Agfa-gevaert Nv · EURONEXT:AGFB
Agfa-gevaert Nv — Q2 2021 Earnings Presentation
34 slides from Agfa-gevaert Nv's earnings presentation, Aug 25, 2021
Slide 1: Q2/HY 2021 Results
Q2/HY 2021 Results Agfa-Gevaert Group August 25, 2021
Slide 2: Continued improvement of activity
Continued improvement of activity Key highlights Q2 Quarter over quarter improvements for all divisions Adjusted EBITDA 29% higher than in second quarter of 2020 Inflationary pressure partially mitigated by price actions – heavier impact expected in second half of the year Pension de-risking
Slide 3: Sales by division 6 months 2021
Agfa-Gevaert Group Sales by division 6 months 2021 = € 836 m 19% 42% Offset Solutions 13% Radiology Solutions HealthCare IT Digital Print and Chemicals 26% 3
Slide 4: Agfa-Gevaert Group key figures
Agfa-Gevaert Group Q2 ’21 Q2 ’20 ∆% 6m’21 6m’20 ∆% Key figures in million Euro (excl.curr.) (excl.curr.) Profit & Loss Sales 441 397 11.1% 836 832 0.6% (13.5%) (3.2%) Incl. IFRS 16 Gross Profit* 135 120 13.0% 252 255 -1.2% as a % of sales 30.7% 30.2% 30.1% 30.7% SG&A* -90 -82 10.0% -180 -179 0.4% as
Slide 5: Agfa-Gevaert Group profit and loss
Agfa-Gevaert Group Q2’21 Q2 ’20 6m’21 6m’20 Key figures in million Euro Profit & Loss Adjusted EBIT* 25 16 24 23 Incl. IFRS 16 Restructuring/non-recurring 3 -47 2 -49 Operating result 28 -31 27 -27 Non-operating result -3 -9 -4 -17 Profit before taxes 25 -40 23 -43 Taxes -9 -5 -14 -7 Profit from con
Slide 6: Quarter over quarter improvement for all divisions
Quarter over quarter improvement for all divisions All divisions showed quarter over quarter improvements. Main drivers behind HealthCare IT continued to enhance its position as a leading key figures Q2 Imaging IT software vendor. Digital Print & Chemicals continued to recover from the COVID-1
Slide 7: Free cash flow Agfa-Gevaert Group Q2 2021
Free cash flow Agfa-Gevaert Group Q2 2021 (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 acquisitions and disposal
Slide 8: Free cash flow Agfa-Gevaert Group HY 2021
Free cash flow Agfa-Gevaert Group HY 2021 (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 acquisitions and disposal o
Slide 9: The Agfa-Gevaert Group has a strong cash position
The Agfa-Gevaert Group has a strong cash position Net cash position excl IFRS 16, in million Euro 762 616 581 577 425 -106 -69 -137 -194 -161 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2,20 Q3'20 Q4'20 Q1'21 Q2'21 Note: Total B/S net cash position Q2 2021 incl IFRS 16 = € 349 m 9
Slide 10: Working Capital: stable as % despite seasonal WC build up
Working Capital: stable as % despite seasonal WC build up Δ Q2 Δ 2021 Q2 2021 Q1 2021 Q4 2020 Q3 2020 Q2 2020 2021 vs 2020 Q2 vs Q1 Inventories (Mio Eur) 445 421 389 464 496 -50 24 ° DIOH in days 131 127 115 134 137 Trade Receivables, Contract Assets/Liabilities 255 266 271 269 264 -9 -11 ° DSO in d
Slide 11: Update Pensions
Update Pensions AGFA &
Slide 12: Pensions: €350 m program completed
Pensions: ‘€ 350 m program’ completed The ‘€ 350 m pension program’ is now completed. Objectives In total, the funded plans are close to 100% funded (IFRS wise, some overfunding in the UK and underfunding in De-risk funded plans Belgium and US). The predictable German plan will remain unfunded
Slide 13: Pensions: €350 m program completed
Pensions: ‘€ 350 m program’ completed in million 2020 2021 total Euro Overview extra pension contributions Belgium 37 9 46 2020-2021 UK 67 104 170 US 114 114 Sweden 16 16 * buy-in = an insurance policy removing the risk of insufficient funds in return for a Total 218 129 347 premium paid at the star
Slide 14: Update Pension Status 1H 2021: substantial improvement funded status
Update Pension Status 1H 2021: substantial improvement funded status (material countries excluding Belgian DC Plans) 2019 2020 1H 2021 ∆ 2020/1H2021 Funded status in million Euro * Delta of € 211 m due to: Funded Status (1,068) (900) (689) 211* - employer contributions of € 148 m (of which 35 recurr
Slide 15: Update Pension cost and cash outflow 1H 2021
Update Pension cost and cash outflow 1H 2021 (material countries excluding Belgian DC Plans) Cost and cash outflow in million Euro 2019 2020 1H 2021 FY 2021 (Est) Pension cash outflow 2020 and Pension Cost in EBIT 21 23 12 23 2021 impacted by the actions related to pension de-risking. Net interest c
Slide 16: Pension Outlook: cash outs to decrease
Pension Outlook: cash outs to decrease (material countries excluding Belgian DC Plans) Funded status, P&L in million Euro 2021 (Est) 2022 (Est) 2023 (Est) 2024 (Est) 2025 (Est) 2026 (Est) and cash outs Key assumptions: Funded Status (675) (648) (621) (594) (568) (542) - Discount rate HY 21 used - No
Slide 17: HealthCare IT
HealthCare IT
Slide 18: HealthCare IT
HealthCare IT Q2 ’21 Q2 ’20 ∆% 6m’21 6m’20 ∆% Key figures (excl.curr.) (excl.curr.) in million Euro Profit & Loss Sales 56 62 -9.7% 111 117 -5.6% Incl. IFRS 16 (-6.8%) (-1.9%) Gross Profit* 25 30 -16.9% 50 54 -7.8% as a % of sales 45.4% 49.3% 45.4% 46.5% SG&A* -12 -14 -14.0% -26 -29 -13.2% as a % of
Slide 19: Main drivers behind key figures Q2
Main drivers behind The division performed according to expectations in Q2, beating Q1 revenue and EBITDA. Q2 20 benefited strongly from the key figures Q2 revenue and profit recognition of a very large project in North America. Agfa HealthCare’s order book remains at a very healthy level. The d
Slide 20: Radiology Solutions
Radiology Solutions
Slide 21: Radiology Solutions 6 months 2021
Radiology Solutions Sales 6 months 2021 = € 220 m by business segment 4% Hardcopy 39% 57% CR/DR Classic Radiology 21
Slide 22: Radiology Solutions
Radiology Solutions Q2 ’21 Q2 ’20 ∆% 6m’21 6m’20 ∆% Key figures (excl.curr.) (excl.curr.) in million Euro Profit & Loss Sales 121 113 7.3% 220 231 -4.8% Incl. IFRS 16 (9.7%) (-2.2%) Gross Profit* 45 44 3.7% 77 89 -13.2% as a % of sales 37.5% 38.8% 35.1% 38.5% SG&A* -26 -22 15.7% -50 -49 3.8% as a %
Slide 23: Radiology Solutions: DR growth, medical film still COVID impacted
Radiology Solutions: DR growth, medical film still COVID impacted Main drivers behind After a weak Q1, significantly better performance in Q2. key figures Q2 DR continued to grow double digit. Medical film volumes still impacted by COVID-19 in Latin America, Russia, South Africa and India. Pri
Slide 24: Digital Print & Chemicals
Digital Print & Chemicals
Slide 25: Digital Print & Chemicals 6 months 2021
Digital Print & Chemicals Sales 6 months 2021 = € 154 m by business segment 36% Inkjet 45% Electronic Print Films and Foils 19% 25
Slide 26: Digital Print & Chemicals
Digital Print & Chemicals Q2 ’21 Q2 ’20 ∆% 6m’21 6m’20 ∆% Key figures (excl.curr.) (excl.curr.) in million Euro Profit & Loss Sales 81 67 21.1% 154 141 9.0% Incl. IFRS 16 (23.3%) (10.9%) Gross Profit* 23 18 32.5% 46 39 16.3% as a % of sales 28.7% 26.2 % 29.8% 27.9% SG&A* -14 -12 16.2% -28 -27 4.7% a
Slide 27: Digital Print & Chemicals continued to recover
Digital Print & Chemicals continued to recover Inks as well as the large format inkjet printing equipment business continued to recover in the higher end of the market. Main drivers behind Rolling out several product initiatives for the rebound: key figures Q2 Recently introduced fast Jeti Tau
Slide 28: Offset Solutions
| \ ‘ \ Offset Solutions '
Slide 29: Offset Solutions
Offset Solutions Q2 ’21 Q2 ‘20 ∆% 6m’21 6m’20 ∆% (excl.curr.) (excl.curr.) Key figures in million Euro Profit & Loss Sales 183 155 17.8% 352 342 2.7% Incl. IFRS 16 (20.1%) (5.3%) Gross Profit* 41 28 47.0% 79 72 9.0% as a % of sales 22.7% 18.2% 22.4% 21.1% SG&A* -33 -29 11.8% -66 -67 -2.1% as a % of
Slide 30: Offset Solutions performance improved, price actions in place
Offset Solutions performance improved, price actions in place The division’s top line improved by 20.1% (excl curr) compared to Q2 20. Apart from the partial recovery of the offset markets, the increase Main drivers behind was fueled by price actions. In spite of this revenue increase, the key fig
Slide 31: Volume improvement but continued inflationary pressure
Volume improvement but continued inflationary pressure Outlook Agfa expects business volume growth/recovery in the second half of 2021. In that period, adjusted EBITDA is expected to be more heavily impacted by inflationary pressure and by the structural decline in the Offset Solutions division.
Slide 32: Sustainability @ Agfa
Sustainability @ Agfa
Slide 33: The road to 2030 & beyond: sustainable and profitable growth
The road to 2030 & beyond: sustainable and profitable growth For a safe, diverse, inclusive and stimulating work environment • On-going refresh of safety programs & thorough root causes analysis • Increasing visibility of accidents to management • New learning and awareness raising material on D&I F
Slide 34: Questions & Answers
Questions & Answers AGFA &