Agfa-Gevaert NV

Earnings Release • Nov 14, 2012

PRESS RELEASE

Agfa Press Office Septestraat 27 B – 2640 Mortsel Belgium

Johan Jacobs Corporate Press Relations Manager

T +32 3 444 80 15 F +32 3 444 44 85 E johan.jacobs@agfa.com

Regulated information – November 14, 2012 - 7:45 a.m. CET

Agfa-Gevaert publishes its third quarter results

• Revenue increased by 6.5 percent Industrial inkjet and healthcare IT continued to perform well
• Gross profit margin continued to improve year-on-year
• Recurring EBIT increased to 29 million Euro
• Year-on-year improvement of net result

Mortsel (Belgium), November 14, 2012 - Agfa-Gevaert today announced its third quarter results.

Agfa-Gevaert Group – third quarter 2012

in million Euro	Q3 2011	Q3 2012	% change
Revenue	719	766	6.5%
Gross profit (*)	181	209	15.5%
% of revenue	25.2%	27.3%
Recurring EBITDA (*)	32	50	56.3%
% of revenue	4.4%	6.5%
Recurring EBIT (*)	10	29	190.0%
% of revenue	1.4%	3.8%
Result from operating activities	(9)	27
Result attributable to owners of the Company	(37)	(7)
Net cash from (used in) operating activities	2	31

(*) before restructuring and non-recurring items

Supported by positive currency effects, the Agfa-Gevaert Group's revenue increased by 6.5 percent compared to the third quarter of 2011. The Group's main growth engines - industrial inkjet in Agfa Graphics and IT in Agfa HealthCare continued to contribute to the growth.

As expected, the gross profit margin continued to improve year-on-year. Driven by further efficiency improvements, the gross profit margin reached 27.3 percent, versus 25.2 percent in the third quarter of 2011.

As a percentage of revenue, Selling and General Administration expenses improved slightly from 18.5 percent to 18.3 percent.

The Group's recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) increased from 32 million Euro to 50 million Euro. Recurring EBIT nearly tripled from 10 million Euro to 29 million Euro.

Restructuring and non-recurring items resulted in an expense of 2 million Euro, versus an expense of 19 million Euro last year.

The net finance costs amounted to 25 million Euro, versus 22 million Euro in 2011.

Income tax expenses remained stable at 6 million Euro.

For the first time this year, the quarter's net result improved versus 2011. In the third quarter, a result attributable to the owners of the Company of minus 7 million Euro was booked, compared to minus 37 million Euro in 2011.

"The third quarter did not bring any major surprise, but I would like to highlight two very positive achievements. Firstly, our main growth engines continue to perform well. Agfa Graphics' industrial inkjet business continues to grow according to plan and Agfa HealthCare's enterprise IT business posted good sales figures. Secondly, our largest business groups both succeeded in further strengthening their position in the growth markets. Together with the continued improvement of our gross margins, these elements are very encouraging for the future," said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.

Financial position and cash flow

• At the end of the third quarter, total assets were 2,915 million Euro, compared to 2,949 million Euro at the end of 2011.
• Inventories amounted to 691 million Euro (or 112 days). Trade receivables (minus deferred revenue and advanced payments from customers) amounted to 452 million Euro (or 53 days) and trade payables were 253 million Euro, or 41 days.
• Net financial debt amounted to 295 million Euro, versus 339 million Euro at the end of the third quarter of 2011 and 306 million Euro at the end of the second quarter of 2012.
• Net cash from operating activities amounted to 31 million Euro.

in million Euro	Q3 2011	Q3 2012	% change
Revenue	387	417	7.8%
Recurring EBITDA (*)	13.5	24.1	78.5%
% of revenue	3.5%	5.8%
Recurring EBIT (*)	3.8	14.8	289.5%
% of revenue	1.0%	3.5%

Agfa Graphics – third quarter 2012

(*) before restructuring and non-recurring items

Supported by positive currency effects, Agfa Graphics' revenue grew strongly to 417 million Euro. The business group's industrial inkjet segment posted doubledigit revenue growth. In prepress, the volume increase was counterbalanced by price pressure. The digital computer-to-plate (CtP) business continued to suffer from the weakness of the economy in Europe, but performed well in the rest of the world. Sales in the analog computer-to-film (CtF) business were up versus the very weak third quarter of 2011.

Supported by the operational improvements and the top line growth in the industrial inkjet segment, gross profit improved to 24.0 percent of revenue. Recurring EBITDA improved strongly to 24.1 million Euro (5.8 percent of revenue) and recurring EBIT to 14.8 million Euro (3.5 percent of revenue).

In the third quarter, Agfa Graphics again added a number of eye-catching names to its customer base in prepress, as well as in industrial inkjet.

In prepress, Agfa Graphics further strengthened its position in Asia. In Japan, for instance, Print Net (Tokyo), one of the largest web-to-print companies in the country, and Sun m Color (Kyoto) switched to Agfa Graphics' :Azura chemistryfree printing plates. The China Times, a major newspaper in Taiwan, signed a comprehensive CtP contract, including six platesetters and :Arkitex workflow software. In Korea, the Hankyoreh newspaper signed a multi year contract for :N94-V printing plates. In the field of packaging, both the leading metal can manufacturer Daeryuk Can company and the corrugated box manufacturer Wonchang Corrugated Packaging signed a contract for a platesetter and :Energy Elite Pro printing plates.

In Europe, the German Ganz Interprinter company ordered a complete CtP solution, including equipment, workflow software and a two-year printing plate

contract. Alma Manu - part of the second largest media group in Finland - ordered a complete CtP solution for their new printing site. At the new site, they will use Agfa Graphics' :N94-VCF chemistry-free printing plates for newspaper printers. In the USA, a major printing plate contract was signed with Southern Graphic Systems, a large packaging company based in Louisville, KY.

Agfa Graphics' industrial inkjet systems continue to convince printers all over the world. Recently, the business group reached a number of eye-catching milestones. Koma Grafisk became the first printer in the Nordic region to install an :M-Press Leopard flatbed inkjet press. The customer base for the :Jeti 3020 Titan system also continued to grow. Discus Digital Print became the first customer for the highproduction inkjet printer in Oceania. Expressway Graphics and Gera Arte Group ordered the first :Jeti Titan systems in Puerto Rico and Brazil respectively. Several European printers - including the Norwegian Konsis Grafisk and the French Publifix company - also welcomed the :Jeti Titan.

One of the most notable contracts signed in the third quarter, was the combined inkjet and prepress contract with Lake Erie Graphics, a commercial printer based in Brook Park, Ohio (USA). The company ordered a :Jeti 3020 Titan system, along with ink and media, as well as an :Avalon N8 platesetter. Furthermore, Agfa Graphics will supply Lake Erie Graphics with :Azura TS printing plates.

in million Euro	Q3 2011	Q3 2012	% change
Revenue	267	297	11.2%
Recurring EBITDA (*)	17.0	27.9	64.1%
% of revenue	6.4%	9.4%
Recurring EBIT (*)	6.1	17.1	180.3%
% of revenue	2.3%	5.8%

Agfa HealthCare – third quarter 2012

(*) before restructuring and non-recurring items

Supported by positive currency effects, Agfa HealthCare's revenue increased by 11.2 percent to 297 million Euro. The digital radiography business (consisting of Computed Radiography and Direct Radiography) performed well, adding to the continued growth of the IT segment. Compared to the very weak third quarter of 2011, film volumes also increased.

IT performed strongly in Germany and the North of Europe, as well as in Latin America. Business in the South of Europe continued to suffer from the recession. In the USA, the imaging IT business was somewhat soft.

Thanks to Agfa HealthCare's film price increases and the measures to support profitability, the gross profit margin improved from 32.2 percent in the third quarter of last year to 35.0 percent. Recurring EBITDA reached 27.9 million Euro (or 9.4 percent of revenue). Recurring EBIT improved to 17.1 million Euro (or 5.8 percent of revenue).

In the field of Imaging, Agfa HealthCare's CR 10-X table-top computed radiography (CR) system received FDA approval. The system is now available throughout North America. The CR 10-X system offers small hospitals and practices an affordable way to upgrade from analog to high-quality digital imaging. Also in the third quarter, Agfa HealthCare signed a new three-year multi-source contract with the group purchasing division of the Premier healthcare alliance for its entire portfolio of direct radiography (DR) products. Premier counts over 2,600 member hospitals in the USA.

Furthermore, the Radiologischen Gemeinschaftspraxis Betzdorf became the first healthcare center in Germany to put Agfa HealthCare's DX-D 800 system into service. This complete DR solution is suitable for both static and dynamic imaging.

In Imaging IT, Agfa HealthCare introduced its new Global Remote Incident Prevention (GRIP) services. As part of the GRIP services, a centralized global monitoring center and technical team continually monitor the IMPAX PACS solutions (as well as certain third-party systems) of customers worldwide to identify and prevent possible incidents before they occur. In a later stage, other Agfa HealthCare solutions will also be covered.

Agfa HealthCare also launched a new version of its IMPAX Data Center. The IMPAX Data Center 3.0 enables hospitals and hospital groups to consolidate all imaging data into a single, centralized repository.

In the UK, Agfa HealthCare signed a seven-year contract extension with Shrewsbury and Telford Hospital NHS Trust. The contract includes a full upgrade of their PACS systems and the replacement of eight CR units. The trust will also trial two of Agfa HealthCare's DX-D 100 mobile DR systems.

Agfa HealthCare further strengthened its leading position for Enterprise IT in the German speaking countries of Europe. The St. Josefskrankenhaus in Heidelberg (Germany), for instance, signed a contract for the replacement of its existing Hospital Information System (HIS) by Agfa HealthCare's ORBIS solution.

In September, Agfa HealthCare announced a global strategic relationship with Orion Health, a global leader in health information exchange and healthcare integration solutions. Thanks to the partnership, Agfa HealthCare will be able to extend the reach of both its ICIS solution (Imaging Clinical Information Services), and its ORBIS Enterprise IT platform. Orion Health will include Agfa HealthCare's ICIS solution (including the IMPAX Data Center and the XERO image viewer) in its offering.

in million Euro	Q3 2011	Q3 2012	% change
Revenue	65	52	-20.0%
Recurring EBITDA (*)	2.0	(0.7)	-135.0%
% of revenue	3.1%	(1.3%)
Recurring EBIT (*)	0.8	(2.1)	-362.5%
% of revenue	1.2%	(4.0%)

Agfa Specialty Products – third quarter 2012

(*) before restructuring and non-recurring items

Agfa Specialty Products' third quarter revenue decreased by 20.0 percent. The various businesses evolved in line with the trends of the previous quarters.

Recurring EBIT amounted to minus 2.1 million Euro and recurring EBITDA to minus 0.7 million Euro.

Results after nine months

Agfa-Gevaert Group – year to date

in million Euro	9m 2011	9m 2012	% change
Revenue	2,218	2,279	2.8%
Gross profit (*)	628	643	2.4%
% of revenue	28.3%	28.2%
Recurring EBITDA (*)	154	146	-5.2%
% of revenue	6.9%	6.4%
Recurring EBIT (*)	86	82	-4.7%
% of revenue	3.9%	3.6%
Result from operating activities	48	59
Result attributable to owners of	(30)	(41)
the Company Net cash from (used in) operating activities	(123)	11

(*) before restructuring and non-recurring items

Agfa Graphics – year to date

in million Euro	9m 2011	9m 2012	% change
Revenue	1,178	1,231	4.5%
Recurring EBITDA (*)	65.6	63.4	-3.4%
% of revenue	5.6%	5.2%
Recurring EBIT (*)	35.6	34.9	-2.0%
% of revenue	3.0%	2.8%

(*) before restructuring and non-recurring items

Agfa HealthCare – year to date

in million Euro	9m 2011	9m 2012	% change
Revenue	844	875	3.7%
Recurring EBITDA (*)	81.2	84.0	3.4%
% of revenue	9.6%	9.6%
Recurring EBIT (*)	47.0	51.9	10.4%
% of revenue	5.6%	5.9%

(*) before restructuring and non-recurring items

Agfa Specialty Products – year to date

in million Euro	9m 2011	9m 2012	% change
Revenue	196	173	-11.7%
Recurring EBITDA (*)	9.7	2.5	-74.2%
% of revenue	4.9%	1.4%
Recurring EBIT (*)	6.2	(1.5)	-124.2%
% of revenue	3.2%	(0.9%)

(*) before restructuring and non-recurring items

End of message

Management Certification of Financial Statements and Quarterly Report

This statement is made in order to comply with new European transparency regulation enforced by the Belgian Royal Decree of 14 November 2007 and in effect as of 2008. "The Board of Directors and the Executive Committee of Agfa-Gevaert NV, represented by Mr. Julien De Wilde, Chairman of the Board of Directors, Mr. Christian Reinaudo, President and CEO, and Mr. Kris Hoornaert, CFO, jointly certify that, to the best of their knowledge, the consolidated financial statements included in the report and based on the relevant accounting standards, fairly present in all material respects the financial condition and results of Agfa-Gevaert NV, including its consolidated subsidiaries. Based on our knowledge, the report includes all information that is required to be included in such document and does not omit to state all necessary material facts."

Statement of risk

This statement is made in order to comply with new European transparency regulation enforced by the Belgian Royal Decree of 14 November 2007 and in effect as of 2008. "As with any company, Agfa is continually confronted with – but not exclusively - a number of market and competition risks or more specific risks related to the cost of raw materials, product liability, environmental matters, proprietary technology or litigation." Key risk management data is provided in the annual report available on www.agfa.com.

Contact:

Viviane Dictus Director Corporate Communication Septestraat 27 2640 Mortsel - Belgium T +32 (0) 3 444 71 24 F +32 (0) 3 444 44 85 E viviane.dictus@agfa.com

Johan Jacobs

Corporate Press Relations Manager T +32 (0)3/444 80 15 F +32 (0)3/444 44 85 E johan.jacobs@agfa.com

The full press release and financial information is also available on the company's website: www.agfa.com

Consolidated Statement of Profit or Loss (in million Euro)

Non-audited, consolidated figures following IFRS accounting policies

	9m 2011	9m 2012	% change	Q3 2011	Q3 2012	% change
Revenue	2,218	2,279	2.8%	719	766	6.5%
Cost of sales	(1,590)	(1,637)	3.0%	(538)	(558)	3.7%
Gross profit	628	642	2.2%	181	208	14.9%
Selling expenses	(289)	(292)	1.0%	(91)	(95)	4.4%
Research & Development expenses	(121)	(127)	5.0%	(38)	(41)	7.9%
Administrative expenses	(144)	(143)	-0.7%	(45)	(46)	2.2%
Other operating income (*)	77	87	13.0%	28	28	0.0%
Other operating expenses (*)	(103)	(108)	4.9%	(44)	(27)	-38.6%
Results from operating activities	48	59	22.9%	(9)	27	400.0%
Interest income (expense) - net	(9)	(11)	22.2%	(4)	(4)	0.0%
Interest income	2	2	0.0%	1	-	-100.0%
Interest expense	(11)	(13)	18.2%	(5)	(4)	-20.0%
Other finance income (expense) - net	(56)	(71)	26.8%	(18)	(21)	16.7%
Other finance income (*)	3	4	33.3%	1	1	0.0%
Other finance expense (*)	(59)	(75)	27.1%	(19)	(22)	15.8%
Net finance costs	(65)	(82)	26.2%	(22)	(25)	13.6%
Profit (loss) before income taxes	(17)	(23)	-35.3%	(31)	2	106.5%
Income tax expense	(11)	(12)	9.1%	(6)	(6)	0.0%
Profit (loss) for the period	(28)	(35)	-25.0%	(37)	(4)	89.2%
Profit (loss) attributable to:
Owners of the Company	(30)	(41)	-36.7%	(37)	(7)	81.1%
Non-controlling interests	2	6	200.0%	0	3
Results from operating activities	48	59	22.9%	(9)	27	400.0%
Restructuring and non-recurring items	(38)	(23)		(19)	(2)
Recurring EBIT	86	82	-4.7%	10	29	190.0%
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 (€)	(0.18)	(0.25)		(0.22)	(0.05)

(*) During 2012, the Group has consistently applied its accounting policies used in previous years, except for the presentation of exchange results. The Group has netted its exchange gains and losses per currency to better align with the Group's treasury and hedging policy. For the first three quarters of 2012 the resulting netting in operating and non-operating exchange gains and losses amounts to 125 million Euro respectively 66 million Euro. Comparative information for 2011 has been restated. For the first three quarters of 2011, the netting in operating exchange gains and losses amounts to 97 million Euro whereas the netting of exchange results in the net finance costs amounts to 110 million Euro. The Group believes that this revised presentation better matches with the Group's treasury policy and therefore provides information that is more relevant to users of the financial statements.

Consolidated Statements of Comprehensive Income for the period ending September 2011 /

September 2012 (in million Euro) Non-audited, consolidated figures following IFRS accounting policies

	2011	2012
Profit / (loss) for the period	(28)	(35)
Other Comprehensive Income for the period recognized directly in equity, net of tax
Exchange differences:
Exchange differences on translation of foreign operations	(21)	13
Exchange differences on net investment hedge	1	-
Income tax on exchange differences on net investment hedge	1	-
Cash Flow Hedges:
Effective portion of changes in fair value of cash flow hedges	(5)	-
Changes in the fair value of cash flow hedges reclassified to profit or loss	(6)	9
Income taxes	4	(3)
Available-for-sale financial assets:
Changes in fair values of available-for-sale financial assets	-	(1)
Other Comprehensive Income, net of tax	(26)	18
Total Comprehensive Income for the period attributable to:	(54)	(17)
Owners of the Company	(57)	(23)
Non-controlling interests	3	6

Consolidated Statements of Comprehensive Income for the quarter ending September 2011 /

September 2012 (in million Euro) Non-audited, consolidated figures following IFRS accounting policies

	2011	2012
Profit / (loss) for the period	(37)	(4)
Other Comprehensive Income for the period recognized directly in equity, net of tax
Exchange differences:
Exchange differences on translation of foreign operations	21	(5)
Exchange differences on net investment hedge	(6)	3
Income tax on exchange differences on net investment hedge	1	1
Cash Flow Hedges:
Effective portion of changes in fair value of cash flow hedges	(9)	7
Changes in the fair value of cash flow hedges reclassified to profit or loss	(1)	3
Income taxes	4	(3)
Available-for-sale financial assets:
Changes in fair values of available-for-sale financial assets	-	-
Other Comprehensive Income, net of tax	10	6
Total Comprehensive Income for the period attributable to:	(27)	2
Owners of the Company	(29)	(1)
Non-controlling interests	2	3

Consolidated Statement of Financial Position (in million Euro)

Non-audited, consolidated figures following IFRS accounting policies

	31/12/2011	30/09/2012
ASSETS
Non-current assets	1,221	1,186
Intangible assets	681	673
Property, plant and equipment	301	282
Investments	15	11
Deferred tax assets	224	220
Current assets	1,728	1,729
Inventories	639	691
Trade receivables	672	624
Current tax assets	82	93
Other receivables and other assets	214	200
Deferred charges	20	22
Derivative financial instruments	1	2
Cash and cash equivalents	100	97
Total assets	2,949	2,915
EQUITY AND LIABILITIES
Equity	995	978
Equity attributable to owners of the Company	960	937
Share capital	187	187
Share premium	210	210
Retained earnings	642	601
Reserves	(90)	(85)
Translation reserve	11	24
Non-controlling interests	35	41
Non-current liabilities	988	991
Liabilities for post-employment and long-term termination benefit plans	542	532
Other employee benefits	13	13
Loans and borrowings	352	381
Provisions	25	18
Deferred income Deferred tax liabilities	4 52	2 45
Current liabilities	966	946
Loans and borrowings Provisions	15 223	11 218
Trade payables	275	253
Deferred revenue and advance payments	145	172
Current tax liabilities	47	54
Other payables	149	132
Employee benefits	94	100
Deferred income	4	4
Derivative financial instruments	14	2
Total Equity and Liabilities	2,949	2,915

Consolidated Statement of Cash Flows (in million Euro) Non-audited, consolidated figures following IFRS

accounting policies	9m 2011	9m 2012	Q3 2011	Q3 2012
Profit (loss) for the period	(28)	(35)	(37)	(4)
Depreciation, amortization and impairment losses	68	64	22	21
Changes in fair value of derivative financial instruments	1	0	0	(2)
Net finance costs	65	82	22	25
Income tax expense	11	12	6	6
	117	123	13	46
Change in inventories	(128)	(55)	6	16
Change in trade receivables	16	50	28	24
Change in trade payables	23	(23)	(8)	(38)
Change in deferred revenue and advance payments	12	26	(8)	3
Change in other working capital	(65)	(18)	(23)	(1)
Change in non-current provisions	(72)	(75)	(23)	(29)
Change in current provisions	(12)	(9)	20	14
Cash generated from operating activities	(109)	19	5	35
Income taxes paid	(14)	(8)	(3)	(4)
Net cash from / (used in) operating activities	(123)	11	2	31
Interest received	2	2	1	1
Dividends received	0	0	0	0
Proceeds from sale of intangible assets	1	1	1	0
Proceeds from sale of property, plant and equipment	2	2	1	0
Acquisition of intangible assets	(3)	(3)	0	(1)
Acquisition of property, plant and equipment	(36)	(28)	(12)	(7)
Changes in lease portfolio	10	8	4	(10)
Acquisition of subsidiary, net of cash acquired	(26)	0	(21)	0
Change in other investing activities	1	2	0	0
Net cash from / (used in) investing activities	(49)	(16)	(26)	(17)
Interest paid	(13)	(16)	(2)	(3)
Dividends paid	0	0	0	0
Proceeds from borrowings	70	60	70	0
Repayment of borrowings	(39)	(34)	(45)	(38)
Other financial flows	(2)	(11)	(1)	0
Net cash from / (used in) financing activities	16	(1)	22	(41)
Net increase (decrease) in cash and cash equivalents	(156)	(6)	(2)	(27)
Cash and cash equivalents at 1 January	238	98
Effect of exchange rate fluctuations	(3)	3
Cash and cash equivalents at end of the period	79	95

Consolidated Statements of changes in Equity (in million Euro)

Non-audited, consolidated figures following IFRS accounting policies

		ATTRIBUTABLE TO OWNERS OF THE COMPANY
in million Euro	Share capital	Share premium	Retained Earnings	Reserve for own shares	payment reserve Share-based	Revaluation reserve	Hedging reserve	Translation reserve	Total	CONTROLLING S T S INTERE ON N	TOTAL EQUITY
Balance at January 1, 2012	187	210	642	(82)	-	(1)	(7)	11	960	35	995
Comprehensive income for the period
Profit/(loss) for the period			(41)						(41)	6	(35)
Other comprehensive income						(1)	6	13	18	-	18
Total comprehensive income for the period	-	-	(41)	-	-	(1)	6	13	(23)	6	(17)
Balance at September 30, 2012	187	210	601	(82)	-	(2)	(1)	24	937	41	978

	ATTRIBUTABLE TO OWNERS OF THE COMPANY
in million Euro	Share capital	Share premium	Retained Earnings	Reserve for own shares	payment reserve Share-based	Revaluation reserve	Hedging reserve	Translation reserve	Total	NON-CONTROLLING INTERESTS	TOTAL EQUITY
Balance at January 1, 2011	187	210	703	(82)	12	-	2	1	1,033	30	1,063
Comprehensive income for the period Profit/(loss) for the period Other comprehensive income			(30)				(7)	(20)	(30) (27)	2 1	(28) (26)
Total comprehensive income for the period	-	-	(30)	-	-	-	(7)	(20)	(57)	3	(54)
Transactions with owners, recorded directly in equity
Reclassification of share-based payments recorded in profit or loss in previous quarters			12		(12)			-	-		-
Total of transactions with owners	-	-	12	-	(12)	-	-	-	-	-	-
Balance at September 30, 2011	187	210	685	(82)	-	-	(5)	(19)	976	33	1,009