Agfa-Gevaert NV

Quarterly Report • Aug 22, 2012

Consolidated Statement of Profit or Loss (in million Euro)

Non-audited, consolidated figures following IFRS accounting policies

	6m 2011	6m 2012	% change	Q2 2011	Q2 2012	% change
Revenue	1,499	1,513	0.9%	763	779	2.1%
Cost of sales	(1,052)	(1,079)	2.6%	(547)	(553)	1.1%
Gross profit	447	434	-2.9%	216	226	4.6%
Selling expenses	(198)	(197)	-0.5%	(98)	(100)	2.0%
Research & Development expenses	(83)	(86)	3.6%	(40)	(42)	5.0%
Administrative expenses	(99)	(97)	-2.0%	(49)	(49)	0.0%
Other operating income	112	112	0.0%	53	66	24.5%
Other operating expenses	(122)	(134)	9.8%	(57)	(80)	40.4%
Results from operating activities	57	32	-43.9%	25	21	-16.0%
Interest income (expense) - net	(5)	(7)	40.0%	(2)	(3)	50.0%
Interest income	1	2	100.0%	1	1	0.0%
Interest expense	(6)	(9)	50.0%	(3)	(4)	33.3%
Other finance income (expense) - net	(38)	(50)	31.6%	(18)	(24)	33.3%
Other finance income	80	51	-36.3%	28	30	7.1%
Other finance expense	(118)	(101)	-14.4%	(46)	(54)	17.4%
Net finance costs	(43)	(57)	32.6%	(20)	(27)	35.0%
Profit (loss) before income taxes	14	(25)	-278.6%	5	(6)	-220.0%
Income tax expense	(5)	(6)	20.0%	(1)	1	-200.0%
Profit (loss) for the period	9	(31)	-444.4%	4	(5)	-225.0%
Profit (loss) attributable to:
Owners of the Company	7	(34)	-585.7%	2	(7)	-450.0%
Non-controlling interests	2	3	50.0%	2	2	0.0%
Results from operating activities	57	32	-43.9%	25	21	-16.0%
Restructuring and non-recurring items	(19)	(21)		(11)	(11)
Recurring EBIT	76	53	-30.3%	36	32	-11.1%
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 (€)	0.04	(0.20)		0.01	(0.04)

Consolidated Statements of Comprehensive Income for the half year ending June 2011 / June

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

	2011	2012
Profit / (loss) for the period	9	(31)
Other Comprehensive Income for the period recognized directly in equity, net of tax
Exchange differences:
Exchange differences on translation of foreign operations	(42)	18
Exchange differences on net investment hedge	7	(3)
Income tax on exchange differences on net investment hedge	-	(1)
Cash Flow Hedges:
Effective portion of changes in fair value of cash flow hedges	3	(7)
Changes in the fair value of cash flow hedges reclassified to profit or loss	(4)	6
Income taxes	-	-
Available-for-sale financial assets:
Changes in fair values of available-for-sale financial assets	-	(1)
Other Comprehensive Income, net of tax	(36)	12
Total Comprehensive Income for the period attributable to:	(27)	(19)
Owners of the Company	(28)	(22)
Non-controlling interests	1	3

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

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

	2011	2012
Profit / (loss) for the period	4	(5)
Other Comprehensive Income for the period recognized directly in equity, net of tax
Exchange differences:
Exchange differences on translation of foreign operations	(7)	31
Exchange differences on net investment hedge	2	(6)
Income tax on exchange differences on net investment hedge	-	-
Cash Flow Hedges:
Effective portion of changes in fair value of cash flow hedges	(1)	(7)
Changes in the fair value of cash flow hedges reclassified to profit or loss	(2)	3
Income taxes	1	1
Available-for-sale financial assets:
Changes in fair values of available-for-sale financial assets	-	-
Other Comprehensive Income, net of tax	(7)	22
Total Comprehensive Income for the period attributable to:	(3)	17
Owners of the Company	(5)	15
Non-controlling interests	2	2

Consolidated Statement of Financial Position (in million Euro)

Non-audited, consolidated figures following IFRS accounting policies

	31/12/2011	30/06/2012
ASSETS
Non-current assets	1,221	1,207
Intangible assets	681	680
Property, plant and equipment	301	291
Investments	15	10
Deferred tax assets	224	226
Current assets	1,728	1,796
Inventories	639	711
Trade receivables	672	652
Current tax assets	82	89
Other receivables and other assets	214	196
Deferred charges	20	23
Derivative financial instruments	1	-
Cash and cash equivalents	100	125
Total assets	2,949	3,003
EQUITY AND LIABILITIES
Equity	995	976
Equity attributable to owners of the Company	960	938
Share capital	187	187
Share premium	210	210
Retained earnings	642	608
Reserves	(90)	(92)
Translation reserve	11	25
Non-controlling interests	35	38
Non-current liabilities	988	1,043
Liabilities for post-employment and long-term termination benefit plans	542	541
Other employee benefits	13	14
Loans and borrowings Provisions	352 25	421 19
Deferred income	4	2
Deferred tax liabilities	52	46
Current liabilities	966	984
Loans and borrowings	15	10
Provisions	223	220
Trade payables	275	293
Deferred revenue and advance payments	145	170
Current tax liabilities	47	54
Other payables	149	135
Employee benefits	94	83
Deferred income	4	4
Derivative financial instruments	14	15
Total Equity and Liabilities	2,949	3,003

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

accounting policies	6m 2011	6m 2012	Q2 2011	Q2 2012
Profit (loss) for the period	9	(31)	4	(5)
Depreciation, amortization and impairment losses	46	43	23	22
Changes in fair value of derivative financial instruments	1	2	1	3
Net finance costs	43	57	20	27
Income tax expense	5	6	1	(1)
	104	77	49	46
Change in inventories	(134)	(71)	(36)	(17)
Change in trade receivables including cash inflows from securitization	(12)	26	(15)	34
Change in trade payables	31	15	(20)	2
Change in deferred revenue and advance payments	20	23	(11)	(21)
Change in other working capital	(42)	(17)	1	(5)
Change in non-current provisions	(49)	(46)	(19)	(17)
Change in current provisions	(32)	(23)	(43)	(34)
Cash generated from operating activities	(114)	(16)	(94)	(12)
Income taxes paid	(11)	(4)	(5)	(1)
Net cash from / (used in) operating activities	(125)	(20)	(99)	(13)
Interest received	1	1	1	-
Dividends received	-	-	-	-
Proceeds from sale of intangible assets	-	1	-	1
Proceeds from sale of property, plant and equipment	1	2	-	1
Acquisition of intangible assets	(3)	(2)	(2)	(1)
Acquisition of property, plant and equipment	(24)	(21)	(14)	(10)
Changes in lease portfolio	6	18	3	19
Acquisition of subsidiary, net of cash acquired	(5)	-	(1)	-
Change in other investing activities	1	2	-	2
Net cash from / (used in) investing activities	(23)	1	(13)	12
Interest paid	(11)	(13)	(10)	(11)
Dividends paid	-	-	-	-
Proceeds from borrowings	-	64	-	4
Repayment of borrowings	6	-	98	46
Other financial flows	(1)	(11)	(5)	(9)
Net cash from / (used in) financing activities	(6)	40	83	30
Net increase (decrease) in cash and cash equivalents	(154)	21	(29)	29
Cash and cash equivalents at 1 January	238	98
Effect of exchange rate fluctuations	(3)	4
Cash and cash equivalents at end of the period	81	123

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
Total comprehensive income for the period
Profit/(loss) for the period			(34)						(34)	3	(31)
Other comprehensive income						(1)	(1)	14	12	-	12
Total comprehensive income for the period	-	-	(34)	-	-	(1)	(1)	14	(22)	3	(19)
Balance at June 30, 2012	187	210	608	(82)	-	(2)	(8)	25	938	38	976

		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
Total comprehensive income for the
period
Profit/(loss) for the period			7						7	2	9
Other comprehensive income							(1)	(34)	(35)	(1)	(36)
Total comprehensive income for the period	-	-	7	-	-	-	(1)	(34)	(28)	1	(27)
Transactions with owners, recorded directly in equity
Reclassification of share-based payments recorded in profit or loss in previous quarters			11		(12)			1	-		-
Total of transactions with owners	-	-	11	-	(12)	-	-	1	-	-	-
Balance at June 30, 2011	187	210	721	(82)	-	-	1	(32)	1,005	31	1,036