Agfa-Gevaert NV

Quarterly Report • Mar 11, 2015

Consolidated Statement of Profit or Loss (in million Euro)

	FY 2013	FY 2014 audited	% change	Q4 2013	Q4 2014 unaudited	% change
Revenue	2,865	2,620	-8.6%	739	711	-3.8%
Cost of sales	(2,031)	(1,813)	-10.7%	(511)	(489)	-4.3%
Gross profit	834	807	-3.2%	228	222	-2.6%
Selling expenses	(361)	(336)	-6.9%	(89)	(88)	-1.1%
Research & Development expenses	(146)	(146)		(36)	(37)	2.8%
Administrative expenses	(177)	(172)	-2.8%	(42)	(43)	2.4%
Other operating income	163	90	-44.8%	44	36	-18.2%
Other operating expenses	(150)	(107)	-28.7%	(38)	(42)	10.5%
Results from operating activities	163	136	-16.6%	67	48	-28.4%
Interest income (expense) - net Interest income	(17) 2	(15) 2	-11.8%	(4) 1	(4) 1
Interest expense	(19)	(17)	-10.5%	(5)	(5)
Other finance income (expense) - net	(54)	(44)	-18.5%	(13)	(13)
Other finance income	5	8	60.0%	1	-
Other finance expense	(59)	(52)	-11.9%	(14)	(13)	-7.1%
Net finance costs	(71)	(59)	-16.9%	(17)	(17)
Profit (loss) before income taxes	92	77	-16.3%	50	31	-38.0%
Income tax expense	(43)	(18)	-58.1%	(6)	(10)	66.7%
Profit (loss) for the period	49	59	20.4%	44	21	-52.3%
Profit (loss) attributable to:
Owners of the Company	41	50	22.0%	41	19	-53.7%
Non-controlling interests	8	9	12.5%	3	2	-33.3%
Results from operating activities	163	136	-16.6%	67	48	-28.4%
Restructuring and non-recurring items	19	(16)		6	(8)
Recurring EBIT	144	152	5.6%	61	56	-8.2%
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 (€)	0.25	0.30		0.25	0.12

Consolidated Statements of Comprehensive Income for the year ending December 2013 /

December 2014 (in million Euro)

	2013	2014
Profit / (loss) for the period	49	audited 59
Other Comprehensive Income, net of tax
Items that may be reclassified subsequently to profit or loss:
Exchange differences:	(35)	18
Exchange differences on translation of foreign operations	(38)	30
Exchange differences on net investment hedge	4	(12)
Income tax on exchange differences on net investment hedge	(1)	-
Cash flow hedges:	(8)	(1)
Effective portion of changes in fair value of cash flow hedges	(19)	(14)
Changes in the fair value of cash flow hedges reclassified to profit or loss	-	5
Adjustments for amounts transferred to initial carrying amount of hedged items	12	8
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:	191	(293)
Remeasurements of the net defined benefit liability	191	(299)
Income tax on remeasurements of the net defined benefit liability	-	6
Total other Comprehensive Income for the period, net of tax	150	(276)
Total Comprehensive Income for the period attributable to:	199	(217)
Owners of the Company	192	(232)
Non-controlling interests	7	15

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

December 2014 (in million Euro)

	Q4 2013	Q4 2014
		unaudited
Profit / (loss) for the period	44	21
Other Comprehensive Income, net of tax
Items that may be reclassified subsequently to profit or loss:
Exchange differences:	(15)	(6)
Exchange differences on translation of foreign operations	(17)	1
Exchange differences on net investment hedge	2	(4)
Income tax on exchange differences on net investment hedge	-	(3)
Cash flow hedges:	-	(6)
Effective portion of changes in fair value of cash flow hedges	(3)	(6)
Changes in the fair value of cash flow hedges reclassified to profit or loss	-	4
Adjustments for amounts transferred to initial carrying amount of hedged items	4	(1)
Income taxes	(1)	(3)
Available-for-sale financial assets:		1
Changes in fair value of available-for-sale financial assets	(1)	1
Income taxes	-	-
Items that will not be reclassified subsequently to profit and loss:		(293)
Remeasurements of the net defined benefit liability	191	(299)
Income tax on remeasurements of the net defined benefit liability	-	6
Total other Comprehensive Income for the period, net of tax	175	(304)
Total Comprehensive Income for the period attributable to:	219	(283)
Owners of the Company	217	(287)
Non-controlling interests	2	4

Consolidated Statement of Financial Position (in million Euro)

	31/12/2013	31/12/2014
ASSETS		audited
Non-current assets	1,066	1,039
Intangible assets	618	615
Property, plant and equipment	242	234
Investments	11	17
Deferred tax assets	195	173
Current assets	1,502	1,509
Inventories	542	512
Trade receivables	585	538
Current tax assets	95	107
Other receivables and other assets	126	120
Deferred charges	25	34
Derivative financial instruments	3	2
Cash and cash equivalents	126	196
Total assets	2,568	2,548
EQUITY AND LIABILITIES
Equity	368	146
Equity attributable to owners of the Company	325	93
Share capital	187	187
Share premium	210	210
Retained earnings	664	709
Reserves	(91)	(92)
Translation reserve	(28)	(16)
Post-employment benefits: remeasurements of the net defined benefit liability	(617)	(905)
Non-controlling interests	43	53
Non-current liabilities	1,397	1,443
Liabilities for post-employment and long-term termination benefit plans	1,002	1,267
Other employee benefits	11	12
Loans and borrowings	319	125
Provisions	11	14
Deferred income	1	2
Deferred tax liabilities	53	23
Current liabilities	803	959
Loans and borrowings	24	197
Provisions	160	155
Trade payables	239	230
Deferred revenue and advance payments	121	125
Current tax liabilities	54	56
Other payables	95	85
Employee benefits	97	93
Deferred income	3	4
Derivative financial instruments	10	14
Total Equity and Liabilities	2,568	2,548

Consolidated Statement of Cash Flows (in million Euro)

	FY 2013	FY 2014	Q4 2013	Q4 2014
Profit (loss) for the period	49	audited 59	44	unaudited 21
Adjustments for:
Depreciation, amortization and impairment losses	86	69	22	17
Changes in fair value of derivative financial instruments	(1)	0	0	(1)
Granted subventions	(10)	(9)	(3)	(3)
(Gains) / losses on sale of non-current assets	(1)	(1)	0	(1)
Net finance costs	71	59	17	17
Income tax expense	43	18	6	10
	237	195	86	60
Change in inventories	73	46	50	70
Change in trade receivables	26	64	(15)	(7)
Change in trade payables	(36)	(5)	10	5
Change in deferred revenue and advance payments	(11)	(3)	(20)	(18)
Change in other working capital	1	(15)	11	2
Change in non-current provisions	(158)	(89)	(49)	(27)
Change in current provisions	(10)	(18)	(19)	(4)
Cash generated from operating activities	122	175	54	81
Income taxes paid	(15)	(24)	(4)	(9)
Net cash from / (used in) operating activities	107	151	50	72
Interest received	2	2	0	0
Dividends received	0	0	0	0
Proceeds from sale of intangible assets	2	4	1	1
Proceeds from sale of property, plant and equipment	4	4	1	2
Acquisition of intangible assets	(2)	(1)	(1)	0
Acquisition of property, plant and equipment	(38)	(36)	(12)	(16)
Changes in lease portfolio	11	6	1	3
Change in other investing activities	0	(6)	0	0
Net cash from / (used in) investing activities	(21)	(27)	(10)	(10)
Interest paid	(19)	(17)	(1)	0
Dividends paid to non-controlling interests	0	(5)	0	(5)
Proceeds from borrowings	0	0	0	0
Repayment of borrowings	(70)	(22)	(21)	2
Other financial flows	11	(11)	7	(6)
Net cash from / (used in) financing activities	(78)	(55)	(15)	(9)
Net increase (decrease) in cash and cash equivalents	8	69	25	53
Cash and cash equivalents at January 1	125	125
Effect of exchange rate fluctuations	(8)	0
Cash and cash equivalents at end of the period	125	194

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 INTEREST NON	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 Other comprehensive income, net of tax Total comprehensive income for the period	- - -	- - -	41 - 41	- - -	- 2 2	- - -	- (8) (8)	- 191 191	- (34) (34)	41 151 192	8 (1) 7	49 150 199
Balance at December 31, 2013	187	210	664	(82)	1	-	(10)	(617)	(28)	325	43	368
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 Total comprehensive income for the period Transactions with owners, recorded directly in equity Dividends Total transactions with owners, recorded directly in equity	- - - - -	- - - - -	50 - 50 - -	- - - - -	- - - - -	- - - - -	- (1) (1) - -	- (293) (293) - -	- 12 12 - -	50 (282) (232) - -	9 6 15 (5) (5)	59 (276) (217) (5) (5)
Reclassification of remeasurement adjustments recognized in previous periods in other comprehensive income Balance at December 31, 2014	- 187	- 210	(5) 709	- (82)	- 1	- -	- (11)	5 (905)	- (16)	- 93	- 53	- 146