Agfa-Gevaert NV

Quarterly Report • Nov 14, 2014

Consolidated Statement of Profit or Loss (in million Euro)

	Q3 2013	Q3 2014	% change	9m 2013	9m 2014	% change
Revenue	689	636	-7.7%	2,126	1,909	-10.2%
Cost of sales	(497)	(440)	-11.5%	(1,520)	(1,324)	-12.9%
Gross profit	192	196	2.1%	606	585	-3.5%
Selling expenses	(86)	(81)	-5.8%	(272)	(248)	-8.8%
Research & Development expenses	(35)	(37)	5.7%	(110)	(109)	-0.9%
Administrative expenses	(43)	(43)		(135)	(129)	-4.4%
Other operating income	22	19	-13.6%	119	54	-54.6%
Other operating expenses	(33)	(25)	-24.2%	(112)	(65)	-42.0%
Results from operating activities	17	29	70.6%	96	88	-8.3%
Interest income (expense) - net Interest income	(4) -	(3) -	-25.0%	(13) 1	(11) 1	-15.4%
Interest expense	(4)	(3)	-25.0%	(14)	(12)	-14.3%
Other finance income (expense) - net	(13)	(12)	-7.7%	(41)	(31)	-24.4%
Other finance income	1	4	300.0%	4	8	100.0%
Other finance expense	(14)	(16)	14.3%	(45)	(39)	-13.3%
Net finance costs	(17)	(15)	-11.8%	(54)	(42)	-22.2%
Profit (loss) before income taxes	-	14		42	46	9.5%
Income tax expense	(6)	(5)	-16.7%	(37)	(8)	-78.4%
Profit (loss) for the period	(6)	9	250.0%	5	38	660.0%
Profit (loss) attributable to:
Owners of the Company	(8)	6	175.0%	-	31
Non-controlling interests	2	3	50.0%	5	7	40.0%
Results from operating activities	17	29	70.6%	96	88	-8.3%
Restructuring and non-recurring items	(9)	(5)	-44.4%	13	(8)
Recurring EBIT	26	34	30.8%	83	96	15.7%
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 (€)	(0.05)	0.03		0.00	0.18

Consolidated Statements of Comprehensive Income for the period ending September 2013 /

September 2014 (in million Euro)

	2013	2014
Profit / (loss) for the period	5	38
Other Comprehensive Income, net of tax
Items that may be reclassified subsequently to profit or loss:
Exchange differences:	(20)	24
Exchange differences on translation of foreign operations	(21)	29
Exchange differences on net investment hedge	2	(8)
Income tax on exchange differences on net investment hedge	(1)	3
Cash flow hedges:	(8)	5
Effective portion of changes in fair value of cash flow hedges	(16)	(8)
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		9
Income taxes	-	3
Available-for-sale financial assets:	3	(1)
Changes in fair value of available-for-sale financial assets	3	(1)
Income taxes	-	-
Items that will not be reclassified subsequently to profit and loss:		-
Remeasurements of the net defined benefit liability	-	-
Total other Comprehensive Income for the period, net of tax		28
Total Comprehensive Income for the period attributable to:	(20)	66
Owners of the Company	(25)	55
Non-controlling interests	5	11

Consolidated Statements of Comprehensive Income for the quarter ending September 2013 /

September 2014 (in million Euro)

	Q3 2013	Q3 2014
Profit / (loss) for the period	(6)	9
Other Comprehensive Income, net of tax
Items that may be reclassified subsequently to profit or loss:
Exchange differences:	(11)	18
Exchange differences on translation of foreign operations	(13)	22
Exchange differences on net investment hedge	3	(7)
Income tax on exchange differences on net investment hedge	(1)	3
Cash flow hedges:	9	(3)
Effective portion of changes in fair value of cash flow hedges	5	(6)
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		-
Income taxes	-	2
Available-for-sale financial assets:	3	(1)
Changes in fair value of available-for-sale financial assets		(1)
Income taxes	-	-
Items that will not be reclassified subsequently to profit and loss:	-	-
Remeasurements of the net defined benefit liability	-	-
Total other Comprehensive Income for the period, net of tax		14
Total Comprehensive Income for the period attributable to:	(5)	23
Owners of the Company	(6)	16
Non-controlling interests	1	7

Consolidated Statement of Financial Position (in million Euro)

	31/12/2013	30/09/2014
ASSETS
Non-current assets	1,066	1,052
Intangible assets	618	617
Property, plant and equipment	242	231
Investments	11	10
Deferred tax assets	195	194
Current assets	1,502	1,520
Inventories	542	580
Trade receivables	585	529
Current tax assets	95	112
Other receivables and other assets	126	122
Deferred charges	25	29
Derivative financial instruments	3	2
Cash and cash equivalents	126	146
Total assets	2,568	2,572
EQUITY AND LIABILITIES
Equity	368	434
Equity attributable to owners of the Company	325	380
Share capital	187	187
Share premium	210	210
Retained earnings	664	695
Reserves	(91)	(87)
Translation reserve	(28)	(8)
Post-employment benefits: remeasurements of the net defined benefit liability	(617)	(617)
Non-controlling interests	43	54
Non-current liabilities	1,397	1,342
Liabilities for post-employment and long-term termination benefit plans	1,002	979
Other employee benefits	11	11
Loans and borrowings	319	299
Provisions	11	10
Deferred income	1	1
Deferred tax liabilities	53	42
Current liabilities	803	796
Loans and borrowings	24	22
Provisions	160	153
Trade payables	239	225
Deferred revenue and advance payments	121	141
Current tax liabilities	54	53
Other payables	95	88
Employee benefits	97	98
Deferred income	3	4
Derivative financial instruments	10	12
Total Equity and Liabilities	2,568	2,572

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

	9m 2013	9m 2014	Q3 2013	Q3 2014
Profit (loss) for the period	5	38	(6)	9
Adjustments for:
Depreciation, amortization and impairment losses	64	52	20	17
Changes in fair value of derivative financial instruments	(1)	1	0	1
Granted subventions	(7)	(6)	(2)	(2)
(Gains) / losses on sale of non-current assets	(1)	0	0	0
Net finance costs	54	42	17	15
Income tax expense	37	8	6	5
	151	135	35	45
Change in inventories	23	(24)	43	(8)
Change in trade receivables	41	71	21	33
Change in trade payables	(46)	(10)	(28)	(20)
Change in deferred revenue and advance payments	9	15	(11)	(14)
Change in other working capital	(10)	(17)	(8)	(11)
Change in non-current provisions	(109)	(62)	(20)	(23)
Change in current provisions	9	(14)	15	17
Cash generated from operating activities	68	94	47	19
Income taxes paid	(11)	(15)	(5)	(3)
Net cash from / (used in) operating activities	57	79	42	16
Interest received	2	2	1	1
Dividends received	0	0	0	0
Proceeds from sale of intangible assets	1	3	0	0
Proceeds from sale of property, plant and equipment	3	2	0	1
Acquisition of intangible assets	(1)	(1)	0	0
Acquisition of property, plant and equipment	(26)	(20)	(11)	(8)
Changes in lease portfolio	10	3	5	4
Net cash from / (used in) investing activities	(11)	(11)	(5)	(2)
Interest paid	(18)	(17)	(4)	(4)
Dividends paid	0	0	0	0
Proceeds from borrowings	0	0	(10)	0
Repayment of borrowings	(49)	(24)	(49)	(14)
Other financial flows	4	(5)	5	(5)
Net cash from / (used in) financing activities	(63)	(46)	(58)	(23)
Net increase (decrease) in cash and cash equivalents	(17)	22	(21)	(9)
Cash and cash equivalents at January 1	125	125
Effect of exchange rate fluctuations	(5)	(2)
Cash and cash equivalents at end of the period	103	145

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	payment reserve Share-based	Hedging reserve	Remeasurements of the net defined benefit liability	Translation reserve	Total	CONTROLLING S T S INTERE ON N	TOTAL EQUITY
Balance at January 1, 2013, as previously reported	187	210	623	(82)	(1)	-	(2)	(808)	6	133	36	169
Comprehensive income for the period
Profit (loss) for the period	-	-	-	-	-	-	-	-	-	-	5	5
Other comprehensive income, net of tax	-	-	-	-	3	-	(8)	-	(20)	(25)	-	(25)
Total comprehensive income for the period	-	-	-	-	3	-	(8)	-	(20)	(25)	5	(20)
Balance at September 30, 2013	187	210	623	(82)	2	-	(10)	(808)	(14)	108	41	149
Balance at January 1, 2014	187	210	664	(82)	1	-	(10)	(617)	(28)	325	43	368
Comprehensive income for the period
Profit (loss) for the period	-	-	31	-	-	-	-	-	-	31	7	38
Other comprehensive income, net of tax	-	-	-	-	(1)	-	5	-	20	24	4	28
Total comprehensive income for the period	-	-	31	-	(1)	-	5	-	20	55	11	66
Balance at September 30, 2014	187	210	695	(82)	0	-	(5)	(617)	(8)	380	54	434