Slide 1: Results 1st Quarter 2003
Results 1st Quarter 2003 Telephone Conference - May 8th, 2003 2003 0
Slide 2: P&L: Key figures (in mio Euros)
P&L : Key figures (in mio Euros) 1Q ‘03 1Q ‘02 % Sales 1,027 1,137 -9.7% Sales exc. currency effect 1,121 1,137 -1.4% COGS 576 644 -10.6% Gross profit 451 493 -8.5% as % of sales 43.9% 43.4% Turnover heavily affected by dollar weakness; drop limited to a moderate 1.4% excl. currency effects. Gross p
Slide 3: P&L: Key figures (in mio Euros)
P&L : Key figures (in mio Euros) 1Q ‘03 1Q ‘02 % Gross profit 451 493 -8.5% SG&A 273 302 -9.6% R&D 58 62 -6.5% Other operating expenses 35 51 -31.4% of which : - restructuring and non-recurring 8 25 -68.0% - goodwill 10 13 -23.1% Operating result 85 78 +9.0% as % of sales sales 8.3% 6.9% SG&A decrea
Slide 4: Horizon: staff levels (FTEs)
3 JU NE 20 0 1 21151 AU TO LO GI C 344 PA NT AK /S EI FE RT 277 HO RI ZO N 20 01 733 DE CE M BE R 20 01 21039 M IT RA 391 HO RI ZO N 20 02 Horizon: staff levels (FTEs) 2178 DE CE M BE R 20 02 CO 19252 NS OL ID A TI ON 192 HO RI ZO N 20 03 265 M AR CH 20 03 19179 Total Horizon: -3.176
Slide 5: P&L: Key figures (in mio Euros)
P&L : Key figures (in mio Euros) 1Q ‘03 1Q ‘02 % Operating result 85 78 +9.0% Non-operating result -21 -20 -5.0% Profit before taxes 64 58 +10.3% Taxes 25 41 -39.0% Net result 39 17 +129.4% Net result more than doubles, thanks to improved operating result and normalisation of tax rate. 4
Slide 6: Working capital
Working capital INVENTORIES TRADE RECEIVABLES -350 mio Euros -393 mio Euros mio Euros mio Euros 1,400 -158 mio Euros 1.400 1.352 1,315 -54 mio Euros 1.200 161 1,200 159 1,080 1.056 1.002 1.000 1,000 922 97 150 800 800 87 600 600 82 400 400 200 200 0 0 June'01 March '02 March '03 June '01 March '02 M
Slide 7: Balance sheet: Key figures 2002
Balance sheet : Key figures 2002 NET FINANCIAL DEBT GEARING RATIO (mio Euros) -644 1,241 +24 80% 1,028 77% 573 597 45% 41% June '01 March Dec. '02 March June '01 March Dec. '02 March '02 '03 '02 '03 Net financial debt increases slightly, mainly because of the share buy back. 6
Slide 8: Balance sheet: Key figures
Balance sheet : Key figures SHAREHOLDER’S EQUITY (mio Euros) OUTSTANDING SHARES ♦ end ‘02 : 139,231,600 1,383 ♦ end Q1 ‘03 : 134,245,442 ♦ April ‘03 : 133,268,593 ♦ Weighted average Q1 : 138,245,491 1,329 EARNINGS PER SHARE (in Eurocents) 1,291 28 12 March '02 Dec. '02 March '03 1Q '02 1Q '03 Shareh
Slide 9: Cash flow
Cash flow GROSS OPERATING CASH FLOW NET OPERATING CASH FLOW (in mio Euros) Euros) (in mio Euros) Euros) 89 98 73 61 Q1'02 Q1'03 Q1'02 Q1'03 8
Slide 10: Consumer Imaging: Key figures (in mio Euros)
Consumer Imaging : Key figures (in mio Euros) 1Q ‘03 1Q ‘02 % Sales 192 231 -16.9% Sales exc. currency effect 206 231 -11.0% Operating result* -21.4 1.5 as % of sales -11.1% 0.6% * of which 1.0 mio restructuring charges and non-recurring items in ‘03 and 1.6 mio in ‘02 Turnover severely hit by bad e
Slide 11: Graphic Systems: Key figures (in mio Euros)
Graphic Systems : Key figures (in mio Euros) 1Q ‘03 1Q ‘02 % Sales 417 459 -9.2% Sales exc. currency effect 455 459 -0.8% Operating result before goodwill 35.8 32.5 +10.2% Operating result* 33.9 29.5 +14.9% as % of sales 8.1% 6.4% * of which 2.4 mio restructuring costs and non-recurring items in ‘03
Slide 12: Technology leadership in CtP
Technology leadership in CtP Visible light technology* Thermal Platesetter Violet Ortho Commercial Printers Xcalibur X Galileo silver silver Newspapers Polaris photopolymer** photopolymer & silver & silver * In a visible light technology, the printing plate reacts to visible light exposure; in a the
Slide 13: HealthCare: Key figures (in mio Euros)
HealthCare : Key figures (in mio Euros) 1Q ‘03 1Q ‘02 % Sales 339 362 -6.4% Sales exc. currency effect 375 362 +3.6% Operating result before goodwill 73.0 47.0 +55.3% Operating result* 66.7 39.0 +71.0% as % of sales 19.7% 10.8% * of which 1.5 mio restructuring costs and non-recurring items in ‘03 an
Slide 14: HealthCare Growth Strategy
HealthCare Growth Strategy Electronic Patient Electronic Patient Record (EPR) Record (EPR) Vertical expansion in hospital informatics mainly by acquisitions Clinical Information Clinical Information Systems Systems (CIS) Hospital IS Hospital IS (HIS) ⇒ Minority stake in Med2Rad ⇒ Preferred partner N
Slide 15: Technical Imaging: Key figures (in mio Euros)
Technical Imaging : Key figures (in mio Euros) 1Q ‘03 1Q ‘02 % Sales 418 447 -6.5% Sales exc. currency effect 460 447 +2.9% Operating result before goodwill 80.1 57.5 +39.3% Operating result* 72.1 47.5 +51.8% as % of sales 17.2% 10.6% * of which 5 mio restructuring costs and non-recurring items in ‘
Slide 16: From HORIZON to ORION
From HORIZON to ORION HORIZON ORION ● Structuring Agfa into a ● Focus on the customer transparent and flexible ● Top line growth by adapting company business model to digital ● Cost cutting world ● Reducing working capital ● Reducing cost of quality ● Internal focus ● Further reducing working capita
Slide 17: ORION: Technology shift leads to change in the business model
ORION : Technology shift leads to change in the business model ● Adapting the sales model ● customer segmentation ● sell software as a stand-alone ● Increased focus on professional services Agfa intends to continue to be a major and profitable player in the world of imaging and informatics. 16
Slide 18: ORION: Reducing the cost of quality
ORION : Reducing the cost of quality ● Cost leadership, also in equipment ● Timely launches of high quality software ● Increasing revenues and profit of service delivery ● Lower warranty costs ● Less destructions ● Lower sales costs Additional cost savings of ±200 ● Lower service costs mio Euros ● D
Slide 19: ORION: further reducing working capital
ORION : further reducing working capital DAYS OF INVENTORIES DAYS OF SALES AVERAGE PAYMENT PERIOD OUTSTANDING 128 100 75 70 55 44 -200 mio -60 mio -85 mio Further reduction of working capital could free up ± 350 mio Euros. 18
Slide 20: Focus points
Focus points Restore profitability in Consumer Imaging Realise all cost savings of HORIZON Implement ORION with same success Agfa intends to continue to be a major and profitable player in the world of imaging and informatics. 19