Slide 1: Q2/HY 2022 Results
Q2/HY 2022 Results Agfa-Gevaert Group August 24, 2022
Slide 2: Top line growth, cost inflation impact on margins, positive evolution net pension debt
Top line growth, cost inflation impact on margins, positive evolution net pension debt Top line growth driven by DPC and Offset Solutions Key highlights Q2 Order book HealthCare IT at very healthy level – strong growth in order intake Gross profit decreased due to inflationary pressure and vol
Slide 3: Agfa-Gevaert Group: Sales by division 6 months 2022
Agfa-Gevaert Group Sales by division 6 months 2022 = 893 million Euro 20% 43% Offset Solutions 13% Radiology Solutions HealthCare IT Digital Print and Chemicals 24% 3
Slide 4: Agfa-Gevaert Group key figures
Agfa-Gevaert Group in million Euro Q2 ’22 Q2 ’21 ∆% 6m’22 6m’21 ∆% Key figures (excl.curr.) (excl.curr.) Sales 469 441 6.4% 893 836 6.7% Profit & Loss (1.4%) (2.3%) Incl. IFRS 16 Gross Profit* 137 135 1.0% 260 252 3.1% as a % of sales 29.2% 30.7% 29.1% 30.1% SG&A* -96 -90 6.6% -193 -180 7.6% as a %
Slide 5: Agfa-Gevaert Group key figures profit and loss
Agfa-Gevaert Group in million Euro Q2’22 Q2’21 6m’22 6m’21 Key figures Adjusted EBIT* 16 25 20 24 Profit & Loss -14 3 -23 2 Restructuring/non-recurring Incl. IFRS 16 Operating result 2 28 -3 27 Non-operating result -11 -3 -9 -4 Profit before taxes -9 25 -13 23 Taxes -4 -9 -7 -14 Profit -13 15 -20 9
Slide 6: Top line growth, cost inflation impact on margins partly mitigated by price actions
Top line growth, cost inflation impact on margins partly mitigated by price actions Main drivers behind Top line increased by 6.4% versus Q2 2021: key figures Q2 Growth was mainly driven by volume increases in DPC and price actions in Offset Solutions HealthCare IT: order book at very healthy
Slide 7: Free cash flow
Free cash flow 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 *) ADJUSTED for the impact of
Slide 8: Net cash position: impacted by working capital, Inca acquisition and share buy-back
Net cash position: impacted by seasonal increase in working capital, the Inca acquisition and the share buy-back Net cash position excl IFRS 16, in million Euro 762 616 581 577 425 398 396 329 188 -106 -69 -137 -194 -161 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2,20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q
Slide 9: Working Capital: impacted by cost inflation, supply chain issues and Inca acquisition
Working Capital: impacted by cost inflation, supply chain issues and the Inca acquisition Δ Q2 Δ 2022 Q2 2022 Q1 2022 Q4 2021 Q3 2021 Q2 2021 Q1 2021 2022 vs 2021 Q2 vs Q1 Inventories (Mio Eur) 536 477 418 465 445 421 91 59 ° DIOH in days 147 134 119 134 131 127 16 13 Trade Receivables, Contract Ass
Slide 10: Update Pensions
Update Pensions AGFA &
Slide 11: Update Pension Status 1H 2022: substantial improvement of funded status
Update Pension Status 1H 2022: substantial improvement of funded status (material countries excluding Belgian DC Plans) 2019 2020 2021 HY 2022 Funded status in million Euro * Delta of € (142) m vs year end 2021 due Funded Status (1,068) (900) (670) (528) to: • impact of ‘Remeasurements’ of € (129) m
Slide 12: Update Pension cost and cash outflow 1H 2022
Update Pension cost and cash outflow 1H 2022: decrease in cash outflow (material countries excluding Belgian DC Plans) Cost and cash outflow in million Euro 2019 2020 2021 HY 2022 Pension cash outflow 2020 and Pension Cost in EBIT 21 23 24 10 2021 impacted by the actions related to pension de-riskin
Slide 13: HealthCare IT
HealthCare IT
Slide 14: HealthCare IT key figures
HealthCare IT in million Euro Q2 ’22 Q2 ’21 ∆% 6m’22 6m’21 ∆% Key figures (excl.curr.) (excl.curr.) Sales 57 56 2.8% 112 111 1.2% Profit & Loss (-4.4%) (-4.8%) Incl. IFRS 16 Gross Profit* 26 25 3.7% 51 50 1.0% as a % of sales 45.8% 45.4% 45.3% 45.4% SG&A* -15 -12 22.3% -30 -26 18.1% as a % of sales
Slide 15: Main drivers behind key figures Q2
Main drivers behind Top line reached 57 million Euro following a slower Q1 2022, with increasing sales in North America. key figures Q2 In spite of supply chain issues for hardware components, sales are expected to pick up in 2H Order book HealthCare IT at very healthy level – strong growth in
Slide 16: Radiology Solutions
Radiology Solutions
Slide 17: Radiology Solutions 6 months 2022 sales by business segment
Radiology Solutions Sales 6 months 2022 = 215 million Euro by business segment 3% Hardcopy 40% 57% CR/DR Classic Radiology 17
Slide 18: Radiology Solutions key figures
Radiology Solutions in million Euro Q2 ’22 Q2 ’21 ∆% 6m’22 6m’21 ∆% Key figures (excl.curr.) (excl.curr.) Sales 114 121 -5.9% 215 220 -2.0% Profit & Loss (-11.5%) (-6.8%) Incl. IFRS 16 Gross Profit* 37 45 -18.2% 68 77 -12.2% as a % of sales 32.6% 37.5% 31.4% 35.1% SG&A* -26 -26 -0.9% -52 -50 2.6% as
Slide 19: Radiology Solutions: medical film heavily impacted by COVID lockdowns in China
Radiology Solutions: medical film heavily impacted by COVID lockdowns in China, DR impacted by market volatility Main drivers behind The COVID lockdowns in China, the geopolitical situation and slower than normal volumes in some export markets key figures Q2 weighed heavily on the medical film bus
Slide 20: Digital Print & Chemicals
Digital Print & Chemicals
Slide 21: Digital Print & Chemicals 6 months 2022 sales by business segment
Digital Print & Chemicals Sales 6 months 2022 = 178 million Euro by business segment 37% Inkjet 48% Electronic Print Films and Foils 15% 21
Slide 22: Digital Print & Chemicals key figures
Digital Print & Chemicals in million Euro Q2 ’22 Q2 ’21 ∆% 6m’22 6m’21 ∆% Key figures (excl.curr.) (excl.curr.) Sales 98 81 20.9% 178 154 15.3% Profit & Loss (18.2%) (12.8%) Incl. IFRS 16 Gross Profit* 26 23 10.1% 50 46 8.4% as a % of sales 26.1% 28.7% 28.0% 29.8% SG&A* -17 -14 21.1% -33 -28 17.7% a
Slide 23: Digital Printing and Zirfon well positioned for future growth
Digital Print & Chemicals: Digital Printing and Zirfon well positioned for future growth Digital printing: Main drivers behind Inks as well as the large format inkjet printing equipment business continued to grow, clearly exceeding pre-COVID levels: the larger printers order book has key figures
Slide 24: Offset Solutions
| \ ‘ \ Offset Solutions '
Slide 25: Offset Solutions key figures
Offset Solutions in million Euro Q2 ’22 Q2 ’21 ∆% 6m’22 6m’21 ∆% (excl.curr.) (excl.curr.) Key figures Sales 199 183 9.2% 388 352 10.3% Profit & Loss (4.3%) (5.8%) Incl. IFRS 16 Gross Profit* 48 41 14.8% 91 79 15.6% as a % of sales 23.8% 22.7% 23.5% 22.4% SG&A* -34 -33 3.0% -69 -66 4.2% as a % of sa
Slide 26: Offset Solutions performance improved, price actions in place
Offset Solutions performance improved, price actions in place Main drivers behind Top line improved by 9.2% compared to Q2’21, fueled by successful price increases and increased focus on high-value regions. key figures Q2 Gross profit margin improved from 22.7% of revenue in the second quarter o
Slide 27: Continued inflationary pressure, though better 2H expected
Continued inflationary pressure, though better 2H expected Continued impact of cost inflation, supply chain issues, the Outlook uncertain geopolitical and economic situation and potential COVID lockdowns expected in the coming quarters. All necessary actions are being taken to operate in an incr
Slide 28: Sustainability @ Agfa
Sustainability @ Agfa
Slide 29: The road to 2030 & beyond: sustainable and profitable growth
The road to 2030 & beyond: sustainable and profitable growth For a safe work environment • Refresh of safety programs, thorough root causes analysis, … • Brain based safety program in maintenance (Mortsel) • Roll out 5S program in DPC - 25 % accidents with min. one day lost in first half year 2022
Slide 30: Questions & Answers
Questions & Answers AGFA &