Agfa-gevaert Nv · EURONEXT:AGFB
Agfa-gevaert Nv — FY2021 Earnings Presentation
36 slides from Agfa-gevaert Nv's earnings presentation, Mar 9, 2022
Slide 1: FY 2021 Results
FY 2021 Results Agfa-Gevaert Group March 9, 2022
Slide 2: Increased EBITDA despite inflationary headwinds - Advancing transformation
Increased EBITDA despite inflationary headwinds - Advancing transformation Group topline 3% above 2020, with contrasted divisional performances Key highlights FY’21 Resilient gross margin performance due to continued successful price actions and strict cost management – despite significant infla
Slide 3: Continued improvement of activity
Continued improvement of activity Key highlights Q4’21 Inflationary pressure continued to increase Very strong profitability for HealthCare IT Strong topline growth for Digital Print & Chemicals, but profitability affected by manufacturing inefficiencies and inflationary pressure Offset Solu
Slide 4: Agfa-Gevaert Group sales by division
Agfa-Gevaert Group Sales by division 12 m 2021 = 1,760 million Euro 19% 43% Offset Solutions 12% Radiology Solutions HealthCare IT Digital Print and Chemicals 26% 4
Slide 5: Agfa-Gevaert Group key figures
Agfa-Gevaert Group Q4 ’21 Q4 ’20 ∆% 12m’21 12m’20 ∆% Key figures in million Euro (excl.curr.) (excl.curr.) Profit & Loss Sales 484 467 3.7% 1,760 1,709 3.0% (1.5%) (3.4%) Incl. IFRS 16 Gross Profit* 128 127 0.6% 498 494 0.8% as a % of sales 26.5% 27.3% 28.3% 28.9% SG&A* -95 -91 4.3% -363 -355 2.2% a
Slide 6: Agfa-Gevaert Group profit and loss
Agfa-Gevaert Group Q4’21 Q4’20 12m’21 12m’20 Key figures in million Euro Profit & Loss Adjusted EBIT* 11 13 42 36 Incl. IFRS 16 Restructuring/non-recurring -28 -30 -33 -88 Operating result -17 -17 9 -52 Non-operating result 0 -5 -8 -31 Profit before taxes -18 -22 1 -83 Taxes 0 0 -15 -15 Profit from
Slide 7: Main drivers behind key figures (FY '21)
Agfa-Gevaert Group Main drivers behind Group topline 3% above 2020, with contrasted divisional performances key figures (FY ‘21) DPC and Offset Solutions: continued improvement of top line due to successful price increase actions and volume increases Radiology Solutions: impacted by lingering
Slide 8: Positive free cash flow before extra pension funding
Positive free cash flow before extra pension funding (in million Euro) Adjusted Adjusted Free Free EBITDA free cash flow cash flow before cash flow extra funding pensions Adjusted free cash flow equals the sum of net cash from operating & investing activities excluding the impact of acquisitions and
Slide 9: Strong net cash position
Strong net cash position Net cash position excl IFRS 16, in million Euro 762 616 581 577 425 398 396 -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 Note: Total B/S net cash position Q4 2021 incl IFRS 16 = 325 million Euro 9
Slide 10: Working Capital decreased in % of sales
Working Capital decreased in % of sales Δ Q4 Δ 2021 Q4 2021 Q3 2021 Q2 2021 Q1 2021 Q4 2020 2021 vs 2020 Q4 vs Q3 Inventories (Mio Eur) 418 465 445 421 389 29 -47 ° DIOH in days 119 134 131 127 115 4 -15 Trade Receivables, Contract Assets/Liabilities 283 270 255 266 271 12 14 ° DSO in days 53 55 52
Slide 11: HealthCare IT
HealthCare IT
Slide 12: HealthCare IT
HealthCare IT Q4 ’21 Q4 ’20 ∆% 12m’21 12m’20 ∆% Key figures (excl.curr.) (excl.curr.) in million Euro Profit & Loss Sales 59 59 -0.1% 219 230 -4.9% Incl. IFRS 16 (-2.9%) (-3.9%) Gross Profit* 30 21 38.3% 102 101 0.7% as a % of sales 50.3% 36.4% 46.5% 43.9% SG&A* -14 -15 -6.3% -52 -58 -9.7% as a % of
Slide 13: Main drivers behind key figures (FY '21)
Main drivers behind key figures (FY ‘21) Very profitable Q4 and order book remains at healthy level Mainly driven by improved sales mix and service efficiencies, the gross profit margin reached 46.5% of revenue Adjusted EBITDA grew 27.4% to 30.2 million Euro. On track to reach profitability
Slide 14: Radiology Solutions
Radiology Solutions
Slide 15: Radiology Solutions sales by business segment
Radiology Solutions Sales 12m 2021 = 464 million Euro by business segment 4% Hardcopy 39% 57% CR/DR Classic Radiology 15
Slide 16: Radiology Solutions
Radiology Solutions Q4 ’21 Q4 ’20 ∆% 12m’21 12m’20 ∆% Key figures (excl.curr.) (excl.curr.) in million Euro Profit & Loss Sales 128 136 -5.6% 464 485 -4.5% Incl. IFRS 16 (-7.7%) (-4.1%) Gross Profit* 41 43 -5.7% 157 172 -8.5% as a % of sales 31.9% 31.9% 33.9% 35.3% SG&A* -26 -26 0.3% -101 -98 2.7% a
Slide 17: Radiology Solutions: DR impacted by aftermath of COVID boost
Radiology Solutions: DR impacted by aftermath of COVID boost, medical film still COVID impacted Main drivers behind Medical film: gradual demand recovery, impact of China procurement process change key figures (FY’21) DR: market demand subdued in 2021 Gross margin slightly decreased to 33.9% t
Slide 18: Digital Print & Chemicals
Digital Print & Chemicals
Slide 19: Digital Print & Chemicals sales by business segment
Digital Print & Chemicals Sales 12m 2021 = 330 million Euro by business segment 43% 39% Inkjet Electronic Print Films and Foils 18% 19
Slide 20: Digital Print & Chemicals
Digital Print & Chemicals Q4 ’21 Q4 ’20 ∆% 12m’21 12m’20 ∆% Key figures (excl.curr.) (excl.curr.) in million Euro Profit & Loss Sales 93 79 18.4% 330 289 13.9% Incl. IFRS 16 (17.3%) (14.4%) Gross Profit* 21 23 -9.5% 87 81 7.0% as a % of sales 22.2% 29.1% 26.3% 28.0% SG&A* -16 -14 17.8% -58 -53 9.8%
Slide 21: Digital Print & Chemicals on track to recovery
Digital Print & Chemicals on track to recovery Main drivers behind Continued recovery from COVID impact - price increase key figures (FY’21) implementations in almost all business areas to tackle inflationary pressure Performance of inkjet as well as of the future-oriented activities (e.g. Orgac
Slide 22: Green Hydrogen Membranes
Green Hydrogen Membranes
Slide 23: The hydrogen market: Agfa's focus on green hydrogen
The hydrogen market: Agfa’s focus on green hydrogen with alkaline electrolysis H2 H2 H2 GREY BLUE GREEN Produced from fossil fuels (gas, coal) Grey hydrogen combined with Produced from renewable energy - Steam Methane Reforming Carbon Capture Usage and Storage sources (solar, wind, hydro) with - Coa
Slide 24: Green hydrogen market development: project momentum is growing
The green hydrogen market development: project momentum is growing Green Hydrogen Market development 20501 Green hydrogen is key to reach net-zero emissions target by (in GW installed electrolyzer capacity) 2050: net zero milestone1for 2030 is estimated at 200/250 GW electrolyzer capacity 4.000 3.
Slide 25: Electrolysis technologies: advanced alkaline electrolysis has a strong position
The electrolysis technologies: advanced alkaline electrolysis (Zirfon) has a strong position Advanced Advantages advanced alkaline electrolysis (Zirfon) versus PEM1 Alkaline (Zirfon) PEM1 Readiness Commercial Commercial Is mature and brings the same performance (dynamic range, Development Mature
Slide 26: Zirfon: Agfa's high performance membrane
Zirfon: Agfa’s high performance membrane High performance membrane for advanced alkaline electrolysis, key to lower the cost of green hydrogen Proven experience in alkaline electrolyzers provides a solid and mature technology base > 10 years use in industrial electrolyzers > 350 MW installed bas
Slide 27: Offset Solutions
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Slide 28: Offset Solutions
Offset Solutions Q4 ’21 Q4 ’20 ∆% 12m’21 12m’20 ∆% (excl.curr.) (excl.curr.) Key figures in million Euro Profit & Loss Sales 204 193 5.5% 748 704 6.3% Incl. IFRS 16 (3.0%) (6.5%) Gross Profit* 37 40 -7.1% 153 141 8.6% as a % of sales 18.1% 20.6% 20.4% 20.0% SG&A* -35 -33 6.8% -133 -131 1.6% as a % o
Slide 29: Offset Solutions: increased impact of cost inflation
Offset Solutions: increased impact of cost inflation Revenue increase vs 2020 due to partial recovery of the Main drivers behind offset markets and price increases to tackle cost inflation key figures (FY’21) Price increase actions are in place with main impact in 2022 due to contractual commitm
Slide 30: Outlook 2022: further improvement of activity but continued inflationary pressure
Outlook 2022: further improvement of activity but continued inflationary pressure Inflationary pressure expected to increase in 2022 Outlook Strong price actions in place, but more required and to be expected All businesses expected to improve topline in 2022 HealthCare IT will have a consol
Slide 31: Pensions
Pensions
Slide 32: Pension Status: strong decrease in net liability
Pension Status (4 material countries): strong decrease in net liability Excluding Belgian DC Plans 2020 2021 ∆ Funded status in million Euro Strong decrease in net liability Funded Status (900) (670) 230 thanks to all pension actions Obligations 1,863 1,767 (95) Assets 963 1,098 135 32
Slide 33: Pension cost and cash outflow: strong decrease in cash outflow expected
Pension cost and cash outflow (4 material countries): strong decrease in cash outflow expected Excluding Belgian DC Plans Cost and cash outflow in million Euro 2020 2021 2022 (Est) Pension cost in EBIT expected Pension Cost in EBIT 23 24 19 to decrease and net interest cost expected to increase Net
Slide 34: Sustainability @ Agfa
Sustainability @ Agfa
Slide 35: The road to 2030 & beyond: sustainable and profitable growth
The road to 2030 & beyond: sustainable and profitable growth For a safe, diverse, inclusive and stimulating work environment • On-going refresh of safety programs, thorough root causes analysis, observation tours, … • Brain based safety program in maintenance (Mortsel), 5S pilot programs launched fo
Slide 36: Questions & Answers
Questions & Answers AGFA &