Agfa-gevaert Nv · EURONEXT:AGFB
Agfa-gevaert Nv — FY 2023 Earnings Presentation
30 slides from Agfa-gevaert Nv's earnings presentation, Mar 13, 2024
Slide 1: FY 2023 Results Agfa-Gevaert Group
FY 2023 Results Agfa-Gevaert Group March 13, 2024
Slide 2: Group EBITDA increases by 52%, powered by its growth engines
Group EBITDA increases by 52%, powered by its growth engines • HealthCare IT: • Strong improvement in profitability • Continued investments in innovative solutions • Digital Print & Chemicals: • Growing ZIRFON business started to contribute to profitability • Profitable growth for Digital Print desp
Slide 3: Growth engines delivered significant increase in profitability
Growth engines delivered significant increase in profitability Positive top line growth Significant EBITDA growth Δ +0.5% Δ*+3.2% Δ +52.0% € 1,150 m € 1,145 m € 76 m € 50 m 249 244 31 27 409 372 19 3 425 461 38 47 HE IT HE IT 68 68 DPC 3 DPC -8 2023 2022 2023 2022 Radiology Radiology Conops Conops Δ
Slide 4: Future oriented businesses delivered profitable growth
Future oriented businesses delivered profitable growth FY 2023 vs FY 2020 sales* FY 2023 vs FY 2022 EBITDA* Δ Digital Solutions and ZIRFON** +24% Δ Film and legacy -6% € 1083 m EBITDA* of Digital Solutions and € 1005 m ZIRFON** + € 32 m → strong acceleration of the profitable growth 560 451 Digital
Slide 5: Agfa-Gevaert Group: Profit & Loss
Agfa-Gevaert Group: Profit & Loss in million Euro Q4 ’23 Q4 ’22 ∆% FY’23 FY’22 ∆% re-presented (excl.curr.) re-presented (excl.curr.) Sales 313 316 -0.9% 1150 1145 0.5% (2.1%) (3.2%) Gross Profit* 100 95 6.3% 359 346 3.7% as a % of sales 32.0% 29.9% 31.2% 30.2% Operational -80 -89 -10.4% -329 -347 -
Slide 6: Agfa-Gevaert Group: Profit & Loss
Agfa-Gevaert Group: Profit & Loss in million Euro Q4’23 Q4’22 12m’23 12m’22 re-presented re-presented Adjusted EBIT* 21 5 31 -1 Restructuring/non-recurring -13 -106 -39 -138 Operating result 7 -101 -8 -139 Non-operating result -7 -5 -26 -18 Profit before taxes -1 -106 -35 -157 Taxes -2 -20 -16 -29 R
Slide 7: Group Working Capital: significant decrease from 32% to 27%
Group Working Capital in m € (excl CONOPS): significant decrease from 32% to 27% thanks to successful inventory reduction TRADE WORKING CAPITAL INVENTORIES 342 367 354 341 307 330 327 311 296 268 152 160 158 153 133 32 33 32 31 27 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q4 2022 Q1 2023 Q2 2023 Q3 20
Slide 8: Free cashflow Q4 2023: positive FCF thanks to improvement in Working Capital
Free cashflow Q4 2023: positive FCF thanks to significant improvement in Working Capital ▪ Positive FCF in Q4 ▪ Sufficient liquidity ▪ Continued focus on cash generation 8
Slide 9: Free cashflow FY 2023
Free cashflow FY 2023 ▪ Positive FCF in 2H ▪ Sufficient liquidity ▪ Continued focus on cash generation 9
Slide 10: HealthCare IT
HealthCare IT 10
Slide 11: HealthCare IT – Highlights
HealthCare IT – Highlights • Continued investments in innovative solutions • Enterprise Imaging Cloud launched at RSNA 2023 – first significant Cloud contract signed in North America • Introduction of Streaming Client at RSNA 2023 • Acceleration of innovation efforts • To focus on cloud, web streami
Slide 12: HealthCare IT: FY sales and EBITDA
HealthCare IT: FY sales and EBITDA FY 2023 sales = € 249 m FY 2023 EBITDA = € 31 m Δ +2.2% Δ*+4.9% Δ +16.0% 249 31 27 244 2023 2022 2023 2022 Δ*: excluding currency effect • Top line increase of 4.9% excl currency with own IP • Gross margin improved based on a strong 2H due to increasing in the mix
Slide 13: HealthCare IT: Profit & Loss
HealthCare IT: Profit & Loss in million Euro Q4 ’23 Q4 ’22 ∆% 12m’23 12m’22 ∆% re-presented (excl.curr.) re-presented (excl.curr.) Sales 70 70 -0.8% 249 244 2.2% (2.6%) (4.9%) Gross Profit* 36 32 13.0% 116 110 5.1% as a % of sales 51.4% 45.1% 46.5% 45.2% Operational -22 -22 -1.0% -92 -91 1.2% Expens
Slide 14: Digital Print and Chemicals
Digital Print and Chemicals 14
Slide 15: Digital Printing Solutions – Highlights
Digital Printing Solutions – Highlights • Inks grow with 14% driven by higher sales across all segments as well as ongoing ink swap program for Inca installed base • Global strategic partnership between Agfa and EFI accelerates profitable growth • First year mid 2024 - mid 2025: € 15 - 20 m extra sa
Slide 16: Green Hydrogen Solutions – Highlights
Green Hydrogen Solutions – Highlights “ ZIRFON is the only membrane making the • For over 100 customers in 30 countries, ZIRFON is rapidly ” production of green hydrogen affordable. becoming the preferred choice • Successful industrial ramp-up of the ZIRFON production • Under construction in Mortsel
Slide 17: Digital Print & Chemicals: FY sales and EBITDA
Digital Print & Chemicals: FY sales and EBITDA FY 2023 sales = € 409 m FY 2023 EBITDA = € 19 m Δ +9.8% 409 Δ*+12.0% Δ +443.4% 372 163 161 19 71 55 175 156 3 2023 2022 2023 2022 Digital Print Electronic Print Films and Foils • Growth driven by Digital Printing Solutions (+12%), ZIRFON and • Price inc
Slide 18: Digital Print & Chemicals: Profit & Loss
Digital Print & Chemicals: Profit & Loss in million Euro Q4 ’23 Q4 ’22 ∆% 12m’23 12m’22 ∆% re-presented (excl.curr.) re-presented (excl.curr.) Sales 109 99 10.1% 409 372 9.8% (12.7%) (12.0%) Gross Profit* 28 18 52.7% 111 93 19.5% as a % of sales 25.8% 18.6% 27.1% 24.9% Operational -27 -27 0.7% -108
Slide 19: Radiology Solutions
Radiology Solutions AGFA &
Slide 20: Radiology Solutions – Highlights
Radiology Solutions – Highlights • Leader in operationalizing embedded AI at point of care for operational & clinical assistance • Based on automated pathologies detection • Smart XR: AI for X-ray equipment operation assistance • ScanXR: AI for assistance to clinicians • Further extension of ScanXR
Slide 21: Radiology Solutions: FY sales and EBITDA
Radiology Solutions: FY sales and EBITDA FY 2023 sales = € 425 m FY 2023 EBITDA = € 38 m Δ -7.9% Δ*-4.5% 461 425 Δ -20.2% 162 181 47 280 38 263 2023 2022 2023 2022 Medical Film CR/DR • Medical film: continued impact from central procurement • Gross profit margin decreased due to the issues in the me
Slide 22: Radiology Solutions: Profit & Loss
Radiology Solutions: Profit & Loss in million Euro Q4 ’23 Q4 ’22 ∆% 12m’23 12m’22 ∆% re-presented (excl.curr.) re-presented (excl.curr.) Sales 116 130 -11.0% 425 461 -7.9% (-7.7%) (-4.5%) Gross Profit* 37 45 -18.3% 133 148 -10.1% as a % of sales 31.6% 34.4% 31.4% 32.2% Operational -28 -32 -14.5% -11
Slide 23: Contractor Operations & Services - former Offset (CONOPS)
Contractor Operations & Services - former Offset (CONOPS) 23
Slide 24: CONOPS: FY sales and EBITDA
CONOPS: FY sales and EBITDA FY 2023 sales = € 68 m FY 2023 EBITDA = € 3 m Δ -0.3 % Δ*-0.1% Δ +131.2% 3 2023 2022 68 68 -8 2023 2022 Stranded costs in ▪ CONOPS represents the supply of film and chemicals as well as a set of support services Q4 FY delivered by Agfa to Offset. € mio ▪ As of Q2, CONOPS
Slide 25: Outlook 2024: Continuous profit improvement driven by growth engines
Outlook 2024: Continuous profit improvement driven by growth engines Outlook Continuation of trends: continued growth for the growth engines and further profitability improvements. As usual, due to seasonality reasons, a slower start of 2024 is expected, followed by a stronger 2H with further impact
Slide 26: Sustainability at Agfa
Sustainability at Agfa 26
Slide 27: The road to 2030 & beyond
The road to 2030 & beyond Sustainable and Profitable growth Focus on our Planet ▪ Reinvestment plan for energy production in Belgium is on track → reduction of combined scope 1 + 2 GHG absolute emissions set at 62% by 2030 from a 2006 base year for Belgian manufacturing sites considering the revised
Slide 28: Pension Update
Pension Update 28
Slide 29: Pension Status (4 material countries) Excluding Belgian DC Plans
Pension Status (4 material countries) Excluding Belgian DC Plans Improvement of funded status mainly thanks to sale Offset Solutions in million Euro FY’22 FY’23 Est FY’24 Total cash out remained stable due to high inflation of salaries in BE in 2022 (= basis contributions 2023) Funded status (493) (
Slide 30: Questions and answers
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