Agfa-Gevaert NV

Quarterly Report • Aug 24, 2011

Consolidated Income Statement (in million Euro)

Non-audited, consolidated figures following IFRS accounting policies

	6m 2010	6m 2011	% change	Q2 2010		Q2 2011 % change
Revenue	1,400	1,499	7.1%	736	763	3.7%
Cost of sales	(906)	(1,052)	16.1%	(471)	(547)	16.1%
Gross profit	494	447	-9.5%	265	216	-18.5%
Selling expenses	(188)	(198)	5.3%	(99)	(98)	-1.0%
Research & Development expenses	(77)	(83)	7.8%	(40)	(40)	-
Administrative expenses	(104)	(99)	-4.8%	(53)	(49)	-7.5%
Other operating income	167	112	-32.9%	92	53	-42.4%
Other operating expenses	(172)	(122)	-29.1%	(96)	(57)	-40.6%
Profit from operating activities	120	57	-52.5%	69	25	-63.8%
Interest income (expense) - net	(6)	(5)	-16.7%	(3)	(2)	-33.3%
Other finance income (expense) - net	(39)	(38)	-2.6%	(19)	(18)	-5.3%
Net finance costs	(45)	(43)	-4.4%	(22)	(20)	-9.1%
Profit before income taxes	75	14	-81.3%	47	5	-89.4%
Income tax expense	(18)	(5)	-72.2%	(8)	(1)	-87.5%
Profit for the period	57	9	-84.2%	39	4	-89.7%
Profit attributable to:
Equity holders of the Company	57	7	-87.7%	39	2	-94.9%
Non-controlling interests	-	2		-	2
Results from operating activities	120	57	-52.5%	69	25	-63.8%
Restructuring and non-recurring items	(17)	(19)		(15)	(11)
Recurring EBIT	137	76	-44.5%	84	36	-57.1%
Outstanding shares per end of period	124,788,430	167,751,190		124,788,430	167,751,190
Weighted number of shares used for calculation	124,788,430	167,751,190		124,788,430	167,751,190

Earnings per share (€) 0.46 0.04 0.32 0.01

Consolidated Statements of Comprehensive Income for the half year ending June 2010 / June 2011 (in million Euro)

	2010	2011
Profit for the period	57	9
Other Comprehensive Income for the period recognized directly in equity – net of tax
Exchange differences on translation of foreign operations	99	(35)
Cash Flow Hedges:
Gains (losses) arising during the year recognized in equity	(3)	3
Reclassification adjustment for gains/(losses) included in profit and loss	-	(4)
Other Comprehensive Income	96	(36)
Total Comprehensive Income for the period	153	(27)
Attributable to equity holders of the Company	153	(28)
Attributable to non-controlling interests	-	1

Consolidated Statements of Comprehensive Income for the quarter ending June 2010 / June 2011 (in million Euro)

	Q2 2010	Q2 2011
Profit for the period	39	4
Other Comprehensive Income for the period recognized directly in equity – net of tax
Exchange differences on translation of foreign operations	50	(5)
Cash Flow Hedges:
Gains (losses) arising during the year recognized in equity	(4)	-
Reclassification adjustment for gains/(losses) included in profit and loss	-	(2)
Other Comprehensive Income	46	(7)
Total Comprehensive Income for the period	85	(3)
Attributable to equity holders of the Company	85	(5)
Attributable to non-controlling interests	-	2

Consolidated Balance Sheet (in million Euro)

Non-audited, consolidated figures following IFRS accounting policies

	31/12/2010	30/06/2011
ASSETS
Non-current assets	1,253	1,194
Intangible assets	680	651
Property, plant and equipment	313	298
Investments	14	18
Deferred tax assets	246	227
Current assets	1,833	1,786
Inventories	583	717
Trade receivables	619	664
Current tax assets	68	79
Other receivables and other assets	295	216
Cash and cash equivalents	239	83
Deferred charges	19	25
Derivative financial instruments	10	2
Total assets	3,086	2,980
EQUITY AND LIABILITIES
Equity	1,063	1,036
Equity attributable to equity holders of the Company	1,033	1,005
Share capital	187	187
Share premium	210	210
Retained earnings	703	721
Reserves	(68)	(81)
Translation differences	1	(32)
Equity attributable to non-controlling interest	30	31
Non-current liabilities	1,053	1,016
Liabilities for post-employment and long-term termination benefit plans	559	540
Liabilities for personnel commitments	14	14
Loans and borrowings	379	383
Provisions	24	21
Deferred income	6	5
Deferred tax liabilities	71	53
Current liabilities	970	928
Loans and borrowings	21	13
Trade payables	246	269
Deferred revenue and advance payments	152	168
Current tax liabilities	50	43
Other liabilities	182	152
Liabilities for personnel commitments	114	82
Provisions	200	197
Deferred income	4	4
Derivative financial instruments	1	-
Total Equity and Liabilities	3,086	2,980

Consolidated Statement of Cash Flows (in million Euro)

Non-audited, consolidated figures following IFRS accounting policies

	6m 2010	6m 2011		Q2 2010 Q2 2011
Results from operating activities	120	57	69	25
Depreciation / Amortization and impairment losses	47	46	23	23
Changes in fair value of derivative financial instruments	2	1	1	1
Adjustment for other non-cash income	(2)	-	(1)	-
(Gains) / losses on retirement of non-current assets	(1)	-	-	-
Gain from bargain purchase	(4)	-	(1)	-
Change in non-current provisions	(39)	(49)	(9)	(19)
Change in current provisions	(13)	(32)	(21)	(43)
Income taxes paid	(13)	(11)	(6)	(5)
Change in inventories	(53)	(134)	(26)	(36)
Change in trade receivables including cash inflows from securitization	19	(12)	25	(15)
Change in trade payables	21	31	19	(20)
Change in deferred revenue and advance payments	35	20	(2)	(11)
Change in other working capital	(34)	(42)	(10)	1
Net cash from / (used in) operating activities	85	(125)	61	(99)
Cash outflows for additions to intangible assets	(3)	(3)	(1)	(2)
Cash outflows for additions to property, plant and equipment	(14)	(24)	(9)	(14)
Cash inflows from disposals of intangible assets	3	-	1	-
Cash inflows from disposals of property, plant and equipment	2	1	1	-
Cash inflows from lease portfolio	15	6	9	3
Cash outflows for acquisitions	(16)	(5)	-	(1)
Interest and dividends received	2	1	1	1
Change in other investing activities	(5)	1	(5)	-
Net cash from / (used in) investing activities	(16)	(23)	(3)	(13)
Net issuances of debt	(54)	6	(51)	98
Interest and dividends paid	(11)	(11)	(10)	(10)
Other financial flows	-	(1)	2	(5)
Net cash from / (used in) financing activities	(65)	(6)	(59)	83
Change in cash and cash equivalents due to business activities	4	(154)	(1)	(29)
Change in cash and cash equivalents due to changes in exchange rate fluctuations	13	(3)	4	2
Change in cash and cash equivalents	17	(157)	3	(27)
Cash and cash equivalents at 1 January	118	238
Cash and cash equivalents at end of the period	135	81

Consolidated Statements of changes in Equity (in million Euro)

Non-audited, consolidated figures following IFRS accounting policies

		ATTRIBUTABLE TO EQUITY HOLDERS 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 differences	Total	NON-CONTROLLING INTEREST	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 for the period			7						7	2	9
Other comprehensive income
Foreign currency translation differences								(34)	(34)	(1)	(35)
Effective portion of changes in fair value of cash flow hedges, net of tax							(1)		(1)		(1)
Total comprehensive income for the period and other comprehensive income for the period	-	-	7	-	-	-	(1)	(34)	(28)	1	(27)
Transactions with owners, recorded directly in equity
Reclassification – share based payments
recorded in profit or loss statement in			11		(12)			1	-		-
previous periods
Balance at June 30, 2011	187	210	721	(82)	-		1	(32)	1,005	31	1,036

		ATTRIBUTABLE TO EQUITY HOLDERS 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 differences	Total	NON-CONTROLLING INTEREST	TOTAL EQUITY
Balance at January 1, 2010	140	109	820	(296)	12	-	2	(66)	721	3	724
Comprehensive income for the period
Profit for the period			57						57	-	57
Other comprehensive income
Foreign currency translation differences								99	99		99
Effective portion of changes in fair value of cash flow hedges, net of tax							(3)		(3)		(3)
Total comprehensive income for the period and other comprehensive income for the period	-	-	57	-	-	-	(3)	99	153	-	153
Balance at June 30, 2010	140	109	877	(296)	12	-	(1)	33	874	3	877