Slide 1: Agfa-Gevaert Group Business Overview and 2006 Results
Agfa-Gevaert Group Business Overview and 2006 Results Analyst and Investor Meetings March-April 2007
Slide 2: Agfa Group: 2006 Sales
Agfa Group: 2006 Sales 100% = 3,401 million Euro By Business Group By Region Specialty Products 7% Asia and ROW 19% HealthCare Latin America 43% 6% Europe 50% Graphics 50% NAFTA 25% Two strong business groups and a smaller niche business Half of sales in Europe; strong presence in North America and
Slide 3: Agfa Graphics
Agfa Graphics AGFA &
Slide 4: Graphics: Product Portfolio
Graphics: Product Portfolio Software Filmsetter Film Plates Printing P Computer- R to-Film Press E P R E Computer- to-Plate S S Platesetter Work- station Proofing Digital Inkjet Printing P R Inks E S S Scanner 4
Slide 5: Graphics: Printing Technologies and Market Sizes
Graphics: Printing Technologies and Market Sizes Total Printing Market Size: 710 billion Euro Offset: Flexo: Screen: Gravure: Digital: 300 bn Euro 150 bn Euro 120 bn Euro 30 bn Euro 110 bn Euro Market & Value Ink and water are Ink is picked up by Ink is pressed Ink is passed from Toner or ink is jet
Slide 6: Graphics: Digital Printing Market
Graphics: Digital Printing Market Total Market Size: 110 billion Euro Toner Based 60 bn Inkjet >50 bn Desktop narrow format 42 bn Industrial Wide Format 8 bn Single Pass NEW Aqueous Solvent UV 2006 5 bn Euro 3 bn Euro 0,4 bn Euro 2010 5 bn Euro 3 bn Euro 2 bn Euro 10 bn Euro • Low ink prices, Low vo
Slide 7: Graphics: Industrial Inkjet Portfolio
Graphics: Industrial Inkjet Portfolio :Dotrix Productivity Single Pass sqm/hour High speed inkjet :Mpress 1000 Flatbed Hybrid digital/screen printing 500 :Anapurna 400 Large format inkjet 100 :GrandSherpa 50 Universal Poster printing 10 Roll-to-roll, -to-sheet Sheets Rigids, Sheets, Roll-fed Roll-fe
Slide 8: Graphics: 2006 Sales
Graphics: 2006 Sales 100% = 1,712 million Euro By Product Group By Region Inkjet, Software, Service Asia and ROW 14% 21% Latin America Analog Prepress 7% Europe Digital Prepress 28% 54% 58% NAFTA 18% Positive pricing effect offset by discontinuation of unprofitable business and currency effects Soli
Slide 9: Agfa HealthCare
Agfa HealthCare AGFA &
Slide 10: HealthCare: Radiology Product Portfolio
HealthCare: Radiology Product Portfolio Film Processor Conventional X-ray Film X-ray Table Conventional Radiography Impax CR Softcopy Reusable CR Digitizer & Phosphor plate NX Workstation DR-Mammo CT Dry printer Film MR US DR NM PET Hardcopy 10
Slide 11: HealthCare: Strategy
HealthCare: Strategy Healthcare IT Solutions Departmental Solutions Establish position as global leader Radiology Solutions Extend beyond radiology Provide community-wide systems & services, Clinical Build on radiology Information Systems, EPR Provide image and healthcare management Provide image ma
Slide 12: HealthCare: Convergence into Electronic Patient Record
HealthCare: Convergence into Electronic Patient Record The HealthCare Community Referring Physicians Payors Assisted Living Home Care Administration Pharmacists Billing Planning Reporting Emergency Nursing Room Surgery Intensive Electronic Accounting Care Patient Record Laboratory Cardiology Treatin
Slide 13: HealthCare: 2006 Sales
HealthCare: 2006 Sales 100% = 1,452 million Euro By Product Group By Region Classic Asia & ROW Radiology 16% 20% Hardcopy 33% Latin America Cardio 5% 3% Europe Enterprise 48% Solutions 8% HealthCare IT = 32% NAFTA CR/DR PACS/RIS 31% 15% 21% Strong growth of PACS/RIS, CR/DR and Enterprise Solutions H
Slide 14: HealthCare: Service Revenues
HealthCare: Service Revenues Service revenues as % of total HealthCare sales 30.0% 25.2% 23.3% 16.8% 14.0% 10.9% 11.7% 2001 2002 2003 2004 2005 2006 Target Service revenues increase with growing importance of HealthCare IT 14
Slide 15: Agfa Specialty Products
Agfa Specialty Products AGFA &
Slide 16: Specialty Products: Product Portfolio
Specialty Products: Product Portfolio • Aerial, Micro 7% of revenues: cash generating mature markets • Printed Circuit Boards, Non-Destructive Testing, Specialty Foils and Cine 88% of revenues: cash generating and growing markets • Identification & Security and Advanced Materials 5% of revenues: new
Slide 17: Demerger of Agfa-Gevaert NV
Demerger of Agfa-Gevaert NV AGFA &
Slide 18: Demerger of Agfa-Gevaert NV
Demerger of Agfa-Gevaert NV • Split in three independent, publicly traded companies • Representing activities of Agfa Graphics, Agfa HealthCare and Agfa Materials • Better positioning to pursue strategic objectives with direct access to capital markets and use of own cash flow • Three companies have
Slide 19: Rationale for Demerger
Rationale for Demerger Complete independence is • Technology shifts and changing market the best option to pursue conditions the strategic objectives and continue to play a leading • Successful transformation to an role in the respective innovative provider of digital imaging industries and IT solut
Slide 20: Agfa Graphics
Agfa Graphics • Innovative Solutions • Digital plate systems • Enterprise and project software • UV inks and high end industrial inkjet systems Agfa Graphics • Sales: • Market leadership and growth –2006: 1.7 billion Euro • Increased quality and value –Target 2008: 1.9 billion Euro selling in prepre
Slide 21: Agfa HealthCare
Agfa HealthCare • Expertise in medical imaging • Conventional and digital imaging • Extension from radiology to other hospital departments Agfa HealthCare • Complete portfolio for managing complex images • Sales: –2006: 1.5 billion Euro • Hospital IT –Target 2008: 1.7 billion Euro • Link with Imagin
Slide 22: Agfa Materials
Agfa Materials • Cost leadership and operational excellence in film manufacturing • Exclusive supply agreements with Agfa Graphics and Agfa HealthCare Agfa Materials • Consolidation of film production • Sales: volumes Target 2008: 700 million Euro (incl. sales to Graphics • Market leader in industri
Slide 23: Restructuring Plan Update
Restructuring Plan Update AGFA &
Slide 24: Cost Savings Plan in All Areas
Cost Savings Plan in All Areas Cost Savings per Cost Savings per Category (%) Business Group (%) HealthCare 41% SG&A 53% Materials* 33% COGS 40% Graphics R&D 26% 7% Approximately 250 million Euro annual cost savings by 2008 As a result of the intended improvement initiatives, almost 2,000 functions
Slide 25: Update on Cost Savings Plan
Update on Cost Savings Plan Scope of the plan: approx. 250 million Euro annual cost savings by 2008 • Total restructuring charges of ±250 million Euro • Around 160 million Euro of restructuring charges were booked in 2006. • Remaining part will be booked in 2007 and 2008 • All negotiations concluded
Slide 26: Update on AgfaPhoto
Update on AgfaPhoto AGFA &
Slide 27: Impact of AgfaPhoto Liquidation
Impact of AgfaPhoto Liquidation • In 2004, Agfa’s photo business was divested to AgfaPhoto, which entered insolvency in 2005 • Several claims were filed by former Agfa employees • Correct and complete information was provided in due time to all employees and relevant consultative bodies • Agfa acted
Slide 28: 2006 Results
2006 Results AGFA &
Slide 29: Profit & Loss: Key Figures (in million Euro)
Profit & Loss: Key Figures (in million Euro) Q4 '05 Q4 '06 % change FY '05 FY '06 % change Sales 913 927 1.5% 3,308 3,401 2.8% Gross profit 339 342 0.9% 1,212 1,299 7.2% Gross profit margin 37.2% 36.9% 36.6% 38.2% Sales growth Q4 +3.9% excluding currency effect Full year sales growth of 2.8% (No cur
Slide 30: Profit & Loss: Key Figures (in million Euro)
Profit & Loss: Key Figures (in million Euro) Q4 '05 Q4 '06 % change FY '05 FY '06 % change Gross profit 339 342 0.9% 1,212 1,299 7.2% R&D -48 -50 4.2% -191 -193 1.1% SG&A* -207 -218 5.3% -801 -832 3.9% as a % of sales 22.7% 23.5% 24.2% 24.5% Other operating items* 2 6 -1 -18 Recurring EBITDA** 127 1
Slide 31: Profit & Loss: Key Figures (in million Euro)
Profit & Loss: Key Figures (in million Euro) Q4 '05 Q4 '06 % change FY '05 FY '06 % change Recurring EBIT* 86 80 -7.0% 219 256 16.9% Restructuring and non-recurring -8 -122 -87 -191 Operating result 78 -42 -153.8% 132 65 -50.8% Non-operating result -15 -15 -25 -64 Profit before taxes 63 -57 107 1 Ta
Slide 32: Raw Materials
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Slide 33: Graphics: Key Figures (in million Euro)
Graphics: Key Figures (in million Euro) Q4 '05** Q4 '06 % change FY '05*** FY '06 % change Sales 465 444 -4.5% 1,733 1,712 -1.2% Recurring EBITDA* 35.8 33.7 -5.9% 141.8 140.6 -0.8% % of sales 7.7% 7.6% 8.2% 8.2% Recurring EBIT* 14.8 17.7 19.6% 61.8 72.6 17.5% % of sales 3.2% 4.0% 3.6% 4.2% * Before
Slide 34: HealthCare: Key Figures (in million Euro)
HealthCare: Key Figures (in million Euro) Q4 '05 Q4 '06 % change FY '05 FY '06 % change Sales 407 425 4.4% 1,405 1,452 3.3% Recurring EBITDA* 88.2 80.3 -9.0% 224.9 239.4 6.4% % of sales 21.7% 18.9% 16.0% 16.5% Recurring EBIT* 70.2 60.3 -14.1% 150.9 161.4 7.0% % of sales 17.3% 14.2% 10.7% 11.1% * Bef
Slide 35: Specialty Products: Key Figures (in million Euro)
Specialty Products: Key Figures (in million Euro) Q4 '05** Q4 '06 % change FY '05*** FY '06 % change Sales 41 58 41.5% 170 237 39.4% EBITDA* 7.4 5.6 -24.3% 21.0 45.3 115.7% % of sales 18.0% 9.7% 12.4% 19.1% EBIT* 5.4 4.6 -14.0% 14.0 39.3 180.6% % of sales 13.1% 7.9% 8.2% 16.6% * Before restructuring
Slide 36: Balance Sheet: Key Figures (in million Euro)
Balance Sheet: Key Figures (in million Euro) Assets Liabilities 3,982 3,982 3,832 3,832 Non-current 1,561 assets 1,407 Liabilities 2,950 2,889 Current assets 2,129 2,071 Equity 1,032 933 Other 292 354 assets Dec. Dec. 2006 Dec. 2005 Dec. 2006 2005 36
Slide 37: Working Capital: Key Figures (in million Euro/days)
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 900 900 900 885 800 800 854 800 700 700 744 700 600 600 600 624 576 586 500 500 500 400 400 400 400 369 375 300 300 300 200 200 84 86 200 7
Slide 38: Balance Sheet: Key Figures
Balance Sheet: Key Figures Net Financial Debt (in million Euro) Gearing Ratio (%) 66.5% 74.0%75.9% 75.9% 73.8%75.5% 65.8% 65.1% 56.0% 753 41.4% 726 704 679 17.0% 17.8% Dec. '05 H1 '06 Q3 '06 Dec. '06 Dec. Dec. Dec. Dec. Mar. June Sep. Dec. Mar June Sep. Dec. '01 '02 '03 '04 '05 '05 '05 '05 '06 '06 '
Slide 39: Cash Flow: Key Figures (in million Euro)
Cash Flow: Key Figures (in million Euro) 143 61* 107 Net operating 100 82 cash flow -6 Free 65 cash 37 2 flow -34 -61* -24 Q4 2005 Q4 2006 2005 2006 * Exceptional due to termination of securitisation 39
Slide 40: Earnings and Dividend per Share (in Eurocent)
Earnings and Dividend per Share (in Eurocent) Earnings per Share Dividend per Share 244 139 25** 60 50 50 50 50 2004 2005 2006 12 * 2002 2003 -15* 2002 2003 2004 2005 2006 Proposed -114 * Number of shares used for calculation : 125,603,444 in 2005 and 124,781,170 In 2006 ** Extraordinary dividend li
Slide 41: Questions & Answers
Questions & Answers AGFA &