Agfa-Gevaert NV

Annual / Quarterly Financial Statement • Mar 12, 2014

Consolidated Statement of Profit or Loss (in million Euro)

Audited, consolidated figures in accordance with International Financial Reporting Standards, as adopted by the European Union.

	FY 2012 Restated *	FY 2013 audited	% change	Q4 2012 Restated *	Q4 2013 unaudited	% change
Revenue	3,091	2,865	-7.3%	812	739	-9.0%
Cost of sales	(2,222)	(2,031)	-8.6%	(585)	(511)	-12.6%
Gross profit	869	834	-4.0%	227	228	0.4%
Selling expenses	(388)	(361)	-7.0%	(96)	(89)	-7.3%
Research & Development expenses	(163)	(146)	-10.4%	(36)	(36)
Administrative expenses	(192)	(177)	-7.8%	(49)	(42)	-14.3%
Other operating income	131	163	24.4%	44	44
Other operating expenses	(161)	(150)	-6.8%	(53)	(38)	-28.3%
Results from operating activities	96	163	69.8%	37	67	81.1%
Interest income (expense) - net	(15)	(17)	13.3%	(4)	(4)
Interest income	3	2	-33.3%	1	1
Interest expense	(18)	(19)	5.6%	(5)	(5)
Other finance income (expense) - net	(70) (1)	(54)	-22.9%	(18) (1)	(13)	-27.8%
Other finance income	7	5	-28.6%	3	1	-66.7%
Other finance expense	(77) (1)	(59)	-23.4%	(21) (1)	(14)	-33.3%
Net finance costs	(85) (1)	(71)	-16.5%	(22) (1)	(17)	-22.7%
Profit (loss) before income taxes	11 (1)	92	736.4%	15 (1)	50	233.3%
Income tax expense	(20)	(43)	115.0%	(8)	(6)	-25.0%
Profit (loss) for the period	(9) (1)	49	644.4%	(1) 7	44	528.6%
Profit (loss) attributable to:
Owners of the Company	(19) (1)	41	315.8%	(1) 3	41	1266.7%
Non-controlling interests	10	8	-20.0%	4	3	-25.0%
Results from operating activities	96	163	69.8%	37	67	81.1%
Restructuring and non-recurring items	(43)	19		(20)	6
Recurring EBIT	139	144	3.6%	57	61	7.0%
Outstanding shares per end of period	167,751,190	167,751,190		167,751,190	167,751,190
Weighted number of shares used for calculation	167,751,190	167,751,190		167,751,190	167,751,190
Earnings per share (€)	(0.11) (1)	0.25		0.02 (1)	0.25

* (1) During 2013, the Group has consistently applied its accounting policies used in the previous year, except for its postemployment benefit plans where the measurement of the defined benefit cost and the net defined benefit liability has changed due to the amendments of IAS19 as stated in IAS19 (revised 2011). As a result, other finance expense for 2012 has been restated by 22 million Euro (Q4: 3 million Euro) from 99 million Euro to 77 million Euro. This restatement also impacted the 2012 EPS calculation from minus 0.24 Euro to minus 0.11 Euro (Q4 impact: 0.01 Euro).

Consolidated Statements of Comprehensive Income for the year ending December 2012 /

December 2013 (in million Euro)

Audited, consolidated figures in accordance with International Financial Reporting Standards, as adopted by the European Union.

	2012	2013 audited
Profit / (loss) for the period	(9)*	49
Other Comprehensive Income, net of tax
Items that may be reclassified subsequently to profit or loss:
Exchange differences:	(5)*	(35)
Exchange differences on translation of foreign operations	(6)	(38)
Exchange differences on net investment hedge		4
Income tax on exchange differences on net investment hedge		(1)
Cash flow hedges:	5	(8)
Effective portion of changes in fair value of cash flow hedges	(3)	(19)
Changes in the fair value of cash flow hedges reclassified to profit or loss		12
Income taxes	(3)	(1)
Available-for-sale financial assets:		2
Changes in fair values of available-for-sale financial assets		2
Income taxes	-	-
Items that will not be reclassified subsequently to profit and loss:		191
Remeasurements of the net defined benefit liability		191
Total other Comprehensive Income for the period, net of tax		150
Total Comprehensive Income for the period attributable to:	(113)	199
Owners of the Company	(123)	192
Non-controlling interests	10	7

* As restated for the implementation of IAS 19R (2011): more information is provided in footnote (1) of the consolidated statement of financial position.

Consolidated Statements of Comprehensive Income for the Quarter ending December 2012 /

December 2013 (in million Euro)

Unaudited, consolidated figures in accordance with International Financial Reporting Standards, as adopted by the European Union.

	2012	2013
Profit / (loss) for the period	7*	unaudited 44
Other Comprehensive Income, net of tax
Items that may be reclassified subsequently to profit or loss:
Exchange differences:	(7)*	(15)
Exchange differences on translation of foreign operations	(8)	(17)
Exchange differences on net investment hedge	2	2
Income tax on exchange differences on net investment hedge	(1)	-
Cash flow hedges:	(1)	-
Effective portion of changes in fair value of cash flow hedges		(3)
Changes in the fair value of cash flow hedges reclassified to profit or loss		4
Income taxes	-	(1)
Available-for-sale financial assets:		(1)
Changes in fair values of available-for-sale financial assets		(1)
Income taxes	-	-
Items that will not be reclassified subsequently to profit and loss:		191
Remeasurements of the net defined benefit liability		191
Total other Comprehensive Income for the period, net of tax		175
Total Comprehensive Income for the period attributable to:	(104)	219
Owners of the Company	(108)	217
Non-controlling interests	4	2

* As restated for the implementation of IAS 19R (2011): more information is provided in footnote (1) of the consolidated statement of financial position.

Consolidated Statement of Financial Position (in million Euro)

Audited, consolidated figures in accordance with International Financial Reporting Standards, as adopted by the European Union.

ASSETS	(1) 01/01/2012 Restated	(1) 31/12/2012 Restated	31/12/2013 audited
Non-current assets	1,221	1,156	1,066
Intangible assets	681	654	618
Property, plant and equipment	301	277	242
Investments	15	10	11
Deferred tax assets	224	215	195
Current assets	1,728	1,674	1,502
Inventories	639	635	542
Trade receivables	672	636	585
Current tax assets	82	97	95
Other receivables and other assets	214	149	126
Deferred charges	20	27	25
Derivative financial instruments	1	3	3
Cash and cash equivalents	100	127	126
Total assets	2,949	2,830	2,568
EQUITY AND LIABILITIES
Equity	291 (1)	169 (1)	368
Equity attributable to owners of the Company	256 (1)	133 (1)	325
Share capital	187	187	187
Share premium	210	210	210
Retained earnings	642 (1)	623 (1)	664
Reserves	(90)	(85)	(91)
Translation reserve	11	6	(28)
Post-employment benefits: remeasurements of the net defined benefit	(704) (1)	(808) (1)	(617)
liability Non-controlling interests	35	36	43
Non-current liabilities	1,692 (1)	1,795 (1)	1,397
	1,246 (1)	1,315 (1)
Liabilities for post-employment and long-term termination benefit plans			1,002
Other employee benefits	13	12	11
Loans and borrowings	352	410	319
Provisions	25	15	11
Deferred income	4	1	1
Deferred tax liabilities	52	42	53
Current liabilities	966	866	803
Loans and borrowings	15	8	24
Provisions	223	173	160
Trade payables	275	278	239
Deferred revenue and advance payments	145	138	121
Current tax liabilities	47	56	54
Other payables	149	109	95
Employee benefits	94	99	97
Deferred income	4	3	3
Derivative financial instruments	14	2	10
Total Equity and Liabilities	2,949	2,830	2,568

(1) During 2013, the Group has consistently applied its accounting policies used in the previous year, except for its postemployment benefit plans where the measurement of the defined benefit cost and the net defined benefit liability has changed. The changes fully result from the application of the amendments to IAS19 as stated in IAS19 (revised 2011). As such, the net defined benefit liability at January 1, 2013 has increased by 786 million Euro, being 767 million Euro for the Group's material countries and 19 million Euro for the other countries. This impact has been recorded in equity via retained earnings to the extent related to the changes in the determination of the net periodic pension cost for 2012 resulting in an increase of 22 million Euro, the remainder i.e. minus 808 million Euro has been reflected in a separate line item in equity called 'Postemployment benefits: remeasurements of the net defined benefit liability'.

The impact of the changes in accounting policy are also reflected in the restated opening balances at January 1, 2012 and the closing balances at December 31, 2012 as well as in the result over 2012. The impact on the closing balances at December 31, 2012 equals the impact at January 1, 2013. The opening balances at January 1, 2012 comprise remeasurements of the net defined benefit liability amounting to 704 million Euro being 687 million Euro for the Group's material countries and 17 million Euro for the other countries.

Consolidated Statement of Cash Flows (in million Euro)

Audited, consolidated figures in accordance with International Financial Reporting Standards, as adopted by the European Union.

	FY 2012	FY 2013 audited	Q4 2012	Q4 2013 unaudited
Profit (loss) for the period	(9)*	49	7*	44
Adjustments for:
Depreciation, amortization and impairment losses	87	86	23	22
Changes in fair value of derivative financial instruments	0	(1)	0	0
Granted subventions	(11)	(10)	(4)	(3)
(Gains) / losses on sale of non-current assets	0	(1)	0	0
Net finance costs	85*	71	22*	17
Income tax expense	20	43	8	6
	172	237	56	86
Change in inventories	(7)	73	48	50
Change in trade receivables	29	26	(21)	(15)
Change in trade payables	4	(36)	27	10
Change in deferred revenue and advance payments	(7)	(11)	(33)	(20)
Change in other working capital	(12)	1	(1)	11
Change in non-current provisions	(103)	(158)	(28)	(49)
Change in current provisions	(31)	(10)	(22)	(19)
Cash generated from operating activities	45	122	26	54
Income taxes paid	(13)	(15)	(5)	(4)
Net cash from / (used in) operating activities	32	107	21	50
Interest received	3	2	1	0
Dividends received	0	0	0	0
Proceeds from sale of intangible assets	3	2	2	1
Proceeds from sale of property, plant and equipment	3	4	1	1
Acquisition of intangible assets	(3)	(2)	0	(1)
Acquisition of property, plant and equipment	(41)	(38)	(13)	(12)
Changes in lease portfolio	12	11	4	1
Acquisition of subsidiary, net of cash acquired	0	0	0	0
Change in other investing activities	3	0	1	0
Net cash from / (used in) investing activities	(20)	(21)	(4)	(10)
Interest paid	(29)	(19)	(13)	(1)
Dividends paid	0	0	0	0
Proceeds from borrowings	60	0	0	0
Repayment of borrowings	(8)	(70)	26	(21)
Other financial flows	(9)	11	2	7
Net cash from / (used in) financing activities	14	(78)	15	(15)
Net increase (decrease) in cash and cash equivalents	26	8	32	25
Cash and cash equivalents at January 1	98	125
Effect of exchange rate fluctuations	1	(8)
Cash and cash equivalents at end of the period	125	125

* During 2013 the Group has consistently applied its accounting policies used in the previous year, except for its postemployment benefit plans where the measurement of the defined benefit cost and the net defined benefit liability has changed due to the amendments of IAS19 as stated in IAS19 (rev. 2011). As a result, net finance costs for 2012 has been restated by 22 million Euro (Q4: 3 million Euro) from 107 million Euro to 85 million Euro.

Consolidated Statements of changes in Equity (in million Euro)

Audited, consolidated figures in accordance with International Financial Reporting Standards, as adopted by the European Union.

	ATTRIBUTABLE TO OWNERS OF THE COMPANY
in million Euro	Share capital	Share premium	Retained Earnings	Reserve for own shares	Revaluation reserve	Hedging reserve	Remeasurements of the net defined benefit liability	Translation reserve	Total	CONTROLLING S INTEREST NON	TOTAL EQUITY
Balance at January 1, 2012, as previously reported	187	210	642	(82)	(1)	(7)	-	11	960	35	995
Impact of change in accounting policy	-	-	-	-	-	-	(704) *	-	(704)	-	(704)
Restated balance at January 1, 2012	187	210	642	(82)	(1)	(7)	(704) *	11	256	35	291
Comprehensive income for the period Profit (loss) for the period, as restated	-	-	(19)	-	-	-	-	-	(19)	10	(9)
Other comprehensive income, net of tax, as restated	-	-	-	-	-	5	(104) *	(5)	(104)	-	(104)
Total comprehensive income for the period	-	-	(19)	-	-	5	(104) *	(5)	(123)	10	(113)
Transactions with owners, recorded directly in equity Dividends Total transactions with owners, recorded directly in equity	- -	- -	- -	- -	- -	- -	- -	- -	- -	(9) (9)	(9) (9)
Restated balance at December 31, 2012	187	210	623	(82)	(1)	(2)	(808) *	6	133	36	169
Balance at January 1, 2013, as previously reported Impact of change in accounting policy	187 -	210 -	601 22 *	(82) -	(1) -	(2) -	- (808) *	6 -	919 (786)	36 -	955 (786)
Restated balance at January 1, 2013	187	210	623	(82)	(1)	(2)	(808) *	6	133	36	169
Comprehensive income for the period Profit (loss) for the period	-	-	41	-	-	-	-	-	41	8	49
Other comprehensive income, net of tax	-	-	-	-	2	(8)	191	(34)	151	(1)	150
Total comprehensive income for the period	-	-	41	-	2	(8)	191	(34)	192	7	199
Balance at December 31, 2013	187	210	664	(82)	1	(10)	(617)	(28)	325	43	368

* The impact of the change in accounting policy results from the implementation of IAS 19R (2011): more information is provided in footnote (1) of the consolidated statement of financial position.