Slide 1: Q2/HY 2023 Results
Q2/HY 2023 Results Agfa-Gevaert Group August 23, 2023
Slide 2: Key highlights Q2
Good sales performance of all growth engines, margins impacted by cost inflation, adverse currency effects, manufacturing inefficiencies, lower service margins in HealthCare IT, mix effects and the weakness in industrial film markets HealthCare IT: • Increase in order intake of 11%, revenue increase
Slide 3: Agfa-Gevaert Group: Sales by division
Agfa-Gevaert Group Sales by division 6 m 2023 = 557 million Euro 6% Radiology Solutions HealthCare IT 36% Digital Print & Chemicals 37% Contractor Operations & Services* 21% * related to the former Offset Solutions business 3
Slide 4: Agfa-Gevaert Group key figures
Agfa-Gevaert Group in million Euro Q2 ’23 Q2 ’22 ∆% 6m’23 6m’22 ∆% Key figures re-presented (excl.curr.) re-presented (excl.curr.) Sales 287 287 -0.1% 557 539 3.3% Profit & Loss (2.3%) (4.7%) Incl. IFRS 16 Gross Profit* 87 89 -2.8% 173 167 3.9% as a % of sales 30.2% 31.1% 31.1% 30.9% SG&A* -73 -76 -
Slide 5: Agfa-Gevaert Group profit and loss
Agfa-Gevaert Group in million Euro Q2’23 Q2’22 6m’23 6m’22 Key figures re-presented re-presented Profit & Loss Adjusted EBIT* 2 5 4 0 Incl. IFRS 16 -10 -12 -20 -20 Restructuring/non-recurring Operating result -8 -7 -16 -20 Non-operating result -6 -11 -12 -9 Profit before taxes -14 -18 -28 -28 Taxes
Slide 6: Main drivers behind key figures Q2
Good sales performance of all growth engines, margins impacted by cost inflation, adverse currency effects, manufacturing inefficiencies, lower service margins in HealthCare IT, mix effects and the weakness in industrial film markets Main drivers behind ▪ Top line stable versus Q2 2022: key figures
Slide 7: Trade Working Capital (excl. CONOPS)
Trade Working Capital (excl. CONOPS) Δ Q2 Δ 2023 Q2 2023 Q1 2023 Q4 2022 Q3 2022 Q2 2022 2023 vs 2022 Q2 vs Q1 Inventories (Mio Eur) 327 330 307 347 348 -21 -3 ° DIOH in days 158 160 152 175 181 -23 -2 Trade Receivables, Contract Assets/Liabilities 139 146 150 130 137 2 -7 ° DSO in days 47 51 45 43
Slide 8: Agfa Group Free Cash Flow
Agfa Group Free Cash Flow Adjusted Adjusted Free EBITDA free cash flow* cash flow Adjusted free cash flow equals the sum of net cash from operating & investing activities excluding the impact of acquisitions and disposal of discontinued operations (see definition of Free cash flow *) ADJUSTED for th
Slide 9: Net cash position
Net cash position Net cash position excl IFRS 16, in million Euro 762 616 581 577 425 398 396 329 68 188 172 134 14 -106 -69 -137 -194 -161 Q 1 ' 1 9Q 2 ' 1 9Q 3 ' 1 9Q 4 ' 1 9Q 1 ' 2 0Q 2 , 2 0Q 3 ' 2 0Q 4 ' 2 0Q 1 ' 2 1Q 2 ' 2 1Q 3 ' 2 1Q 4 ' 2 1Q 1 ' 2 2Q 2 ' 2 2Q 3 ' 2 2Q 4 ' 2 2Q 1 ' 2 3Q 2 ' 2
Slide 10: HealthCare IT
HealthCare IT
Slide 11: HealthCare IT key figures
HealthCare IT in million Euro Q2 ’23 Q2 ’22 ∆% 6m’23 6m’22 ∆% Key figures re-presented (excl.curr.) re-presented (excl.curr.) Profit & Loss Sales 62 57 8.2% 119 112 6.5% (10.8%) (7.3%) Incl. IFRS 16 Gross Profit* 27 26 2.9% 51 51 0.3% as a % of sales 43.5% 45.8% 42.7% 45.3% SG&A* -17 -15 9.0% -33 -3
Slide 12: HealthCare IT: Main drivers behind key figures Q2
HealthCare IT: increase in order intake and sales, quarter-on-quarter profitability improvement but service margins under pressure Main drivers behind key figures Q2 ▪ Healthy order book, 11% growth in the 12 months rolling order intake versus LY ▪ Top line increased by 8.2% versus LY ▪ Impacted by
Slide 13: Radiology Solutions
Radiology Solutions
Slide 14: Radiology Solutions: Sales by business segment
Radiology Solutions Sales 6 months 2023 = 205 million Euro by business segment 3% 37% Hardcopy CR/DR 60% Classic Radiology 14
Slide 15: Radiology Solutions key figures
Radiology Solutions in million Euro Q2 ’23 Q2 ’22 ∆% 6m’23 6m’22 ∆% Key figures re-presented (excl.curr.) re-presented (excl.curr.) Profit & Loss Sales 103 113 -9.0% 205 214 -4.0% Incl. IFRS 16 (-5.7%) (-1.9%) Gross Profit* 33 37 -9.9% 66 68 -1.9% as a % of sales 32.5% 32.8% 32.3% 31.6% SG&A* -25 -2
Slide 16: Radiology Solutions: continuing positive trend in DR profitability
Radiology Solutions: continuing positive trend in DR profitability, continued margin pressure in China and geopolitical impact for medical film ▪ Medical film: continuing margin pressure in China and geopolitical impact ▪ Direct Radiography: continuing positive trend in profitability ▪ Actions to in
Slide 17: Digital Print & Chemicals
Digital Print & Chemicals
Slide 18: Digital Print & Chemicals: Sales by business segment
Digital Print & Chemicals Sales 6 months 2023 = 200 million Euro by business segment Inkjet 42% 41% Electronic Print Films and Foils 17% 18
Slide 19: Digital Print & Chemicals key figures
Digital Print & Chemicals in million Euro Q2 ’23 Q2 ’22 ∆% 6m’23 6m’22 ∆% Key figures re-presented (excl.curr.) re-presented (excl.curr.) Profit & Loss Sales 104 98 5.8% 200 177 13.1% Incl. IFRS 16 (7.6%) (14.3%) Gross Profit* 25 26 -2.6% 55 50 10.7% as a % of sales 24.1% 26.2% 27.5% 28.1% SG&A* -19
Slide 20: Digital Print and ZIRFON well positioned for future growth
Digital Print & Chemicals: Digital Print and ZIRFON well positioned for future growth ▪ Digital Print: good performance of the inks, as well as the Inca Digital Printers acquisition Main drivers behind ▪ Several Onset printers sold using Agfa inks and launch of new ink sets for Onset key figures Q2
Slide 21: Contractor Operations & Services former Offset
Contractor Operations & Services former Offset
Slide 22: New division: Contractor Operations & Services (CONOPS)
New division: Contractor Operations & Services former Offset (CONOPS) in million Euro Q2 ’23 Q2 ’22 ∆% 6m’23 6m’22 ∆% Key figures re-presented (excl.curr.) re-presented (excl.curr.) Profit & Loss Sales 18 18 -2.4% 32 36 -11.5% Incl. IFRS 16 (-2.3%) (-11.3%) Adjusted EBITDA* 0.3 -0.5 -171.6% 1.6 -3.9
Slide 23: Outlook 2023: recovery in profitability expected
Outlook 2023: recovery in profitability expected Overall, the Agfa-Gevaert Group expects a recovery in profitability in the full year 2023 versus 2022. Outlook 2023 outlook per division: ▪ HealthCare IT: Order intake growth continues to be strong. As the portion of own IP in the sales mix is expecte
Slide 24: Sustainability @ Agfa
Sustainability @ Agfa
Slide 25: The road to 2030 & beyond: Sustainable and Profitable growth
The road to 2030 & beyond Sustainable and Profitable growth Focus on our Planet ▪ Agfa Carbon Reduction Plan aligned to the updated 'Fit for 55' package is being finalized, based on a reinvestment plan in energy production for Belgian manufacturing sites ▪ Extension of the mobility plan for (PH)EVs
Slide 26: Questions & Answers
Questions & Answers AGFA &