Agfa-Gevaert NV

Quarterly Report • Aug 26, 2015

Consolidated Statement of Profit or Loss (in million Euro)

	Q2 2014	Q2 2015	% change	H1 2014	H1 2015	% change
Revenue	651	691	6.1%	1,273	1,313	3.1%
Cost of sales	(444)	(462)	4.1%	(884)	(887)	0.3%
Gross profit	207	229	10.6%	389	426	9.5%
Selling expenses	(83)	(90)	8.4%	(167)	(178)	6.6%
Research & Development expenses	(37)	(37)		(72)	(73)	1.4%
Administrative expenses	(42)	(44)	4.8%	(86)	(88)	2.3%
Other operating income	19	22	15.8%	35	50	42.9%
Other operating expenses	(20)	(32)	60.0%	(40)	(65)	62.5%
Results from operating activities	44	48	9.1%	59	72	22.0%
Interest income (expense) - net Interest income	(4) 1	(3) 1	-25.0%	(8) 1	(7) 1	-12.5%
Interest expense	(5)	(4)	-20.0%	(9)	(8)	-11.1%
Other finance income (expense) - net	(9)	(11)	22.2%	(19)	(24)	26.3%
Other finance income	3	1	-66.7%	4	2	-50.0%
Other finance expense	(12)	(12)		(23)	(26)	13.0%
Net finance costs	(13)	(14)	7.7%	(27)	(31)	14.8%
Profit (loss) before income taxes	31	34	9.7%	32	41	28.1%
Income tax expense	(3)	(9)	200.0%	(3)	(13)	333.3%
Profit (loss) for the period	28	25	-10.7%	29	28	-3.4%
Profit (loss) attributable to:
Owners of the Company	26	23	-11.5%	25	25
Non-controlling interests	2	2		4	3	-25.0%
Results from operating activities	44	48	9.1%	59	72	22.0%
Restructuring and non-recurring items	(2)	(8)		(3)	(12)
Recurring EBIT	46	56	21.7%	62	84	35.5%
Outstanding shares per end of period	167,751,190	167,751,190		167,751,190	167,751,190
Weighted number of shares used for calculation	167,751,190	167,751,190		167,751,190	167,751,190
Earnings per share (€)	0.15	0.13		0.15	0.15

Consolidated Statements of Comprehensive Income for the half year ending June 2014 / June 2015 (in million Euro)

	H1 2014	H1 2015
Profit / (loss) for the period	29	28
Other Comprehensive Income, net of tax
Items that may be reclassified subsequently to profit or loss:
Exchange differences:	6	10
Exchange differences on translation of foreign operations	7	14
Exchange differences on net investment hedge	(1)	(4)
Income tax on exchange differences on net investment hedge	-	-
Cash flow hedges:	8	(4)
Effective portion of changes in fair value of cash flow hedges	(2)	(14)
Changes in the fair value of cash flow hedges reclassified to profit or loss		6
Adjustments for amounts transferred to initial carrying amount of hedged items		4
Income taxes	1	-
Available-for-sale financial assets:		2
Changes in fair value of available-for-sale financial assets		2
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		8
Total Comprehensive Income for the period attributable to:	43	36
Owners of the Company	39	29
Non-controlling interests	4	7

Consolidated Statements of Comprehensive Income for the quarter ending June 2014 / June 2015

(in million Euro)

	Q2 2014	Q2 2015
Profit / (loss) for the period	28	25
Other Comprehensive Income, net of tax
Items that may be reclassified subsequently to profit or loss:
Exchange differences:	10	(14)
Exchange differences on translation of foreign operations	11	(22)
Exchange differences on net investment hedge	(1)	8
Income tax on exchange differences on net investment hedge	-	-
Cash flow hedges:	6	(4)
Effective portion of changes in fair value of cash flow hedges	-	(7)
Changes in the fair value of cash flow hedges reclassified to profit or loss		-
Adjustments for amounts transferred to initial carrying amount of hedged items	5	3
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		(18)
Total Comprehensive Income for the period attributable to:	44	7
Owners of the Company	41	7
Non-controlling interests	3	-

Consolidated Statement of Financial Position (in million Euro)

	31/12/2014	30/06/2015
ASSETS
Non-current assets	1,039	1,031
Intangible assets	615	624
Property, plant and equipment	234	221
Investments	17	17
Deferred tax assets	173	169
Current assets	1,509	1,520
Inventories	512	575
Trade receivables	538	541
Current tax assets	107	110
Other receivables and other assets	120	119
Deferred charges	34	43
Derivative financial instruments	2	1
Cash and cash equivalents	196	131
Total assets	2,548	2,551
EQUITY AND LIABILITIES
Equity	146	182
Equity attributable to owners of the Company	93	122
Share capital	187	187
Share premium	210	210
Retained earnings	709	734
Reserves	(92)	(94)
Translation reserve	(16)	(10)
Post-employment benefits: remeasurements of the net defined benefit liability	(905)	(905)
Non-controlling interests	53	60
Non-current liabilities	1,443	1,507
Liabilities for post-employment and long-term termination benefit plans	1,267	1,277
Other employee benefits	12	12
Loans and borrowings	125	183
Provisions	14	13
Deferred income	2	1
Deferred tax liabilities	23	21
Current liabilities	959	862
Loans and borrowings	197	50
Provisions	155	155
Trade payables	230	239
Deferred revenue and advance payments	125	170
Current tax liabilities	56	62
Other payables	85	86
Employee benefits	93	81
Deferred income	4	4
Derivative financial instruments	14	15
Total Equity and Liabilities	2,548	2,551

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

	6m 2014	6m 2015	Q2 2014	Q2 2015
Profit (loss) for the period	29	28	28	25
Adjustments for:
Depreciation, amortization and impairment losses	35	33	17	17
Changes in fair value of derivative financial instruments	0	(1)	0	(2)
Granted subventions	(4)	(4)	(2)	(2)
(Gains) / losses on sale of non-current assets	0	0	0	0
Net finance costs	27	31	13	14
Income tax expense	3	13	3	9
	90	100	59	61
Change in inventories	(16)	(51)	(12)	(8)
Change in trade receivables	38	10	27	10
Change in trade payables	10	5	15	(16)
Change in deferred revenue and advance payments	29	41	(3)	(2)
Change in other working capital	(6)	(1)	11	11
Change in non-current provisions	(39)	(35)	(19)	(18)
Change in current provisions	(31)	(15)	(39)	(32)
Cash generated from operating activities	75	54	39	6
Income taxes paid	(12)	(2)	(7)	(7)
Net cash from / (used in) operating activities	63	52	32	(1)
Interest received	1	1	0	0
Dividends received	0	0	0	0
Proceeds from sale of intangible assets	3	2	1	2
Proceeds from sale of property, plant and equipment	1	2	0	1
Acquisition of intangible assets	(1)	(1)	0	0
Acquisition of property, plant and equipment	(12)	(14)	(6)	(7)
Changes in lease portfolio	(1)	1	(3)	1
Change in other investing activities	0	2	0	0
Net cash from / (used in) investing activities	(9)	(7)	(8)	(3)
Interest paid	(13)	(13)	(9)	(10)
Proceeds from borrowings	0	68	0	68
Repayment of borrowings	(10)	(157)	0	(147)
Other financial flows	0	(11)	(1)	12
Net cash from / (used in) financing activities	(23)	(113)	(10)	(77)
Net increase (decrease) in cash and cash equivalents	31	(68)	14	(81)
Cash and cash equivalents at January 1	125	194
Effect of exchange rate fluctuations	1	3
Cash and cash equivalents at end of the period	157	129

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, 2014	187	210	664	(82)	1	-	(10)	(617)	(28)	325	43	368
Comprehensive income for the period Profit (loss) for the period Other comprehensive income, net of tax	- -	- -	25 -	- -	- -	- -	- 8	- -	- 6	25 14	4 -	29 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
Balance at January 1, 2015	187	210	709	(82)	1	-	(11)	(905)	(16)	93	53	146
Comprehensive income for the period
Profit (loss) for the period	-	-	25	-	-	-	-	-	-	25	3	28
Other comprehensive income, net of tax	-	-	-	-	2	-	(4)	-	6	4	4	8
Total comprehensive income for the period	-	-	25	-	2	-	(4)	-	6	29	7	36
Balance at June 30, 2015	187	210	734	(82)	3	-	(15)	(905)	(10)	122	60	182