Slide 1: 1st Half 2005 Results
1st Half 2005 Results August 18, 2005
Slide 2: Results Summary
Results Summary l Sales and profit improved in 2nd quarter l Graphic Systems: l market environment improves l solid volume growth l efforts to counter price erosion show first effects l major impact of increased raw material costs l HealthCare: l weaker market environment, particularly in the US l r
Slide 3: Sales (in mio Euros)
Sales (in mio Euros) Total sales Organic growth* -14.7% 1,874 1,598 -1.0% 1,471 1,486 Q2 1,006 Q2 849 -15.6% 789 +0.6% 784 Q1 Q1 868 749 682 702 -13.7% -2.8% 1H'05 1H'04 1H'05 1H'04 * at constant exchange rates Q2 sales 13% up compared to Q1 First half 2005 characterized by difficult trading environ
Slide 4: Profit & Loss: Key Figures (in mio Euros)
Profit & Loss: Key Figures (in mio Euros) Q2 '05 Q2 '04 % change H1 '05 H1 '04 % change Sales 849 1,006 -15.6% 1,598 1,874 -14.7% Gross profit 316 414 -23.7% 600 782 -23.3% Gross profit margin 37.2% 41.2% 37.5% 41.7% The gross profit margin is mainly affected by increased raw material costs and pric
Slide 5: Profit & Loss: Key Figures (in mio Euros)
Profit & Loss: Key Figures (in mio Euros) Q2 '05 Q2 '04 % change H1 '05 H1 '04 % change Gross profit 316 414 -23.7% 600 782 -23.3% R&D -48 -49 -2.0% -95 -100 -5.0% % of sales 5.7% 4.9% 5.9% 5.3% SG&A -211 -256 -17.6% -408 -498 -18.1% % of sales 24.9% 25.4% 25.5% 26.6% Other operating items* -9 -475
Slide 6: Profit & Loss: Key Figures (in mio Euros)
Profit & Loss: Key Figures (in mio Euros) Q2 '05 Q2 '04 % change H1 '05 H1 '04 % change Operating result 48 -366 +113.1% 90 -320 +128.1% Non-operating result -14 -11 -27.3% +6 -26 +123.1% Profit before taxes 34 -377 +109.0% 96 -346 +127.7% Taxes -12 +122 -109.8% -45 +111 -140.5% Net result 22 -255 +
Slide 7: Earnings per share (in Eurocents)
Earnings per share (in Eurocents) 2005* 2004* 40 23 17 16 Q1 Q2 H1 -203 -187 Q1 Q2 H1 * Based on an average number of outstanding shares of 126.000.000 in 2004 and 126.152.306 in 2005 6
Slide 8: Graphic Systems Sales (in mio Euros)
Graphic Systems Sales (in mio Euros) Total sales Organic growth* +5.9% 846 +1.7% 799 787 774 Q2 Q2 446 413 419 399 +8.0% +5.0% Q1 Q1 400 386 368 375 +3.6% -1.9% 1H'05 1H'04 1H'05 1H'04 * at constant exchange rates Organic growth in Q2 of 5.0% thanks to strong volume increase and lower price pressure
Slide 9: Graphic Systems: Key Figures (in mio Euros)
Graphic Systems: Key Figures (in mio Euros) Q2 '05 Q2 '04 % change H1 '05 H1 '04 % change Sales 446 413 +8.0% 846 799 +5.9% EBITDA* 37.0 45.1 -18.0% 72.6 86.0 -15.6% % of sales 8.3% 10.9% 8.6% 10.8% EBIT* 17.0 29.1 -41.6% 33.6 55.0 -38.9% % of sales 3.8% 7.0% 4.0% 6.9% Operating result 13.2 19.8 -33
Slide 10: Graphic Systems Growth Strategy
Graphic Systems Growth Strategy 1. Reinforce market leadership in pre-press 2. Become a leading player in industrial inkjet (systems, printing heads and consumables) 9
Slide 11: Graphic Systems: Highlights
Graphic Systems: Highlights Pre-press l Continuing success for violet computer-to-plate systems with large newspaper publisher contracts l :Azura chemistry-free printing plate performance very successful: Q2 volumes doubled (vs. Q1) Industrial inkjet l Product introductions: l :M-Press (hybrid UV in
Slide 12: HealthCare Sales (in mio Euros)
HealthCare Sales (in mio Euros) Total sales Organic growth* +2.5% 664 -6.0% 648 648 609 Q2 Q2 359 356 356 332 +0.8% -6.7% Q1 Q1 305 292 277 292 +4.5% -5.1% 1H'05 1H'04 1H'05 1H'04 * at constant exchange rates Sales affected by weak trading environment and higher than expected price erosion 11
Slide 13: HealthCare: Key Figures (in mio Euros)
HealthCare: Key Figures (in mio Euros) Q2 '05 Q2 '04 % change H1 '05 H1 '04 % change Sales 359 356 +0.8% 664 648 +2.5% EBITDA* 54.7 75.7 -27.7% 97.5 135.2 -27.9% % of sales 15.2% 21.3% 14.7% 20.9% EBIT* 35.7 56.7 -37.0% 58.5 97.2 -39.8% % of sales 9.9% 15.9% 8.8% 15.0% Operating result 34.0 53.7 -36
Slide 14: Service Revenues as % of HealthCare Sales
Service Revenues as % of HealthCare Sales 30% 23.1% 16.8% 14.0% 10.9% 11.7% 2001 2002 2003 2004 H1 '05 Target Service revenues represent an increasing share of sales 13
Slide 15: HealthCare Growth Strategy
HealthCare Growth Strategy 1. Reinforcing strong position in radiology 2. Expanding into other departments in the hospitals and leveraging our imaging technologies 3. Taking a leading position in enterprise-wide IT systems for hospitals 14
Slide 16: HealthCare: Highlights
HealthCare: Highlights l Acquisitions: Heartlab (US) and Med2Rad (Italy) l Product development: l ORBIS/IMPAX platforms; NICE next generation user interface for ORBIS l Integrated RIS/PACS/Speech solution for North American imaging centers l Table-top printer for decentralized radiology l Major cont
Slide 17: Balance Sheet: Key Figures (mio Euros)
Balance Sheet: Key Figures (mio Euros) ASSETS LIABILITIES 4,051 4,051 3,356 3,356 1,575 Non-current 1,011 assets 2,959 Liabilities 2,274 Current 2,157 2,035 assets Equity 1,092 1,082 Other assets 319 310 Jun. ‘05 Dec. ‘04 Jun. ‘05 Dec. ‘04 Total assets increased by almost 600 million Euros, due to c
Slide 18: Working Capital: Key Figures (in mio Euros/days)
Working Capital: Key Figures (in mio Euros/days) INVENTORIES TRADE RECEIVABLES TRADE PAYABLES 1400 1400 Target: 100 days 1400 Target: 70 days Target: 55 days 1200 1200 1200 973 1000 1000 935 1000 842 859 866 269 244 800 230 800 744 800 654 204 600 132 576 600 600 124 118 421 400 107 400 369 400 290
Slide 19: Balance Sheet: Key Figures
Balance Sheet: Key Figures NET FINANCIAL DEBT (mio Euros) GEARING RATIO (%) 74% 67% 808 56% 41% 193 17% 18% Jun. '05 Dec. '04 Dec. Dec. Dec. Dec. March June '01 '02 '03 '04 '05 '05 Net financial debt increased mainly due to acquisition of GWI and Heartlab, the dividend payment, the phase out of the
Slide 20: Cash Flow: Key Figures (in mio Euros)
Cash Flow: Key Figures (in mio Euros) GROSS OPERATING CASH FLOW NET OPERATING CASH FLOW 87 68 19 18 Q1 '05 Q2' 05 H1 '05 Q1 '05 Q2' 05 H1 '05 42 31 -73 -91 -5 GS HE SP Cash flow Specialty Products includes pension disbursement for retired CI employees Net operating cash flow affected by phase out of
Slide 21: Update AgfaPhoto
Update AgfaPhoto l November 1, 2004: AgfaPhoto created as fully independent group, with a holding company, an operating company and 32 sales organizations l May 26, 2005: AgfaPhoto GmbH, the German operating company files for insolvency l August 1, 2005: l AgfaPhoto will continue its operations with
Slide 22: Update AgfaPhoto: Main Exposure
Update AgfaPhoto: Main Exposure l Vendor loan: 112 Mio Euros l loan to holding company l fully secured by lease portfolio l purchase price under discussion with purchaser l Working capital prefinancing l reimbursement of prefinancing at date of filing for insolvency expected in around 3-4 months l p
Slide 23: Outlook
Outlook l 2005 is a transition year l Stronger sales expected in the 2nd half l 2nd half profits will not offset shortfall of the 1st half l Agfa Transformation Program operational implementation accelerated l Strong focus on cost reduction and price improvement l Significant progress in developing
Slide 24: Questions & Answers
Questions & Answers
Slide 25: AGFA &
AGFA &