Agfa-Gevaert NV

Quarterly Report • Nov 8, 2017

Consolidated Statement of Profit or Loss (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies.

	Q3 2016	Q3 2017	% change	9m 2016	9m 2017	% change
Revenue	625	593	-5.1%	1,873	1,803	-3.7%
Cost of sales	(415)	(397)	-4.3%	(1,239)	(1,202)	-3.0%
Gross profit	210	196	-6.7%	634	601	-5.2%
Selling expenses	(84)	(81)	-3.6%	(257)	(255)	-0.8%
Research & Development expenses	(35)	(35)	-	(105)	(109)	3.8%
Administrative expenses	(42)	(40)	-4.8%	(126)	(126)	-
Other operating income	13	17	30.8%	69	51	-26.1%
Other operating expenses	(19)	(26)	36.8%	(68)	(63)	-7.4%
Results from operating activities	43	31	-27.9%	147	99	-32.7%
Interest income (expense) - net Interest income	(2) -	(2) -	- -	(6) 1	(5) 1	-16.7% -
Interest expense	(2)	(2)	-	(7)	(6)	-14.3%
Other finance income (expense) - net	(9)	(6)	-33.3%	(34)	(23)	-32.4%
Other finance income	2	4	100.0%	10	9	-10.0%
Other finance expense	(11)	(10)	-9.1%	(44)	(32)	-27.3%
Net finance costs	(11)	(8)	-27.3%	(40)	(28)	-30.0%
Profit (loss) before income taxes	32	23	-28.1%	107	71	-33.6%
Income tax expense	(7)	(9)	28.6%	(32)	(22)	-31.3%
Profit (loss) for the period	25	14	-44.0%	75	49	-34.7%
Profit (loss) attributable to:
Owners of the Company	22	12	-45.5%	68	44	-35.3%
Non-controlling interests	3	2	-33.3%	7	5	-28.6%
Results from operating activities	43	31	-27.9%	147	99	-32.7%
Restructuring and non-recurring items	(6)	(9)	33.3%	-	(14)	-
Recurring EBIT	49	40	-18.9%	147	113	-23.1%
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)	0.13	0.07		0.41	0.26

Consolidated Statements of Comprehensive Income for the period ending September 2016 /

September 2017 (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies

	2016	2017
Profit / (loss) for the period	75	49
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:
Exchange differences:	15	(35)
Exchange differences on translation of foreign operations	4	(35)
Exchange differences on disposal of foreign operations reclassified to profit or loss	8	-
Exchange differences on net investment hedge	3	-
Income tax on exchange differences on net investment hedge	-	-
Cash flow hedges:	16	4
Effective portion of changes in fair value of cash flow hedges	8	21
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		(10)
Income taxes	(1)	(3)
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	-	-
Income tax on remeasurements on the net defined benefit liability	-	-
Total other Comprehensive Income for the period, net of tax		(31)
Total Comprehensive Income for the period attributable to:	105	18
Owners of the Company	101	15
Non-controlling interests	4	3

Consolidated Statements of Comprehensive Income for the quarter ending September 2016 /

September 2017 (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies

	Q3 2016	Q3 2017
Profit / (loss) for the period	25	14
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:
Exchange differences:	(3)	(10)
Exchange differences on translation of foreign operations	(4)	(10)
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:	2	(4)
Effective portion of changes in fair value of cash flow hedges	2	1
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	1	(3)
Income taxes	(1)	2
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	-	-
Income tax on remeasurements on the net defined benefit liability	-	-
Total other Comprehensive Income for the period, net of tax	(1)	(14)
Total Comprehensive Income for the period attributable to:	24	-
Owners of the Company	22	(1)
Non-controlling interests	2	1

Consolidated Statement of Financial Position (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies.

	31/12/2016	30/09/2017
ASSETS Non-current assets	1,066	1,030
Intangible assets and goodwill Property, plant and equipment	621 198	598 189
Investments in associates	6	6
Financial assets	10	9
Trade receivables	12	13
Receivables under finance lease	57	68
Other assets	13	10
Deferred tax assets	149	137
Current assets	1,286	1,251
Inventories	483	526
Trade receivables	493	478
Current income tax assets	64	62
Other tax receivables	25	23
Receivables under finance lease	30	14
Other receivables	13	17
Other assets Derivative financial instruments	45 4	49 8
Cash and cash equivalents	129	74
Total assets	2,352	2,281
EQUITY AND LIABILITIES
Equity	252	260
Equity attributable to owners of the Company	215	230
Share capital	187	187
Share premium	210	210
Retained earnings	841	885
Reserves	(79)	(75)
Translation reserve	32	(1)
Post-employment benefits: remeasurements of the net defined benefit liability	(976)	(976)
Non-controlling interests	37	30
Non-current liabilities	1,382	1,308
Liabilities for post-employment and long-term termination benefit plans	1,269	1,224
Other employee benefits	8	7
Loans and borrowings	74	47
Provisions	4	5
Trade payables	6	6
Deferred income	2	2
Deferred tax liabilities	19	17
Current liabilities	718	713
Loans and borrowings	37	49
Provisions	74	69
Trade payables	219	222
Deferred revenue and advance payments	141	145
Current income tax liabilities	56	51
Other tax liabilities	37	28
Other payables	11	11
Employee benefits	132	132
Other liabilities	3	4
Derivative financial instruments	8	2
Total Equity and Liabilities	2,352	2,281

Consolidated Statement of Cash Flows (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies.

	9m 2016	9m 2017	Q3 2016	Q3 2017
Profit (loss) for the period	75	49	25	14
Adjustments for:
Depreciation, amortization and impairment losses	42	39	14	13
Changes in fair value of derivative financial instruments	1	(1)	(2)	2
Granted subventions	(6)	(7)	(2)	(3)
(Gains) / losses on sale of non-current assets	(10)	(1)	0	0
Net finance costs	40	28	11	8
Income tax expense	32	22	7	9
	174	129	53	43
Change in inventories	(26)	(62)	4	3
Change in trade receivables	26	(6)	18	(5)
Change in trade payables	(17)	10	(34)	(5)
Change in deferred revenue and advance payments	17	11	(5)	(16)
Change in other working capital	(37)	(12)	(4)	(3)
Change in non-current provisions	(34)	(40)	(12)	(15)
Change in current provisions	(4)	(2)	20	23
Cash generated from operating activities	99	28	40	25
Income taxes paid	(17)	(14)	(5)	(7)
Net cash from / (used in) operating activities	82	14	35	18
Interest received	1	1	0	0
Dividends received	0	0	0	0
Proceeds from sale of intangible assets	2	1	1	0
Proceeds from sale of property, plant and equipment	1	2	0	0
Proceeds from assets held for sale	14	0	0	0
Acquisition of intangible assets	(4)	(2)	0	0
Acquisition of property, plant and equipment	(25)	(27)	(8)	(11)
Changes in lease portfolio	3	3	1	1
Acquisition of subsidiary, net of cash acquired	0	(2)	0	0
Change in other investing activities	(4)	1	0	0
Net cash from / (used in) investing activities	(12)	(23)	(6)	(10)
Interest paid	(9)	(7)	(3)	(1)
Dividends paid to non-controlling interests	(12)	(10)	0	0
Proceeds from borrowings	0	0	0	0
Repayment of borrowings	(71)	(14)	(13)	(3)
Other financial flows	(20)	(10)	(5)	2
Net cash from / (used in) financing activities	(112)	(41)	(21)	(2)
Net increase (decrease) in cash and cash equivalents	(42)	(50)	8	6
Cash and cash equivalents at January 1	122	127
Effect of exchange rate fluctuations	(1)	(3)
Cash and cash equivalents at end of the period	79	74

Consolidated Statement of changes in Equity (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies.

	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 NON	TOTAL EQUITY INTEREST
Balance at January 1, 2016	187	210	771	(82)	4	(14)	(841)	(7)	228	40	268
Comprehensive income for the period Profit (loss) for the period Other comprehensive income, net of tax Total comprehensive income for the period	- - -	- - -	68 - 68	- - -	- (1) (1)	- 16 16	- - -	- 18 18	68 33 101	7 (3) 4	75 30 105
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	187	210	839	(82)	3	2	(841)	11	329	33	362
Balance at January 1, 2017	187	210	841	(82)	2	1	(976)	32	215	37	252
Comprehensive income for the period
Profit (loss) for the period	- -	-	44	-	-	-	-	-	44	5	49
Other comprehensive income, net of tax		-	-	-	-	4	-	(33)	(29)	(2)	(31)
Total comprehensive income for the period	-	-	44	-	-	4	-	(33)	15	3	18
Transactions with owners, recorded directly in equity
Dividends Total transactions with owners, recorded directly in equity	- -	- -	- -	- -	- -	- -	- -	- -	- -	(10) (10)	(10) (10)
Balance at September 30, 2017	187	210	885	(82)	2	5	(976)	(1)	230	30	260

--