Slide 1: Q3 2023 Results
Q3 2023 Results Agfa-Gevaert Group November 15, 2023
Slide 2: Key highlights Q3
Overall EBITDA growth driven by strong performance of the growth engines, while film business under pressure • HealthCare IT: • Strong improvement in profitability Key highlights Q3 • Digital Print & Chemicals: • Growing ZIRFON business started to contribute to profitability • Strong profitability i
Slide 3: Sales by division
Agfa-Gevaert Group Sales by division 9 m 2023 = 837 million Euro 6% Radiology Solutions HealthCare IT 36% Digital Print & Chemicals 37% Contractor Operations & Services* 21% * related to the former Offset Solutions business 3
Slide 4: Agfa-Gevaert Group key figures
Agfa-Gevaert Group in million Euro Q3 ’23 Q3 ’22 ∆% 9m’23 9m’22 ∆% Key figures re-presented (excl.curr.) re-presented (excl.curr.) Sales 280 290 -3.4% 837 829 1.0% Profit & Loss (1.3%) (3.5%) Incl. IFRS 16 Gross Profit* 85 85 0.5% 259 252 2.8% as a % of sales 30.5% 29.3% 30.9% 30.4% SG&A* -70 -79 -1
Slide 5: Agfa-Gevaert Group profit and loss
Agfa-Gevaert Group in million Euro Q3’23 Q3’22 9m’23 9m’22 Key figures re-presented re-presented Profit & Loss Adjusted EBIT* 6 -6 10 -6 Incl. IFRS 16 -5 -12 -25 -32 Restructuring/non-recurring Operating result 1 -18 -15 -38 Non-operating result -7 -5 -19 -13 Profit before taxes -6 -23 -34 -52 Taxes
Slide 6: Main drivers behind key figures Q3
Overall EBITDA growth driven by strong performance of the growth engines, while film business under pressure ▪ Excluding currency effects, topline increase of 1.3%: Main drivers behind ▪ Driven by the growth engines HealthCare IT division, ZIRFON key figures Q3 membranes and the good performance of
Slide 7: Trade Working Capital (excl. CONOPS)
Trade Working Capital (excl. CONOPS) Δ Q3 Δ 2023 Q3 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 2023 vs 2022 Q3 vs Q2 Inventories (Mio Eur) 311 327 330 307 347 -36 -16 ° DIOH in days 153 158 160 152 175 -23 -5 Trade Receivables, Contract Assets/Liabilities 134 139 146 150 130 4 -5 ° DSO in days 46 47 51 45
Slide 8: Agfa Group Free Cash Flow: positive free cash flow
Agfa Group Free Cash Flow: positive 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 cas
Slide 9: Net cash position stabilized
Net cash position stabilized Net cash position Q2’23 = Q3’23 ▪ Net cash position stable versus Q2’23 ▪ Cash flow 2024 expected to be substantially better ▪ Sufficient liquidity ▪ Continued focus on cash generation 9
Slide 10: HealthCare IT
HealthCare IT
Slide 11: HealthCare IT key figures
HealthCare IT in million Euro Q3 ’23 Q3 ’22 ∆% 9m’23 9m’22 ∆% Key figures re-presented (excl.curr.) re-presented (excl.curr.) Profit & Loss Sales 60 62 -2.2% 180 174 3.4% (3.3%) (5.8%) Incl. IFRS 16 Gross Profit* 29 28 4.9% 80 78 1.9% as a % of sales 48.2% 44.9% 44.5% 45.2% SG&A* -15 -16 -4.0% -48 -
Slide 12: HealthCare IT: strong improvement in profitability
HealthCare IT: strong improvement in profitability Main drivers behind ▪ Order book remains at healthy level: 1.4% growth in the 12 key figures Q3 months rolling order intake versus LY. FY’23 order intake is expected to be stronger than FY’22. ▪ Excluding currency effects, the top line increased by
Slide 13: Radiology Solutions
Radiology Solutions
Slide 14: Radiology Solutions sales by business segment
Radiology Solutions Sales 9 months 2023 = 309 million Euro by business segment 3% 37% Hardcopy CR/DR 60% Classic Radiology 14
Slide 15: Radiology Solutions key figures
Radiology Solutions in million Euro Q3 ’23 Q3 ’22 ∆% 9m’23 9m’22 ∆% Key figures re-presented (excl.curr.) re-presented (excl.curr.) Profit & Loss Sales 103 117 -11.6% 309 331 -6.7% Incl. IFRS 16 (-5.7%) (-3.3%) Gross Profit* 30 36 -15.2% 97 103 -6.5% as a % of sales 29.4% 30.7% 31.3% 31.3% SG&A* -24
Slide 16: Radiology Solutions: improved profitability in a soft DR market
Radiology Solutions: improved profitability in a soft DR market, medical film: continuing impact from centralized procurement practices in China and macroeconomic and geopolitical conditions ▪ Medical film performance impacted by: ▪ The gradual implementation of new centralized procurement practices
Slide 17: Digital Print & Chemicals
Digital Print & Chemicals
Slide 18: Digital Print & Chemicals sales by business segment
Digital Print & Chemicals Sales 9 months 2023 = 300 million Euro by business segment Inkjet 42% 41% Electronic Print Films and Foils 17% 18
Slide 19: Digital Print & Chemicals key figures
Digital Print & Chemicals in million Euro Q3 ’23 Q3 ’22 ∆% 9m’23 9m’22 ∆% Key figures re-presented (excl.curr.) re-presented (excl.curr.) Profit & Loss Sales 99 96 3.4% 300 273 9.7% Incl. IFRS 16 (6.8%) (11.7%) Gross Profit* 27 24 12.3% 83 74 11.2% as a % of sales 27.7% 25.6% 27.6% 27.2% SG&A* -19 -
Slide 20: DPC: growing ZIRFON business started to contribute to profitability
DPC: growing ZIRFON business started to contribute to profitability, strong profitability improvement for Digital Print, film activities under pressure ▪ Digital Print: ▪ Good performance of the inks and the high-end equipment business Main drivers behind ▪ On track with the conversion of printers o
Slide 21: Contractor Operations & Services former Offset
Contractor Operations & Services former Offset
Slide 22: New division: Contractor Operations & Services (CONOPS)
New division: Contractor Operations & Services former Offset (CONOPS) in million Euro Q3 ’23 Q3 ’22 ∆% 9m’23 9m’22 ∆% Key figures re-presented (excl.curr.) re-presented (excl.curr.) Profit & Loss Sales 18 16 11.1% 49 52 -4.6% Incl. IFRS 16 (11.9%) (-4.5%) Adjusted EBITDA* -0.2 -3.3 -93.3% 1.4 -7.2 -
Slide 23: Outlook 2023: FY'23 recovery in profitability expected versus FY'22
Outlook 2023: FY’23 recovery in profitability expected versus FY’22 Confirmation of the outlook given at Q2 2023 results publication: recovery in profitability expected FY’23 versus FY’22. Outlook 2023 outlook per division: - HealthCare IT: Order intake growth continues to be strong. As the portion
Slide 24: Sustainability @ Agfa
Sustainability @ Agfa
Slide 25: The road to 2030 & beyond
The road to 2030 & beyond Sustainable and Profitable growth Focus on our Planet ▪ Agfa’s ambition on the reduction of combined scope 1 + 2 GHG absolute emissions is set at 62% by 2030 from a 2006 base year for Belgian manufacturing sites, strongly supported by a local reinvestment plan in energy pro
Slide 26: Questions & Answers
Questions & Answers AGFA &