Slide 1: Q2 Results 2006
Q2 Results 2006 August 24, 2006
Slide 2: Group Sales
Group Sales (in million Euro) Total Sales Split per Business Group (YTD) +4.4% (+2.4%)* Specialty Products 1,669 7% 1,598 +1.2% 859 Q2 849 (+0.7%)* HealthCare 41% +8.1% 810 Q1 749 (+4.4%)* Graphics 52% 2005 2006 * Excluding currency impact Sales increase of 1.2% in Q2 mainly as a result of volume gr
Slide 3: Profit & Loss: Key Figures
Profit & Loss: Key Figures (in million Euro) Q2 '05 Q2 '06 % change H1 '05 H1 '06 % change Sales 849 859 1.2% 1,598 1,669 4.4% Gross profit 316 344 8.9% 600 660 10.0% Gross profit margin 37.2% 40.0% 37.5% 39.5% Gross profit margin increases to 40.0% despite high raw material costs, driven by improve
Slide 4: Raw Materials
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Slide 5: Profit & Loss: Key Figures
Profit & Loss: Key Figures (in million Euro) Q2 '05 Q2 '06 % change H1 '05 H1 '06 % change Gross profit 316 344 8.9% 600 660 10.0% R&D -48 -50 4.2% -95 -97 2.1% SG&A -211 -212 0.5% -408 -422 3.4% as a % of sales 24.9% 24.7% 25.5% 25.3% Other operating items -3 -5 66.7% -2 -10 x5 EBITDA* 95 115 21.1%
Slide 6: Profit & Loss: Key Figures
Profit & Loss: Key Figures (in million Euro) Q2 '05 Q2 '06 % change H1 '05 H1 '06 % change EBIT* 54 77 42.6% 95 131 37.9% Restructuring and non-recurring -6 -25 -5 -36 Operating result 48 52 8.3% 90 95 5.6% Non-operating result -14 -13 7.1% 6 -29 N.A. Profit before taxes 34 39 14.7% 96 66 -31.3% Tax
Slide 7: Agfa Graphics
Agfa Graphics AGFA =
Slide 8: Graphics: Sales
Graphics: Sales (in million Euro) Total Sales Split per Business Segment (YTD) +1.7% (-0.2%)** Inkjet, Software, Service 846 860 16% -2.2% Q2 446 436 (-2.5%)** Digital Prepress +6.0% 55% 424 Analog Prepress Q1 400 29% (+2.3%)** 2005* 2006 * Including 26 million Euro sales from products transferred f
Slide 9: Graphics: Key Figures
Graphics: Key Figures (in million Euro) Q2 '05** Q2 '06 % change H1 '05*** H1 '06 % change Sales 446 436 -2.2% 846 860 1.7% EBITDA* 37.0 35.1 -5.1% 72.6 73.2 0.8% % of sales 8.3% 8.1% 8.6% 8.5% EBIT* 17.0 18.1 6.5% 33.6 38.2 13.7% % of sales 3.8% 4.2% 4.0% 4.4% * Before restructuring charges and non
Slide 10: Graphics: Q2 Highlights
Graphics: Q2 Highlights • Major Wins • El País invests 1.2 million euro in total digital solutions • Turkish newspaper group Dogan extends violet computer-to-plate to additional sites • Agfa Graphics China renews dealership agreement for newspaper computer-to-plate with Founder, one of the largest t
Slide 11: Agfa HealthCare
Agfa HealthCare AGFA =
Slide 12: HealthCare: Sales
HealthCare: Sales (in million Euro) Total Sales Split per Business Segment (YTD) +3.8% (+1.7%)** Classic 664 689 Radiology 23% Hardcopy +1.7% 33% Q2 359 365 (+0.8%)** Cardio 3% +6.2% Enterprise Q1 305 324 Solutions (+2.6%)** 8% CR/DR 2005 2006* PACS/RIS 14% * Including Heartlab, acquired in June ‘05
Slide 13: Service Revenues as % of HealthCare Sales
Service Revenues as % of HealthCare Sales 30.0% 25.6% 23.3% 16.8% 14.0% 10.9% 11.7% 2001 2002 2003 2004 2005 H1 '06 Target Services revenues increase as HE IT grows as part of total HealthCare sales 13 INTENDED PROGRAM - STRICTLY CONFIDENTIAL
Slide 14: HealthCare: Key Figures
HealthCare: Key Figures (in million Euro) Q2 '05 Q2 '06 % change H1 '05 H1 '06 % change Sales 359 365 1.7% 664 689 3.8% EBITDA* 54.7 70.2 28.3% 97.5 115.2 18.2% % of sales 15.2% 19.2% 14.7% 16.7% EBIT* 35.7 51.2 43.4% 58.5 76.2 30.3% % of sales 9.9% 14.0% 8.8% 11.1% * Before restructuring charges an
Slide 15: HealthCare: Q2 Highlights
HealthCare: Q2 Highlights • Strong Growth in IT • HealthCare strategy implementation continues to be on track • IT businesses continue to more than compensate for decline in traditional business • Solid revenue growth in Radiology Information Systems, Picture Archiving and Communications Systems (RI
Slide 16: Agfa Specialty Products
Agfa Specialty Products AGFA &
Slide 17: Specialty Products: Key Figures
Specialty Products: Key Figures (in million Euro) Q2 '05** Q2 '06 % change H1 '05*** H1 '06 % change Sales 44 58 31.8% 88 120 36.4% EBITDA* 5.3 16.2 x3.1 9.0 29.6 x3.3 % of sales 12.0% 27.9% 10.2% 24.7% EBIT* 3.3 14.2 x4.3 6.0 26.6 x4.4 % of sales 7.5% 24.5% 6.8% 22.2% * Before restructuring charges
Slide 18: Balance Sheet: Key Figures
Balance Sheet: Key Figures (in million Euro) Assets Liabilities 3,982 3,982 3,837 3,837 Non-current 1,561 assets 1,480 Liabilities 2,950 2,845 Current assets 2,129 2,061 Equity 1,032 992 Other assets 292 296 Dec. 2005 Q2 2006 Dec. 2005 Q2 2006 18 INTENDED PROGRAM - STRICTLY CONFIDENTIAL
Slide 19: Working Capital: Key Figures
Working Capital: Key Figures (in million Euro/days) Inventories Trade Receivables Trade Payables 1000 1000 1000 Target: 100 days Target: 70 days Target: 55 days 900 900 900 800 800 866 800 824 700 700 700 600 654 668 656* 600 600 612 * 500 500 500 400 124* 400 400 421 118* 397 114 300 300 300 200 20
Slide 20: Balance Sheet: Key Figures
Balance Sheet: Key Figures Net Financial Debt (in million Euro) Gearing Ratio (%) 66.5% 74.0% 75.9% 75.9% 65.8% 65.1% 808 753 56.0% 679 41.4% 17.0% 17.8% Q2 '05 Q4 '05 Q2 '06 Dec. Dec. Dec. Dec. Mar. June Sep. Dec. Mar June '01 '02 '03 '04 '05 '05 '05 '05 '06 '06 Net financial debt increases due to
Slide 21: Cash Flow: Q2 2006 Key Figures
Cash Flow: Q2 2006 Key Figures (in million Euro) 67 70 Net operating 18 3 cash flow -30 -12 -61* -61* -73 -91 Q1 2005 Q1 2006 Q2 2005 Q2 2006 H1 2005 H1 2006 44 25 Free -6 -19 cash flow -53 -59 -61* -61* -114 -120 Q1 2005 Q1 2006 Q2 2005 Q2 2006 H1 2005 H1 2006 (*) exceptional due to termination of
Slide 22: Details on Cost Savings Plan
Details on Cost Savings Plan AGFA =
Slide 23: Growth Strategies of the Business Groups
Growth Strategies of the Business Groups Agfa Graphics • Complete prepress solutions • Industrial inkjet and new growth markets • Target: sales of 1.9 billion Euro in 2008 Agfa HealthCare • Conventional and digital medical imaging • Hospital-IT • Target: sales of 1.7 billion Euro in 2008 Agfa Materi
Slide 24: Cost Savings Necessary for Growth Strategies
Cost Savings Necessary for Growth Strategies • Succesful transformation to an innovative provider of digital imaging and IT solutions and services • Growth strategies (e.g. inkjet, healthcare IT, materials) require a complete transformation of the business • Split in 3 independent groups to give eac
Slide 25: Cost Savings in All Areas
Cost Savings in All Areas Cost savings per business Cost savings per category group (%) (%) HealthCare 41% SG&A 53% Materials* 33% COGS 40% Graphics R&D 26% 7% Approximately 250 million Euro annual cost savings by 2008 * Split Materials over existing business groups: Graphics 33%, HealthCare 45% and
Slide 26: Examples of Projects: 1/2
Examples of Projects: 1/2 Services • Improved reliability of prepress equipment and increase of remote monitoring reduces number of customer visits to maintain and repair equipment • Service organization needs to be finetuned with new market and technology requirements Customer • Number of order lin
Slide 27: Examples of Projects: 2/2
Examples of Projects: 2/2 Film and Print • Film and print markets decreasing and prices under pressure • Headcount and non-headcount related actions required to grow both our market share and contribution Manufacturing • Cost leadership in all areas is required to remain competitive • A large part o
Slide 28: Potential Impact on Headcount
Potential Impact on Headcount As a result of the intended improvement initiatives, almost 2,000 functions worldwide may become redundant. Potential impact per region (fulltime equivalents) Europe (excl. Belgium) ~ 615 Belgium ~ 945 Rest of the world ~ 430 Information and consultation with the social
Slide 29: Questions & Answers
Questions & Answers AGFA =