Agfa-gevaert Nv · EURONEXT:AGFB
Agfa-gevaert Nv — Q2 2020 Earnings Presentation
28 slides from Agfa-gevaert Nv's earnings presentation, Aug 26, 2020
Slide 1: Q2 2020 Results
Q2 2020 Results Agfa-Gevaert Group August 26, 2020
Slide 2: Key highlights
Key highlights The Imaging IT business delivered on its strategic roadmap Key highlights and substantially improved its profitability, Radiology Solutions division showed overall margin resilience Cost containment measures mitigated the COVID-19 impact on the profitability of the printing activi
Slide 3: Sales by division 1H 2020
Agfa-Gevaert Group Sales by division 1H 2020 = 832 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 Q2 ’20 Q2 ’19 ∆% HY ’20 HY ’19 ∆% Key figures (re- presented (excl.curr.) (re-presented) (re- presented) (excl.curr.) in million Euro Profit & Loss Sales 397 497 -20.2% 832 958 -13.2% Incl. IFRS 16 (-20.1%) (-13.5%) Gross Profit* 120 158 -24.2% 255 296 -14.0% as a % of sales 30.2%
Slide 5: Agfa-Gevaert Group key figures (continued)
Agfa-Gevaert Group Q2 Q2 ’19 ∆% HY ’20 HY ’19 ∆% Key figures ’20 ( re- presented) (re- presented) (re- presented) in million Euro Profit & Loss Adjusted EBIT* 16 29 -46.2% 23 39 -40.9% Incl. IFRS 16 as a % of sales Restructuring/non- -47 -10 -50 -14 recurring Operating result -32 19 -26 23 Non-opera
Slide 6: Main drivers behind key figures
Agfa-Gevaert Group The sale of part of Agfa HealthCare’s IT activities was Main drivers behind successfully concluded in May. Excluding the effects of this sale, the Group’s revenue decreased by 20.2%. The COVID- key figures 19 pandemic, the issues in the offset printing industry and the refocus o
Slide 7: Net financial debt
Agfa-Gevaert Group 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 -762 Note: Total net cash position Q2 2020 incl IFRS 16 = 677 million Euro 7
Slide 8: Pensions: increase the funding ratio, de-risk and lower the cash outs
Pensions: increase the funding ratio, de-risk and lower the cash outs 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 Decrease volati
Slide 9: Working Capital
Working Capital Indicative Opening restated balance Δ Q2 Δ 2020 Q2 2020 Q1 2020 Q4 2019 Q2 2019 evolution 2020 2020 vs 2019 Q2 vs Q1 Q2 (restated) 2020 vs 2019 Inventories (Mio Eur) 496 467 435 436 529 -32 -33 29 ° DIOH in days 137 122 111 103 125 Trade Receivables, Contract Assets/Liabilities 264 3
Slide 10: HealthCare IT
HealthCare IT
Slide 11: HealthCare IT key figures
HealthCare IT Q2 ’20 Q2 ’19 ∆% HY ’20 HY ’19 ∆% Key figures (re- presented) (excl.curr.) (re- presented) (re- presented) (excl.curr.) in million Euro Profit & Loss Sales 62 61 1.2% 117 120 -2.6% Incl. IFRS 16 (0.7%) (-3.5%) Gross Profit* 30 24 24.5% 55 47 16.4% as a % of sales 49.3% 40.1% 46.5% 39.0
Slide 12: HealthCare IT delivers on its strategic roadmap
HealthCare IT delivers on its strategic roadmap Strategic roadmap of targeted geographies and customer segments, focus on higher value revenue streams - own software Main drivers behind and professional services - supported by strong customer project execution shows positive results key figures
Slide 13: Radiology Solutions
Radiology Solutions
Slide 14: Radiology Solutions 1H 2020 sales by business segment
Radiology Solutions Sales 1H 2020 = 231 million Euro by business segment 6% Hardcopy 38% 56% CR/DR Classic Radiology 14
Slide 15: Radiology Solutions key figures
Radiology Solutions Q2 ’20 Q2 ’19 ∆% HY ’20 HY ’19 ∆% Key figures (excl.curr.) (excl.curr.) in million Euro Profit & Loss Sales 113 135 -16.2% 231 251 -8.1% Incl. IFRS 16 (-16.0%) (-8.4%) Gross Profit* 44 51 -14.9% 89 94 -5.4% as a % of sales 38.8% 38.2% 38.5% 37.4% SG&A* -22 -27 -15.4% -49 -54 -9.4
Slide 16: Radiology Solutions shows overall margin resilience
Radiology Solutions shows overall margin resilience In a Direct Radiography market that is disrupted by the Main drivers behind COVID-19 pandemic, Agfa succeeded in gaining market key figures share with its mobile DR solutions and is considerably improving the profitability of its DR product range
Slide 17: Digital Print & Chemicals
Digital Print & Chemicals
Slide 18: Digital Print & Chemicals 1H 2020 sales by business segment
Digital Print & Chemicals Sales 1H 2020 = 141 million Euro by business segment 37% Inkjet 44% Electronic Print Films and Foils 19% 18
Slide 19: Digital Print & Chemicals key figures
Digital Print & Chemicals Q2 ’20 Q2 ’19 ∆% HY HY ’19 ∆% Key figures (re- presented) (excl.curr.) ’20 (re- presented) (excl.curr.) in million Euro Profit & Loss Sales 67 94 -29.0% 141 181 -21.9% Incl. IFRS 16 (-29.1%) (-22.1%) Gross Profit* 18 30 -40.6% 39 55 -28.3% as a % of sales 26.2% 31.3% 27.9%
Slide 20: Digital Print & Chemicals COVID impacted but well positioned for rebound
Digital Print & Chemicals COVID impacted but well positioned for rebound Digital printing is impacted as large format printing equipment Main drivers behind business shows considerable weakness while sales of inks improve sequentially key figures Preparing several product initiatives in the sign
Slide 21: Offset Solutions
| \ ‘ \ Offset Solutions '
Slide 22: Offset Solutions 1H 2020 sales by business segment
Offset Solutions Sales 1H 2020 = 342 million Euro by business segment 13% Digital computer-to-plate Analog computer-to-film 87% 22
Slide 23: Offset Solutions key figures
Offset Solutions Q2 ’20 Q2 ∆% HY ’20 HY ’19 ∆% (excl.curr.) (excl.curr.) Key figures ’19 in million Euro Profit & Loss Sales 155 207 -25.1% 342 406 -15.7% Incl. IFRS 16 (-24.7%) (-15.8%) Gross Profit* 28 53 -7.9% 72 101 -28.1% as a % of sales 18.2% 25.4% 21.1% 24.8% SG&A* -29 -41 -4.7% -67 -84 -19.6
Slide 24: Offset Solutions main drivers behind key figures
Offset Solutions The Offset Solutions division’s revenue decreased by 25.1% Main drivers behind to 155 million Euro. COVID-19 had a very strong impact in the second quarter on top of the structural decline of the key figures offset markets. The pandemic causes a decrease in advertising and commerc
Slide 25: Outlook
Outlook Short term Outlook Activity level improves gradually in Q3, but pace of recovery expected to remain subdued. Margins will be impacted by increased idle time and lesser effects from government measures Increased momentum expected in Q4, if current business environment will not deteriora
Slide 26: HealthCare IT 2019 re-presented
HealthCare IT 2019 re-presented ab
Slide 27: HealthCare IT: re-presented 2019 P&L
HealthCare IT: re-presented 2019 P&L in million Euro Q1 Q2 Q3 Q4 FY 2019 Key figures re-presented 2019 2019 2019 2019 Profit & Loss Sales 59 61 60 61 241 In May 2020, the Group closed Gross Profit* 22 25 25 24 96 the sale of part of its as a % of sales 37.8% 40.1% 41.6% 39.2% 39.7% HealthCare IT act
Slide 28: Questions & Answers
Questions & Answers AGFA &