We’re not just focused on short-term gains. We’re building sustainable value for the future.
Interview with the CEO
Building sustainable value for the future
Barco had a clear ambition to return to growth in 2024. With a disappointing start to the year, this goal fell short, but CEO An Steegen remains confident: "Allow me to look beyond the numbers. We remain resolute in our strategy to invest strongly in innovation, including more software solutions to boost our end-users' efficiency, in focused factories, and in customer centricity. We trust that these efforts will pay off in the mid to long term."
The strategy that An refers to was first outlined in 2021, when she stepped in as Barco’s new co-CEO alongside Charles Beauduin. In September 2024, Charles moved from co-CEO to Chairman. The transition was exceptionally seamless, says An: After all, Charles and I had worked closely together for three years. I’m delighted that the Board placed their trust in me to lead the company. And of course, I keep aligning with Charles on the strategy.
Successes and challenges
Did Barco manage to deliver on that strategy in 2024?
An: Our business has faced significant pressure over the past few years. After the pandemic, we dealt with supply chain challenges and stock surpluses at our customers’. Then came the strikes in Hollywood, and meanwhile China is still struggling from the lingering side-effects of covid.
All that time we stuck to our strategy. In 2024, we introduced a series of exciting new products, we opened a second factory in China, and we launched a new sustainability strategy. So we checked quite a few boxes.
Were these efforts reflected in sales?
An: We did particularly well in the United States, with growth for every division. The cinema business unit revived towards the end of the year, despite the poor box office slate in early 2024. And it’s been particularly rewarding to see how the 2023 makeover of the control room business started paying off. The positive feedback on the new CTRL software solution was a clear sign that Barco is making the right choices.
Unfortunately, the growth in the US was offset by weak market conditions in the other regions. EMEA experienced a wider economic slowdown, with soft market conditions in all the divisions. We also absorbed the impact of channel inventory corrections in our ClickShare business. In China, the economic decline has bottomed out. Market demand and sales performance have stabilized.
Is there a new solution for ClickShare in the make?
An: Hybrid meeting room systems are here to stay, but the market has always been highly competitive. As these solutions find their way to a wider range of meeting rooms, price competitiveness becomes increasingly important. Next to our agnostic solutions, proprietary room systems take an important position in the market too. Although the market has been slow since end of 2023, there is now a gradual recovery towards the last part of 2024, which is promising. I’m optimistic about our new platform that we’ll launch in 2025. Partnerships with Microsoft and potentially other players in the ecosystem are also important drivers for momentum.
Sticking to the strategy: innovate for impact
Zooming in on innovation: besides CTRL, are there more product introductions worth mentioning?
An: Absolutely. In the 2023 report, I announced a slate of new product introductions for 2024, and we launched a dozen new solutions. Several of them, like HDR Lightsteering projector technology and the new OneLook mammography display solution, are really disruptive in their markets.
Did they contribute to 2024 sales already?
An: Developing innovative solutions requires significant R&D investments, plus plenty of patience. As some of our newcomers were launched slightly later than planned, their contribution to sales was still modest in 2024. But, as we emphasized in last year’s report, business is a long-term endeavor. We’re not just focused on short-term gains. We’re building sustainable value for the future. With that in mind, I have high expectations for the new additions to our portfolio and those set for launch in the coming new year.
How do the new solutions address the trends in today’s technology market?
An: Visualization is changing fast, and software takes an ever-increasing role in the paradigm shift of visualization. Our new CTRL platform for control rooms is a textbook example of that. Right now, we offer AVoIP network solutions. These are ideal platforms for hosting multiple software applications designed to boost our end-users' productivity and efficiency. We are also adding more compute power to these platforms to enable real-time AI applications. We'll launch some exciting solutions in this field in 2025."
New technologies demand new capabilities and business models. How is Barco adapting?
An: We’re hiring new talent with AI and software application skills for R&D, but equally for sales. After all, selling software requires a different approach. We’re refining our go-to-market strategy, skilling up our teams and intensifying our focus on key accounts to get closer to our customers. Understanding the market is essential for developing relevant solutions and exploring adjacent opportunities, which is a powerful way to grow.
We’re integrating computing capabilities into our platforms and are actively looking into a series of high-impact AI-based applications.
What about artificial intelligence?
An: AI is one of the key trends driving our innovation roadmap, as is big data. The first step in the implementation of machine learning is advanced data analytics. These algorithms can help our customers automate the search and categorization of data. This is really interesting for, for instance, control rooms or radiology rooms where operators are dealing with a massive number of images and data.
The next step is integrating predictive and generative AI into our platforms and using AI agents. We’ve closed some really valuable partnerships to get us there. Together with medtech start-up SoftAcuity, for example, we’re working on a ‘brilliant assistant’ for operating rooms. With PathPresenter, another partner, we're working on AI-assisted workflow solutions for pathologists. The strategic partnership with chip manufacturer Nvidia is clear proof of both our commitment to AI and our reputation in the market.
Sticking to the strategy: focused factories
Does China remain a pillar in Barco’s strategy?
An: We keep our faith in this vast economy and China also plays a crucial role in our focused factories approach. The healthcare factory in Suzhou has been fully operational since 2023 and in 2024 we opened the Wuxi projector plant. Both units were built and are being run with enormous efficiency, by very competent and autonomous teams.
By focusing on manufacturing at scale and sourcing components locally, the China plants help us improve our gross profit margin. So, while the focused factories did require quite an investment, we see them bearing fruits already.
How is Barco addressing the geopolitical challenges of a global business?
An: If need be, every product made in Suzhou and Wuxi can also be produced in our factories in Saronno, Italy, and in Kortrijk, Belgium. Let me add that our choice to run two factories in China is also a way of mitigating risks. Our worldwide manufacturing footprint supports a global customer base and provides the flexibility required in an era of growing geopolitical uncertainty.
Stepping up our sustainability strategy
Did you reach any milestones in the field of sustainability?
An: Sustainability is deeply ingrained in Barco’s DNA, and we’ve been stepping up the pace for years, even long before sustainability became a corporate imperative. In 2024, we introduced our new sustainability strategy with ambitious targets. It will help us retain our ESG leadership role in the electronics industry and beyond.
This report is a token of that leadership. We’re among the first listed companies to publish their 2025 sustainability statements in line with the CSRD requirements. Sustainability adds a sense of purpose to our business that resonates well with all our stakeholders: customers, business partners, investors, and employees alike
How important is the societal aspect of sustainability?
An: Barco has a great team of dedicated people, who are proud to work for our company. They are our greatest assets. And when we say people come first, we really mean it. We nurture them and invest in them. To keep our people motivated and happy, we work to ensure a healthy work-life balance, as well as offering learning and growth opportunities. In the past few years, we’ve also accelerated our efforts in diversity and inclusion. We’re targeting a ‘one Barco’ DNA, shaped by the diversity of our international, multicultural team. I’m really happy that our efforts initiated a rise in our employee engagement score, in 2024.
Our people are our greatest assets. We nurture and invest in them and aim to develop a ‘one Barco’ DNA, shaped by the diversity of our international, multicultural team.
Looking ahead
How do you see 2025 shaping up?
An: Our objective remains growth. While we didn’t achieve that in 2024, it’s important to stick to the plan. Three years ago, we promised to simplify our business, invest in new factories, and build disruptive new products. We’ve done all that and have started seeing some early, cautious results. In 2025, we’ll keep adding disruptive new solutions and optimizing operations. With our innovative solutions and strong customer relations and partnerships, we’re well-positioned to regain momentum.
The market and world may be even more volatile in 2025. Is Barco prepared?
An: I know Barco has the strength, resilience, and agility to navigate through any turbulence. In 2024, we celebrated 90 years of Barco. It’s incredible how many innovations we’ve introduced in that time and how often we’ve adapted to new needs and market conditions.
Sticking to our strategy doesn’t mean we’re not agile; we’re always ready to tweak and adjust as needed. I do not doubt that we’ll continue to adapt, innovate, and grow in the coming years. And we can only do this with the help of all our shareholders, customers, business partners, and employees. So, I want to thank every single one of them for trusting and supporting us on this journey.
