Agfa-gevaert Nv · EURONEXT:AGFB
Agfa-gevaert Nv — H1 2003 Earnings Presentation
27 slides from Agfa-gevaert Nv's earnings presentation, Aug 21, 2003
Slide 1: Half year results 2003
Half year results 2003 Ludo Verhoeven Press Conference August 21st 2003 2003 0
Slide 2: Trends in turnover (in mio Euros)
Trends in turnover (in mio Euros) Exclusive of currency effects -10.7% 2,378 2,378 - 2.8% 2,124 2,312 2Q 1,191 1,241 2Q 1,097 1,241 -4.0% -11.6% 1Q 1,027 1,137 1,121 1,137 1Q -9.7% -1.4% 1H'03 1H'02 1H'03 1H'02 A continuous large currency impact. Excluding currency effects, y-o-y sales somewhat weak
Slide 3: Sales per region (YTD June 2003)
Sales per region (YTD June 2003) ASPAC* 17.7% ∆ on previous year, excl. currency effect: ● Europe -6.5% Europe 51.6% ● Nafta +0.2% NAFTA ● Aspac* +0% 26.7% ● Latam +11.8% LATAM 4.0% * Including Africa 2
Slide 4: P&L: Key figures (in mio Euros)
P&L: Key figures (in mio Euros) Q1 ‘03 Q2 ‘03 Q2 ‘02 H1’03 H1’02 Sales 1,027 1,097 1,241 2,124 2,378 -11.6% -10.7% COGS 576 636 707 1,212 1,351 -10.0% -10.3% Gross profit 451 461 534 912 1,027 -13.7% -11.2% Gross profit margin 43.9% 42.0% 43.0% 42.9% 43.2% Gross profit margin remains at high level.
Slide 5: P&L: Key figures (in mio Euros)
P&L: Key figures (in mio Euros) Q1 ‘03 Q2 ‘03 Q2’02 H1’03 H1’02 Gross profit 451 461 534 912 1,027 -13.7% -11.2% SG&A 273 272 299 545 601 -9.0% -9.3% R&D 58 61 60 119 122 +1.7% -2.5% Other operating expenses of 35 24 67 59 118 which: - goodwill 10 10 27* 20 40* - restructuring and non-recurring 8 14
Slide 6: Horizon: Staff levels (FTEs)
5 JU NE 20 0 1 AU 21151 TO LO PA GI NT C A 344 K/ SE IF ER HO T RI 277 ZO N 20 DE 01 CE M 733 BE R 20 01 21039 M IT RA HO RI 391 ZO N 20 DE 02 CE M 2178 BE R 20 CO 02 N SO LI 19252 DA HO TI RI ON Horizon: Staff levels (FTEs) ZO N 192 Q1 /2 CO 00 NS 3 M OL A 265 ID RC AT H IO 20 N 03 + W UX 19179 IP
Slide 7: Sales trends per business group
Sales trends per business group (excl. currency effects) CI GS 896 - 3.8% 931 HE +4.1% 780 749 441 472 -6.6% -12.0% 533 405 387 469 +4.7% Q2 302 Q1 263 -12.9% 455 459 -0.9% 375 +3.6% 362 206 -10.8% 231 H1 '03 H1 '02 H1 '03 H1 '02 H1 '03 H1 '02 Continuous weakness in CI, Graphics markets still depres
Slide 8: Consumer Imaging: Key figures (in mio Euros)
Consumer Imaging: Key figures (in mio Euros) Q1 ‘03 Q2 ‘03 Q2 ’02 H1 ‘03 H1 ‘02 Sales 192 250 302 442 533 -17.2% -17.1% Sales exc. 206 263 302 469 533 currency effect -12.9% -12.0% Operating result* -21.4 -3.5 23.2 -24.9 24.7 Return on sales -11.1% -1.4% 7.7% -5.6% 4.6% * Including restructuring and
Slide 9: Consumer Imaging: Gross operational cash flow
Consumer Imaging: Gross operational cash flow (in mio Euros) 19 2 FY '02 Q1 '03 Q2 '03 -16 Cash drain stopped in Q2. 8
Slide 10: Market trends in Consumer Imaging
Market trends in Consumer Imaging Short term Mid-long term Lab Equipment - Cyclical + Technology-driven replace- ment market; early life cycle. Completion of Agfa product range. Film - Cyclical - Transition to digital (-5% per annum) Finishing - Cyclical ± Decrease of analogue prints compensated by
Slide 11: Digital printing is rapidly increasing: the CEWE-color case
Digital printing is rapidly increasing: the CEWE-color case Number of prints Share of digital in total (mio) 45.3 2.90% 9.6 0.63% 2.4 0.16% H1 '01 H1 '02 H1 '03 H1 '01 H2 '02 H1 '03 Source : press release of CEWE-color 10
Slide 12: Consumer Imaging: a profitable, cash generating business
Consumer Imaging: a profitable, cash generating business ● Cost savings : ±100 mio Euros ● Headcount reductions : ● Production ● 2004 : ± 750 FTE’s ● R&D ● next years : in function of ● Sales expenses prevailing market ● Overheads conditions ● Restructuring charges : ● Non-recurring income : ● 2003
Slide 13: Graphic Systems: Key figures (in mio Euros)
Graphic Systems: Key figures (in mio Euros) Q1 ‘03 Q2 ‘03 Q2 ’02 H1 ’03 H1 ’02 Sales 417 405 472 822 931 -14.2% -11.7% Sales exc. 455 441 472 896 931 currency effect -6.6% -3.8% Operating result* 33.9 27.1 26.2 61.0 55.7 +3.4% +9.5% Return on sales 8.1% 6.7% 5.6% 7.4% 6.0% * Including restructuring
Slide 14: Graphic Systems: Status and priorities
Graphic Systems: Status and priorities STATUS STRATEGIC PRIORITIES ● Very strong market positions in ● Confirm leading position in pre-press for newspapers, printing plates commercial and packaging ● Make equipment a profitable printing business ● The only supplier of ● Expand further in software fo
Slide 15: HealthCare: Key figures (in mio Euros)
HealthCare: Key figures (in mio Euros) Q1 ‘03 Q2 ‘03 Q2 ’02 H1 ’03 H1 ’02 Sales 339 364 387 703 749 -5.9% -6.1% Sales exc. 375 405 387 780 749 currency effect +4.7% +4.1% Operating result* 66.7 71.4 52.3** 138.1 91.3** +36.5% +51.3% Return on sales 19.7% 19.6% 13.5% 19.6% 12.2% * Including respectiv
Slide 16: Service revenues as % of total HealthCare sales
Service revenues as % of total HealthCare sales 13.3% 11.7% 10.9% 2001 2002 H1 2003 Service revenues show rising trend as the transition to digital continues. 15
Slide 17: HealthCare: Strategy and recent achievements
HealthCare: Strategy and recent achievements Electronic Electronic PatientPatient Record (EPR) Record (EPR) Vertical expansion in hospital informatics mainly by acquisitions Clinical Information Clinical Information Systems (CIS)Systems Hospital IS Hospital IS (HIS) ⇒ Minority stake in Med2Rad ⇒ Pre
Slide 18: Technical Imaging: Key figures (in mio Euros)
Technical Imaging: Key figures (in mio Euros) Q1 ‘03 Q2 ‘03 Q2 ’02 H1 ’03 H1 ’02 Sales 418 442 467 860 914 -5.4% -5.9% Sales exc. 460 489 467 948 914 currency effect +4.7.% +3.7% Operating result* 72.1 80.6 57.7** 152.7 105.2** +39.7% +45.2% Return on sales 17.2% 18.2% 12.4% 17.8% 11.5% * Including
Slide 19: P&L: Key figures (in mio Euros)
P&L: Key figures (in mio Euros) Q1 ‘03 Q2 ‘03 Q2’02 H1’03 H1’02 Operating result 85 104 108 189 186 -3.7% +1.6% Non-operating result -21 -19 -30 -40 -50 +36.7% +20.0% Profit before taxes 64 85 78 149 136 +9.0% +9.6% Taxes 25 25 34 50 75 -26.5% -33.3% Net result* 39 60 42 99 59 +42.9% +67.8% * Share
Slide 20: Working capital (mio Euros and Days)
Working capital (mio Euros and Days) INVENTORIES TRADE RECEIVABLES TRADE PAYABLES -379 mio Euros -380 mio Euros 1,352 1315 -143 mio Euros -40 mio Euros 1078 1,013 973 935 161 147 137 +50 mio Euros +47 mio Euros 97 83 80 290 240 243 44 29 33 June'01 June '02 June '03 June '01 June '02 June '03 June '
Slide 21: Balance sheet: Key figures
Balance sheet: Key figures NET FINANCIAL DEBT GEARING RATIO (mio Euros) -532 1.241 +136 77% 870 709 67% 573 597 56% 45% 41% June June Dec. March June June June Dec. March June '01 '02 '02 '03 '03 '01 '02 '02 '03 '03 Net financial debt increases since December ‘02, mainly because of dividend payment
Slide 22: Balance sheet: Shareholder's equity (mio Euros)
Balance sheet: Shareholder’s equity (mio Euros) 1,383 1,297 1,258 June '02 Dec. '02 June '03 Shareholder’s equity affected by share buy back and dividend payment, which more than compensate net income of the period. 21
Slide 23: Earnings per share
Earnings per share EARNINGS PER SHARE (in Eurocents) SHARE BUY BACK PROGRAM Outstanding shares per end of period 73 ♦Dec. ‘02 : 139,231,600 45 28 ♦March ‘03 : 134,245,442 ♦June ‘03 : 130,469,113 Q1 '03 Q2 '03 H1 '03 Weighted average : ♦Q1 ‘03 : 138,245,491 42 30 ♦Q2 ‘03 : 132,869,748 12 Q1 '02 Q2 '0
Slide 24: Cash flow
Cash flow (in mio Euros) Euros) GROSS OPERATING CASH FLOW NET OPERATING CASH FLOW 219 220 185 142 121 98 89 53 Q1 Q2 H1 H1 Q1 Q2 H1 H1 '03 '03 '03 '02 '03 '03 '03 '02 23
Slide 25: ORION: Priority processes
ORION: Priority processes PRODUCT DEVELOPMENT Customer needs Portfolio Testing and Commercial Sourcing Development analysis management planning launch ORDER GENERATION Customer Acquisition Sales relationship Sales support Planning management ORDER FULFILLMENT Forecasting/ Supplier Production Invento
Slide 26: Outlook second half 2003
Outlook second half 2003 Confident about H2 ‘03 results of Graphic Systems and HealthCare, at least if recent signs of economic upturn are confirmed. Remaining Horizon savings will be realised. ● Great uncertainties with regard to photo markets. ● Additional restructuring charges in CI. 25
Slide 27: Q&A
Q&A 2003 26