Agfa-Gevaert NV

Earnings Release • May 9, 2017

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 – May 9, 2017 - 7:45 a.m. CET

Agfa-Gevaert publishes its first quarter 2017 results

• Good performance of the main growth engines, counterbalanced by lower hardcopy sales
• Recurring EBITDA at 39 million Euro
• Net profit of 8 million Euro
• Further increase of the net cash position to 37 million Euro

Mortsel (Belgium), May 9, 2017 - Agfa-Gevaert today announced its first quarter 2017 results.

"Following a strong fourth quarter in 2016, the impact of inventory adjustments in Agfa HealthCare's hardcopy business somewhat overshadowed the good performance of its IT business. Based on good inkjet sales and an improving trend in printing plate volumes, Agfa Graphics' top line trend improved compared to the previous quarters. For the Group, we reiterate our target of reducing the top line decline and ultimately returning to growth in the medium term. On average, recurring EBITDA should be kept around 10% of revenue in the coming years. We have initiated several top line projects, aimed at limiting the decline of our traditional businesses and at boosting the success of our growth engines," said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.

in million Euro	Q1 2016	Q1 2017	% change
Revenue	603	588	-2.5%
Gross profit (*)	195	193	-1.0%
% of revenue	32.3%	32.8%
Recurring EBITDA (*)	48	39	-18.8%
% of revenue	8.0%	6.6%
Recurring EBIT (*)	34	26	-23.5%
% of revenue	5.6%	4.4%
Result from operating activities	30	23	-23.3%
Result for the period	10	8	-20.0%
Net cash from (used in) operating activities	39	35	-10.3%

Agfa-Gevaert Group – first quarter 2017

(*) before restructuring and non-recurring items

In spite of the strong impact of inventory adjustments in Agfa HealthCare's hardcopy business, the Agfa-Gevaert Group's revenue decreased by only 2.5% to 588 million Euro. The main growth engines of all three business groups performed

well. In the Agfa Graphics business group, the volume trend for printing plates started to improve.

In spite of the lower top line, the Group's gross profit remained almost stable at 193 million Euro. The gross profit margin improved to 32.8% of revenue.

As a percentage of revenue, Selling and General Administration expenses amounted to 21.9%.

R&D expenses amounted to 38 million Euro, or 6.5% of revenue.

Recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) amounted to 6.6% of revenue, versus 8.0% in the first quarter of 2016. Recurring EBIT reached 4.4% of revenue, versus 5.6% in the previous year.

Restructuring and non-recurring items resulted in an expense of 3 million Euro, versus an expense of 4 million Euro in the first quarter of 2016.

The net finance costs increased from 8 million Euro in the first quarter of 2016 to 12 million Euro.

Income tax expenses amounted to 3 million Euro, versus 12 million Euro in the previous year.

As a result of the elements mentioned above, the Agfa-Gevaert Group posted a net profit of 8 million Euro.

Financial position and cash flow

• At the end of the first quarter of 2017, total assets were 2,438 million Euro, compared to 2,352 million Euro at the end of 2016.

• Inventories amounted to 531 million Euro (115 days), versus 528 million Euro (106 days) in the first quarter of 2016. Trade receivables (minus deferred revenue and advanced payments from customers) amounted to 324 million Euro (50 days), versus 349 million Euro (52 days) in the first quarter of 2016, and trade payables were 260 million Euro (56 days), versus 242 million Euro (49 days).

• The net cash position further improved to 37 million Euro, versus 18 million Euro at the end of 2016.

• Net cash from operating activities amounted to 35 million Euro.

in million Euro	Q1 2016	Q1 2017	% change
Revenue	307	300	-2.3%
Recurring EBITDA (*)	24.7	19.9	-19.4%
% of revenue	8.0%	6.6%
Recurring EBIT (*)	18.0	13.7	-23.9%
% of revenue	5.9%	4.6%

Agfa Graphics – first quarter 2017

(*) before restructuring and non-recurring items

Agfa Graphics' top line trend improved considerably compared to the previous quarters. The inkjet segment posted solid revenue growth. The wide-format equipment product range performed well. In addition to banners and other wideformat applications, customers are increasingly using Agfa Graphics' inkjet equipment for industrial applications, such as decoration, flooring, etc. Ink volumes also increased substantially. In the prepress segment, the volume trend for printing plates started to improve, mainly driven by the sustainable chemistry-free solutions.

Due to structural efficiency measures, Agfa Graphics' gross profit margin improved from 29.0% of revenue in last year's first quarter to 30.0%. Recurring EBITDA amounted to 19.9 million Euro (6.6% of revenue), versus 24.7 million Euro (8.0% of revenue) in last year's first quarter and recurring EBIT reached 13.7 million Euro (4.6% of revenue), versus 18.0 million Euro (5.9% of revenue).

In the field of inkjet, Agfa Graphics launched Jeti Ceres RTR3200 LED, its dedicated roll-to-roll printer with UV LED curing. The printer combines high production speeds with industry-leading image quality and low ink consumption. Right after the launch, one of the first Jeti Ceres printers was sold to Nuevo Grupo Visual in Mexico.

Agfa Graphics also introduced Asanti 3.0, the latest version of its automated production hub and workflow tool for sign & display printers. The new version offers its users new functionalities, more integration possibilities and added automation.

Various important ink contracts were signed in Europe, as well as in China.

In the field of prepress, an extensive, multi-year contract was signed with Newsprinters, the newspaper arm of News UK. Agfa Graphics will provide three print plants of the group with new Computer-to-Plate equipment and an expanded Arkitex workflow system, including cloud based tools. The contract also includes the supply of N95-VCF chemistry-free printing plates.

Other eye-catching prepress contracts were signed with – among other companies: D.C. Thomson, Newbury Weekly News (both in the UK); Cipola, Grupo Jauense (both in Brazil); Diario de Cd. Juarez, Metro Comunicaciones (both in Mexico); Cia Graphic (France).

in million Euro	Q1 2016	Q1 2017	% change
Revenue	254	239	-5.9%
Recurring EBITDA (*)	22.5	16.3	-27.6%
% of revenue	8.9%	6.8%
Recurring EBIT (*)	16.1	10.1	-37.3%
% of revenue	6.3%	4.2%

Agfa HealthCare – first quarter 2017

(*) before restructuring and non-recurring items

Agfa HealthCare's top line decrease was mainly attributable to the Imaging segment's hardcopy and classic X-ray products. After a strong fourth quarter in 2016, the hardcopy business was impacted by inventory adjustments at the distributors' level in the emerging markets in general and China in particular. The IT segment continued to post revenue growth, mainly due to the strong performance of the HealthCare Information Solutions range. In the field of Imaging IT Solutions, the order book for the Enterprise Imaging platform continued to grow steadily, thus ensuring future revenue growth.

The business group's gross profit margin remained almost stable at 38.1% of revenue. Recurring EBITDA amounted to 16.3 million Euro (6.8% of revenue), versus 22.5 million Euro (8.9% of revenue) in the first quarter of 2016. Recurring EBIT reached 10.1 million Euro (4.2% of revenue), versus 16.1 million Euro (6.3% of revenue) in last year's first quarter.

In the field of Imaging, Agfa HealthCare successfully introduced its new multipurpose DR 800 X-ray room in the European market at the ECR 2017 event. The new X-ray room covers radiography, fluoroscopy and advanced clinical applications.

In the field of Imaging IT Solutions, the KLAS research firm honored Agfa HealthCare's XERO Viewer with a Category Leader Award in the Universal Image Viewer category. According to a recent KLAS report, Agfa HealthCare is one of two vendors offering universal viewers that are fast and reliable, and noted for continually improving their solutions. In another report, KLAS said that Agfa HealthCare customers are increasingly satisfied with the company's Enterprise Imaging platform.

In March, Agfa HealthCare announced the release of a new version of its Enterprise Imaging for Cardiology platform at the American College of Cardiologists' ACC.17 expo. Customer-driven enhancements include new structured reporting modules for congenital echocardiology and nuclear cardiology. Enterprise Imaging for Cardiology is an important part of the Enterprise Imaging platform.

In the first quarter, Agfa HealthCare's comprehensive Enterprise Imaging platform continued to convince care organizations around the world. The Greenville Health System, for instance, will implement the platform to seamlessly connect its facilities across the Upstate of South Carolina (USA). In the UK, Agfa HealthCare signed a new agreement with the Ipswich Hospital NHS Trust to transition to the integrated Enterprise Imaging for Radiology platform, helping the Trust to achieve its clinical and integration goals.

In the field of integrated care, Agfa HealthCare's health management platform has been selected to support the joint Radiotherapy Treatment Project of the Saolta University Health Care Group and Altnagelvin Hospital, part of Western Health and Social Care Trust. This cross-border project will enable patients from County Donegal (Republic of Ireland) to access radiotherapy services at the nearby Altnagelvin Hospital in Derry (Northern Ireland).

In HealthCare Information Solutions, Agfa HealthCare announced that only three years after the signing of the contract, 16 hospitals of the German Asklepios Kliniken Verwaltungsgesellschaft mbH have made the transition to the business group's ORBIS Hospital Information System. In total 42 Asklepios hospitals are now using ORBIS.

Agfa HealthCare also confirmed its leading position in the German speaking countries of Europe by signing several new ORBIS contracts. SRH Kliniken, for instance, will install ORBIS in its three new hospital sites in Sigmaringen, Pfullingen and Bad Saulgau.

in million Euro	Q1 2016	Q1 2017	% change
Revenue	42	49	16.7%
Recurring EBITDA (*)	2.0	3.5	75.0%
% of revenue	4.8%	7.1%
Recurring EBIT (*)	1.1	2.6	136.4%
% of revenue	2.6%	5.3%

Agfa Specialty Products – first quarter 2017

(*) before restructuring and non-recurring items

Agfa Specialty Products' revenue increased to 49 million Euro. Both the futureoriented businesses (mainly Security, Synaps Synthetic Paper and Orgacon Electronic Materials), as well as a number of classic film product ranges performed well.

The business group's recurring EBITDA reached 3.5 million Euro (7.1% of revenue). Recurring EBIT improved to 2.6 million Euro (5.3% of revenue).

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 E viviane.dictus@agfa.com

Johan Jacobs

Corporate Press Relations Manager T +32 (0)3/444 80 15 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)

	Q1 2016	Q1 2017	% change
Revenue	603	588	-2.5%
Cost of sales	(408)	(396)	-2.9%
Gross profit	195	192	-1.5%
Selling expenses	(84)	(86)	2.4%
Research & Development expenses	(35)	(37)	5.7%
Administrative expenses	(43)	(43)	-
Other operating income	24	14	-41.7%
Other operating expenses	(27)	(17)	-37.0%
Results from operating activities	30	23	-23.3%
Interest income (expense) - net Interest income	(2) -	(2) -	- -
Interest expense	(2)	(2)	-
Other finance income (expense) - net	(6)	(10)	66.7%
Other finance income	6	2	-66.7%
Other finance expense	(12)	(12)	-
Net finance costs	(8)	(12)	50.0%
Profit (loss) before income taxes	22	11	-50.0%
Income tax expense	(12)	(3)	-75.0%
Profit (loss) for the period	10	8	-20.0%
Profit (loss) attributable to:
Owners of the Company	8	6	-25.0%
Non-controlling interests	2	2	-
Results from operating activities	30	23	-23.3%
Restructuring and non-recurring items	(4)	(3)	-25.0%
Recurring EBIT	34	26	-23.5%
Outstanding shares per end of period	167,751,190	167,751,190
Weighted number of shares used for calculation	167,751,190	167,751,190
Earnings per share (Euro)	0.05	0.04

Consolidated Statements of Comprehensive Income for the quarter ending March 2016 / March

2017 (in million Euro)

	Q1 2016	Q1 2017
Profit / (loss) for the period	10	8
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:
Exchange differences:	-	(1)
Exchange differences on translation of foreign operations	(5)	(1)
Exchange differences on net investment hedge	5	-
Income tax on exchange differences on net investment hedge	-	-
Cash flow hedges:	6	8
Effective portion of changes in fair value of cash flow hedges	2	15
Changes in the fair value of cash flow hedges reclassified to profit or loss	-	1
Adjustments for amounts transferred to initial carrying amount of hedged items	4	(3)
Income taxes	-	(5)
Available-for-sale financial assets:	(1)	1
Changes in fair value of available-for-sale financial assets	(1)	1
Income taxes	-	-
Items that will not be reclassified subsequently to profit and loss:	-	-
Remeasurements of the net defined benefit liability	-	-
Income tax on remeasurements on the net defined benefit liability	-	-
Total other Comprehensive Income for the period, net of tax	5	8
Total Comprehensive Income for the period attributable to:	15	16
Owners of the Company	15	14
Non-controlling interests	-	2

Consolidated Statement of Financial Position (in million Euro)

	31/12/2016	31/03/2017
ASSETS
Non-current assets	1,066	1,066
Intangible assets and goodwill	621	616
Property, plant and equipment	198	196
Investments in associates	6	6
Financial assets	10	11
Trade receivables	12	13
Receivables under finance lease	57	59
Other assets	13	11
Deferred tax assets	149	154
Current assets	1,286	1,372
Inventories	483	531
Trade receivables	493	496
Current income tax assets	64	66
Other tax receivables	25	25
Receivables under finance lease	30	25
Other receivables	13	17
Other assets	45	62
Derivative financial instruments	4	13
Cash and cash equivalents	129	137
Total assets	2,352	2,438

Consolidated Statement of Financial Position (in million Euro) - continued

	31/12/2016	31/03/2017
EQUITY AND LIABILITIES
Equity	252	268
Equity attributable to owners of the Company	215	229
Share capital	187	187
Share premium	210	210
Retained earnings	841	847
Reserves	(79)	(70)
Translation reserve	32	31
Post-employment benefits: remeasurements of the net defined benefit liability	(976)	(976)
Non-controlling interests	37	39
Non-current liabilities	1,382	1,364
Liabilities for post-employment and long-term termination benefit plans	1,269	1,259
Other employee benefits	8	8
Loans and borrowings	74	59
Provisions	4	5
Trade payables	6	6
Deferred income	2	2
Deferred tax liabilities	19	25
Current liabilities	718	806
Loans and borrowings	37	41
Provisions	74	69
Trade payables	219	254
Deferred revenue and advance payments	141	185
Current income tax liabilities	56	55
Other tax liabilities	37	33
Other payables	11	11
Employee benefits	132	152
Other liabilities	3	3
Derivative financial instruments	8	3
Total Equity and Liabilities	2,352	2,438

Consolidated Statement of Cash Flows (in million Euro) Unaudited, consolidated figures following IFRS accounting policies.

	Q1 2016	Q1 2017
Profit (loss) for the period	10	8
Adjustments for:
Depreciation, amortization and impairment losses	14	13
Changes in fair value of derivative financial instruments	2	(1)
Granted subventions	(2)	(2)
(Gains) / losses on sale of non-current assets	0	0
Net finance costs	8	12
Income tax expense	12	3
	44	33
Change in inventories	(21)	(48)
Change in trade receivables	(3)	(1)
Change in trade payables	6	36
Change in deferred revenue and advance payments	31	45
Change in other working capital	(22)	(23)
Change in non-current provisions	(13)	(14)
Change in current provisions	18	13
Cash generated from operating activities	40	41
Income taxes paid	(1)	(6)
Net cash from / (used in) operating activities	39	35
Interest received	1	0
Dividends received	0	0
Proceeds from sale of intangible assets	1	1
Proceeds from sale of property, plant and equipment	0	1
Proceeds from assets held for sale	0	0
Acquisition of intangible assets	0	(1)
Acquisition of property, plant and equipment	(8)	(7)
Changes in lease portfolio	2	3
Acquisition of subsidiary, net of cash acquired	0	0
Change in other investing activities	(6)	0
Net cash from / (used in) investing activities	(10)	(3)
Interest paid	(2)	(2)
Dividends paid to non-controlling interests	0	0
Proceeds from borrowings	0	0
Repayment of borrowings	(34)	(11)
Other financial flows	(7)	(11)
Net cash from / (used in) financing activities	(43)	(24)
Net increase (decrease) in cash and cash equivalents	(14)	8
Cash and cash equivalents at January 1	122	127
Effect of exchange rate fluctuations	(2)	1
Cash and cash equivalents at end of the period	106	136

Consolidated Statement of changes in Equity (in million Euro)

		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, 2016	187	216	771	(82)	4	(14)	(841)	(7)	228	40	268
Comprehensive income for the period
Profit (loss) for the period	-	-	8	-	-	-	-	-	8	2	10
Other comprehensive income, net of tax	-	-	-	-	(1)	6	-	2	7	(2)	5
Total comprehensive income for the period	-	-	8	-	(1)	6	-	2	15	-	15
Balance at March 31, 2016	187	210	779	(82)	3	(8)	(841)	(5)	243	40	283
Balance at January 1, 2017	187	210	841	(82)	2	1	(976)	32	215	37	252
Comprehensive income for the period
Profit (loss) for the period	-	-	6	-	-	-	-	-	6	2	8
Other comprehensive income, net of tax	-	-	-	-	1	8	-	(1)	8	-	8
Total comprehensive income for the period	-	-	6	-	1	8	-	(1)	14	2	16
Balance at March 31, 2017	187	210	847	(82)	3	9	(976)	31	229	39	268