Agfa-Gevaert NV

Quarterly Report • Aug 27, 2014

Consolidated Statement of Profit or Loss (in million Euro)

	Q2 2013	Q2 2014	% change	H1 2013	H1 2014	% change
Revenue	732	651	-11.1%	1,437	1,273	-11.4%
Cost of sales	(521)	(444)	-14.8%	(1,023)	(884)	-13.6%
Gross profit	211	207	-1.9%	414	389	-6.0%
Selling expenses	(92)	(83)	-9.8%	(186)	(167)	-10.2%
Research & Development expenses	(36)	(37)	2.8%	(75)	(72)	-4.0%
Administrative expenses	(46)	(42)	-8.7%	(92)	(86)	-6.5%
Other operating income	77	19	-75.3%	97	35	-63.9%
Other operating expenses	(47)	(20)	-57.4%	(79)	(40)	-49.4%
Results from operating activities	67	44	-34.3%	79	59	-25.3%
Interest income (expense) - net Interest income	(5) -	(4) 1	-20.0%	(9) 1	(8) 1	-11.1%
Interest expense	(5)	(5)		(10)	(9)	-10.0%
Other finance income (expense) - net	(16)	(9)	-43.8%	(28)	(19)	-32.1%
Other finance income	-	3		3	4	33.3%
Other finance expense	(16)	(12)	-25.0%	(31)	(23)	-25.8%
Net finance costs	(21)	(13)	-38.1%	(37)	(27)	-27.0%
Profit (loss) before income taxes	46	31	-32.6%	42	32	-23.8%
Income tax expense	(23)	(3)	-87.0%	(31)	(3)	-90.3%
Profit (loss) for the period	23	28	21.7%	11	29	163.6%
Profit (loss) attributable to:
Owners of the Company	21	26	23.8%	8	25	212.5%
Non-controlling interests	2	2		3	4	33.3%
Results from operating activities	67	44	-34.3%	79	59	-25.3%
Restructuring and non-recurring items	31	(2)		22	(3)
Recurring EBIT	36	46	27.8%	57	62	8.8%
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 (€)	0.13	0.15		0.05	0.15

Consolidated Statements of Comprehensive Income for the half year ending June 2013 / June 2014 (in million Euro)

	2013	2014
Profit / (loss) for the period	11	29
Other Comprehensive Income, net of tax
Items that may be reclassified subsequently to profit or loss:
Exchange differences:	(9)	6
Exchange differences on translation of foreign operations	(8)	7
Exchange differences on net investment hedge	(1)	(1)
Income tax on exchange differences on net investment hedge	-	-
Cash flow hedges:	(17)	8
Effective portion of changes in fair value of cash flow hedges	(21)	(2)
Changes in the fair value of cash flow hedges reclassified to profit or loss		9
Income taxes	-	1
Available-for-sale financial assets:	-	-
Changes in fair value of available-for-sale financial assets	-	-
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	(26)	14
Total Comprehensive Income for the period attributable to:	(15)	43
Owners of the Company	(19)	39
Non-controlling interests	4	4

Consolidated Statements of Comprehensive Income for the quarter ending June 2013 / June 2014 (in million Euro)

	Q2 2013	Q2 2014
Profit / (loss) for the period	23	28
Other Comprehensive Income, net of tax
Items that may be reclassified subsequently to profit or loss:
Exchange differences:	(16)	10
Exchange differences on translation of foreign operations	(17)	11
Exchange differences on net investment hedge	2	(1)
Income tax on exchange differences on net investment hedge	(1)	-
Cash flow hedges:	(11)	6
Effective portion of changes in fair value of cash flow hedges	(14)	-
Changes in the fair value of cash flow hedges reclassified to profit or loss		5
Income taxes	(3)	1
Available-for-sale financial assets:	-	-
Changes in fair value of available-for-sale financial assets		-
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	(27)	16
Total Comprehensive Income for the period attributable to:	(4)	44
Owners of the Company	(5)	41
Non-controlling interests	1	3

Consolidated Statement of Financial Position (in million Euro)

	31/12/2013	30/06/2014
ASSETS
Non-current assets	1,066	1,044
Intangible assets	618	609
Property, plant and equipment	242	231
Investments	11	11
Deferred tax assets	195	193
Current assets	1,502	1,529
Inventories	542	561
Trade receivables	585	550
Current tax assets	95	108
Other receivables and other assets	126	120
Deferred charges	25	31
Derivative financial instruments	3	1
Cash and cash equivalents	126	158
Total assets	2,568	2,573
EQUITY AND LIABILITIES
Equity	368	411
Equity attributable to owners of the Company	325	364
Share capital	187	187
Share premium	210	210
Retained earnings	664	689
Reserves	(91)	(83)
Translation reserve	(28)	(22)
Post-employment benefits: remeasurements of the net defined benefit liability	(617)	(617)
Non-controlling interests	43	47
Non-current liabilities	1,397	1,366
Liabilities for post-employment and long-term termination benefit plans	1,002	983
Other employee benefits	11	11
Loans and borrowings	319	312
Provisions	11	10
Deferred income	1	1
Deferred tax liabilities	53	49
Current liabilities	803	796
Loans and borrowings	24	22
Provisions	160	150
Trade payables	239	241
Deferred revenue and advance payments	121	151
Current tax liabilities	54	59
Other payables	95	86
Employee benefits	97	80
Deferred income	3	3
Derivative financial instruments	10	4
Total Equity and Liabilities	2,568	2,573

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

	6m 2013	6m 2014	Q2 2013	Q2 2014
Profit (loss) for the period	11	29	23	28
Adjustments for:
Depreciation, amortization and impairment losses	44	35	24	17
Changes in fair value of derivative financial instruments	-1	0	-1	0
Granted subventions	-5	-4	-3	-2
(Gains) / losses on sale of non-current assets	-1	0	0	0
Net finance costs	37	27	21	13
Income tax expense	31	3	23	3
	116	90	87	59
Change in inventories	-20	-16	25	-12
Change in trade receivables	20	38	28	27
Change in trade payables	-18	10	-5	15
Change in deferred revenue and advance payments	20	29	-6	-3
Change in other working capital	-2	-6	14	11
Change in non-current provisions	-89	-39	-66	-19
Change in current provisions	-6	-31	-22	-39
Cash generated from operating activities	21	75	55	39
Income taxes paid	-6	-12	-4	-7
Net cash from / (used in) operating activities	15	63	51	32
Interest received	1	1	0	0
Dividends received	0	0	0	0
Proceeds from sale of intangible assets	1	3	1	1
Proceeds from sale of property, plant and equipment	3	1	1	0
Acquisition of intangible assets	-1	-1	-1	0
Acquisition of property, plant and equipment	-15	-12	-8	-6
Changes in lease portfolio	5	-1	3	-3
Net cash from / (used in) investing activities	-6	-9	-4	-8
Interest paid	-14	-13	-10	-9
Dividends paid	0	0	0	0
Proceeds from borrowings	10	0	-35	0
Repayment of borrowings	0	-10	0	0
Other financial flows	-1	0	5	-1
Net cash from / (used in) financing activities	-5	-23	-40	-10
Net increase (decrease) in cash and cash equivalents	4	31	7	14
Cash and cash equivalents at January 1	125	125
Effect of exchange rate fluctuations	-4	1
Cash and cash equivalents at end of the period	125	157

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	-	-	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
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	-	-	25	-	-	-	-	-	-	25	4	29
Other comprehensive income, net of tax	-	-	-	-	-	-	8	-	6	14	-	14
Total comprehensive income for the period	-	-	25	-	-	-	8	-	6	39	4	43
Balance at June 30, 2014	187	210	689	(82)	1	-	(2)	(617)	(22)	364	47	411