Agfa-Gevaert NV

Quarterly Report • Nov 9, 2016

Consolidated Statement of Profit or Loss (in million Euro)

	Q3 2015	Q3 2016	% change	9m 2015	9m 2016	% change
Revenue	661	625	-5.4%	1,974	1,873	-5.1%
Cost of sales	(453)	(415)	-8.4%	(1,340)	(1,239)	-7.5%
Gross profit	208	210	1.0%	634	634
Selling expenses	(85)	(84)	-1.2%	(263)	(257)	-2.3%
Research & Development expenses	(36)	(35)	-2.8%	(109)	(105)	-3.7%
Administrative expenses	(41)	(42)	2.4%	(129)	(126)	-2.3%
Other operating income	30	13	-56.7%	80	69	-13.8%
Other operating expenses	(33)	(19)	-42.4%	(98)	(68)	-30.6%
Results from operating activities	43	43		115	147	27.8%
Interest income (expense) - net Interest income	(2) 1	(2) -		(9) 2	(6) 1	-33.3% -100.0%
Interest expense	(3)	(2)	-33.3%	(11)	(7)	-36.4%
Other finance income (expense) - net	(10)	(9)	-10.0%	(34)	(34)	0.0%
Other finance income	9	2	-77.8%	11	10	-9.1%
Other finance expense	(19)	(11)	-42.1%	(45)	(44)	-2.2%
Net finance costs	(12)	(11)	-8.3%	(43)	(40)	-7.0%
Profit (loss) before income taxes	31	32	3.2%	72	107	48.6%
Income tax expense	2	(7)		(11)	(32)	190.9%
Profit (loss) for the period	33	25	-24.2%	61	75	23.0%
Profit (loss) attributable to:
Owners of the Company	30	22	-26.7%	55	68	23.6%
Non-controlling interests	3	3		6	7	16.7%
Results from operating activities	43	43		115	147	27.8%
Restructuring and non-recurring items	(3)	(6)		(15)	-
Recurring EBIT	46	49	6.5%	130	147	13.1%
Outstanding shares per end of period	167,751,190	167,751,190		167,751,190	167,751,190
Weighted number of shares used for calculation	167,751,190	167,751,190		167,751,190	167,751,190
Earnings per share (Euro)	0.18	0.13		0.33	0.41

Consolidated Statements of Comprehensive Income for the period ending September 2015 /

September 2016 (in million Euro)

	2015	2016
Profit / (loss) for the period		75
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:
Exchange differences:		15
Exchange differences on translation of foreign operations	(2)	4
Exchange differences on disposal of foreign operations reclassified to profit or loss	-	8
Exchange differences on net investment hedge	(8)	3
Income tax on exchange differences on net investment hedge	-	-
Cash flow hedges:	(5)	16
Effective portion of changes in fair value of cash flow hedges	(22)	8
Change in the fair value of cash flow hedges reclassified to profit or loss		-
Adjustments for amounts transferred to initial carrying amount of hedged items		9
Income taxes	-	(1)
Available-for-sale financial assets:		(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	-	-
Income tax on remeasurements on the net defined benefit liability	-	-
Total other Comprehensive Income for the period, net of tax		30
Total Comprehensive Income for the period attributable to:	50	105
Owners of the Company	41	101
Non-controlling interests	9	4

Consolidated Statements of Comprehensive Income for the quarter ending September 2015 /

September 2016 (in million Euro)

	Q3 2015	Q3 2016
Profit / (loss) for the period	33	25
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:
Exchange differences:	(20)	(3)
Exchange differences on translation of foreign operations	(20)	(4)
Exchange differences on disposal of foreign operations reclassified to profit or loss	-	1
Exchange differences on net investment hedge	-	-
Income tax on exchange differences on net investment hedge	-	-
Cash flow hedges:	(1)	2
Effective portion of changes in fair value of cash flow hedges	(8)	2
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	7	1
Income taxes	-	(1)
Available-for-sale financial assets:		-
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	-	-
Income tax on remeasurements on the net defined benefit liability	-	-
Total other Comprehensive Income for the period, net of tax		(1)
Total Comprehensive Income for the period attributable to:	14	24
Owners of the Company	12	22
Non-controlling interests	2	2

Consolidated Statement of Financial Position (in million Euro)

	31/12/2015	30/09/2016
ASSETS
Non-current assets	1,005	975
Intangible assets and goodwill	622	620
Property, plant and equipment	214	202
Investments in associates	1	6
Financial assets	16	11
Deferred tax assets	152	136
Current assets	1,397	1,367
Inventories	512	537
Trade receivables	515	495
Current income tax assets	64	66
Other tax receivables	26	24
Other receivables	106	99
Other assets	44	60
Derivative financial instruments	2	5
Cash and cash equivalents	123	81
Non-current assets held for sale	5	-
Total assets	2,402	2,342
EQUITY AND LIABILITIES
Equity	268	362
Equity attributable to owners of the Company	228	329
Share capital	187	187
Share premium	210	210
Retained earnings	771	839
Reserves	(92)	(77)
Translation reserve	(7)	11
Post-employment benefits: remeasurements of the net defined benefit liability	(841)	(841)
Non-controlling interests	40	33
Non-current liabilities	1,359	1,279
Liabilities for post-employment and long-term termination benefit plans	1,185	1,143
Other employee benefits	9	9
Loans and borrowings	137	98
Provisions Deferred income	6 1	6 2
Deferred tax liabilities	21	21
Current liabilities	775	701
Loans and borrowings	44	14
Provisions	81	67
Trade payables	206	219
Deferred revenue and advance payments	141	159
Current income tax liabilities	60	57
Other tax liabilities	45	29
Other payables	46	10
Employee benefits	130	138
Other liabilities	5	5
Derivative financial instruments	17	3
Total Equity and Liabilities	2,402	2,342

Consolidated Statement of Cash Flows (in million Euro)

	9m 2015	9m 2016	Q3 2015	Q3 2016
Profit (loss) for the period	61	75	33	25
Adjustments for:
Depreciation, amortization and impairment losses	48	42	15	14
Changes in fair value of derivative financial instruments	(2)	1	(1)	(2)
Granted subventions	(6)	(6)	(2)	(2)
(Gains) / losses on sale of non-current assets	(2)	(10)	(2)	0
Net finance costs	43	40	12	11
Income tax expense	11	32	(2)	7
	153	174	53	53
Change in inventories	(49)	(26)	2	4
Change in trade receivables	19	26	9	18
Change in trade payables	7	(17)	2	(34)
Change in deferred revenue and advance payments	28	17	(13)	(5)
Change in other working capital	(15)	(37)	(14)	(4)
Change in non-current provisions	(52)	(34)	(17)	(12)
Change in current provisions	0	(4)	15	20
Cash generated from operating activities	91	99	37	40
Income taxes paid	(5)	(17)	(3)	(5)
Net cash from / (used in) operating activities	86	82	34	35
Interest received	2	1	1	0
Dividends received	0	0	0	0
Proceeds from sale of intangible assets	2	2	0	1
Proceeds from sale of property, plant and equipment	4	1	2	0
Proceeds from non-current assets held for sale	0	14	0	0
Acquisition of intangible assets	(2)	(4)	(1)	0
Acquisition of property, plant and equipment	(23)	(25)	(9)	(8)
Changes in lease portfolio	(1)	3	(2)	1
Acquisition of subsidiary, net of cash acquired	0	0	0	0
Change in other investing activities	4	(4)	2	0
Net cash from / (used in) investing activities	(14)	(12)	(7)	(6)
Interest paid	(16)	(9)	(3)	(3)
Dividends paid (to non-controlling interests)	0	(12)	0	0
Proceeds from borrowings	68	0	0	0
Repayment of borrowings	(160)	(71)	(3)	(13)
Other financial flows	(15)	(20)	(4)	(5)
Net cash from / (used in) financing activities	(123)	(112)	(10)	(21)
Net increase (decrease) in cash and cash equivalents	(51)	(42)	17	8
Cash and cash equivalents at January 1	194	122
Effect of exchange rate fluctuations	(2)	(1)
Cash and cash equivalents at end of the period	141	79

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	Hedging reserve	Remeasurements of the net defined benefit liability	Translation reserve	Total	CONTROLLING S INTEREST NON	TOTAL EQUITY
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 Other comprehensive income, net of tax Total comprehensive income for the period	- - -	- - -	55 - 55	- - -	- 4 4	- (5) (5)	- - -	- (13) (13)	55 (14) 41	6 3 9	61 (11) 50
Balance at September 30, 2015		210	764	(82)	5	(16)	(905)	(29)	134	62	196
Balance at January 1, 2016		210	771	(82)	4	(14)	(841)	(7)	228	40	268
Comprehensive income for the period
Profit (loss) for the period	-	-	68	-	-	-	-	-	68	7	75
Other comprehensive income, net of tax		-	-	-	(1)	16	-	18	33	(3)	30
Total comprehensive income for the period		-	68	-	(1)	16	-	18	101	4	105
Transactions with owners, recorded directly in equity Dividends	-	-	-	-	-	-	-	-	-	(11)	(11)
Total transactions with owners, recorded directly in equity	-	-	-	-	-	-	-	-	-	(11)	(11)
Balance at September 30, 2016		210	839	(82)	3	2	(841)	11	329	33	362