Slide 1: Agfa-Gevaert
Agfa-Gevaert May 2004
Slide 2: Agfa: a leading imaging company
Agfa: a leading imaging company 2003 Technical ASPAC* Imaging 18.4% Consumer 40.9% Latin HealthCare Imaging America 33.5% 20.6% 4.3% Europe 50.9% Graphic Systems NAFTA 38.5% 26.4% Non-Destructive Testing 4.9% Industrial Imaging 2.5% * Including Africa 1
Slide 3: Strong market positions
Strong market positions Sales 2003 (4,215 mio Euros) HealthCare : No.1/2 Private Label Film : No.1 Wholesale Finishing : No.1 Prepress : No.1 Other nGraphic Systems nHealthCare nConsumer Imaging 2
Slide 4: Graphic Systems: Strategy
Graphic Systems: Strategy A leading solutions provider in pre-press, offering consumables, equipment and software Entering the growth market of industrial inkjet printing 3
Slide 5: From Pre-press to Press
From Pre-press to Press Digital Printing the . Factory
Slide 6: Graphic Systems: Pre-press Strategy
Graphic Systems: Pre-press Strategy Agfa is a leading supplier of consumables, equipment and software in the mature pre-press market l Concentrate on higher growth segments: l Regionally: Asia => Wuxi printing plate factory l Markets: Packaging and newspapers => Esko-Graphics newspaper customers l F
Slide 7: Lastra profile
Lastra profile l Italian manufacturer of 2003 SALES ∼ 240 MIO EUROS printing plates, chemicals Italy and equipment North 16% America l Mainly analogue printing 30% plates, but recently started production of digital plates l 6 factories: Rest of 4 in Italy, 2 in US Europe l Number of employees: 30% ∼
Slide 8: Lastra acquisition: rationale
Lastra acquisition: rationale Lastra + Agfa: l Increased market coverage from low end to high end l Access to additional production capacity l Obtain cost leadership in printing plates l Large cost and revenue synergies l Accretive from first year 7
Slide 9: Graphic Systems: Inkjet Strategy
Graphic Systems: Inkjet Strategy Building a growth platform in industrial inkjet printing l Markets for inkjet printing l wide format printing l screen printing l packaging l newspaper printing l Market potential: 10 billion Euros by 2010 8
Slide 10: Graphic Systems: Strategy
Graphic Systems: Strategy From Pre-press to Press l Concentrate on higher growth markets in Pre-press l Strive for cost-, technology- and market leadership in consumables l Make equipment business profitable l Build growth platform in inkjet digital printing, with a full solution including: l inkjet
Slide 11: HealthCare - Product Portfolio
HealthCare - Product Portfolio Conventional x-ray photo Developer Film X-ray Workstation Impax Herbruikbare phosphorplaat Digitizer Reusable Digitizer Phosphorplate CT imaging Hardcopy Dry printer 10
Slide 12: HealthCare: Strategy
HealthCare: Strategy l Radiology Solutions l Consolidate our number 1-2 position in Radiology, Imaging and IT by converting our large customer base from analogue to digital l Clinical applications l Create a significant position in clinical applications by converting our analogue portfolio into a de
Slide 13: Consumer Imaging: Product Portfolio and Market Trends
Consumer Imaging: Product Portfolio and Market Trends Short term Mid-long term Lab Equipment - Cyclical + Technology-driven replace- ment market; early life cycle. Completion of Agfa product range. Film - Cyclical - Accelerating transition to digital Finishing - Cyclical ± Decrease of analogue print
Slide 14: Key figures Profit & Loss - Group (in mio Euros)
Key figures Profit & Loss - Group (in mio Euros) Q1 ‘04 Q1 ‘03 ∆ (%) FY ‘03 Sales 868 1,027 -15.5% 4,215 Sales exc. currency effect 907* 973* -6.8% 4,555 Gross profit 368 451 -18.4% 1,766 Gross profit margin (42.4%) (43.9%) (41.9%) * Excluding currency effect and NDT At stable exchange rates and exc
Slide 15: Raw Materials
Ja n- 0 3 4 5 6 7 8 3.5 4.5 5.5 6.5 7.5 8.5 Fe 3 b- 14 0 M 3 ar- 0 Ap 3 r-0 M 3 ay -0 Ju 3 n-0 3 Ju l-0 Au 3 g- 0 Se 3 p- 0 Oc 3 t-0 No 3 v-0 De 3 c-0 Ja 3 n- 0 Fe 4 b- 0 M 4 SILVER (USD/troyounce) Raw Materials ar- 0 Ap 4 r- M 04 ay -0 4 Ja n- 03 1,325.00 1,375.00 1,425.00 1,475.00 1,525.00 1,575.0
Slide 16: Key figures Profit & Loss - Group (in mio Euros)
Key figures Profit & Loss - Group (in mio Euros) Q1 ‘04 Q1 ‘03 % FY ‘03 Gross profit 368 451 -18.4% 1,766 R&D -51 -58 -12.1% -233 SG&A -242 -273 -11.4% -1,087 Restructuring charges -8 -8 - -87 Other operating result -21 -27 -22.2% -62 Operating result 46 85 -45.9% 528* Return on sales 5.3% 8.3% 12.5
Slide 17: Key figures Profit & Loss - Group (in mio Euros)
Key figures Profit & Loss - Group (in mio Euros) Q1 ‘04 Q1 ‘03 % FY ‘03 Operating result 46 85 -45.9% 528** Non-operating result -15 -21 +28.6% -71 Profit before taxes 31 64 -51.6% 457** Taxes -11 -25 -56.0% -135 Net result 20 39 -48.7% 323** Earnings per share (in Eurocents) 16* 28* 244** * based o
Slide 18: Key figures Balance sheet
Key figures Balance sheet TOTAL EQUITY AND NET FINANCIAL DEBT GEARING RATIO LIABILITIES (mio Euros) (mio Euros) (%) 3,839 Liabilities 3,551 77% 66% 2,468 2,160 41% Equity 17% 20% 1,371 1,391 233 272 Dec. '03 March '04 Dec. '03 March '04 June Dec. Dec. Dec. March '01 '01 '02 '03 '04 Total assets decr
Slide 19: Working capital: key figures (in mio Euros/days)
Working capital: key figures (in mio Euros/days) INVENTORIES TRADE RECEIVABLES TRADE PAYABLES 1400 Target: 100 days 1400 Target: 70 days 1400 Target: 55 days 1200 1200 1200 1,002 1000 1000 1000 922 863 826 813 814 800 159 157 800 800 600 600 600 124 400 400 400 334 304 313 82 86 200 200 74 200 53 57
Slide 20: Cash flow: Key figures (in mio Euros)
Cash flow: Key figures (in mio Euros) GROSS OPERATING NET OPERATING CASH FLOW CASH FLOW 98 89 54 11 Q1 '03 Q1 '04 Q1 '03 Q1 '04 Net operational cash flow also affected by decrease in tax provisions (payment of taxes related to NDT divestiture). 19
Slide 21: Cash flow (in mio Euros)
Cash flow (in mio Euros) GROSS OPERATING CASH FLOW PER BUSINESS GROUP 2003 2003 2002 2001 393 317 Gross operating 393 482 226 cash flow Net operating 522 611 738 cash flow 100 Capex 178 167 186 Free cash flow 344 444 552 CI GS HE Agfa -59 Agfa generates substantial cash flows, even in tough economic
Slide 22: Consumer Imaging: Key figures (in mio Euros)
Consumer Imaging: Key figures (in mio Euros) Q1 ‘04 Q1 ‘03 % FY ‘03 Sales 155 192 -19.3% 870 Sales exc. currency effect 162 192 -15.6% 926 Restructuring/non-recurring expenses +0.6 -1.0 - 38 Operating result -19.0 -21.4 +11.2% -84 Cost savings sufficient to compensate for sales drop. Film volumes sh
Slide 23: Graphic Systems: Key figures (in mio Euros)
Graphic Systems: Key figures (in mio Euros) Q1 ‘04 Q1 ‘03 % FY ‘03 Sales 386 417 -7.4% 1,622 Sales exc. currency effect 407 417 -2.4% 1,749 Restructuring/non-recurring expenses -5.0 -2.4 x2.1 27 Operating result 20.9 33.9 -38.3% 90 Return on sales 5.4% 8.1% 5.5% Sales at stable currencies decrease 2
Slide 24: HealthCare: Key figures (in mio Euros)
HealthCare: Key figures (in mio Euros) Q1 ‘04 Q1 ‘03 % FY ‘03 Sales 292 339 -13.9% 1,408 Sales exc. currency effect 314 339 -7 % 1,547 Restructuring/non-recurring expenses -4.1 -1.5 x2.7 12 Operating result 36.4 66.7 -45.4% 264 Return on sales 12.5% 19.7% 18.7% Temporary weakness of sales in January
Slide 25: Service revenues as % of total HealthCare sales
Service revenues as % of total HealthCare sales 16.5% 14.0% 11.7% 10.9% 2001 2002 2003 Q1 '04 Service revenues increase as the transition to digital continues. 24
Slide 26: Staff levels (FTE)
Staff levels (FTE) 934 1,331 4,207 21,151 79 474 17,341 16,946 JUNE 2001 ACQUISITIONS DE-MERGER STAFF DECEMBER DOTRIX + STAFF MARCH 2004 NDT REDUCTION + 2003 WUXI PLANT REDUCTION HORIZON 25
Slide 27: ORION
ORION l To increase growth l by a combination of organic initiatives and targeted acquisitions l To improve our business l by a systematic project approach, processes and overall quality leading to cost savings of 200 million Euros l To reduce working capital l by bringing days of inventories to 100
Slide 28: AGFA &
AGFA &