Agfa-Gevaert NV

Interim / Quarterly Report • Nov 14, 2012

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	4	2
Deferred tax liabilities	52	45
Current liabilities	966	946
Loans and borrowings	15	11
Provisions	223	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 INTEREST NON	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	-	-	(41)	-	-	(1)	6	13	(23)	6	(17)
period
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