Agfa-Gevaert NV

Interim / Quarterly Report • Aug 28, 2013

Consolidated Statement of Profit or Loss (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies

	Q2 2012	Q2 2013	%	H1 2012	H1 2013	%
Revenue	Restated * 779	732	change -6.0%	Restated * 1,513	1,437	change -5.0%
Cost of sales	(553)	(521)	-5.8%	(1,079)	(1,023)	-5.2%
Gross profit	226	211	-6.6%	434	414	-4.6%
Selling expenses	(100)	(92)	-8.0%	(197)	(186)	-5.6%
Research & Development expenses	(42)	(36)	-14.3%	(86)	(75)	-12.8%
Administrative expenses	(49)	(46)	-6.1%	(97)	(92)	-5.2%
Other operating income	30 (1)		77 156.7%	59 (1)	97	64.4%
Other operating expenses	(44) (1)	(47)	6.8%	(81) (1)	(79)	-2.5%
Results from operating activities	21		67 219.0%	32	79	146.9%
Interest income (expense) - net	(3)	(5)	66.7%	(7)	(9)	28.6%
Interest income	1	-		2	1	-50.0%
Interest expense	(4)	(5)	25.0%	(9)	(10)	11.1%
Other finance income (expense) - net	(17)	(16)	-5.9%	(37) (1)	(28)	-24.3%
Other finance income	1 (1)	-		3	3
Other finance expense	(18) (1)(2)	(16)	-11.1%	(40) (1)(2)	(31)	-22.5%
Net finance costs	(20) (2)	(21)	5.0%	(44) (2)	(37)	-15.9%
Profit (loss) before income taxes	1 (2)	46		(12) (2)	42	450.0%
Income tax expense	1	(23)		(6)	(31)	416.7%
Profit (loss) for the period	(2) 2	23		(18) (2)	11
Profit (loss) attributable to:
Owners of the Company	- (2)	21		(21) (2)	8
Non-controlling interests	2	2		3	3
Results from operating activities	21		67 219.0%	32	79	146.9%
Restructuring and non-recurring items	(11)	31		(21)	22
Recurring EBIT	32	36	12.5%	53	57	7.5%
Outstanding shares per end of period	167,751,190	167,751,190		167,751,190	167,751,190
Weighted number of shares used for	167,751,190	167,751,190		167,751,190	167,751,190
calculation Earnings per share (€)	(0.01) (2)	0.13		(0.13) (2)	0.05

* (1) In the course of the third quarter of 2012, the presentation of the exchange results has been changed. The Group offsets its exchange gains and losses per currency to better align with the Group's treasury and hedging policy. Comparative information for 2012 has been restated. For the first half of 2012, the netting in operating exchange gains and losses amounts to 53 million Euro (Q2: 36 million Euro) whereas the netting of exchange results in the net finance costs amounts to 48 million Euro (Q2: 29 million Euro).

(2) During the half year of 2013, the Group has consistently applied its accounting policies used in the previous year, except for its post-employment 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 the first half of 2012 has been restated by 13 million Euro (Q2: 7 million Euro) from 53 million Euro to 40 million Euro. This restatement also impacted the first half year of 2012 EPS calculation from minus 0.20 Euro to minus 0.13 Euro (Q2: minus 0.01 Euro).

Consolidated Statements of Comprehensive Income for the half year ending June 2012 / June 2013 (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies

	2012	2013
Profit / (loss) for the period		11
Other Comprehensive Income, net of tax
Items that may be reclassified subsequently to profit or loss:
Exchange differences:	1*	(9)
Exchange differences on translation of foreign operations	5	(8)
Exchange differences on net investment hedge	(3)	(1)
Income tax on exchange differences on net investment hedge	(1)	-
Cash flow hedges:	(1)	(17)
Effective portion of changes in fair value of cash flow hedges	(7)	(21)
Changes in the fair value of cash flow hedges reclassified to profit or loss		4
Income taxes	-	-
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:	-	-
Total other Comprehensive Income for the period, net of tax	(1)	(26)
Total Comprehensive Income for the period attributable to:	(19)	(15)
Owners of the Company	(22)	(19)
Non-controlling interests	3	4

* 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 June 2012 / June

2013 (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies

	Q2 2012	Q2 2013
Profit / (loss) for the period	2*	23
Other Comprehensive Income, net of tax
Items that may be reclassified subsequently to profit or loss:
Exchange differences:	6*	(16)
Exchange differences on translation of foreign operations	12	(17)
Exchange differences on net investment hedge	(6)	2
Income tax on exchange differences on net investment hedge	-	(1)
Cash flow hedges:	(3)	(11)
Effective portion of changes in fair value of cash flow hedges	(7)	(14)
Changes in the fair value of cash flow hedges reclassified to profit or loss		6
Income taxes	1	(3)
Available-for-sale financial assets:		-
Changes in fair values of available-for-sale financial assets		-
Income taxes	-	-
Items that will not be reclassified subsequently to profit and loss:	-	-
Total other Comprehensive Income for the period, net of tax	3	(27)
Total Comprehensive Income for the period attributable to:	5	(4)
Owners of the Company	3	(5)
Non-controlling interests	2	1

* 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)

Unaudited, consolidated figures following IFRS accounting policies

	(1) 01/01/2012 Restated	(1) 31/12/2012 Restated	30/06/2013
ASSETS
Non-current assets	1,221	1,156	1,099
Intangible assets	681	654	641
Property, plant and equipment	301	277	257
Investments	15	10	9
Deferred tax assets	224	215	192
Current assets	1,728	1,674	1,653
Inventories	639	635	648
Trade receivables	672	636	608
Current tax assets	82	97	102
Other receivables and other assets	214	149	134
Deferred charges	20	27	31
Derivative financial instruments	1	3	3
Cash and cash equivalents	100	127	127
Total assets	2,949	2,830	2,752
EQUITY AND LIABILITIES
Equity	291	169 (1)	154
Equity attributable to owners of the Company	256	133 (1)	114
Share capital	187	187	187
Share premium	210	210	210
Retained earnings	642	623 (1)	631
Reserves	(90)	(85)	(102)
Translation reserve	11	6	(4)
Post-employment benefits: remeasurements of the net defined benefit liability	(704) (1)	(808) (1)	(808)
Non-controlling interests	35	36	40
Non-current liabilities	1,692	1,795	1,701
Liabilities for post-employment and long-term termination benefit plans	1,246 (1)	1,315 (1)	1,243
Other employee benefits	13	12	12
Loans and borrowings	352	410	391
Provisions	25	15	13
Deferred income	4	1	1
Deferred tax liabilities	52	42	41
Current liabilities	966	866	897
Loans and borrowings	15	8	35
Provisions	223	173	185
Trade payables	275	278	259
Deferred revenue and advance payments	145	138	156
Current tax liabilities	47	56	53
Other payables	149	109	102
Employee benefits	94	99	84
Deferred income	4	3	3
Derivative financial instruments	14	2	20
Total Equity and Liabilities	2,949	2,830	2,752

(1) During the first half of 2013, the Group has consistently applied its accounting policies used in the previous year, except for its post-employment 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 'Post-employment 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 the first half year of 2012. The impact on the closing balances at December 31, 2012 equals the impact at January 1, 2013 which is also reflected in the balances at June 30, 2013 as no recalculation of the net defined benefit liability on June 30, 2013 has taken place. 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. For the first half of 2012, other finance expense has been reduced by 13 million Euro being the share of the aforementioned 22 million Euro for the full year 2012 that relates to the first half year of 2012.

Consolidated Statement of Cash Flows (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies

	6m 2012	6m 2013	Q2 2012	Q2 2013
Profit (loss) for the period	-18*	11	2*	23
Adjustments for:
Depreciation, amortization and impairment losses	43	44	22	24
Changes in fair value of derivative financial instruments	2	-1	3	-1
Granted subventions	-4	-5	-3	-3
(Gains) / losses on sale of non-current assets	0	-1	0	0
Net finance costs	44*	37	20*	21
Income tax expense	6	31	-1	23
	73	116	43	87
Change in inventories	-71	-20	-17	25
Change in trade receivables	26	20	34	28
Change in trade payables	15	-18	2	-5
Change in deferred revenue and advance payments	23	20	-21	-6
Change in other working capital	-13	-2	-2	14
Change in non-current provisions	-46	-89	-17	-66
Change in current provisions	-23	-6	-34	-22
Cash generated from operating activities	-16	21	-12	55
Income taxes paid	-4	-6	-1	-4
Net cash from / (used in) operating activities	-20	15	-13	51
Interest received	1	1	0	0
Dividends received	0	0	0	0
Proceeds from sale of intangible assets	1	1	1	1
Proceeds from sale of property, plant and equipment	2	3	1	1
Acquisition of intangible assets	-2	-1	-1	-1
Acquisition of property, plant and equipment	-21	-15	-10	-8
Changes in lease portfolio	18	5	19	3
Change in other investing activities	2	0	2	0
Net cash from / (used in) investing activities	1	-6	12	-4
Interest paid	-13	-14	-11	-10
Dividends paid	0	0	0	0
Proceeds from borrowings	64	10	4	-35
Repayment of borrowings	0	0	46	0
Other financial flows	-11	-1	-9	5
Net cash from / (used in) financing activities	40	-5	30	-40
Net increase (decrease) in cash and cash equivalents	21	4	29	7
Cash and cash equivalents at January 1	98	125
Effect of exchange rate fluctuations	4	-4
Cash and cash equivalents at end of the period	123	125

* During the first half of 2013, the Group has consistently applied its accounting policies used in the previous year, except for its post-employment 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, net finance costs for the first half year of 2012 have been restated by 13 million Euro (Q2: 7 million Euro) from 57 million Euro to 44 million Euro.

Consolidated Statements of changes in Equity (in million Euro)

Unaudited, 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	Revaluation reserve	payment reserve Share-based	Hedging reserve	of the net defined Remeasurement 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 Other comprehensive income, net of tax, as	- -	- -	(21) -	- -	- (1)	- -	- (1)	- -	- 1	(21) (1)	3 -	(18) (1)
restated Total comprehensive income for the period	-	-	(21)	-	(1)	-	(1)	-	1	(22)	3	(19)
Restated balance at June 30, 2012	187	210	621	(82)	(2)	-	(8)	(704)	12	234	38	272
Balance at January 1, 2013, as previously reported	187	210	601	(82)	(1)	-	(2)	-	6	919	36	955
Impact of change in accounting policy	-	-	22	-	-	-	-	(808)	-	(786)	-	(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	-	-	8	-	-	-	-	-	-	8	3	11
Other comprehensive income, net of tax	-	-	-	-	-	-	(17)	-	(10)	(27)	1	(26)
Total comprehensive income for the period	-	-	8	-	-	-	(17)	-	(10)	(19)	4	(15)
Balance at June 30, 2013	187	210	631	(82)	(1)	-	(19)	(808)	(4)	114	40	154