Q3 2017 Results 8 November 2017 Profit & Loss: Key Figures (in - - PowerPoint PPT Presentation

Q3 2017 Results

8 November 2017

2

Q3'16 Q3'17

∆ %

(excl. X-rate)

9M'16 9M'17

∆ %

(excl. X-rate)

Sales 625 593

• 5.1%(-2.9%)

1,873 1,803

• 3.7%(-3.9%)

Gross Profit* 209 195

• 6.7%

634 600

• 5.4%

as a % of sales 33.4% 32.9% 33.8% 33.3%

SG&A*

• 124
• 117
• 5.6%
• 380
• 375
• 1.3%

SG&A as % of sales 19.8% 19.7% 20.3% 20.8%

R&D*

• 35
• 35

0.0%

• 105
• 109

3.8% Other operating items*

• 1
• 2
• 1
• 3

Recurring EBITDA* 63 53

• 15.9%

189 152

• 19.6%

as a % of sales 10.1% 8.9% 10.1% 8.4%

Recurring EBIT* 49 40

• 18.4%

147 113

• 23.1%

as a % of sales 7.8% 6.7% 7.8% 6.3%

Profit & Loss: Key Figures (in million Euro)

* Before restructuring charges and non-recurring items

3

3

Profit & Loss: Key Figures (in million Euro)

* Before restructuring charges and non-recurring items

Q3'16 Q3'17

∆ %

9M '16 9M '17

∆ %

Recurring EBIT* 49 40

• 18.4%

147 113

• 23.1%

Restructuring and non-recurring

• 6
• 9
• 14

Operating result 43 31

• 27.9%

147 99

• 32.7%

Non-operating result

• 11
• 8
• 40
• 28

Profit before taxes 32 23 107 71 Taxes

• 7
• 9
• 32
• 22

Net result 25 14 75 49

• f which attr to equity holders of the company

22 12 68 44

• f which attr to non controlling interests

3 2 7 5

4

Net Financial Debt (in million Euro)

191 176 175 126 94 102 83 58 40 52 31 27 22

Q1'14 Q2'14 Q3'14 Q4'14 Q1'15 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17

• 18
• 37

Q1’17

5

225 225 239257239238 206 242253 219 225 260 235227 241

100 200 300 400 500 600 700 800

Q 1 ' 1 4 Q 2 ' 1 4 Q 3 ' 1 4 Q 4 ' 1 4 Q 1 ' 1 5 Q 2 ' 1 5 Q 3 ' 1 5 Q 4 ' 1 5 Q 1 ' 1 6 Q 2 ' 1 6 Q 3 ' 1 6 Q 4 ' 1 6 Q 1 ' 1 7 Q 2 ' 1 7 Q 3 ' 1 7 44 43 39 42 41 46 44 46 51 47 47 41 49 52 46 48 56 51 50 421 388 413 384371363374 349351337 364 324330346 399

100 200 300 400 500 600 700 800

Q 1 ' 1 4 Q 2 ' 1 4 Q 3 ' 1 4 Q 4 ' 1 4 Q 1 ' 1 5 Q 2 ' 1 5 Q 3 ' 1 5 Q 4 ' 1 5 Q 1 ' 1 6 Q 2 ' 1 6 Q 3 ' 1 6 Q 4 ' 1 6 Q 1 ' 1 7 Q 2 ' 1 7 Q 3 ' 1 7 62 57 56 61 55 55 52 55 4850 50 52 49 49 50 50 48 53 56 544 580 512 577575 563 512 528542 537 483 531534 526 561

100 200 300 400 500 600 700 800

Q 1 ' 1 4 Q 2 ' 1 4 Q 3 ' 1 4 Q 4 ' 1 4 Q 1 ' 1 5 Q 2 ' 1 5 Q 3 ' 1 5 Q 4 ' 1 5 Q 1 ' 1 6 Q 2 ' 1 6 Q 3 ' 1 6 Q 4 ' 1 6 Q 1 ' 1 7 Q 2 ' 1 7 Q 3 ' 1 7

103 10296100 107 114 102 115 114 111 102 106 112 114 104 115 116 115 112

Working Capital: Key Figures (in million Euro/days)

Inventories Trade Receivables* Trade Payables

* Trade receivables minus deferred revenue and advanced payments from customers

6

Main Group Drivers behind Key Figures

Q3 2017

• Most of the Agfa-Gevaert Group’s growth engines performed well in the third

quarter of 2017. The Group’s top line decrease was mainly due to the strength of the Euro versus other currencies and the decline in the traditional

• businesses. Excluding currency effects, the decrease would be limited to

2.9%, which shows a clear improvement compared to the first half of the year.

• Net profit of 14 million Euro
• Net debt at 22 million Euro

Graphics

8

Inkjet, Software, Service 24% Analog Prepress 10% Digital Prepress 66%

Graphics: YTD Sales per Business Segment

9M 2017 100% = 893 million Euro

9

Q3'16 Q3'17

∆ %

(excl. curr.)

9M'16 9M'17

∆ %

(excl. curr. )

Sales 308 284

• 7.8%(-4.7%)

936 893

• 4.6%(-4.4%)

Gross Profit* 91 79

• 13.2%

280 262

• 6.4%

as a % of sales 29.5% 27.8% 29.9% 29.3%

SG&A*

• 64
• 59
• 7.8%
• 196
• 190
• 4.1%

as % of sales 20.8% 20.8% 20.9% 21.3%

R&D*

• 9
• 11

22.2%

• 31
• 33

6.5% Other operating items*

• 1

5

• 1

Recurring EBITDA* 23.9 14.2

• 40.6%

77.5 57.0

• 26.5%

as a % of sales 7.8% 5.0% 8.3% 6.4%

Recurring EBIT* 17.2 8.2

• 52.3%

57.5 38.7

• 32.7%

as a % of sales 5.6% 2.9% 6.1% 4.3%

Graphics: Key Figures (in million Euro)

* Before restructuring charges and non-recurring items

10

Graphics: Main Drivers behind Key Figures

Q3 2017

• Continuing the good performance of the previous quarters, the business

group’s inkjet segment posted double-digit growth.

• Competitive pressure in the offset markets continued to weigh on

prepress volumes and printing plate prices, although the price pressure started to ease somewhat due to increasing aluminum prices.

• Mainly due to adverse raw material effects and competitive pressure

effects, Agfa Graphics’ gross profit margin decreased to 27.8%.

• Recurring EBIT at 8.2 million Euro
• Business highlights:
• IPW recognized Agfa Graphics with the Vendor of the Year award
• Agfa Graphics teamed up with Monotech Systems (India)
• Agfa Graphics acquired the software developer and reseller Bodoni Systems

HealthCare

12

HealthCare: YTD Sales per Business Segment

Hardcopy 27% Classic Radiology 6% CR/Modalities 20% HCIS 17% Imaging IT Solutions* 30% HealthCare IT = 47%

* Includes Radiology and Cardiology IT

9M 2017 100% = 761 million Euro

13

Q3'16 Q3'17

∆ %

(excl. curr.)

9M'16 9M'17

∆ %

(excl. curr. )

Sales 271 258

• 4.8%(-3.6%)

802 761

• 5.1%(-5.7%)

Gross Profit* 108 105

• 2.8%

321 301

• 6.2%

as a % of sales 39.9% 40.7% 40.0% 39.6%

SG&A*

• 55
• 52
• 5.5%
• 166
• 167

0.6%

as % of sales 20.3% 20.2% 20.7% 21.9%

R&D*

• 25
• 23
• 8.0%
• 70
• 70

0.0% Other operating items*

• 1
• 2

1 Recurring EBITDA* 36.5 35.7

• 2.2%

102.9 84.1

• 18.3%

as a % of sales 13.5% 13.8% 12.8% 11.1%

Recurring EBIT* 29.8 29.5

• 1.0%

83.2 65.3

• 21.5%

as a % of sales 11.0% 11.4% 10.4% 8.6%

HealthCare: Key Figures (in million Euro)

* Before restructuring charges and non-recurring items

14

HealthCare: Main Drivers behind Key Figures

Q3 2017

• Most of the business group’s growth engines performed well in the third

quarter.

• The topline decline was largely attributable to the hardcopy and classic X-

ray product ranges. However, the top line impact of the reorganization of the hardcopy distribution channels in China started to abate in the third

• quarter. The situation should further normalize in the next quarters.
• Agfa HealthCare improved its gross profit margin to 40.7%.
• Recurring EBIT at 29.5 million Euro
• Business highlights:
• Contract with Hôpitaux Luxembourgeois for a national-level Enterprise Imaging

platform

• Long-term collaboration with STC Solutions (Saudi Arabia) for cloud based

Enterprise Imaging solutions

Specialty Products

16

Specialty Products: Key Figures (in million Euro)

* Before restructuring charges and non-recurring items

Q3'16 Q3'17

∆ %

(excl. curr.)

9M'16 9M'17

∆ %

(excl. curr. )

Sales 46 50 8.7%(10.8%) 135 148 9.6%(10.0%) Gross Profit* 10 11 10.0% 33 37 12.1%

as a % of sales 21.7% 22.0% 24.4% 25.0%

SG&A*

• 5
• 5

0.0%

• 18
• 18

0.0%

as % of sales 10.9% 10.0% 13.3% 12.2%

R&D*

• 2
• 1
• 50.0%
• 5
• 6

20.0% Other operating items*

• 1
• 1
• 1

Recurring EBITDA* 3.4 4.9 44.1% 12.3 14.5 17.9%

as a % of sales 7.4% 9.8% 9.1% 9.8%

Recurring EBIT* 2.7 4.0 48.1% 9.7 12.0 23.7%

as a % of sales 5.9% 8.0% 7.2% 8.1%

17

Specialty Products: Main Drivers behind Key Figures

Q3 2017

• Agfa Specialty Products’ revenue increased to 50 million Euro. The strong

performances of the Printed Circuit Board business, Synaps Synthetic Paper and the Specialty Chemicals (including Orgacon Electronic Materials) more than compensated for the decline of the classic film products.

• The business group’s recurring EBITDA improved to 4.9 million Euro (9.8% of

revenue). Recurring EBIT amounted to 4.0 million Euro (8.0% of revenue).

Questions & Answers