Agfa-gevaert Nv · EURONEXT:AGFB
Agfa-gevaert Nv — Q1 2023 Earnings Presentation
27 slides from Agfa-gevaert Nv's earnings presentation, May 9, 2023
Slide 1: Q1 2023 Results
Q1 2023 Results Agfa-Gevaert Group May 9, 2023
Slide 2: Key highlights Agfa-Gevaert Group
Key highlights Agfa-Gevaert Group • HealthCare IT: • Increase in order intake of 25%, revenue increase of 4.8% Key highlights • Profitability impacted by cost inflation and unfavorable mix effects • Digital Print & Chemicals: • Growth driven by Digital Printing and Zirfon membranes • Successful pric
Slide 3: Completion Offset Solutions sale and new way of reporting
Completion Offset Solutions sale and new way of reporting ▪ Sale of Offset Solutions successfully completed on April 4, 2023 ▪ A new division was created called ‘Contractor Operations & Services former Offset’ or ‘CONOPS’. ▪ As of Q2, CONOPS will represent the agreements with the external party ECO3
Slide 4: Sales by division
Agfa-Gevaert Group Sales by division Q1 2023 = 270 million Euro 5% Radiology Solutions HealthCare IT 36% 38% Digital Print & Chemicals Contractor Operations & Services* 21% * related to the former Offset Solutions business 4
Slide 5: Agfa-Gevaert Group key figures
Agfa-Gevaert Group in million Euro Q1 ’23 Q1 ’22 ∆% Key figures re-presented (excl.curr.) Profit & Loss Sales 270 252 7.2% (7.3%) Incl. IFRS 16 Gross Profit* 87 78 11.6% as a % of sales 32.1% 30.8% SG&A* -74 -76 -3.6% as a % of sales 27.2% 30.3% R&D* -21 -19 5.4% Other operating 10 13 items* Adjuste
Slide 6: Agfa-Gevaert Group profit and loss
Agfa-Gevaert Group Q1’23 Q1’22 Key figures in million Euro re-presented Profit & Loss Adjusted EBIT* 2 -5 Incl. IFRS 16 -10 -8 Restructuring/non-recurring Operating result -8 -13 Non-operating result -6 2 Profit before taxes -14 -10 Taxes -5 -2 Result from continuing operations -20 -12 Result from d
Slide 7: Revenue growth mainly driven by DPC, EBITDA amounted to 13 million Euro
Revenue growth mainly driven by DPC, EBITDA amounted to 13 million Euro Main drivers behind ▪ Revenue increase of 7.2% mainly driven by DPC: ▪ DPC: strong sales of inks, the first Onset machines (with Agfa inks) key figures and Zirfon membranes as well as the positive impact of price increases ▪ HE
Slide 8: Free cash flow (Continuing operations)
Free cash flow (Continuing operations) Adjusted Adjusted Free EBITDA free cash flow* cash flow Adjusted free cash flow equals the sum of net cash from operating & investing activities excluding the impact of acquisitions and disposal of discontinued operations (see definition of Free cash flow *) AD
Slide 9: Net cash position
Net cash position Net cash position excl IFRS 16, in million Euro 762 616 581 577 425 398 396 329 68 188 172 134 -106 -69 -137 -194 -161 Q 1 ' 1 9Q 2 ' 1 9Q 3 ' 1 9Q 4 ' 1 9Q 1 ' 2 0Q 2 , 2 0Q 3 ' 2 0Q 4 ' 2 0Q 1 ' 2 1Q 2 ' 2 1Q 3 ' 2 1Q 4 ' 2 1Q 1 ' 2 2Q 2 ' 2 2Q 3 ' 2 2Q 4 ' 2 2Q 1 ' 2 3 Note: Tot
Slide 10: Working Capital (excl. CONOPS)
Working Capital (excl. CONOPS) Δ Q1 Δ 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 Q1 2022 2023 vs 2022 Q1 vs Q4 LY Inventories (Mio Eur) 330 307 347 348 304 26 22 ° DIOH in days 160 152 175 181 162 -2 8 Trade Receivables, Contract Assets/Liabilities 146 150 130 137 137 9 -4 ° DSO in days 51 45 43 46 52 -1
Slide 11: HealthCare IT
HealthCare IT
Slide 12: HealthCare IT key figures
HealthCare IT Q1 ’23 Q1 ’22 ∆% Key figures in million Euro (excl.curr.) Sales 57 55 4.8% (3.6%) Profit & Loss Gross Profit* 24 25 -2.6% Incl. IFRS 16 as a % of sales 41,7% 44.9% SG&A* -16 -15 6.2% as a % of sales 28,0% 27.7% R&D* -8 -8 -4.8% Other operating 1 1 items* Adjusted EBITDA* 2.7 4.4 -38.2%
Slide 13: HealthCare IT main drivers behind key figures
HealthCare IT ▪ Order book at very healthy level driven by strong growth in Main drivers behind order intake of 25% with high value business (own software) increasing with 35%. key figures ▪ Portion of managed services is growing, leading to revenue recognition being spread over a longer period. ▪ T
Slide 14: Radiology Solutions
Radiology Solutions
Slide 15: Radiology Solutions sales by business segment
Radiology Solutions Sales Q1 2023 = 102 million Euro by business segment 3% 37% Hardcopy CR/DR 60% Classic Radiology 15
Slide 16: Radiology Solutions key figures
Radiology Solutions Q1 ’23 Q1 ’22 ∆% Key figures in million Euro (excl.curr.) Sales 102 101 1.6% (0.9%) Profit & Loss Gross Profit* 33 31 7.8% Incl. IFRS 16 as a % of sales 32.2% 30.3% SG&A* -26 -26 -1.2% as a % of sales 25.0% 25.8% R&D* -4 -4 -10.7% Other operating -2 0 items* Adjusted EBITDA* 6.5
Slide 17: Radiology Solutions: good performance of DR, medical film volumes recovered in China
Radiology Solutions: good performance of DR, medical film volumes recovered in China Main drivers behind ▪ Medical film: in China, volumes recovered but still margin key figures pressure. Other regions influenced by the geopolitical situation. ▪ DR: modest revenue growth but order intake softer in Q
Slide 18: Digital Print & Chemicals
Digital Print & Chemicals
Slide 19: Digital Print & Chemicals sales by business segment
Digital Print & Chemicals Sales Q1 2023 = 97 million Euro by business segment 42% 41% Inkjet Electronic Print Films and Foils 17% 19
Slide 20: Digital Print & Chemicals key figures
Digital Print & Chemicals Q1 ’23 Q1 ’22 ∆% Key figures in million Euro (excl.curr.) Sales 97 79 22.0% (21.5%) Profit & Loss Gross Profit* 30 24 25.0% Incl. IFRS 16 as a % of sales 31.1% 30.4% SG&A* -19 -16 19.0% as a % of sales 19.2% 19.7% R&D* -8 -6 34.1% Other operating 0 -1 items* Adjusted EBITDA
Slide 21: Digital Print & Chemicals: continued top line growth, margins recover thanks to actions
Digital Print & Chemicals: continued top line growth, margins recover thanks to actions ▪ Digital print: profitable sales growth ▪ Sign & display revenue continued to grow strongly driven by ink sales and the Main drivers behind Inca acquisition: first 3 Agfa-branded Onset wide-format systems (using
Slide 22: Contractor Operations & Services former Offset
Contractor Operations & Services former Offset
Slide 23: New division: Contractor Operations & Services former Offset (CONOPS)
New division: Contractor Operations & Services former Offset (CONOPS) Key figures Q1 ’23 Q1 ’22 ∆% in million Euro Profit & Loss Sales 14 18 -20.9% Incl. IFRS 16 Adjusted EBITDA* 1.3 -3.4 -138.3% as a % of sales 9.4% -19.5% Stranded costs in Q1 FY Adjusted EBIT* 0.0 -4.7 -100.8% million Euro as a %
Slide 24: Outlook 2023: recovery in profitability expected
Outlook 2023: recovery in profitability expected ▪ Overall, the Agfa-Gevaert Group expects a recovery in Outlook profitability in the full year 2023 versus 2022. ▪ HealthCare IT: Whilst order intake growth continues to be very strong, the uncertainty around the timing of the order book execution and
Slide 25: Sustainability @ Agfa
Sustainability @ Agfa
Slide 26: The road to 2030 & beyond: Sustainable and Profitable growth
The road to 2030 & beyond Sustainable and Profitable growth Focus on our Planet ▪ Work in progress to set up a global comprehensive carbon reduction plan, based on the approved reinvestment plan in energy production for Belgian manufacturing sites that will allow us to significantly reduce CO2 emiss
Slide 27: Questions & Answers
Questions & Answers AGFA &