Slide 1: Annual Results 2003
Annual Results 2003 March 11th, 2004 2003 0
Slide 2: Key figures Profit & Loss (in mio Euros)
Key figures Profit & Loss (in mio Euros) 2003 2002 Q4 ‘03 Q4 ‘02 Sales 4,215 4,683 -10.0% 1,047 1,184 -11.6% Sales excl. currency effect 4,555 4,683 -2.7% 1,123 1,184 -5.2% Sales New Digital Solutions (in %) 42.3% 36.5% 46.0% 40.7% Gross profit 1,766 1,978 -10.7% 415 477 -13.0% Gross profit margin 4
Slide 3: Turnover analysis
Turnover analysis 2003 2002 CURRENCY QUANTITY - TURNOVER EFFECT PRICE EROSION MIX 0.0% -2.7% -0.6% -2.3% -2.0% -7.3% -10.0% -4.9% Sharply increased currency effects, going together with increased price erosion 2
Slide 4: Turnover by region (in %)
Turnover by region (in %) (Change in turnover compared to 2002, excluding currency effect) Asia and ROW 18.4% (+3.7%) Latin America 4.3% (+14.1%) Europe 50.9% (-6.4%) Nafta 26.4% (-2.6%) Europe, representing half of total turnover, was especially weak. 3
Slide 5: Raw Materials
Raw Materials SILVER (USD/troyounce) ALUMINIUM (USD/ton) 7 1775 6.5 1725 1675 6 1625 5.5 1575 5 1525 4.5 1475 4 1425 3.5 1375 3 1325 3 03 -03 03 03 03 -03 -0 03 Ju 3 03 03 03 04 04 3 03 Ap 3 03 Au -03 mb 3 ve -03 4 bru 3 - M -03 -0 Jan r-03 Oc r-03 -0 ce -03 bru 4 ra y- ary- arch- pril May June July
Slide 6: Key figures Profit & Loss (in mio Euros)
Key figures Profit & Loss (in mio Euros) 2003 2002 ? Q4 ‘03 Q4 ‘02 ? Gross profit 1,766 1,978 -10.7% 415 477 -13.0% R&D -233 -248 -6.0% -54 -67 -19.4% SG&A -1,087 -1,179 -7.8% -273 -302 -9.6% Restructuring & non- -87 -78 +11.5% -41 -11 x 3.73 recurring items Capital gain NDT 231 - 231 - Other operat
Slide 7: Key figures Profit & Loss (in mio Euros)
Key figures Profit & Loss (in mio Euros) 2003 2002 ? Q4 ‘03 Q4 ‘02 ? Operating result 528 393 +34.4% 268 90 x 2.98 Non-operating result -71 -97 -26.8% -16 -24 -33.3% Profit before tax 457 296 +54.4% 252 66 x3.82 Taxes -135 -99 +36.4% -64 -21 x3.05 Net result 323 194 +66.5% 189 45 x4.2 Non-operating
Slide 8: Earnings and dividend per share (in Eurocents)
Earnings and dividend per share (in Eurocents) EARNINGS PER SHARE DIVIDEND PER SHARE 244* 75 121 139* Extraordinary dividend due to 45 23 50 NDT divestiture 2000 2001 2002 2003 2000 2001 2002 2003 -206 * Number of shares used for calculation : 139,611,425 in 2002 and 132,045,438 in 2003 7
Slide 9: Working capital: key figures (mio Euros / days)
Working capital: key figures (mio Euros / days) INVENTORIES TRADE RECEIVABLES TRADE PAYABLES Target: 100 days Target: 70 days Target: 55 days -135 mio Euros -133 mio Euros 1,000 959 1.000 1,000 948 826 813 800 800 800 600 600 600 -18 mio Euros 400 400 400 322 304 128 124 75 74 200 200 200 43 47 0 0
Slide 10: Key figures 2003
Key figures 2003 NET FINANCIAL DEBT SHAREHOLDERS EQUITY GEARING RATIO (mio Euros) (mio Euros) (%) 1,383 1,371 77% -340 66% 573 41% 233 17% Dec. 2002 Dec. 2003 Dec. 2002 Dec. 2003 June Dec. Dec. Dec. '01 '01 '02 '03 9
Slide 11: Cash flow (in mio Euros)
Cash flow (in mio Euros) GROSS OPERATING CASH FLOW PER BUSINESS GROUP 2003 2003 2002 2001 393 317 Gross operating 393 482 226 cash flow Net operating 522 611 738 cash flow 100 Capex 178 167 186 Free cash flow 344 444 552 CI GS HE Agfa -59 Agfa generates substantial cash flows, even in tough economic
Slide 12: Consumer Imaging: key figures (mio Euros)
Consumer Imaging: key figures (mio Euros) Q1 ‘03 Q2 ‘03 Q3 ‘03 Q4 ‘03 Q4 ‘02 2003 2002 Sales 192 250 238 190 249 870 1,048 -23.7% -17.0% Sales excl. currency 206 263 256 201 249 926 1,048 -19.3% -11.6% effect Restructuring/non- 1.0 8.2 13.8 15.0 3.5 38.0 14.6 recurring items Operating result -21.4 -
Slide 13: HealthCare: key figures (mio Euros)
HealthCare: key figures (mio Euros) Q1 ‘03 Q2 ‘03 Q3 ‘03 Q4 ‘03 Q4 ‘02 2003 2002 Sales 339 364 341 364 392 1,408 1,491 -7.1% -5.6% Sales excl. currency 375 405 372 395 392 1,547 1,491 +0.8% +3.8% effect Restructuring/non- 1.5 1.7 3.4 5.7 4.2 12.2 33.4 recurring items Operating result 66.7 71.4 64.6
Slide 14: Service revenues as % of total HealthCare sales
Service revenues as % of total HealthCare sales 14.0% 11.7% 10.9% 2001 2002 2003 Service revenues increase as the transition to digital continues 13
Slide 15: HealthCare: Strategy
HealthCare: Strategy ? Radiology Solutions ? Consolidate our number 1-2 position in Radiology, Imaging and IT by converting our large customer base from analogue to digital ? Clinical applications ? Create a significant position in clinical applications by converting our analogue portfolio into a de
Slide 16: Graphic Systems: key figures (mio Euros)
Graphic Systems: key figures (mio Euros) Q1 ‘03 Q2 ‘03 Q3 ‘03 Q4 ‘03 Q4 ‘02 2003 2002 Sales 417 405 386 414 461 1,622 1,813 -10.2% -10.5% Sales excl. currency 455 441 410 443 461 1,749 1,813 -3.9% -3.5% effect Restructuring/non- 2.4 3.6 4.8 16.1 0.4 26.9 23.6 recurring items Operating result 33.9 27
Slide 17: Graphic Systems: Strategy
Graphic Systems: Strategy A leading solutions provider in pre-press, offering consumables, equipment and software Entering the growth market of industrial inkjet printing 16
Slide 18: Graphic Systems: Strategy
Graphic Systems: Strategy Agfa is a leading supplier of consumables, equipment and software in the mature pre-press market ? Concentrate on higher growth segments: ? Regionally: Asia => Wuxi printing plate factory ? Markets: Packaging and newspapers => Esko-Graphics newspaper customers ? Functionall
Slide 19: Lastra profile
Lastra profile ? Italian manufacturer of 2003 SALES ? 240 MIO EUROS printing plates, chemicals Italy and equipment North 16% America ? Mainly analogue printing 30% plates, but recently started production of digital plates ? 6 factories: Rest of 4 in Italy, 2 in US Europe ? Number of employees: 30% ?
Slide 20: Lastra acquisition: rationale
Lastra acquisition: rationale Lastra + Agfa: ? Increased market coverage from low end to high end ? Access to additional production capacity ? Obtain cost leadership in printing plates ? Large cost and revenue synergies ? Accretive from first year 19
Slide 21: From Pre-press to Press
From Pre-press to Press Filmsetter Plates Software Film Computer-to-Film Work- Computer-to-Plate Platesetter station Printing Proofing Press Digital Printing the . factory Scanner 20
Slide 22: Graphic Systems: Strategy
Graphic Systems: Strategy Building a growth platform in industrial inkjet printing ? Markets for inkjet printing ? wide format printing ? screen printing ? packaging ? newspaper printing ? Market potential: 10 billion Euros by 2010 21
Slide 23: Graphic Systems: Strategy
Graphic Systems: Strategy From Pre-press to Press ? Concentrate on higher growth markets in Pre-press ? Strive for cost-, technology- and market leadership in consumables ? Make equipment business profitable ? Build growth platform in inkjet digital printing, with a full solution including: ? inkjet
Slide 24: Business Group reporting as from 2004
Business Group reporting as from 2004 ? Consumer Imaging ? Graphic Systems ? HealthCare ? Specialty Products ? Sale of NDT film to General Electric ? Motion Pictures turnover of ± 110 million ? Micrography Euros in 2003 ? Specialty Foils and Components 23
Slide 25: Horizon: staff levels (FTE)
Horizon: staff levels (FTE) 23,000 22,000 1,331 934 21,000 20,000 4,217 19,000 18,000 21,151 17,000 16,000 17,331 15,000 JUNE 2001 ACQUISITIONS (*) DIVESTITURE HORIZON DECEMBER 2003 (*) including changes in consolidation scope and opening Wuxi plant. 24
Slide 26: Horizon: tighter financial management
Horizon: tighter financial management (mio Euros) 2,667 1,352 1,639 813 Inventories 1,315 Trade receivables 826 June 2001 Dec. 2003 Working capital reduced by more than 1 billion Euros 25
Slide 27: Horizon: improved operating efficiency
Horizon: improved operating efficiency GROSS PROFIT MARGIN 42.2% 41.9% 38.2% H1 '01 2002 2003 Gross profit margin kept up in harsh economic circumstances. 26
Slide 28: ORION
ORION ? To increase growth ? by a combination of organic initiatives and targeted acquisitions ? To improve our business ? by a systematic project approach, processes and overall quality leading to cost savings of 200 million Euros ? To reduce working capital ? by bringing days of inventories to 100
Slide 29: Outlook
Outlook ? Subdued markets in Consumer Imaging and Graphic Systems ? Continued growth in HealthCare ? Strength of Euro and raw material prices ? Efficiency gains and cost savings ? Reduction of working capital Agfa will continue to generate strong cash flows. 28
Slide 30: Questions & Answers
Questions & Answers 2003 29