Agfa-gevaert Nv · EURONEXT:AGFB
Agfa-gevaert Nv — Q3 2020 Earnings Presentation
29 slides from Agfa-gevaert Nv's earnings presentation, Nov 13, 2020
Slide 1: Q3 2020 Results
Q3 2020 Results Agfa-Gevaert Group November 13, 2020
Slide 2: Key highlights
Key highlights Key highlights Good margin performance of Imaging IT business and Digital Print & Chemicals division, in spite of COVID-19 dynamics Continued strong COVID-19 impact on offset printing activities Medical film volumes affected by slow-down in non-COVID related medical imaging acti
Slide 3: Sales by division 9m 2020
Agfa-Gevaert Group Sales by division 9m 2020 = 1,242 million Euro 17% 41% Offset Solutions 14% Radiology Solutions HealthCare IT Digital Print and Chemicals 28% 3
Slide 4: Agfa-Gevaert Group key figures
Agfa-Gevaert Group Q3 ’20 Q3 ’19 ∆% 9m’20 9m’19 ∆% Key figures in million Euro (re- presented (excl.curr.) (re-presented) (re- presented) (excl.curr.) Profit & Loss Sales 410 488 -16.0% 1,242 1,446 -14.2% (-13.7%) (-13.6%) Incl. IFRS 16 Gross Profit* 112 138 -19.0% 367 434 -16.6% as a % of sales 27.
Slide 5: Agfa-Gevaert Group profit and loss
Agfa-Gevaert Group Q3’20 Q3 ’19 ∆% 9m’20 9m’19 ∆% Key figures in million Euro ( re- presented) (re- presented) (re- presented) Profit & Loss Adjusted EBIT 0 13 -100% 23 52 -56.1% Incl. IFRS 16 Restructuring/non- -9 -12 -58 -27 recurring Operating result -9 1 -35 25 Non-operating result -9 -10 -25 -2
Slide 6: Main drivers behind key figures
Agfa-Gevaert Group Q3 revenue decreased YoY by 13,7%, sequential Main drivers behind improvement over Q2 key figures All activities are top line impacted, with more significant decreases in Offset and DPC EBITDA down YoY by 52% , caused by offset printing situation Imaging IT strongly ahead
Slide 7: Free cash flow: extra pension funding in Q3
Free cash flow: 112 million Euro extra pension funding in Q3 in million Euro 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 of acquisitio
Slide 8: 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 -616 -762 Note: Total net cash position Q3 2020 incl IFRS 16 = 532 million Euro 8
Slide 9: 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 Objectives and long term benefit liabilities to below 700 million Euro over the next 4 years, decreasing the balance sheet volatility De-risk funded plans Plan is to use 350 mill
Slide 10: Working Capital is stable Q on Q, key production adjustments in Q4
Working Capital is stable Q on Q, key production adjustments in Q4 Δ Q3 Δ 2020 Q3 2020 Q2 2020 Q1 2020 Q4 2019 Q3 2019 2020 vs 2019 Q3 vs Q2 Inventories (Mio Eur) 464 496 467 435 511 -47 -32 ° DIOH in days 134 137 124 - - Trade Receivables, Contract Assets/Liabilities 269 264 307 344 326 -56 6 ° DSO
Slide 11: HealthCare IT
HealthCare IT
Slide 12: HealthCare IT key figures
HealthCare IT Q3 ’20 Q3 ’19 ∆% 9m’20 9m’19 ∆% Key figures (re- presented) (excl.curr.) (re- presented) (re- presented) (excl.curr.) in million Euro Profit & Loss Sales 54 60 -10.5% 171 180 -5.2% Incl. IFRS 16 (-7.1%) (-4.7%) Gross Profit* 25 25 -0,3% 79 72 10.6% as a % of sales 46.4% 41.6% 46.5% 39.
Slide 13: Main drivers behind key figures
Main drivers behind In spite of the uncertainties due to the COVID-19 situation, the outlook for value creation in the Imaging IT solutions key figures business remains strongly positive. The strategy to target specific customer segments and geographies and to prioritize higher value revenue str
Slide 14: Radiology Solutions
Radiology Solutions
Slide 15: Radiology Solutions 9m 2020 sales by business segment
Radiology Solutions Sales 9m 2020 = 350 million Euro by business segment 5% Hardcopy 38% 57% CR/DR Classic Radiology 15
Slide 16: Radiology Solutions key figures
Radiology Solutions Q3 ’20 Q3 ’19 ∆% 9m’20 9m’19 ∆% Key figures (excl.curr.) (excl.curr.) in million Euro Profit & Loss Sales 119 132 -9.9% 350 383 -8.7% Incl. IFRS 16 (-7.2%) (-8.0%) Gross Profit* 39 46 -14.5% 128 140 -8.4% as a % of sales 33.1% 34.9% 36.7% 36.6% SG&A* -24 -26 -7.9% -72 -79 -8.9% a
Slide 17: Radiology Solutions: DR performing well but medical film volumes affected
Radiology Solutions: DR performing well but medical film volumes affected DR continued to grow in a market disrupted by COVID-19. Main drivers behind Agfa succeeded in gaining market share and is considerably key figures improving the profitability of its DR product range. In a rapidly declining
Slide 18: Digital Print & Chemicals
Digital Print & Chemicals
Slide 19: Digital Print & Chemicals 9m 2020 sales by business segment
Digital Print & Chemicals Sales 9m 2020 = 211 million Euro by business segment 36% Inkjet 45% Electronic Print Films and Foils 19% 19
Slide 20: Digital Print & Chemicals key figures
Digital Print & Chemicals Q3 ’20 Q3 ’19 ∆% 9m’20 9m’19 ∆% Key figures (re- presented) (excl.curr.) (re- presented) (excl.curr.) in million Euro Profit & Loss Sales 69 85 -18.4% 211 266 -20.8% Incl. IFRS 16 (-17.1%) (-20.5%) Gross Profit* 19 23 -18.6% 58 78 -25.5% as a % of sales 27.1% 27.2% 27.7% 29
Slide 21: 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 key figures but order intake has
Slide 22: Offset Solutions
| \ ‘ \ Offset Solutions '
Slide 23: Offset Solutions 9m 2020 sales by business segment
Offset Solutions Sales 9m 2020 = 510 million Euro by business segment 13% Digital computer-to-plate Analog computer-to-film 87% 23
Slide 24: Offset Solutions key figures
Offset Solutions Q3 ’20 Q3 ∆% 9m’20 9m’19 ∆% (excl.curr.) (excl.curr.) Key figures ’19 in million Euro Profit & Loss Sales 168 212 -20.6% 510 617 -17.3% Incl. IFRS 16 (-18.5%) (-16.7%) Gross Profit* 29 44 -34.8% 101 145 -30.2% as a % of sales 17.0% 20.8% 19.8% 23.4% SG&A* -31 -39 -20.8% -98 -123 -20
Slide 25: Offset Solutions main drivers behind key figures
Offset Solutions Main drivers behind Excluding currency effects, revenue decreased by 18.5% to 168 million Euro due to COVID-19 related effects - including key figures adverse price/mix effects - and the structural decline of the offset markets. The pandemic causes a decrease in advertising and co
Slide 26: Recovery expected in Q4 outlook
Recovery expected in Q4 Q3 performance strongly impacted by offset printing Outlook situation. However, gradual improvement of the business performances of several divisions later in the quarter. Q4 expected to be stronger, although we remain cautious due to the current uncertainty. FY 2020 EB
Slide 27: Sustainability @ Agfa
Sustainability @ Agfa
Slide 28: Agfa's sustainability objectives in development
Agfa's sustainability objectives in development Agfa is fully committed to do its part for the 2030 Agenda for Sustainable Development. We have selected the SDGs that are most relevant for our operations and we are strengthening our strategy to address them, by setting ambitious targets that go beyo
Slide 29: Questions & Answers
Questions & Answers AGFA &