other long term assets & liabilities , , ,
Operating capital employed , , ,
Goodwill , , ,
Operating capital employed (incl goodwill) , , ,
Adjusted EBIT , , ,
Adjusted ROCE after tax (%) (a) % % %
Return on Operating Capital Employed
(a) Tax rate used is the eective tax rate (in 2021: 18 %; 2020: 0% and 2019: 18%)
The return on capital employed remains low at 4% in 2021
(2020: 3%, 2019: 25%), caused by the low operational result
and working capital (5.8% of sales) still above the level of 2019
(3% of sales), both impacted by the global covid-19 pandemic.
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Supplementary
information
Summary version of statutory accounts Barco NV
The financial statements of the p arent co mp any, Barco NV ,
are presented below in a condensed form.
The accounting principles used for the statutory annual
accounts of Barco NV dier from the accounting principles
used for the consolidated annual accounts: the statutory
annual accounts follow the Belgian legal requirements, while
the consolidated annual accounts follow the International
Financial Reporting Standards. Only the consolidated annual
financial statements as set forth in the preceding pages present
a true and fair view of the financial position and performance
of the Barco Group.
The management report of the Board of Directors to the
Annual General Meeting of Shareholders and the annual
accounts of Barco NV, as well as the Auditor’s Report, will be
filed with the National Bank of Belgium within the statutory
periods. These documents are available upon request from
Barco’s Investor Relations department, and at www.barco.com.
The statutory auditor’s report is unqualified and certifies that
the non-consolidated financial statements of Barco NV for the
year ended 31 December 2021 gives a true and fair view of the
financial position and results of the company in accordance
with all legal and regulatory dispositions.
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Balance sheet after appropriation
In thousands of euro
Fixed assets , , ,
Intangible fixed assets , , ,
Tangible fixed assets , , ,
Financial fixed assets , , ,
Current assets , , ,
Inventory , , ,
Amounts receivable within one year , , ,
Investments (own shares) , , ,
Cash and cash equivalents
Deferred charges and accrued income , , ,
TOTAL ASSETS , , ,
Capital and reserves , , ,
Capital , , ,
Share premium account , , ,
Reserves , , ,
Accumulated profits , , ,
Investment grants ,
Provisions , , ,
Provisions for liabilities and charges , , ,
Creditors , , ,
Amounts payable after more than one year , , ,
Amounts payable within one year , , ,
TOTAL LIABILITIES , , ,
Intangible fixed assets relate mainly to the implementation
cost of SAP ERP software. These SAP capital expenditures are
amortized over 7 years. In 2021, 1.2 million euro was invested
in new customer relationship management (CRM) software.
The main capital expenditures (3.3 million euro) realized in
2021 relate to machinery and tooling linked to new develop-
ment projects.
Financial fixed assets in 2020 decreased 34 million euro, as a
result of statutory impairments on the participations in Barco
Ltd. (Taiwan) and in Barco Fredrikstad AS (Norway), both as a
result of the integration of the business into Barco NV, and on
Barco Taiwan Technology Ltd (Taiwan) because of the closure
of the Taiwan factory and the decision to liquidate the legal
entity.
Inventory levels in 2021, are back at pre-covid levels and are a
combined eect of increased raw material inventory, caused
by supply constraints and lower finished goods inventory, as
a result of higher fourth quarter sales (+28.6% year-over-year).
Inventory levels in 2020 were high, mainly in Entertainment, a
combined eect of build-up of safety stocks at the start of and
lower and changing customer demand after the international
spread of the covid-19 pandemic.
Amounts receivable are lower in 2020 because of lower fourth
quarter sales, increasing again in 2021 due to strong year-end
sales.
The increase in amounts payable within one year in 2021 is
caused by increased trade payables, resulting from higher raw
material purchases. The lower trade payables in 2020 were due
to braked purchases as a result of the lower demand.
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Income statement
Sales in 2021 remained at the same level of 2020 (-28.9%
compared to 2019) due to the prolonged pandemic induced
restrictions and component shortages causing delays in con-
verting orders to sales.
Gross margin in 2021 is in line with 2020. The lower operating
loss compared to 2020 is caused by lower inventory write os,
thanks to sold and re-used written-o inventory, triggered
by component shortages; lower depreciations on intangi
-
ble and tangible fixed assets and lower operating charges,
which included in 2020 a loss on intercompany receivable
from Barco Technology Taiwan caused by the decision to stop
the Unisee production and liquidate the company (see note
5 Restructuring and impairment costs), together resulting in
12 million euro lower recurring operating loss than in 2020.
The recurring financial result of 19.3 million euro in 2021
includes mainly an intercompany dividend received from
Barco Inc. (US), while in 2020 the financial result of 44.5 mil-
lion euro included intercompany dividends received from
Barco Electronic Systems Pvt. Ltd. (India), Barco Fredrikstad
AS (Norway), Barco Limited (Taiwan) and Barco Inc (US).
The non-recurring financial result in 2021 consists of a partial
reversal of an impairment on Barco Fredrikstadt (Norway). In
2020 the recurring financial result was almost oset by impair-
ments recorded on Barco Ltd. (Taiwan), Barco Technology
Taiwan (Taiwan), and Barco Fredrikstadt (Norway). In 2019 this
was the result of the impairment on Barco Fredrikstad (Norway)
and Barco Ltd. (Taiwan).
The income taxes in 2020 relate to withholding taxes on
received dividends. In 2019 this relates to the cost of invest-
ment in the Belgian tax shelter regime. The transfer to untaxed
reserves is also linked to this tax shelter regime in 2019.
As a result of the above, Barco NV realized a profit for the
year 2021 of 19.2 million euro compared to 17.3 million euro
loss in 2020.
In thousands of euro
Sales , , ,
Recurring operating income/(loss) -, -, ,
Recurring financial result , , -,
Non-recurring financial result , -, -,
Income taxes - -, -
Transfer to untaxed reserves - - -
Profit/(loss) for the year , -, ,
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Proposed appropriation of Barco NV result
The Board of Directors of Barco NV will propose to the General
Assembly to distribute a gross dividend of 0.40 euro per share.
Barco’s shareholders will be oered the choice between
payment in cash or dividend in shares, enabling Barco’s share-
holders to reinvest in the company.
In thousands of euro
Profit/(loss) for the year for appropriation , -, ,
Profit brought forward , , ,
Profit to be appropriated , , ,
Transfer from other reserves , -, -,
Profit to be carried forward , , ,
Gross dividends , , ,
Total , , ,
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about the share
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OUT THE SHARE
Key figures for the shareholder
*Values for 2019 restated following to the 7:1 share split, see press release
(a) Gross dividend / share price at year-end closing date
(b) Increase or decrease share price + gross dividend paid out in the year, divided by closing share price of previous year
(c) Gross dividend * number of shares on 31 December / net income attributable to the equity holder of the parent
(d) Share price 31 December / earnings per share
Number of shares (in thousands): , , ,
Per share (in euro) *
EPS . -. .
Diluted EPS . -. .
Gross dividend
.
.
.
Net dividend
. . .
Return on Equity (ROE) .% -.% .%
Gross dividend yield
(a)
.% .% .%
Yearly return
(b)
.% -.% .%
Pay-out ratio
(c)
.% -.% .%
Price/earnings ratio
(d)
. -. .
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Share price performance*
* Values for 2011-2019 restated following to the 7:1 share split; see press release
** Only data from the Euronext venue reported which is expected to be approximately 50% of the total volume traded on all Lit venues
(based on the Fidessa stock report: http://fragmentation.fidessa.com/). As of this year, Euronext is also the source for 2017-2018-2019 & 2020.
5
10
20
25
30
35
15
0
2011 2012 2013 2014 2015 2016 2019 2020 202120182017
Lowest to highest closing price Average closing price
Share price*
Per share (in euro)
Average closing price . . . . .
Highest closing price
.
.
.
.
.
Lowest closing price . . . . .
Closing price /dec
.
.
.
.
.
Average number of shares traded daily** , , , , ,
Stock market capitalization on December (in millions) ,. ,. ,. ,. ,.
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CONSOLIDATE
D
02 INFORMATION
ABOUT THE SHARE
Liquidity*
January
February
March
April
May
June
July
August
September
October
November
December
January
February
March
April
May
June
July
August
September
October
November
December
January
February
March
April
May
June
July
August
September
October
November
December
100,000
200,000
300,000
600,000
500,000
400,000
2019** 2020 2021
Daily average shares traded*
* Only data from the Euronext venue reported which is expected to be approximately 50% of the total volume traded on all Lit venues (based on the Fidessa stock
report: http://fragmentation.fidessa.com/). As of this year, Euronext is also the source for 2017-2018-2019 & 2020.
** Values for 2019 restated following to the 7:1 share split, see press release
Source **
Total yearly volume (shares) ,, , , ,,
Daily average number of shares traded , , ,
Total yearly volumes (turnover) in million euro
.
,
.
,.
Velocity .% .% .%
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Barco share price 2021
Barco share price 2021
10
20
00
30
40
02-01 01-0301-02 01-04 01-05 01-06 01-07 01-08 01-09 01-10 01-11 01-12
-20
-10
10
0%
20
30
02-01 01-0301-02 01-04 01-05 01-06 01-07 01-08 01-09 01-10 01-11 01-12
Barco Bel 20 Next 150
Barco / Bel 20 / Next 150
Barco Eurostoxx 50 Eurostoxx technology Nasdaq - 100
Barco / Eurostoxx 50 / Eurostoxx Technology / Nasdaq - 100
Barco
-30
-20
-10
10
0%
20
30
02-01 01-0301-02 01-04 01-05 01-06 01-07 01-08 01-09 01-10 01-11 01-12
-30
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Shareholders
A study of Barco’s global shareholdership, carried out in
December 2021 and January 2022, plotted nearly 98% of the
company’s shareholder composition
(1)
.
Identified institutional investors hold almost 75% of all shares.
Treasury shares held by the company are good for 3.6% of the
shares and approximately 15% of the shares are held by retail
investors, up from 14.5% a year ago.
Geographic distribution
Belgium remains the dominant investment region in Barco’s
institutional shareholder base, with a strong proportional rep-
resentation versus peers and industry averages. Over 2021
Belgium ownership experienced inflows to hold now almost
half (49%) of the institutional shares compared to 45% at the
end of 2020.
US remain the second largest region in institutional ownership
while cutting their exposure by almost 7 percentage points to
14%, down from 21% the year before. The decline was partly
influenced by the exit of funds, reducing their exposure in tech-
nology sector. France remained the third country in Barco’s
institutional investors universe, with a 9.3% share. The United
Kingdom registered more buying over selling activity and
moved from a 7.7% position to 8.7% in 2021.
Compared to the Nasdaq Belgian client base benchmark,
Belgium continues to show substantial overweight in terms of
domestic ownership. Barco remains very much underweight
in both the US and the UK compared to the benchmark.
Investment style
Growth ownership further decreased in 2021, now accounting
for almost 17% of the institutional shares identified from 20%
a year ago.
Value ownership gained 1 percentage point to now represent
14% of the institutional shares. The position of GARP-type
investors declined with 2 percentage points at 11% from 13%
a year ago.
The main reference holders are grouped in the category of
“other investment style”, and as they further strengthened their
position in the company, they make all other main categories
underweight when compared to Nasdaq Technology Base
benchmark.
I
ndex type investors increased their position in 2021, owning
now almost 8
.5
% compared to 7 % the year before
.
Investing responsibly
According to the analysis, 24% of the institutional shares is held
by SRI (Social Responsible Investment) funds (mainly Europe
and mainly Core SRI), an increase of another 4 percentage
points compared to 2020 and 14 percentage points compared
to 2019 and 2018 levels. Core SRI are investors with an out-
standing level of commitment to investing responsibly which
have achieved a full integration of ESG performance factors
in their investment decisions models. These investors include
the most progressive pension fund managers and specialist
SRI investment advisors.
This level remains above average when compared to Nasdaq’s
technology sector, Belgian and wider European major
benchmarks.
C
oncentration
Overall concentration level amongst Barco top holders
increased over 2021 with all categories (Top-10, 25 and 50)
increasing over this analysis period.
The categories now account for:
• Top 10: 57% of institutional shares compared to 51 %
•
T
op 25: 77% compared to 73%
•
T
op 50: 90% compared to 88%
Compared to the average observed in the mid cap client base
benchmark (Nasdaq European Mid Cap client base), Barco’s
concentration levels are slightly overweight on all categories
(1) Shareholder analysis performed by Nasdaq Advisory services in December
2021 and January 2022
Shareholder structure
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Shareholder structure
Geographic distribution
Investment style
74.8
%
14
.9
%
4.3%
3
.6%
2
.4%
14.3%
16,7%
11.0%
8.5%
1.0%
48.4%
48.6%
14
.3
%
9.3%
8
.
7%
4.
2
%
14
.8%
<1%
Value
Growth
GARP
Index
Hedge Fund
Other
Belgium
United States
France
United Kingdom
Spain
Rest of Europe
Rest of world
Institutional
Retail
Brokerage/trading
Company-related
Unassigned Shares
Ownership of Barco’s shares 2021
(per 31 December 2021)
Titan Baratto NV
3D NV
Norges Bank (Central Bank of Norway)
Barco NV
Public
TOTAL
92,170,255 total amount of shares
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20.87%
4.77%
4.45%
3.29%
100.00%
66.62%
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Shareholder remuneration Barco’s investment case
Dividend
Barco’s board of directors will propose to the General
Assembly to distribute a gross dividend of 0.4 euro per share,
a 5% increase from 0.378 euro a year ago.
Barco’s shareholders will be oered the choice between
payment in cash or dividend in shares, enabling Barco’s share-
holders to reinvest in the company.
CEO, Charles Beauduin and chairman of the board, Frank
Donck, have confirmed the intent of respectively Titan Baratto
NV and 3D NV, to opt for the stock dividend.
Dividend policy
The dividend is set by the Board of Directors and subsequently
proposed at the Annual General Meeting of shareholders at
the end of each fiscal year.
Barco’s Board believes that consistency and reliability towards
the investment community is key, and considers a consistent
dividend pay-out as a key contributor, reflecting the long-
term confidence in the company & its future growth and
opportunities
Strong foundation with technology & market leadership
in healthy markets
Backed by over 85 years of experience, Barco is a strong brand
known for its technology leadership in three solid and healthy
markets: Entertainment, Enterprise and Healthcare. Building on
sustainable advantages, Barco has established global leader-
ship positions in all of these markets. The solutions delivered
to these markets are mostly mission-critical with a real eec-
tive need for high-performance and reliable technology.
Based on a solid experience, a thorough understanding of
customer needs, advanced know-how in developing dier-
entiated technology and delivering value-add solutions and
a well-developed go-to-market network, Barco continues to
lead in these markets.
Fo
cused strategy
The company is implementing its “enabling bright out-
comes”-strategy, building capabilities to become a successful
hardware + software + service company, to capture more of
the lifecycle opportunity of its solutions and as a result enhance
the relationships with its customer base and strengthen the
contribution of recurring revenues.
In addition, and in order to further strengthen its market posi-
tion, the company plans to strengthen its value chain position,
to expand its local presence in China and to work on a more
eective new growth development portfolio.
So
lid financial results
Over the past years, Barco has continued to sharpen the
focus of its activities and has recently redesigned its organi-
zation structure to put Barco in a stronger position to deliver
on the growth opportunities ahead. The 2021 redesign was
aimed to install greater empowerment and accountability at
the business unit level while enhancing customer and market
responsiveness.
Since introducing the ‘focus to perform’ program in 2016, as
part of the ‘enabling bright outcomes’ strategy, Barco has made
measurable and steady progress primarily by rationalizing the
business portfolio and footprint and by implementing value
engineering initiatives. EBITDA margin expanded from 8% in
2016 to 14% in 2019 and net earnings grew to 9% of sales. In
2020 and 2021 the company delivered weaker results year
mainly due to pandemic-impacts and supply chain constraints
resulting in a soft sales and profit performance.
The company is confident to recapture growth again in its
markets as the recovery sets in and to get back to its path
towards its long-term financial objectives.
Except for 2020, Barco booked year-on-year net cash positive
results. The company follows a conservative course in man-
aging its financials and net cash position.
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A strong & reliable leadership team
With some new but seasoned leaders, Barco’s leadership team
became more global and diversified over the past couple of
years and allowed to blend insights of new members with the
strong potential and competencies available at Barco.
The company is determined to resume topline growth across
the dierent business segments as the recovery sets in and
is confident that it will reconnect to its sustainable profitable
growth trajectory,
Shareholder trust
Barco has a stable international shareholder base with a pre-
dominance of value-oriented investors. Since 2015, both Titan
Barato NV and 3D NV are represented in the Board of Directors.
Together, they now own more than 25% of Barco’s shares.
Board believes that consistency and reliability towards the
investment community is key and considers a consistent
dividend pay-out as a key contributor, reflecting the long-
term confidence in the company & its future growth and
opportunities.
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Analysts covering Barco
Bank Degroof Petercam sa
Kris Kippers
Berenberg Trion Reid
De Belegger
Geert Smet
Flemish Federation of Investors and Investor Club Gert De Mesure
ING Marc Hesselink
KBC Securities Guy Sips
Kempen & Co N.V.
Christophe Beghin
Kepler Cheuvreux Matthias Maenhaut
Announcement of results Q and FY Thursday February
Trading update Q Thursday April
Annual General Shareholders Meeting Thursday April
Announcement of results H Tuesday July
Trading update Q Wednesday October
Barco share BAR ISIN BE
Reuters BARBt
.B
R
Bloomberg BAR BB
Financial calendar 2022
Share info
More info including the quarterly consensus update, reports, reference to conference, roadshows and relevant tradeshows are
available on Barco’s investor portal
www.barco.com/investors
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barco.com ENABLING BRIGHT OUTCOMES
Group management
Beneluxpark 21
BE-8500 Kortrijk
Tel.: +32 (0)56 23 32 11
Registered oce
President Kennedypark 35
BE-8500 Kortrijk
Tel.: +32 (0)56 23 32 11
Stock exchange
Euronext Brussels
Financial information
More information is available from the
Group’s Investor Relations Department:
Carl Vanden Bussche
Vice President Investor Relations
Tel.: +32 (0)56 26 23 22
carl.vandenbussche@barco.com
Copyright © 2022 Barco NV
All rights reserved
Realization
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Focus Advertising
Barco
Beneluxpark 21
8500 Kortrijk – Belgium
2021
Integrated
annual
report
Integrated Data Pack
01 FINANCIAL 02 MANUFACTURED 03 INTELLECTUAL 04 PLANET 05 PEOPLE 06 COMMUNITIES
Table of contents
Financial .............................................3
Manufactured.........................................4
Intellectual ...........................................5
Planet ................................................6
People ...............................................8
Communities ........................................10
This is the Integrated Data Pack 2021. This
is an appendix to the 2021 Annual Report.
Other chapters are available via the
download center at ir.barco.com/2021.
CORE
MORE
• Governance & risk report
• Report on planet - people - communities
• Financial report
ANNEX
• Integrated Data Pack
• GRI Content index
• Glossary
• Assurance report
Barco Integrated report 2021
IDP
2
Integrated Data Pack
01 FINANCIAL 02 MANUFACTURED 03 INTELLECTUAL 04 PLANET 05 PEOPLE 06 COMMUNITIES
Integrated Data Pack
This Integrated Data Pack document contains a full set of
metrics (financial and non-financial) with the respective
performance results over the last 3 years. These metrics are
organized per Capital and Material topic.
This document is being updated every year and released
together with the Annual Report. For definitions on the indi-
cators, see glossary.
Capital Material Topic Indicator Unit
FINANCIAL Sustained profitable growth
Group sales mio € . . .
Gross profit mio € . . .
Gross profit (% of sales) % . . .
EBITDA mio € . . .
EBITDA margin % . . .
OPEX as % of sales % . . .
Earnings per share € . -. .
Dividend € . . .
Nominal tax amount paid mio €
Effective tax rate %
Financial resilience
Total amount paid in dividends to shareholders k€ , , ,
Total amount of share buybacks undertaken # of shares , - -
Net financial cash/(debt) mio € . . .
Free Cash Flow mio € . -. .
Equity as % of balance sheet total % . . .
Barco Integrated report 2021
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Capital Material Topic Indicator Unit
MANUFACTURED Long term asset performance
% make % . . .
Countries with a manufacturing facility #
ROCE % . . .
Inventory turns # . . .
Capex (in % of sales) % . . .
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Capital Material Topic Indicator Unit
INTELLECTUAL Innovation management
Number of patents at year-end #
Number of new patent filings #
% of employees in R&D % of heads . . .
R&D spend mio €
R&D spend (in % of sales) % . . .
Innovation awards #
Barco Integrated report 2021
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Capital Material Topic Indicator Unit
PLANET
% revenues eligible for EU Taxonomy alignment % . - -
% capex eligible for EU Taxonomy alignment % - -
% opex eligible for EU Taxonomy alignment % - -
% of (manufacturing) sites covered by a certified environmental management system %
Product stewardship
% of new products released with Barco ECO label (hardware) %
Revenues from products with Barco ECO label mio € revenues . . -
% revenues from products with Barco ECO label (hardware) % -
Energy efficiency index of sold products relative versus base year # . . .
Greenhouse gas emissions of sold products (product use emissions) (relative)
Tonnes CO
e /mio €
revenues
. . .
Material use (absolute) kg
,,
,,
,,
Material use (relative) kg /mio € revenues , , ,
% of new products released with recycled plastics (hardware) % -
% of revenues in countries with Barco return and recycling programs % -
% of active components covered by Full Material Declarations % . . .
Climate change & energy
Total greenhouse gas emissions (absolute) Tonnes CO
e
,
,
,
Total greenhouse gas emissions (relative)
Tonnes CO
e /mio €
revenues
. . .
Greenhouse gas emissions scope (absolute) Tonnes CO
e . , ,
Greenhouse gas emissions scope (absolute) Tonnes CO
e ,
Greenhouse gas emissions scope incl. product use emissions (absolute) Tonnes CO
e , , ,
Barco Integrated report 2021
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Capital Material Topic Indicator Unit
Greenhouse gas emissions of our own operations
Tonnes CO
e /mio €
revenues
. . .
Greenhouse gas emissions infrastructure
Tonnes CO
e /mio €
revenues
. . .
Greenhouse gas emissions mobility
Tonnes CO
e /mio €
revenues
. . .
Greenhouse gas emissions logistics
Tonnes CO
e /mio €
revenues
. . .
Energy consumption in own operations (absolute) MWh , , ,
Energy consumption in own operations (relative) MWh/mio € revenues . . .
% energy consumption from renewable sources %
Electricity consumption in own operations (absolute) MWh , , ,
% electricity from renewable sources %
Waste management
Total solid waste (absolute) Tonnes , , ,
Total solid waste (relative) Tonnes/mio € revenues . . .
Total hazardous waste (absolute) Tonnes . . .
% hazardous waste of solid waste % . . .
Recycled & composted solid waste (absolute) Tonnes . , . ,.
Recycled & composted solid waste (relative) Tonnes/mio € revenues . . .
Landfilled waste (absolute) Tonnes . . .
Landfilled waste (relative) Tonnes/mio € revenues . . .
% waste to landfill %
Recycling & composting rate of solid waste %
Water withdrawal (absolute) m
, , ,
Barco Integrated report 2021
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01 FINANCIAL 02 MANUFACTURED 03 INTELLECTUAL 04 PLANET 05 PEOPLE 06 COMMUNITIES
Capital Material Topic Indicator Unit
PEOPLE
Number of employees at the end of the financial year (heads) # heads , , ,
Number of employees at the end of the financial year (FTEs) # FTEs , , ,
Number of new (external) hires # heads
Permanent workforce at the end of the financial year (heads) # heads , , ,
Non-permanent workforce at the end of the financial year directly employed by Barco (heads,
fixed-term contracts + temporary work + apprenticeship)
# heads
Employee wages and benefits (personnel costs) mio €
Employer contributions to pensions or other retirement plans mio €
Employee engagement
Employee Net Promoter Score # . - -
Voluntary turnover rate % of heads . . .
Number of iGemba improvement suggestions per operator # . . .
Learning & Development
Average training hours per employee # hours . . .
% of employees having received training % of heads
Average training investment per employee € . . .
Internal mobility (% of vacancies filled internally) %
% of leaders in annual leader talent development review % of heads
% of employees who received Annual performance review % of heads
Employee health, safety & wellbeing
Lost time injury frequency rate (per hours worked) employees # . . .
Lost Time Injury Severity rate (per hours worked) employees # . . .
Total work-related fatalities (employees and contractors) #
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Capital Material Topic Indicator Unit
% employees trained in Standards@Work Safety (white collars) % of heads . . -
Rate of absenteeism % .
Diversity & inclusion
% women overall % of heads . . .
% women in senior management % of heads
% women in Core Leadership Team % of heads
% women in Board % of heads
% employees < yrs % of heads
% employees > yrs < yrs % of heads
% employees > yrs % of heads
Average age of the workforce #
Number of nationalities in the global workforce #
Labor practices & human rights
% employees covered by formal collective agreements % of heads
% of the total workforce across all locations represented in formal joint management-worker health
& safety committees
% of heads
Barco Integrated report 2021
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01 FINANCIAL 02 MANUFACTURED 03 INTELLECTUAL 04 PLANET 05 PEOPLE 06 COMMUNITIES
Capital Material Topic Indicator Unit
COMMUNITIES Customer engagement
Customer Net Promoter Score (relationship NPS) # -
Product quality, safety & security
Nr of incidents of non-compliance regarding the health and safety impacts of products and services #
% employees trained in Standards@Work Quality (white collars) % of heads . . .
% of (development and manufacturing) sites covered by a certified quality management system %
Nr of notifications about potential vulnerabilities (including duplicates) in products or services,
reported by customers, ethical hackers and third-party pen-testers contracted by Barco
# -
Information security & data pro-
tection
Nr of data / GDPR / privacy incidents reported to data protection authorities #
Average cybersecurity maturity (NIST CSF) score # . . -
Number of product lines in scope of ISO #
% employees trained in Standards@Work Cybersecurity (white collars) % of heads . . .
% employees trained in Standards@Work Data protection (white collars) % of heads . . -
Business ethics
% employees trained in Standards@Work (white collars) % of heads
% employees trained in Standards@Work Ethics (white collars) % of heads . . -
Nr of incidents reported via ethics mailbox #
Corporate governance
Average remuneration per FTE employee k€ . . .
Total CEO Compensation k€ ,. ,. ,.
Total CEO compensation / Lowest employee compensation (Euros / Euros) ratio . . -
Number of non-executive Board members / Number of Board members excluding employee repre-
sentatives
ratio / / /
% independent directors % of heads
% non-Belgian members in the Core Leadership Team % of heads
Participation rate Annual General Meeting %
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Capital Material Topic Indicator Unit
Average % of 'For' votes in Annual General Meeting %
Average total attendance rate at Board and Committee meetings %
Responsible supply chain
management
Number of major (key, key+, core) suppliers (covering X% of production spend) #
(%)
(%)
(%)
Days payment outstanding (average payment term of suppliers) #
Number of supplier quality audits #
% of production spend covered by signed Barco supplier code of conduct %
% of production spend covered by contracts with sustainability clause (MSA, signed T&Cs, PA) %
% of production spend covered by supplier sustainability score % . . -
% of new production suppliers screened using social and environmental criteria % - -
% in-scope suppliers that responded to Conflict Minerals Reporting Template %
Community engagement
Community investment € , , ,
06 COMMUNITIES
Barco Integrated report 2021
IDP
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01 FINANCIAL 02 MANUFACTURED 03 INTELLECTUAL 04 PLANET 05 PEOPLE 06 COMMUNITIES
barco.com ENABLING BRIGHT OUTCOMES
Group management
Beneluxpark 21
BE-8500 Kortrijk
Tel.: +32 (0)56 23 32 11
Registered oce
President Kennedypark 35
BE-8500 Kortrijk
Tel.: +32 (0)56 23 32 11
Stock exchange
Euronext Brussels
Financial information
More information is available from the
Group’s Investor Relations Department:
Carl Vanden Bussche
Vice President Investor Relations
Tel.: +32 (0)56 26 23 22
carl.vandenbussche@barco.com
Copyright © 2022 Barco NV
All rights reserved
Realization
Barco Corporate Marketing & Investor Relations Oce
Focus Advertising
Barco
Beneluxpark 21
8500 Kortrijk – Belgium
Barco Integrated report 2021
IDP
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Integrated Data Pack
2 021
Integrated
annual
re port
Glossary
This is the Governance & Risk Report
section of Barco’s 2021 Integrated annual
report. Other sections are available via the
download center at ir.barco.com/2021.
COR E
MORE
• Governance & risk report
• Report on planet - people - communities
• Financial report
ANNEX
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• Assurance report
Barco Integrated report 2021
2
Glos sary
GLO
GLOSSARY
Glossary
Indicator Unit of measure Definition
% of production spend covered by supplier sustainability score % Total production spend from suppliers that have been scored on sustainability by Barco/ Total production spend
% employees trained in Standards@Work (white collars) % of heads Number of white-collars trained in Standards@Work (sum of all modules) /number of white-collars at the end of the financial year.
% electricity from renewable sources % Electricity consumption from renewable sources/total electricity consumption of the considered Barco sites. Renewable electricity is either
achieved by own production using a renewable source (e.g. PV panels) or by having renewable electricity contracts (e.g. Guarantees of Origin,
RECs). Renewable energy sources are sources which have zero direct CO
2
e-emissions (e.g. solar power, wind turbines).
% employees < 30 yrs % of heads Number of permanent and fixed-term contracted employees on Barco payroll at the end of the year, in heads, with age < 30 years / total number
of permanent and fixed-term contracted employees on Barco payroll at year-end, in heads. Interim/temp contracts, interns, contractors and
Cinionic employees are excluded.
% employees > 30 yrs < 50 yrs % of heads Number of permanent and fixed-term contracted employees on Barco payroll at the end of the year, in heads, with age >=30 years
and =<50 years / total number of permanent and fixed-term contracted employees on Barco payroll at year-end, in heads. Interim/temp
contracts, interns, contractors and Cinionic employees are excluded.
% employees > 50 yrs % of heads Number of permanent and fixed-term contracted employees on Barco payroll at the end of the year, in heads, with age > 50 years / total number
of permanent and fixed-term contracted employees on Barco payroll at year-end, in heads. Interim/temp contracts, interns, contractors and
Cinionic employees are excluded.
% employees covered by formal collective agreements % of heads Barco applies an active formal collective agreements policy in these countries and industries where collective agreements are mandatory, relevant
or customary. For the scope of this definition, we take into consideration the number of employees captured by collective agreement for these
sites and regions where a formal collective agreements policy is applicable. In Belgium where the company has its headquarter as well as its main
manufacturing site, Barco applies interprofessional, industry as well as company-specific formal collective agreements. In the rest of the
EMEA region as well as the Latin American region Barco applies interprofessional and industry collective agreements. In other regions such as
APAC-region; where collective agreements are less common, the company is typically subject of regulatory requirements in this domain. In
addition to the regulatory framework the respective topics are typically captured in local policies and employee handbooks.
% employees trained in Standards@Work Continuous Improvement (white collars) % Number of white-collars trained in Standards@Work Continuous Improvement /number of white-collars at the end of the financial year.
% employees trained in Standards@Work Cybersecurity (white collars) % of heads Number of white-collars trained in Standards@Work Cybersecurity /number of white-collars at the end of the financial year.
% employees trained in Standards@Work Data protection (white collars) % of heads Number of white-collars trained in Standards@Work Data Protection /number of white-collars at the end of the financial year.
% employees trained in Standards@Work Ethics (white collars) % of heads Number of white-collars trained in Standards@Work Ethics /number of white-collars at the end of the financial year.
% employees trained in Standards@Work Quality (white collars) % of heads Number of white-collars trained in Standards@Work Quality /number of white-collars at the end of the financial year.
% employees trained in Standards@Work Safety (white collars) % of heads Number of white-collar employees trained in Standards@Work Safety /number of white-collars at the end of the financial year.
This glossary document contains a description of frequently used Financial Terms, Alterna-
tive Performance Measures (APM) and Non-financial KPI's in Barco’s reporting deliverables.
It is being updated every year and disclosed together with the Annual Report.
Barco Integrated report 2021
3
Glos sary
GLO
GLOSSARY
Indicator Unit of measure Definition
% employees trained in Standards@Work Sustainability (white collars) % Number of white-collars trained in Standards@Work Sustainability /number of white-collars at the end of the financial year.
% energy consumption from renewable sources % Energy consumption from renewable sources/total energy consumption at the considered Barco sites. Renewable energy sources are sources
which have zero direct CO
2
e-emissions (e.g. solar power, wind turbines).
% hazardous waste of solid waste % Tonnes hazardous waste/ total tonnes of solid waste generated at the considered Barco sites. Note that the classification of "hazardous"
is dependent on the legal framework of the country considered.
% independent directors % of heads Independent directors must either meet the independence criteria laid down in art. 3.5 of the Belgian Corporate Governance Code 2020
or have been expressly qualified as independent by the shareholders
% in-scope suppliers that responded to Conflict Minerals Reporting Template % Number of in-scope suppliers that responded to Conflict Minerals Reporting Template (CMRT)/Total number of in-scope suppliers.
In-scope suppliers are suppliers that deliver products or components containing tungsten, tantalum, tin or gold. The CMRT is provided
by the Responsible Minerals Initiative (RMI).
% make % Product revenue (excl services) of materials inhouse manufactured / Total product & project sales. We refer to note 3 in finance report
for total product and project sales of the financial year.
% non-Belgian members in the Core Leadership Team % of heads Core leadership team is Barco's executive team which operates under the chairmanship of the Chief Executive Ocer, comprises key ocers
from functions, businesses and regions. Non-Belgian members are these members who do not have a Belgian passport."
% of employees in R&D % of heads Employees per functional group R&D
% of (Development and manufacturing) sites covered by a certified quality management system % Number of Product Development or Manufacturing sites having a valid ISO9001 or ISO13485 Quality Management System certificate / total
number of Product development and manufacturing sites
% of (manufacturing) sites covered by a certified environmental management system % Number of manufacturing sites having a valid ISO14001 Environmental Management System certificate / total number of manufacturing sites
% of active components covered by Full Material Declarations % Number of purchased components that are covered by FMD-A (Full Material Declaration) or FMD-B material declarations / total purchased
components.
% of employees having received training % of heads Number of employees who had followed a training course over the year/ total number of employees at the end of the financial year
% of employees who received Annual performance review, or regular feedback/check-in
session(s)
% of heads % bonus eligible white collars / permanent workforce at the end of the financial year
% of leaders in Annual Leader Talent Development Review % of heads Number of leaders reviewed in the annual talent review at CLT level divided by the total number of leaders. For this metric "leaders" are defined
as employees on the level N-2 and N-3 in the organisation. N=CEO-level.
% of new production suppliers screened using social and environmental criteria % New production suppliers are suppliers which were created in Barco's ERP system in the reporting year and with confirmed purchase orders.
Screened means supplier self assessment including social and environmental criteria completed.
% of new products released with Barco ECO label (hardware) % Number of newly introduced hardware products that have received the Barco ECO label/total number of newly introduced hardware products.
Definition ""hardware product"": Barco branded finished electronic hardware product, either designed inhouse or outsourced to OEM suppliers,
that can deliver standalone its intended function. Definition ""newly introduced hardware product"": commercial launch of first member of product
family covered by one dedicated hardware development project. Options or modules are not in scope of the definition. Definition ""commercial
launch"": projects for which Formal Quality Review (FQR) is granted and or is available on Barco.com. The ecoscoring methodology, which is
validated against the ISO 14021 standard, is explained on our website https://www.barco.com/en/page/sustainability/ecoscore.
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Indicator Unit of measure Definition
% of new products released with recycled plastics (hardware) % Number of newly introduced hardware products containing recycled plastics / total number of newly introduced hardware products. Definition
"hardware product": Barco branded finished electronic hardware product, either designed inhouse or outsourced to OEM suppliers, that can
deliver standalone its intended function. Definition "newly introduced hardware product": commercial launch of first member of product family
covered by one dedicated hardware development project. Options or modules are not in scope of the definition. Definition "commercial launch":
projects for which Formal Quality Review (FQR) is granted and or is available on Barco.com. Definition "containing recycled plastics": product
containing a minimum mass percentage recycled content in plastic parts larger than 25 grams. The minimum mass percentage is defined in the
applied Barco ecoscore tool version.
% of production spend covered by contracts with sustainability clause (MSA, signed T&Cs, PA) % Total spend by production suppliers with formally signed MSA, T&C's or Purchase Agreement/total production spend. MSA means Master Supply
Agreement. T&C's means Terms & Conditions.
% of production spend covered by signed Barco supplier code of conduct % Production spend covered by a signed commitment to the Barco code of conduct for suppliers or equivalent/total production spend.
Production spend equals total cost of production materials.
% of revenues in countries with Barco return and recycling programs % Revenue of products sold in countries where Barco joined an EPR (Extended Producer Responsibility) scheme relative to the total revenue
% of the total workforce across all locations represented in formal joint management-worker
health & safety committees
% of heads Total number of permanent and fixed-term contracted employees on Barco payroll in countries with a committee divided by total number of
permanent and fixed-term contracted employees on Barco payroll at the end of the financial year, in heads.
% revenues from products with Barco ECO label (hardware) % Total revenues from products with Barco ECO label/ Total product & project sales. We refer to note 3 in finance report for total product
and project sales of the financial year.
% waste to landfill % Tonnes of waste sent to landfill/total tonnes of solid waste generated at the considered Barco sites.
% women in board % of heads Total number of female members of the Board of Directors divided by total number of members of the Board at the end of the financial year, in heads.
% women in Core Leadership Team % of heads Total number of female members of the Core Leadership Team divided by total number of members of the Core Leadership Team at the end of the
financial year, in heads.
% women in senior management % of heads We define senior management as employees with hay grade >=18.
As a result the metrics equates the following: number of female employees with hay grade >= 18/total number of employees with
hay grade >= 18 at year-end.
For Hay grade information see public sources.
% women overall % of heads Number of female permanent and fixed-term contracted employees on Barco payroll at the end of the year, in heads / total number
of permanent and fixed-term contracted employees on Barco payroll at year-end, in heads. Interim/temp contracts, interns, contractors
and Cinionic employees are excluded.
Adjusted EBIT EBIT excluding restructuring costs and impairments relating to reorienting or stopping certain activities, business or product lines, as well as
impairments on goodwill and revenues resulting from a single material transaction not linked to current business activities (e.g. change of control
in a subsidiary). Results out of divestments or acquisitions are included in EBIT(DA).
Reconciliation from EBIT to adjusted EBIT can be found in the income statement
Adjusted Return on operating capital employed (ROCE) Adjusted EBIT after tax relative to operating capital employed (including goodwill). ROCE = (Adjusted) EBIT*(1- tax rate)/Operating capital employed
(including goodwill)
Associates Companies in which Barco has a significant influence, generally reflected by an interest of at least 20%. Associates are accounted for using
the equity method.
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Indicator Unit of measure Definition
Average age of the workforce # Sum of all ages of the number of permanent and fixed-term contracted employees on Barco payroll at the end of financial year divided
by the number of permanent and fixed-term contracted employees on Barco payroll at the end of the financial year. Interim/temp contracts,
interns, contractors and Cinionic employees are excluded.
Average cybersecurity maturity (NIST CSF) score # NIST CST: National Institute of Standards and Technology Cybersecurity Framework.
The NIST CSF self-assessment result is performed at the end of the financial year and is the average of the NIST CSF Functions according
to the NIST CSF methodology.
Average number of blue collars (incl Cinionic) # FTEs Average blue-collar number of permanent and fixed-term contracts on Barco payroll over the full year, in fulltime equivalents. Interim/temp
contracts, interns and contractors are excluded. Calculation average: sum of number at month end divided by 12.
Average number of employees (incl Cinionic) # FTEs Average number of permanent and fixed-term contracts on Barco payroll over the full year, in fulltime equivalents. Interim/temp contracts,
interns and contractors are excluded. Calculation average: sum of number at month end divided by 12.
Average number of white collars (incl Cinionic) # FTEs Average white-collar number of permanent and fixed-term contracts on Barco payroll over the full year, in fulltime equivalents.
Interim/temp contracts, interns and contractors are excluded. Calculation average: sum of number at month end divided by 12.
Average remuneration per FTE employee k€ Remuneration is calculated on the basis of total wages and direct social benefits, including company cars divided by the average number
of employees (including Cinionic)
Average training hours per employee # hours Total hours of learning or training followed / total number of employees at the end of the financial year
Average training investment per employee € Total expenses for learning & development / total number of employees at the end of the financial year
BarcoCFG 'Full name is CFG Barco (Beijing) Electronics Co., Ltd. BarcoCFG is the entity where Barco joined forces with China Film Group to address
the Chinese cinema market. Barco holds a 49% stake in this entity at the end of December 2021.
Book value per share Equity attributable to the Group divided by number of shares outstanding at balance sheet date.
Capex (in % of sales) % Purchase of tangible and intangible assets as included in the statement of cash flow
Community investment € Rough order of magnitude of the sum of money & goods invested in charity / community initiatives that were defined by Barco throughout
the year, on a global scale. The reported amount is based on a non-exhaustive list of inputs from the dierent local teams.
Countries with a manufacturing facility # Country where Barco has own production site(s)
Customer Net Promoter Score (relationship NPS) # Calculation of the Net Promotor (NPS) Score is based on the answer of customers to the question: "On a scale from 0-10, how likely are
you to recommend Barco to a friend or colleague?" Detractors score 0-6, passives score 7-8, promotors score 9-10. Calculation of NPS
result = % promotors - % detractors. The NPS score reported is the overall result of the yearly survey conducted in the fourth quarter of the year.
The survey recipients are extracted from CRM customer data; product and mybarco.com registrations and are selected to get 100 responses
per business units per region.
Days payment outstanding (average payment term of suppliers) # calendar days Days payable outstanding calculated as Trade Payables / (Material cost + Services and other costs) x 365
Direct available net cash Net financial cash excluding the cash in Cinionic.
Dividend yield Gross dividend as a percentage of the share price on 31 December.
DPO Days payable outstanding calculated as Trade Payables / (Material cost + Services and other costs) x 365
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Indicator Unit of measure Definition
DSO Days sales outstanding calculated as ((Trade debtors / (sales past quarter)) * 90
Earnings per share Net income/(loss) attributable to the equity holder of the parent divided by weighted average of shares
EBIT Operating result (earnings before interest and taxes), calculated as gross profit less research & development expenses, sales and marketing
expenses, general and administration expenses, other operating income (expense) - net and plus or minus adjusting items
EBITDA Adjusted EBIT + depreciation, amortization and impairments (if any).
Employee Net Promoter Score # The employee Net Promotor score is derived from the engagement question as part of the Pulse surveys.
This was distributed among the white collar population only.
The Net Promotor score is based on the E-NPS technic where scores between 1 to 6 (on 10) are considered "detractors" ; score 7 & 8 as "passive"
and score 9 & 10 as promotors. E-NPS is promotors-detractors. The results for the year is taking as the average results from the two pulse surveys
in 2021.
Employees per functional group General & Administration % of heads Number of permanent and fixed-term contracted employees on Barco payroll at the end of the year, in heads, working in general & administration
(information technology, finance, general and divisional management, human resources, legal and investor relations), divided by the total number
of permanent and fixed-term contracted employees on Barco payroll at the end of the year, in heads. Interim/temporary contracts, interns,
contractors and Cinionic employees are excluded
Employees per functional group operations % of heads Number of permanent and fixed-term contracted employees on Barco payroll at the end of the year, in heads, working in the operations
department (including procurement, quality, production, customer service and customer projects), divided by the total number of permanent
and fixed-term contracted employees on Barco payroll at the end of the financial year, in heads. Interim/temporary contracts, interns,
contractors and Cinionic employees are excluded.
Employees per functional group R&D % of heads Number of permanent and fixed-term contracted employees on Barco payroll at the end of the year, in heads, working in research
& development, divided by the total number of permanent and fixed-term contracted employees on Barco payroll at the end of the year,
in heads. Interim/temporary contracts, interns, contractors and Cinionic employees are excluded.
Employees per functional group sales & marketing % of heads Number of permanent and fixed-term contracted employees on Barco payroll at the end of the year, in heads, working in sales & marketing,
divided by the total number of permanent and fixed-term contracted employees on Barco payroll at the end of the year, in heads.
Interim/temporary contracts, interns, contractors and Cinionic employees are excluded.
Employees per region % of heads Number of permanent and fixed-term contracted employees on Barco payroll at the end of the year, in heads, working in a legal entity in Europe,
Americas or APAC, divided by the total number of permanent and fixed-term contracted employees on Barco payroll at the end of the year,
in heads. Interim/temporary contracts, interns, contractors and Cinionic employees are excluded.
Energy consumption in own operations (absolute) MWh Total energy consumption (MWh) of the considered Barco sites, covering both infrastructure energy consumption and owned/leased fleet
energy consumption. Regarding infrastructure energy this covers both fossil fuel consumption (natural gas, fuel), purchased energy (grey or green
electricity, district heating) as well as produced renewable electricity (e.g. by means of PV panels)
Energy consumption in own operations (relative) MWh/mio €
revenues
Energy consumption in own operations on total Group sales.
Energy eciency index of sold products relative versus base year 2015 # The energy eciency index of our products represents energy consumption/delivered capability of Barco’s major groups: projectors products in
the Entertainment division and large video walls & LED products in the Enterprise division. The energy performance is defined as Watt/delivered
capability. This indicator is weighted on revenues from the considered products and normalized to a 2015 baseline value (with default value 1,0).
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GLOSSARY
Indicator Unit of measure Definition
Equity method Method of accounting whereby an investment (in an associate) is initially recognized at cost and subsequently adjusted for any changes in the
investor’s share of the associate’s net assets (i.e. equity). The income statement reflects the investor’s share in the net result of the investee.
Free cashflow 'Gross operating cash flow excluding share options recognized as cost + change in net working capital + Interest (expense)/income + income
taxes + purchase of tangible and intangible fixed assets + proceeds on disposals of tangible and intangible fixed assets.
Greenhouse gas emissions infrastructure Tonnes CO
2
e /mio
€ revenues
Greenhouse gas emissions infrastructure on total sales. Infrastructure covers total energy emissions from infrastructure energy, refrigerant losses
and waste generated at the facilities. Same scope applies as for Greenhouse gas emissions of our own operations.
Greenhouse gas emissions logistics Tonnes CO
2
e /mio
€ revenues
Greenhouse gas emissions logistics on total sales. Logistics covers all emissions from transport of goods (in- & outbound) paid for by Barco.
Same scope applies as for Greenhouse gas emissions of our own operations.
Greenhouse gas emissions mobility Tonnes CO
2
e /mio
€ revenues
Greenhouse gas emissions mobility on total sales. Mobility covers owned/leased fleet emissions, commuting and business travel emissions.
Same scope applies as for Greenhouse gas emissions of our own operations.
Greenhouse gas emissions of our own operations (absolute) Tonnes CO
2
e Sum of total Greenhouse gas emissions from infrastructure, mobility and logistics in tonnes of CO
2
e on total sales for all production and research
& development sites (in Belgium, China, Italy, Germany, India, Norway, Taiwan and US) covering in total minimum 85% of the Group’s total FTE.
For more information on methodology, scope, baseline and calculation assumptions, we refer to methodology table on p. 14 in PPC report
Greenhouse gas emissions of sold products (product use emissions) (relative) Tonnes CO
2
e /mio
€ revenues
Total greenhouse gas emissions of Barco sold products in tonnes of CO
2
e / total Group sales (mio € revenues). For more information
on methodology and scope, we refer to methodology table on p. 14 in PPC report
Greenhouse gas emissions scope 1 (absolute) Tonnes CO
2
e Greenhouse gas emissions covering scope 1 as defined by the Greenhouse Gas Protocol in tonnes of CO
2
e. Scope 1 covers the direct emissions
from combustion of fossil fuels at company facilities and by company vehicles and emissions from refrigerant losses at company facilities.
Greenhouse gas emissions scope 2 (absolute) Tonnes CO
2
e Greenhouse gas emissions covering scope 2 as defined by the Greenhouse Gas Protocol. Scope 2 covers the direct emissions from purchased
electricity and district heating. Note that the market based approach is used here.
Greenhouse gas emissions scope 3 incl. product use emissions (absolute) Tonnes CO
2
e Greenhouse gas emissions scope 3 as defined by the Greenhouse Gas Protocol covers the direct emissions from upstream activities (fuel and
energy related activities, transportation and distribution, waste generated in operations, business travel, employee commuting) and downstream
activities (use of sold products) in tonnes of CO
2
e
Greenhouse gas emissions scope 3 incl. product use emissions (relative) Tonnes CO
2
e /mio
€ revenues
Greenhouse gas emissions scope 3 incl. product use emissions on total sales (mio € revenues).
Indirect costs/expenses Research & development expenses, sales and marketing expenses and general and administration expenses; including depreciations
and amortizations
Innovation awards # Number of awards that recognize the innovative aspect of technology and/or solutions to create or enhance an outcome, awarded
by an independent organisation with a global, well known reputation
Internal mobility (% of vacancies filled internally) % Number of internally recruited, filled in vacancies/total number of vacancies filled.
Inventory turns Inventory turns = 12 / [Inventory / (average monthly sales last 12 months x material cost of goods sold %)]
Landfilled waste (absolute) Tonnes Total amount of waste sent to landfill at the considered Barco sites in tonnes of waste.
Landfilled waste (relative) Tonnes/mio €
revenues
Landfilled waste on total Group sales.
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Indicator Unit of measure Definition
Lost time injury frequency rate (per 1 000 000 hours worked) employees # Number of lost-time injuries multiplied with 1,000,000 and divided by total hours worked by all employees. Lost-time injuries are accidents
that result in at least one lost day of work. When recording lost-time injuries, we use applicable national definitions for incidents as work-related.
Lost Time Injury Severity rate (per 1000 hours worked) employees # Number of lost days of work of all employees multiplied with 1,000 and divided by total hours worked by all employees.
Material use (absolute) kg Weight of product mass or components placed on the market (excluding the weight of sold intercompany items)
Material use (relative) kg /mio € revenues Material use/ Total product & project sales. We refer to note 3 on p. 35 in finance report for total product and project sales of the financial year.
Net financial cash/(debt) Short term investments + Cash and cash equivalents + long-term financial receivables - long-term debts - current portion of long-term
debts - short-term debts
Nominal tax amount paid mio € Total taxes paid over the reporting paid as reported in the cash flow statement on the line 'Income taxes'
Non-permanent workforce at the end of the financial year directly employed by Barco (heads,
fixed-term contracts + temporary work + apprenticeship)
# heads Number of fixed-term contracts and interim/temporary contracts directly employed by Barco at the end of the financial year, in heads.
Permanent workforce, interns, contractors and Cinionic employees are excluded.
Nr of data / GDPR / privacy incidents reported to data protection authorities # Number of personal data breaches reported to the data protection authorities at the end of the financial year.
Nr of incidents of non-compliance regarding the health and safety impacts of products and
services
# Number of incidents of non-compliance registered in the field causing a health or safety impact for any stakeholder working with our products
or using our services
Nr of incidents reported via ethics mailbox # Incident is every notification, complaint, question or request for ethical guidance, addressed to ethics@barco.com, regardless whether the sender
is known or anonymous
Nr of notifications about potential vulnerabilities (including duplicates) in products or services,
reported by customers, ethical hackers and third-party pen-testers contracted by Barco
# This is the number of notifications regarding security received via the following channels: (1) our PSIRT (Product Security Incident Response
Team), reported by external experts and researchers, (2) our service desk, reported by customers, or (3) via penetration test reports (reported by
third party experts, contracted by Barco).
Number of blue collars at the end of the financial year (incl Cinionic) (FTEs) # FTEs Total blue-collar number of permanent and fixed-term contracts on Barco and Cinionic payroll at the end of the year, in fulltime equivalents.
Interim/temp contracts, interns and contractors are excluded.
Number of employees at the end of the financial year (FTEs) # FTEs Total number of permanent and fixed-term contracts on Barco payroll at the end of the year, in fulltime equivalents. Interim/temp contracts,
interns and contractors and Cinionic employees are excluded.
Number of employees at the end of the financial year (heads) # heads Total number of permanent and fixed-term contracts on Barco payroll at the end of the year, in heads. Interim/temp contracts, interns and
contractors and Cinionic employees are excluded.
Number of employees at the end of the financial year (incl. Cinionic)(FTEs),
including split of white collars and blue collars
# FTEs Total number of permanent and fixed-term contracts on Barco and Cinionic payroll at the end of the year, in fulltime equivalents.
Interim/temp contracts, interns and contractors are excluded.
Number of iGemba improvement suggestions per operator # Total number of iGemba improvement suggestions received in the considered year/total number of operators. iGemba is the name of Barco's
continuous improvement system. An improvement suggestions is an idea, improvement, solution, ... that is registered by an operator on an
iGemba improvement card. An operator is a blue-collar employee.
Number of major (key, key+, core) suppliers (covering X% of production spend) # Number of key, key+ and core suppliers at the end of the financial year. Categorization of key, key+ and core suppliers is based upon supply risk
and cost relevance to Barco.
Number of nationalities in the global workforce # Total number of nationalities of the number of permanent and fixed-term contracted employees on Barco payroll at the end of financial year.
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Indicator Unit of measure Definition
Number of new (external) hires # heads Number of permanent + fixed-term contracted hires (externally recruited) on Barco payroll during year, in heads. Interim/temporary contracts,
interns, contractors and Cinionic employees are excluded.
Number of new patent filings # New patent applications filed in the indicated year.
Number of non-executive Board members / Number of Board members excluding employee
representatives
ratio Ratio comparing non-executive board members over the board members (excluding possible employee representatives)
Number of patents at year-end # Total number of granted patents at year-end (of the indicated year).
Number of product lines in scope of ISO 27001 # Product lines in scope of ISO27001 as published on our public certificate at the end of the financial year.
Product lines are products found on the public Barco.com website.
Number of supplier quality audits # Total number of supplier quality audits performed during reporting year by Barco personnel.
Number of white collars at the end of the financial year (incl Cinionic) (FTEs) # FTEs Total white-collar number of permanent and fixed-term contracts on Barco and Cinionic payroll at the end of the year, in fulltime equivalents.
Interim/temp contracts, interns and contractors are excluded.
Operating capital employed (including goodwill) Operating capital employed + goodwill
Operating capital employed (OCE) Working capital + other long term assets and liabilities
Operating expenses (OPEX) Research & development expenses, sales and marketing expenses and general and administration expenses; excluding depreciations
and amortizations
Order An order can only be recognized if a valid purchase order has been received from the invoice-to customer.
An order is only valid if it is:
- In writing. This includes electronic version of the purchase order out of the customer’s ERP system.
- The contract needs to be signed by an authorized person from the business partner.
Next to this, a minimum number of fields need to be mentioned on the order like customer name, address, reference to sales quotation
or business partner sales agreement of Barco, etc.
Orderbook Orderbook are previously received orders, which still fulfill all the conditions of an order, but are not delivered yet and hence not taken in revenue.
Other long term assets and liabilities Other long term assets & liabilities include the sum of other intangible assets, land and buildings, other tangible assets, deferred tax assets (net).
We refer to note 9 and 10 for the amounts.
Other working capital Other working capital includes the net of other non-current assets, other amounts receivable, prepaid expenses and accrued income and other
long term liabilities, advances received from customers, tax payables, employee benefits liabilities, other current liabilities, accrued charges
and deferred income and provisions
Participation rate Annual General Meeting % The participation rate is the ratio between the number of shares which are present or represented at the shareholders meeting or have voted
remotely prior to that meeting, and the total number of shares issued by the company.
Permanent workforce at the end of the financial year (heads) # heads Number of employees on Barco payroll having a permanent employment contract at the end of the financial year, in heads.
Fixed-term contracts/apprenticeships, interim/temporary contracts, interns, contractors and Cinionic employees are excluded.
R&D spend mio € Indirect expense spent on Research and Development over the reporting period
R&D spend (in % of sales) % Research and development spend in percentage of sale
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Indicator Unit of measure Definition
Rate of absenteeism % Total absentee days lost divided by the total days scheduled to be worked by employees during the reporting period, expressed as a percentage.
Recycled & composted solid waste (absolute) Tonnes Total amount of recycled or composted waste at the considered Barco sites in tonnes of waste.
Recycled & composted solid waste (relative) Tonnes/mio €
revenues
Total recycled or composted waste on total Group sales.
Recycling & composting rate of solid waste % Tonnes recycled or composted waste/ total tonnes of solid waste generated at the considered Barco sites.
Regional spread of major suppliers (covering x% of production spend) % Sum of production spend of major suppliers per region /total production spend of major suppliers. Production spend equals total cost
of production materials. Major suppliers are key, key + and core suppliers. Categorization of key, key+ and core suppliers is based upon supply risk
and cost relevance to Barco.
Return on operating capital employed (ROCE) Adjusted EBIT after tax relative to operating capital employed (including goodwill). ROCE = EBIT*(1- eective tax rate)/Operating capital employed
(including goodwill).
revenues from products with Barco ECO label mio € revenues Total revenue coming from products sold having a Barco eco label > B (A, A+, A++). The ecoscoring methodology, which is validated against
the ISO 14021 standard, is explained on our website https://www.barco.com/en/page/sustainability/ecoscore.
Split of shares per July20 At Barco’s Extraordinary General Shareholder’s Meeting, of 30 April 2020, the shareholders have approved the share split by a factor seven (7),
eective as of 1 July 2020. The purpose of the share split is to enhance accessibility and to improve the liquidity of the Barco share. As a result of
this share split, Barco’s total capital shall be represented by 91,487,438 shares as from 1 July 2020. Each of these shares confers one voting right
at the General Meeting. The new split shares (please note: new ISIN code BE0974362940) are traded on the Euronext Brussels regulated market
from 1 July 2020 onwards. Therefore, the earnings and diluted earnings per share as of 31 December 2019 and 2018 are for comparison reasons
recalculated for the new number of shares.
Subsidiaries Companies in which Barco exercises control.
TFA Tangible fixed assets
Theoretical tax rate The theoretical tax rate is the corporate tax rate applied in the country of origin of the parent legal entity (i.e. Belgium). The Belgian corporate tax
rate as of 2020 is 25% (2019: 29.58%)
Total amount of share buybacks undertaken # of shares # of shares bought back over the reporting year
Total amount paid in dividends to shareholders k€ Amount paid in dividends to shareholders over a reporting period, also reported in the financial report
Total CEO Compensation k€ The remuneration package of the CEO consists of all salaries, benefits, bonuses and value of employer pension contribution. We refer to note 2.B
Remuneration of the CEO in CGR part of the integrated report.
Total CEO compensation / Lowest employee compensation (Euros / Euros) ratio Total CEO compensation (excluding stock options) over lowest employee compensation registered in the legal entity Barco NV in Belgium.
Total electricity consumption (absolute) MWh Total electricity consumption (MWh) of the considered Barco sites
Total greenhouse gas emissions (absolute) Tonnes CO
2
e Total Greenhouse Gas emissions of the considered Barco sites and Barco sold products for the complete covered scope (own operations
emissions + product use emissions) in tonnes of CO
2
e.
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Indicator Unit of measure Definition
Total greenhouse gas emissions (relative) Tonnes CO
2
e /mio
€ revenues
Total Greenhouse Gas emissions on total Group sales.
Total hazardous waste (absolute) Tonnes Total amount of hazardous solid waste generated at the considered Barco sites in tonnes of waste. Note that the classification of "hazardous"
is dependent on the legal framework of the country considered.
Total solid waste (absolute) Tonnes Total amount of solid waste generated at the considered Barco sites in tonnes of waste. Solid waste is all reported waste at the Barco sites
in solid state, excluding liquid waste streams such as wastewater.
Total solid waste (relative) Tonnes/mio €
revenues
Total solid waste on total Group sales.
Total work-related fatalities (employees and contractors) # Number of deaths of persons at work or performing work related tasks, including employees and contractors
Voluntary turnover rate % of heads Number of permanent and fixed-term contracted employees on Barco payroll that voluntary left Barco over the year / total number
of permanent and fixed-term contracted employees on Barco payroll at year-end, in heads. Interim/temp contracts, interns, contractors
and Cinionic employees are excluded.
Water withdrawal (absolute) m³ Direct purchased water at the considered Barco sites in m³. Typically this is called "city water", "tap water", "mains water". It excludes water use
from other sources (e.g. Captured rainfall or groundwater).
Working capital (net) Trade debtors + inventory - trade payables - other working capital
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GLOSSARY
Barco Integrated report 2021
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Glossary
GLO
barco.com ENABLING BRIGHT OUTCOMES
Group management
Beneluxpark 21
BE-8500 Kortrijk
Tel.: +32 (0)56 23 32 11
Registered oce
President Kennedypark 35
BE-8500 Kortrijk
Tel.: +32 (0)56 23 32 11
Stock exchange
Euronext Brussels
Financial information
More information is available from the
Group’s Investor Relations Department:
Carl Vanden Bussche
Vice President Investor Relations
Tel.: +32 (0)56 26 23 22
carl.vandenbussche@barco.com
Copyright © 2022 Barco NV
All rights reserved
Realization
Barco Corporate Marketing & Investor Relations Oce
Focus Advertising
Barco
Beneluxpark 21
8500 Kortrijk – Belgium
2021
Integrated
annual
report
GRI Content index
Reporting period, cycle and scope
This integrated report provides an overview of our most
relevant intentions, achievements and objectives in 2021,
unless stated otherwise. The scope of the report is Barco
worldwide, unless stated otherwise. The report is published
annually. Date of previous report: February 2021.
GRI standards
This report has been prepared in accordance with the GRI
Standards: ‘Core option’.
GRI Content index
Pages without prefix refer to the Core integrated report. PPC
refers Planet-People-Communities report. FIN refers to Finan-
cial report. CGR refers to Corporate governance report. GRI
refers to GRI index. GLO refers to the Glossary. ASR refers to
Assurance report.
GRI Content index
This is the GRI Content Index of Barco’s
2021 Integrated annual report. Other
sections are available via the download
center at ir.barco.com/2021.
CORE
MORE
• Governance & risk report
• Report on planet - people - communities
• Financial report
ANNEX
• Integrated Data Pack
• Glossary
• GRI Content index
• Assurance report
Barco Integrated report 2021
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GRI Content index
GRI
GRI CONTENT
INDEX
DISCLOSURE PAGE
GRI 100 UNIVERSAL STANDARDS
GRI 102 General Disclosures 2016
102-1 Name of the organization 13
102-2 Activities, brands, products and services 14
102-3 Location of headquarters 13, 87
102-4 Location of operations 16
102-5 Ownership and legal form FIN/24-25
102-6 Markets served 14, 53, 57-67, FIN/27
102-7 Scale of the organization 9, 15-16, 53-54, 57-67, FIN/6
102-8 Information on employees and other workers 16, 28, PPC/7, PPC/26, IDP/8
102-9 Supply chain CGR/40, CGR/48, PPC/50
102-10 Significant changes to the organization's size, structure, ownership or supply chain 14, FIN/20-23, FIN/26, FIN/27-40
102-11 Precautionary Principle or approach CGR/35-38
102-12 External initiatives PPC/49, PPC/65
102-13 Membership of associations PPC/49
102-14 Statement from senior decision-maker 4-7, CGR/4, PPC/3
102-15 Key impacts, risks, and opportunities 37-40, 41-44, 45, CGR/33-53, FIN/20-23
102-16 Values, principles, standards, and norms of behavior 20, CGR/4, CGR/32, PPC/47-48
102-17 Mechanisms for advice and concerns about ethics CGR/35, PPC/47-49
102-18 Governance structure CGR/4-7, CGR/14-17
102-19 Delegating authority CGR/35
102-20 Executive-level responsibility for economic, environmental, and social topics 35, PPC/63
102-21 Consulting stakeholders on economic, environmental, and social topics 41-44, PPC/49, PPC/64
102-22 Composition of the highest governance body and its committees 17-19, CGR/5-7, CGR/13-16
102-23 Chair of the highest governance body 7, 18, CGR/5-7
102-24 Nominating and selecting the highest governance body CGR/7, CGR/13-15
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DISCLOSURE PAGE
102-25 Conflicts of interest CGR/32
102-26 Role of highest governance body in setting purpose, values, and strategy CGR/13-16, PPC/63
102-27 Collective knowledge of highest governance body CGR/5-6
102-28 Evaluating the highest governance body’s performance CGR/12, CGR/16
102-29 Identifying and managing economic, environmental, and social impacts 41-44, 45, CGR/33-39
102-30 Eectiveness of risk management processes CGR/34-39
102-31 Review of economic, environmental, and social topics CGR/39-53
102-32 Highest governance body’s role in sustainability reporting PPC/63
102-33 Communicating critical concerns CGR/38
102-34 Nature and total number of critical concerns CGR/39-53
102-35 Remuneration policies CGR/17-31
102-36 Process for determining remuneration CGR/17-31
102-37 Stakeholders’ involvement in remuneration CGR/31
102-38 Annual total compensation ratio CGR/31
102-40 List of stakeholder groups 44, PPC/9, PPC/64
102-41 Collective bargaining agreements IPD/9
102-42 Identifying and selecting stakeholders 44, PPC/9, PPC/64
102-43 Approach to stakeholder engagement 44, PPC/64
102-44 Key topics and concerns raised 44, PPC/9, PPC/64
102-45 Entities included in the consolidated financial statements FIN/24-26
102-46 Defining report content and topic Boundaries FIN/3, FIN/12-23, PPC/14, GLO/2-11
102-47 List of material topics 41, PPC/10
102-48 Restatements of information PPC/9-10, PPC/64-65
102-49 Changes in reporting PPC/10
102-50 Reporting period GRI/2, FIN/12
102-51 Date of most recent report GRI/2
DISCLOSURE PAGE
102-52 Reporting cycle GRI/2
102-53 Contact point for questions regarding the report 87
102-54 Claims of reporting in accordance with the GRI Standards GRI/2
102-55 GRI Content Index GRI/2-9
102-56 External assurance ASR
GRI 103 Management approach 2016
103-1 Explanation of the material topic and its Boundary PPC/10
103-2 The management approach and its components
32-35, 48-52, 55-56, 60, 64, 67, CGR/40-49, CGR/52,
PPC/15-25, PPC/27-38, PPC/40-56
103-3 Evaluation of the management approach PPC/48, PPC/65-66, CGR/13-16, CGR/36-38
GRI 200 ECONOMIC TOPICS
GRI 201 Economic Performance 2016
201-1 Direct economic value generated and distributed FIN/6, FIN/27-40
201-2 Financial implications and other risks and opportunities due to climate change CGR/53
201-3 Defined benefit plan obligations and other retirement plans FIN/78-80
201-4 Financial assistance received from government FIN/40, FIN/43, FIN/44
GRI 205 Anti-corruption 2016
205-1 Operations assessed for risks related to corruption CGR/52
205-2 Communication and training about anti-corruption policies and procedures CGR/52, PPC/48
205-3 Confirmed incidents of corruption and actions taken PPC/48-49
GRI 206 Anti-competitive behavior
206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices PPC/49
GRI 207 Tax 2019
207-1 Approach to tax FIN/44, FIN/55-56
207-2 Tax governance, control, and risk management CGR/33
207-3 Stakeholder engagement and management of concerns related to tax FIN/88
207-4 Country-by-country reporting FIN/24-26, FIN/44, FIN/55-56, FIN/88
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DISCLOSURE PAGE
GRI 300 ENVIRONMENTAL TOPICS
GRI 301 Materials 2016
301-1 Materials used by weight or volume PPC/24, IDP/6
GRI 302 Energy 2016
302-1 Energy consumption within the organization IDP/7, GLO/6
302-2 Energy consumption outside of the organization 27, PPC/23, IDP/6, GLO/6
302-3 Energy intensity 27, PPC/16, IDP/7, GLO/6
302-4 Reduction of energy consumption PPC/16, PPC/23
302-5 Reductions in energy requirements of products and services 27, PPC/23, IDP/6, GLO/6
GRI 303 Water and euents 2018
303-3 Water withdrawal IDP/7, GLO/1 1
GRI 305 Emissions 2016
305-1 Direct (Scope 1) GHG emissions IDP/6, PPC/14, GLO/7
305-2 Energy indirect (Scope 2) GHG emissions IDP/6, PPC/14, GLO/7
305-3 Other indirect (Scope 3) GHG emissions IDP/6, PPC/14, GLO/7
305-4 GHG emissions intensity 27, IDP/6-7, PPC/14, GLO/7
305-5 Reduction of GHG emissions 27, PPC/15, PPC/18-20
GRI 306 Waste 2020
306-2 Management of significant waste-related impacts PPC/17, PPC/24-25
306-3 Waste generated PPC/17, IPD/7, GLO/4, GLO/7, GLO/11
306-4 Waste diverted from disposal PPC/17, IPD/7, GLO/4, GLO/7, GLO/11
306-5 Waste directed to disposal PPC/17, IPD/7, GLO/4, GLO/7, GLO/11
GRI 308 Supplier Environmental Assessment 2016
308-1 New suppliers that were screened using environmental criteria PPC/52, IDP/11
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GRI
GRI CONTENT
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DISCLOSURE PAGE
GRI 400 SOCIAL TOPICS
GRI 401 Employment 2016
401-1 New employee hires and employee turnover PPC/29, IDP/8
GRI 403 Occupational Health & Safety 2018
403-1 Occupational health and safety management system PPC/32
403-2 Hazard identification, risk assessment, and incident investigation PPC/32
403-3 Occupational health services PPC/32
403-4 Worker participation, consultation, and communication on occupational health and safety PPC/32
403-5 Worker training on occupational health and safety PPC/32, IDP/9
403-6 Promotion of worker health PPC/32
403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships
PPC/43
403-9 Work-related injuries PPC/32, IDP/8
GRI 404 Training and Education 2016
404-1 Average hours of training per year per employee 28, PPC/34, IDP/8
404-2 Programs for upgrading employee skills and transition assistance programs PPC/35
404-3 Percentage of employees receiving regular performance and career development reviews IDP/8
GRI 405 Diversity and equal opportunity 2016
405-1 Diversity of governance bodies and employees 28, PPC/36, IDP/9
GRI 412 Human rights assessment 2016
412-2 Employee training on human rights policies or procedures CGR/52, PPC/48, IDP/10
412-3 Significant investment agreements and contracts that include human rights clauses
or that underwent human rights screening
PPC/52, IDP/11
GRI 413 Local communities 2016
413-1 Operations with local community engagement, impact assessments,
and development programs
PPC/55-56
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GRI 414 Supplier social assessment 2016
414-1 New suppliers that were screened using social criteria PPC/52, IDP/11
GRI 415: Public policy 2016
415-1 Political contributions PPC/49
GRI 416: Customer health and safety 2016
416-1 Assessment of the health and safety impacts of product and service categories PPC/43
416-2 Incidents of non-compliance concerning the health and safety impacts of products and services PPC/43, IDP/10
GRI 418: Customer privacy 2016
418-1 Substantiated complaints concerning breaches of customer privacy and losses of customer data PPC/46, IDP/10
GRI 419 Socioeconomic compliance 2016
419-1 Non-compliance with laws and regulations in the social and economic area PPC/49
Barco Integrated report 2021
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GRI Content index
GRI
barco.com ENABLING BRIGHT OUTCOMES
Group management
Tel.: +32 (0)56 23 32 11
Registered oce
Tel.: +32 (0)56 23 32 11
Stock exchange
Euronext Brussels
Financial information
More information is available from the
Group’s Investor Relations Department:
Carl Vanden Bussche
Vice President Investor Relations
Tel.: +32 (0)56 26 23 22
carl.vandenbussche@barco.com
Copyright © 2022 Ba rco NV
All rights reserved
Realization
Barco Corporate Marketing & Investor Relations Oce
Focus Advertising
Barco
Beneluxpark 21