Slide 1: Agfa-Gevaert Group Business Overview and Results 2007
Agfa-Gevaert Group Business Overview and Results 2007 Analyst and Investor Meetings
Slide 2: Q4 & Full Year Results 2007
O4 & Full Year Results 2007 AGFA &
Slide 3: Profit & Loss: Key Figures
Profit & Loss: Key Figures (in million Euro) % change % change Q4 '06 Q4 '07 (excl. curr.) FY '06 FY '07 (excl. curr.) Sales 927 864 -6.8% (-3.2%) 3,401 3,283 -3.5% (-0.5%) Gross profit* 342 291 -14.9% 1,299 1,158 -10.9% as a % of sales 36.9% 33.7% 38.2% 35.3% R&D -50 -50 0.0% -193 -191 -1.0% SG&A*
Slide 4: Net Financial Debt
Net Financial Debt (in million Euro) -131 million Euro 809 852 721 704 Q4 '06 Q2 '07 Q3 '07 Q4 '07 Target to decrease net financial debt by 75-100 million Euro exceeded, driven by operating result and a major improvement of working capital 4
Slide 5: Working Capital: Key Figures
Working Capital: Key Figures (in million Euro/days) Inventories Trade Receivables Trade Payables 1000 1000 1000 900 900 900 885 869 800 800 859 854 861 800 700 700 700 705 717 692 600 600 600 624 578 500 500 500 400 400 400 121 122 117 300 300 300 107 100 98 313 328 321 97 275 91 90 200 200 86 200 2
Slide 6: Main Drivers behind Key Figures
Main Drivers behind Key Figures Q4 • Sales impacted by strong Euro (all business groups) and economic slowdown in USA (Graphics) • Net financial debt 131 million Euro lower, exceeding target • Substantial reduction of working capital • Significant negative impact of raw materials (9 million Euro) FY
Slide 7: Profit & Loss: Key Figures
Profit & Loss: Key Figures (in million Euro) Q4 '06 Q4 '07 % change FY '06 FY '07 % change Recurring EBIT* 80 59 -26.3% 256 197 -23.0% Restructuring and non-recurring -122 -33 -191 -72 Operating result -42 26 65 125 92.3% Non-operating result -15 -18 -64 -63 Profit before taxes -57 8 1 62 x62 Taxes
Slide 8: Agfa Group: 2007 Sales
Agfa Group: 2007 Sales Split per Business Group (YTD) By Region (YTD) Specialty Products 8% Asia and ROW 19% HealthCare Latin America 43% 6% Europe 53% Graphics 49% NAFTA 22% Two strong business groups and a smaller niche business Half of sales in Europe; strong presence in North America and Asia (e
Slide 9: Agfa Graphics
Agfa Graphics AGFA &
Slide 10: Graphics: Product Portfolio
Graphics: Product Portfolio Software Computer- to-Film Film setter Film Analog Plates Offset Press Computer- Plate setter Digital Plates to-Plate Thermal, Polymer & Silver Proofing PC Flexo Flexo Plates Printing Flexo Press Flexo CTP Screen Screen Press Printing Screen exposure frame Screen Scanner
Slide 11: Graphics: FY'07 Sales per Business Segment
Graphics: FY’07 Sales per Business Segment 100% = 1,617 million Euro Analog Prepress 22% Digital Prepress 65% Inkjet, Software, Service 13% 11
Slide 12: Graphics: Key Figures
Graphics: Key Figures (in million Euro) % change % change Q4 '06 Q4 '07 (excl. curr.) FY '06 FY '07 (excl. curr.) Sales 444 416 -6.3% (-2.8%) 1,712 1,617 -5.6% (-2.7%) Gross profit* 139 118 -15.1% 561 499 -11.0% as a % of sales 31.3% 28.4% 32.7% 30.9% R&D -21 -19 -9.5% -77 -79 2.6% SG&A* -103 -91 -1
Slide 13: Graphics: Main Drivers behind Key Figures
Graphics: Main Drivers behind Key Figures Q4 • Sales decrease due to slowdown in USA, decline analog prepress and price competition • Recurring EBIT significantly impacted by 8 million Euro higher raw material costs, the effect of inventory reduction and inkjet losses • Substantial cash generation d
Slide 14: Graphics: Market Split of Digital Plates
Graphics: Market Split of Digital Plates Polymer Thermal plates plates 18% 72% Silver plates 10% 14
Slide 15: Graphics: Strategy and Objectives
Graphics: Strategy and Objectives • Prepress • Total solution provider, offering a full range of printing plates, equipment, software and service, based on technical innovation • Stable sales (at constant exchange rates) in a mature market • Grow in digital plates building on technology edge in high
Slide 16: Agfa HealthCare
Agfa HealthCare AGFA &
Slide 17: HealthCare: Portfolio
HealthCare: Portfolio Enterprise Solutions Establish position as Departmental Solutions global leader Extend beyond radiology Radiology Solutions • HIS/CIS Build on radiology •Image treatment •PACS Provide community-wide •Cardio systems & services, Clinical •Conventional: • Classic film Information
Slide 18: HealthCare: FY'07 Sales per Business Segment
HealthCare: FY’07 Sales per Business Segment Classic Radiology 18% Imaging IT* 25% Hardcopy 30% HealthCare IT = 34% HIS/CIS 9% CR/Modalities 18% * Includes Radiology and Cardiology IT 18
Slide 19: HealthCare: Key Figures
HealthCare: Key Figures (in million Euro) % change % change Q4 '06 Q4 '07 (excl. curr.) FY '06 FY '07 (excl. curr.) Sales 425 374 -12.0% (-8.1%) 1,452 1,392 -4.1% (-0.8%) Gross profit 190 159 -16.3% 668 594 -11.1% as a % of sales 44.8% 42.5% 46.0% 42.7% R&D -28 -29 3.6% -111 -106 -4.5% SG&A* -107 -9
Slide 20: HealthCare: Main Drivers behind Key Figures
HealthCare: Main Drivers behind Key Figures Q4 • Change in commercial policy to soften quarterly peaks and improve profitability • Continued market driven fall in highly profitable film and hardcopy • PACS sales slowed down due to anticipation of new release with additional features • Cardiology rol
Slide 21: HealthCare: Strategy and Objectives
HealthCare: Strategy and Objectives • Growth in digital sales (IT and CR) will not completely compensate the decline in the traditional film segments in 2008 • Imaging • Grow market share in hardcopy • Grow CR business also in emerging markets • Streamline portfolio and costs • IT • Grow PACS also i
Slide 22: Agfa Materials
Agfa Materials AGFA &
Slide 23: Materials: Pro Forma Sales
Materials: Pro Forma Sales (in million Euro) FY ’06 FY ‘07 Internal sales 548 479 Specialty Products 237 274 TOTAL 785 753 23
Slide 24: Specialty Products: Product Portfolio
Specialty Products: Product Portfolio • Major film applications: Printed Circuit Boards, Non-Destructive Testing, Specialty Foils and Cine 83% of revenues: cash generating and growing markets • Specialist film applications: Aerial, Micro 6% of revenues: cash generating mature markets • New specialty
Slide 25: Specialty Products: Key Figures
Specialty Products: Key Figures (in million Euro) % change % change Q4 '06 Q4 '07 (excl. curr.) FY '06 FY '07 (excl. curr.) Sales 58 74 27.6% (30.0%) 237 274 15.6% (17.3%) Gross profit 13 14 7.7% 70 67 -4.3% as a % of sales 21.7% 18.9% 29.6% 24.5% R&D -2 -2 0.0% -5 -6 20.0% SG&A* -8 -9 12.5% -29 -31
Slide 26: Specialty Products: Main Drivers behind Key Figures
Specialty Products: Main Drivers behind Key Figures Q4 • Sales increase driven by Specialty Foils and Security & Identification (Moroccan ID cards project) FY 2007 • Impact of raw materials in 2007 was 7 million Euro, partly compensated by price increases • EBIT impacted by negative mix effect 26
Slide 27: Materials: Strategy and Objectives
Materials: Strategy and Objectives • Cost leadership and operational excellence in film manufacturing enabling Materials to be the film market consolidator • Market volume decline of ±10% per year in traditional segment expected • New activities in markets which can benefit from existing know-how an
Slide 28: Corporate Actions
Corporate Actions AGFA &
Slide 29: Update on Corporate Actions
Update on Corporate Actions • Focus on cash generation and SG&A reduction to improve the company’s profitability • Program launched to reduce cost of purchased goods and services by 50 million Euro (on a run rate basis) progressively over 2008 • SG&A in HealthCare to be reduced by 5 points from pres
Slide 30: Questions & Answers
Questions & Answers AGFA &
Slide 31: BACK UP Update on AgfaPhoto
BACK UP Update on AgfaPhoto AGFA &
Slide 32: Update on AgfaPhoto
Update on AgfaPhoto • In July 2007, Agfa and AgfaPhoto Holding submitted their dispute over the purchase price to an expert dispute resolution proceeding • The independent accounting expert, Ernst & Young Ltd., has set the final purchase price at 81 million Euro • The dispute with the acquirer of th