Slide 1: FY 2022 Results
FY 2022 Results Agfa-Gevaert Group March 8, 2023
Slide 2: Key highlights FY'22
EBITDA impacted by cost inflation, lockdowns in China and softer demand in non-Healthcare markets • Adjusted EBITDA decrease of 9% versus 2021 due to continuing cost inflation, Key highlights FY’22 lockdowns in China and softer demand in non-Healthcare markets. • HealthCare IT: momentum created • Si
Slide 3: Offset closing and one time charges
Offset closing and one time charges ▪ Offset closing expected 1st week of April ▪ Offset Reporting and Impairment: ▪ FY 2022: ▪ Criteria IFRS 5 “asset held for sale” are not met due to technical carve out in US/CAN not yet completed ▪ Impairment test (IFRS 36: “impairment of assets”) : comparing net
Slide 4: Agfa-Gevaert Group: Sales by division
Agfa-Gevaert Group Sales by division 12 m 2022 = 1,857 million Euro 20% 42% Offset Solutions 13% Radiology Solutions HealthCare IT Digital Print and Chemicals 25% 4
Slide 5: Agfa-Gevaert Group key figures
Agfa-Gevaert Group Q4 ’22 Q4 ’21 ∆% 12m’22 12m’21 ∆% Key figures in million Euro (excl.curr.) (excl.curr.) Profit & Loss Sales 490 484 1.3% 1,857 1,760 5.5% (-2,8%) (1.0%) Incl. IFRS 16 Gross Profit* 135 128 5.1% 529 498 6.3% as a % of sales 27.5% 26.5% 28.5% 28.3% SG&A* -97 -95 1.3% -389 -363 7.2%
Slide 6: Agfa-Gevaert Group profit and loss
Agfa-Gevaert Group Q4’22 Q4’21 12m’22 12m’21 Key figures in million Euro Profit & Loss Adjusted EBIT* 5 11 31 42 Incl. IFRS 16 Restructuring/non-recurring -155 -28 -192 -33 Operating result -150 -17 -160 9 Non-operating result -5 0 -19 -8 Share of profit of associates -1 - -1 - Profit before taxes -
Slide 7: Main drivers behind key figures (FY '22)
Agfa-Gevaert Group ▪ Sales growth for HealthCare IT and DPC, Offset stable and Radiology Solutions’ medical film business heavily impacted by the Main drivers behind COVID lockdowns in China. key figures (FY ‘22) ▪ Gross profit margin stable at 28.5% of revenue, mainly due to price increase actions
Slide 8: Free Cash Flow Agfa Group Q4 2022
Free Cash Flow Agfa Group Q4 2022 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 *) ADJUSTE
Slide 9: Free Cash Flow Agfa Group FY 2022
Free Cash Flow Agfa Group FY 2022 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 *) ADJUSTE
Slide 10: Net cash position
Net cash position Net cash position excl IFRS 16, in million Euro 762 616 581 577 425 398 396 329 188 172 134 -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 2 Note: Total B/S net c
Slide 11: Working Capital: decrease in % versus Q3 but still above Q4 '21
Working Capital: decrease in % versus Q3 but still above Q4 ‘21 Δ Q4 Δ 2022 Q4 2022 Q3 2022 Q2 2022 Q1 2022 Q4 2021 2022 vs 2021 Q4 vs Q3 Inventories (Mio Eur) 487 561 536 477 418 69 -74 ° DIOH in days 132 152 147 134 119 13 -20 Trade Receivables, Contract Assets/Liabilities 285 284 297 293 283 1 1
Slide 12: HealthCare IT
HealthCare IT
Slide 13: HealthCare IT key figures
HealthCare IT Q4 ’22 Q4 ’21 ∆% 12m’22 12m’21 ∆% Key figures (excl.curr.) (excl.curr.) in million Euro Profit & Loss Sales 70 59 19.1% 244 219 11.5% Incl. IFRS 16 (12.1%) (4.0%) Gross Profit* 32 30 6.8% 110 102 8.4% as a % of sales 45.1% 50.3% 45.2% 46.5% SG&A* -16 -14 15.8% -62 -52 18.9% as a % of s
Slide 14: HealthCare IT: main drivers behind key figures
Main drivers behind ▪ Order Book at very healthy level driven by strong growth in order intake of 18% with high value business (own software) key figures (FY ‘22) increasing with 23%. ▪ Increased momentum in project activity in 2H in North America and Europe and a stabilization of recurring revenue
Slide 15: Radiology Solutions
Radiology Solutions
Slide 16: Radiology Solutions sales by business segment
Radiology Solutions Sales 12m 2022 = 462 million Euro by business segment 4% Hardcopy 39% 57% CR/DR Classic Radiology 16
Slide 17: Radiology Solutions key figures
Radiology Solutions Q4 ’22 Q4 ’21 ∆% 12m’22 12m’21 ∆% Key figures (excl.curr.) (excl.curr.) in million Euro Profit & Loss Sales 129 128 0.6% 462 464 -0.4% Incl. IFRS 16 (-2.9%) (-5.4%) Gross Profit* 45 41 9.8% 148 157 -5.5% as a % of sales 34.8% 31.9% 32.1% 33.9% SG&A* -27 -26 4.2% -106 -101 4.9% as
Slide 18: Radiology Solutions: main drivers behind key figures
Radiology Solutions: profitability suffered from margin and volume pressure in China - DR started to pick up in 2H Main drivers behind ▪ Medical film business mainly impacted by the COVID key figures (FY’22) lockdowns in China and geopolitical situation ▪ DR revenue started to pick up in 2H. The ord
Slide 19: Digital Print & Chemicals
Digital Print & Chemicals
Slide 20: Digital Print & Chemicals sales by business segment
Digital Print & Chemicals Sales 12m 2022 = 372 million Euro by business segment 43% 42% Inkjet Electronic Print Films and Foils 15% 20
Slide 21: Digital Print & Chemicals key figures
Digital Print & Chemicals Q4 ’22 Q4 ’21 ∆% 12m’22 12m’21 ∆% Key figures (excl.curr.) (excl.curr.) in million Euro Profit & Loss Sales 99 93 5.9% 372 330 12.9% Incl. IFRS 16 (4.2%) (10.4%) Gross Profit* 18 21 -11.0% 93 87 6.7% as a % of sales 18.7% 22.2% 24.9% 26.3% SG&A* -16 -16 0.5% -68 -58 17.6% a
Slide 22: Digital Print & Chemicals: main drivers behind key figures
Digital Print & Chemicals: overall revenue growth, profitability impacted by cost inflation and one-offs ▪ Digital print: ▪ Strong top line growth for sign & display while décor printing business and OEM Main drivers behind inks impacted by the weakening economic environment. key figures (FY’22) ▪ I
Slide 23: Offset Solutions
Offset Solutions Y
Slide 24: Offset Solutions key figures
Offset Solutions Q4 ’22 Q4 ’21 ∆% 12m’22 12m’21 (excl.curr.) (exc Key figures in million Euro Profit & Loss Sales 192 204 -5.7% 779 748 4 Incl. IFRS 16 (-8.0%) (-0 Gross Profit* 39 37 6.7% 177 153 15 as a % of sales 20.5% 18.1% 22.7% 20.4% SG&A* -33 -35 -3.7% -136 -133 2 as a % of sales 17.4% 17.1%
Slide 25: Offset Solutions: turnaround established and sale to Aurelius on track
Offset Solutions: turnaround established and sale to Aurelius on track ▪ Continued to focus on high-value regions, concentrating on Main drivers behind margins rather than volumes, successful implementation of key figures (FY’22) price increases to tackle the overall cost inflation. ▪ Demand weaknes
Slide 26: Outlook 2023: recovery in profitability expected
Outlook 2023: recovery in profitability expected ▪ Overall, the Agfa-Gevaert Group expects a recovery in Outlook profitability in the full year 2023 versus 2022. ▪ HealthCare IT: The division’s growth strategy is expected to deliver top line growth, as well as double-digit adjusted EBITDA growth in
Slide 27: Pensions
Pensions
Slide 28: Pension Status: strong decrease in net liability
Pension Status (4 material countries): strong decrease in net liability Excluding Belgian DC Plans 2021 2022 ∆ Funded status in million Euro Strong decrease in net liability Funded Status (670) (493) 177 mainly due to a significant increase in discount rate Obligations 1,767 1,270 (497) Assets 1,098
Slide 29: Pension cost and cash outflow
Pension cost and cash outflow (4 material countries) Excluding Belgian DC Plans Cost and cash outflow in million Euro 2021 2022 2023 (Est excl Offset) Thanks to all pension de-risking actions, decrease in regular Pension Cost in EBIT 24 19 13 pension cash out Estimate 2023 excludes Offset Net intere
Slide 30: Sustainability @ Agfa
Sustainability @ Agfa
Slide 31: The road to 2030 & beyond: Sustainable and Profitable growth
The road to 2030 & beyond Sustainable and Profitable growth Focus on our Planet ▪ A new roadmap for further investments for carbon reduction has been approved for Belgium ▪ 3 CO2 reduction projects were concluded in 2022 ▪ 100% of the bought volume of electricity in Belgium came from renewable resou
Slide 32: Questions & Answers
Questions & Answers AGFA &