Slide 1: 3rd Quarter 2005 Results
3rd Quarter 2005 Results November 17, 2005
Slide 2: Sales (in Mio Euro)
Sales (in Mio Euro) Total sales Organic growth* -15.3% 2,827 2,395 -1.5% 953 2,193 2,227 -16.4% Q3 797 Q3 722 -2.6% 741 1,006 -15.6% Q2 849 Q2 789 784 +0.6% Q1 749 -13.7% 868 Q1 682 702 -2.8% 9m'05 9m'04 9m'05 9m'04 * at constant exchange rates 1
Slide 3: Profit and Loss: Key Figures (in Mio Euro)
Profit and Loss: Key Figures (in Mio Euro) Q1 '05 Q2 '05 Q3 '05 9m '05 9m '04 % change Sales 749 849 797 2,395 2,827 -15.3% Gross Profit 284 316 273 873 1,155 -24.4% Gross Profit Margin 37.9% 37.2% 34.3% 36.5% 40.9% Comparison with previous year difficult because of many changes in portfolio: divest
Slide 4: Raw Materials
Jan -0 3.00 3.50 4.00 4.50 5.00 5.50 6.00 6.50 7.00 7.50 8.00 8.50 Fe 3 b- M 03 3 ar- Ap 03 r- Ma 03 y-0 Ju 3 n-0 Jul 3 - Au 03 g-0 Se 3 p-0 Oc 3 t No -03 v-0 De 3 c- Jan 03 -0 Fe 4 b-0 M 4 ar- Ap 04 r- Ma 04 y-0 Ju 4 n-0 Ju 4 l- Au 04 g-0 Se 4 p-0 Oc 4 Q3 ‘04 t- No 04 v-0 De 4 c- Jan 04 -0 Fe 5 b-0
Slide 5: Impact of AgfaPhoto Insolvency
Impact of AgfaPhoto Insolvency l The AgfaPhoto operating entity filed for insolvency on May 26th, 2005 l In October 2005, the receiver of AgfaPhoto decided to liquidate the whole Group, after sale of assets l Agfa decided to book a provision of 55 mio Euro in Q3 to cover l environmental clean-up cos
Slide 6: Profit and Loss: Key Figures (in Mio Euro)
Profit and Loss: Key Figures (in Mio Euro) Q1 '05 Q2 '05 Q3 '05 9m '05 9m '04 % change Gross profit 284 316 273 873 1,155 -24.4% R&D -47 -48 -48 -143 -148 -3.4% SG&A -197 -211 -193 -601 -738 -18.6% Other operating items* 1 -3 6 4 -56 EBIT** 41 54 38 133 213 -37.6% Restructuring charges 1 -6 -19 -24
Slide 7: Profit & Loss: Key Figures (in Mio Euro)
Profit & Loss: Key Figures (in Mio Euro) Q1 '05 Q2 '05 Q3 '05 9m '05 9m '04 % change Operating result 42 48 -36 54 -270 120.0% Non-operating result 20 -14 -16 -10 -41 75.6% Profit before taxes 62 34 -52 44 -331 114.1% Taxes -33 -12 -56 -101 99 -202.0% Net result 29 22 -108 -57 -212 73.1% Income taxe
Slide 8: Graphic Systems Sales (in Mio Euro)
Graphic Systems Sales (in Mio Euro) Total sales Organic growth* +5.2% 1,268 +2.2% 1,205 1,178 1,153 Q3 422 +3.9% 406 391 +3.2% Q3 379 Q2 446 413 +8.0% Q2 419 +5.0% 399 Q1 400 386 Q1 368 375 +3.6% -1.9% 9m'05 9m'04 9m'05 9m'04 * at constant exchange rates Continued strong organic growth in Q3 7
Slide 9: Graphic Systems: Key Figures (in Mio Euro)
Graphic Systems: Key Figures (in Mio Euro) Q3 '05 Q3 '04 % change 9m '05 9m '04 % change Sales 422 406 3.9% 1,268 1,205 5.2% EBITDA* 33.4 40.7 -17.9% 106.0 126.7 -16.3% % of sales 7.9% 10.0% 8.4% 10.5% EBIT* 13.4 23.7 -43.5% 47.0 78.7 -40.3% % of sales 3.2% 5.8% 3.7% 6.5% Operating result 7.3 22.8 -
Slide 10: Graphic Systems Highlights
Graphic Systems Highlights l Product Launch l :Avalon, new line of thermal platesetters l New Contracts l Commercial printing: l Webprint Concepts (Ireland), Buxton Press (UK), Professional Graphic Communications (USA), BDF Printing (China) l Packaging printing: l New Island Printing Holdings (China
Slide 11: Graphic Systems Highlights
Graphic Systems Highlights l New Contracts l New York Times Company: l Agfa becomes The NYT Company’s preferred prepress supplier in 5-year strategic alliance l workflow solutions (:Arkitex) l violet CtP equipment (:Advantages) l Expansion of 3-year alliance on consumables l Covers all the NYT Compa
Slide 12: Graphic Systems Highlights
Graphic Systems Highlights l Milestones l Sales expectations Print 05 Chicago largely exceeded l Over 1,000 customers around the world are using Agfa's advanced :Sublima XM screening solution l 300 printers worldwide turn to Agfa for chemistry-free prepress plate system 11
Slide 13: HealthCare Sales (in Mio Euro)
HealthCare Sales (in Mio Euro) Total sales Organic growth* +1.9% 998 979 -7.8% 979 903 Q3 334 +0.9% 331 331 -11.2% Q3 294 Q2 359 356 356 +0.8% 332 -6.7% Q2 Q1 305 +4.5% 292 Q1 277 292 -5.1% 9m'05 9m'04 9m'05 9m'04 * at constant exchange rates Sales affected by weak trading environment and higher tha
Slide 14: HealthCare: Key Figures (in Mio Euro)
HealthCare: Key Figures (in Mio Euro) Q3 '05 Q3 '04 % change 9m '05 9m '04 % change Sales 334 331 0.9% 998 979 1.9% EBITDA* 39.2 72.9 -46.2% 136.7 208.1 -34.3% % of sales 11.7% 22.0% 13.7% 21.3% EBIT* 22.2 51.9 -57.2% 80.7 149.1 -45.9% % of sales 6.6% 15.7% 8.1% 15.2% Operating result 12.2 46.8 -73.
Slide 15: Service Revenues as % of HealthCare Sales
Service Revenues as % of HealthCare Sales 30.0% 23.3% 16.8% 14.0% 10.9% 11.7% 2001 2002 2003 2004 9m '05 Target Service revenues represent an increasing share of sales 14
Slide 16: HealthCare Highlights
HealthCare Highlights l Product Launches l Introduction new cardiology portfolio in Europe, including the Agfa Heartlab Cardiovascular Information System l DX-S: revolutionary CR digitizer, combining: l flexibility and cost effectiveness of CR l image quality comparable to DR l high productivity 15
Slide 17: HealthCare Highlights
HealthCare Highlights l New Contracts l NHS: as a subcontractor to Accenture, Agfa will provide PACS and CR to the North East and East clusters in England (largest ever PACS deal) l NORTH Network: IMPAX selected by Canada’s busiest video conference-based telemedicine network l National Taiwan Univer
Slide 18: Specialty Products
Specialty Products l New Contract l Thales Security Systems: Agfa will provide a complete sub-system consisting of equipment, consumables and materials for the production of about 20 million e-ID cards for the Moroccan government l Also addresses the market of company security systems, including the
Slide 19: Balance Sheet: Key Figures (in Mio Euro)
Balance Sheet: Key Figures (in Mio Euro) ASSETS LIABILITIES 4,010 4,010 3,356 3,356 1,569 Non-current 1,011 assets 3,029 Liabilities 2,274 Current 2,128 2,035 assets Equity 981 1,082 Other assets 313 310 Sept. ‘05 Dec. ‘04 Sept. ‘05 Dec. ‘04 Total assets increased by more than 600 million Euro, due
Slide 20: Working Capital: Key Figures (in Mio Euro/days)
Working Capital: Key Figures (in Mio Euro/days) INVENTORIES TRADE RECEIVABLES TRADE PAYABLES 1400 Target: 100 days 1400 Target: 70 days 1400 Target: 55 days 1200 1200 1200 1000 1000 1000 919 890 874 872 800 231 800 225 204 800 223 813 744 600 660 600 600 131 1 1 9 576 116 400 107 400 400 92 330 277
Slide 21: Balance Sheet: Key Figures
Balance Sheet: Key Figures NET FINANCIAL DEBT (in Mio Euro) GEARING RATIO (%) 74.0% 66.5% 75.9% 56.0% 745 41.4% 17.0% 17.8% 193 Dec. Dec. Dec. Dec. March June Sept. Sept. '05 Dec. '04 '01 '02 '03 '04 '05 '05 '05 Net financial debt increased mainly due to acquisition of GWI and Heartlab, the dividend
Slide 22: Cash Flow: Key Figures (in Mio Euro)
Cash Flow: Key Figures (in Mio Euro) NET OPERATING CASH FLOW FREE CASH FLOW 55 31 18 -6 -18 -91 -89 -114 Q1 '05 Q2' 05 Q3 '05 9m '05 Q1 '05 Q2 '05 Q3 '05 9m '05 Net operating cash flow affected by phase out of securitization of receivables (60 Mio Euro) in Q1 and by seasonal build-up of working capi
Slide 23: Outlook
Outlook l Firm indications for a strong year-end l Strong focus on cost reduction and price erosion remains l Continue to develop the new businesses of Industrial Inkjet and HealthCare IT 22
Slide 24: Questions & Answers
Questions & Answers