Agfa-gevaert Nv · EURONEXT:AGFB
Agfa-gevaert Nv — FY2020 Earnings Presentation
32 slides from Agfa-gevaert Nv's earnings presentation, Mar 10, 2021
Slide 1: Q4/FY 2020 Results
Q4/FY 2020 Results Agfa-Gevaert Group March 10, 2021
Slide 2: Advancing transformation
Advancing transformation Successful sale of part of the HealthCare IT activities - pension funding and de-risking actions well on track Key highlights Imaging IT business doubled its adjusted EBITDA Strong performance of other growth engines, including Direct Radiography, inkjet consumables an
Slide 3: Gradual improvement of activity
Gradual improvement of activity Key highlights Q4 Strong profitability improvement for Digital Print & Chemicals and return to positive adjusted EBITDA for Offset Solutions Continued double-digit top line growth for Direct Radiography Increased price and volume pressure for medical film due to
Slide 4: Agfa-Gevaert Group sales by division 2020
Agfa-Gevaert Group Sales by division 12 m 2020 = 1,709 million Euro 17% 41% Offset Solutions 14% Radiology Solutions HealthCare IT Digital Print and Chemicals 28% 4
Slide 5: Agfa-Gevaert Group
Agfa-Gevaert Group Q4 ’20 Q4 ’19 ∆% 12m’20 12m’19 ∆% Key figures in million Euro (re-presented (excl.curr.) (re-presented) (re-presented) (excl.curr.) Profit & Loss Sales 467 529 -11.7% 1,709 1,975 -13.5% (-9.5%) (-12.7%) Incl. IFRS 16 Gross Profit* 127 156 -18.3% 494 590 -16.3% as a % of sales 27.3
Slide 6: Agfa-Gevaert Group
Agfa-Gevaert Group Q4’20 Q4 ’19 12m’20 12m’19 Key figures in million Euro ( re-presented) (re-presented) (re-presented) Profit & Loss Adjusted EBIT* 13 25 36 77 Incl. IFRS 16 Restructuring/non-recurring -30 -84 -88 -111 Operating result -17 -59 -52 -34 Non-operating result -5 -7 -31 -36 Profit befor
Slide 7: Main drivers behind key figures (FY '20)
Agfa-Gevaert Group Main drivers behind The Group’s revenue decreased by 12.7% (excl. curr.). The Imaging IT and DR growth engines performed well, despite key figures (FY ‘20) the effects of COVID-19 on the business environment. The issues in the offset printing industry, as well as the COVID-19 im
Slide 8: Positive free cash flow before extra pension funding due to significant WC reduction
FY : Positive free cash flow before extra pension funding due to significant WC reduction Adjusted Adjusted Free Free EBITDA free cash flow cash flow cash flow before extra funding pensions Adjusted free cash flow equals the sum of net cash from operating & investing activities excluding the impact
Slide 9: Agfa-Gevaert Group has a strong cash position
Agfa-Gevaert Group has a strong cash position Net financial debt excl IFRS 16, in million Euro 137 194 161 106 69 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2,20 Q3'20 Q4'20 -616 -581 -762 Note: Total net cash position Q4 2020 incl IFRS 16 = 502 million Euro 9
Slide 10: Pensions: execution of pension de-risking measures on track
Pensions: execution of pension de-risking measures on track Objective is to reduce the total net Agfa post-employment and long term benefit liabilities to below 700 million Euro Objectives over the next 4 years, decreasing the balance sheet volatility De-risk funded plans Plan is to use 350 mill
Slide 11: Working Capital adjustment delivered
Working Capital adjustment delivered Δ Q4 Δ 2020 Q4 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 2020 vs 2019 Q4 vs Q3 Inventories (Mio Eur) 389 464 496 467 435 -46 -75 ° DIOH in days 115 134 137 124 113 Trade Receivables, Contract Assets/Liabilities 271 269 264 307 344 -73 2 ° DSO in days 52 59 60 63 58 Tr
Slide 12: HealthCare IT
HealthCare IT
Slide 13: HealthCare IT
HealthCare IT Q4 ’20 Q4 ’19 ∆% 12m’20 12m’19 ∆% Key figures (re-presented) (excl.curr.) (re-presented) (re-presented) (excl.curr.) in million Euro Profit & Loss Sales 59 61 -2.8% 230 241 -4.6% Incl. IFRS 16 (1.8%) (-3.0%) Gross Profit* 21 24 -9.9% 101 96 5.5% as a % of sales 36.4% 39.2% 43.9% 39.7%
Slide 14: Main drivers behind key figures (FY '20)
Robust project revenues in North America positively Main drivers behind influenced the results of the business. key figures (FY ‘20) In spite of the uncertainties due to the COVID-19 situation, the outlook for value creation in the Imaging IT solutions business remains very positive. In line w
Slide 15: Radiology Solutions
Radiology Solutions
Slide 16: Radiology Solutions 12m 2020 sales by business segment
Radiology Solutions Sales 12m 2020 = 485 million Euro by business segment 5% Hardcopy 38% 57% CR/DR Classic Radiology 16
Slide 17: Radiology Solutions
Radiology Solutions Q4 ’20 Q4 ’19 ∆% 12m’20 12m’19 ∆% Key figures (excl.curr.) (excl.curr.) in million Euro Profit & Loss Sales 136 153 -11.1% 485 536 -9.4% Incl. IFRS 16 (-9.1%) (-8.3%) Gross Profit* 43 61 -28.8% 172 201 -14.6% as a % of sales 31.9% 39.8% 35.3% 37.5% SG&A* -26 -28 -7.9% -98 -108 -8
Slide 18: Radiology Solutions: Medical film volume decrease, DR growth
Radiology Solutions: Medical film volume decrease, DR growth Main drivers behind Agfa’s Direct Radiography business grew by double digits, driven by its innovative mobile DR solutions. key figures (FY’20) Agfa managed the CR range well to keep the profit margins intact. In order to improve its c
Slide 19: Digital Print & Chemicals
Digital Print & Chemicals
Slide 20: Digital Print & Chemicals 12m 2020 sales by business segment
Digital Print & Chemicals Sales 12m 2020 = 289 million Euro by business segment 37% Inkjet 44% Electronic Print Films and Foils 19% 20
Slide 21: Digital Print & Chemicals
Digital Print & Chemicals Q4 ’20 Q4 ’19 ∆% 12m’20 12m’19 ∆% Key figures (re-presented) (excl.curr.) (re-presented) (excl.curr.) in million Euro Profit & Loss Sales 79 89 -11.9% 289 355 -18.6% Incl. IFRS 16 (-10.7%) (-18.1%) Gross Profit* 23 23 0.5% 81 101 -19.6% as a % of sales 29.1% 25.5% 28.0% 28.
Slide 22: Digital Print & Chemicals on track to recovery
Digital Print & Chemicals on track to recovery In digital printing, inks for sign and display applications as well as inks for industrial applications recovered well. The large format Main drivers behind inkjet printing equipment business continues to show weakness but order intake has turned posi
Slide 23: Offset Solutions
| \ ‘ \ Offset Solutions '
Slide 24: Offset Solutions
Offset Solutions Q4 ’20 Q4 ’19 ∆% 12m’20 12m’19 ∆% (excl.curr.) (excl.curr.) Key figures in million Euro Profit & Loss Sales 193 226 -14.3% 704 843 -16.5% Incl. IFRS 16 (-12.2%) (-15.5%) Gross Profit* 40 48 -17.9% 141 193 -27.1% as a % of sales 20.6% 21.5% 20.0% 22.9% SG&A* -33 -41 -20.0% -131 -163
Slide 25: Offset Solutions performance improved in Q4
Offset Solutions performance improved in Q4 Excluding currency effects, revenue decreased by 15.5% due Main drivers behind to COVID-19 related effects - including adverse price/mix effects - and the structural decline of the offset markets. key figures (FY’20) The pandemic causes a decrease in adv
Slide 26: Gradual improvement expected in 2021
Gradual improvement expected in 2021 Due to the continuing impact of COVID-19 and inflationary Outlook pressure, the Agfa-Gevaert Group expects a subdued first half of the year, followed by a substantial recovery in the second semester. In the second half of the year, the Group expects substanti
Slide 27: Pensions
Pensions AGFA &
Slide 28: Pension Status (4 material countries)
Pension Status (4 material countries) Excluding Belgian DC Plans 2019 2020 ∆ Funded status in million Euro Funded Status (1068) (900) 168 Obligations 2041 1863 178 Assets 973 963 -10 28
Slide 29: Pension cost and cash outflow (4 material countries)
Pension cost and cash outflow (4 material countries) Excluding Belgian DC Plans Cost and cash outflow in million Euro 2019 2020 2021 (Est) Pension cost in EBIT expected Pension Cost in EBIT 21 23 24 to increase and net interest cost expected to decrease Net interest cost 21 14 8 versus 2020 Non recu
Slide 30: Sustainability @ Agfa
Sustainability @ Agfa
Slide 31: Accelerating UN SDG implementation: the road to 2030 & beyond
Accelerating UN SDG implementation: the road to 2030 & beyond Our mission sustainable and profitable growth Our priorities SDG 3: Good health and well-being SDG 4: Quality education SDG 5: Achieve gender equality and empower all women SDG 9: Promote sustainable industrialization and foster innov
Slide 32: Questions & Answers
Questions & Answers AGFA &