Agfa-Gevaert NV

Quarterly Report • Mar 7, 2018

Consolidated Statement of Profit or Loss (in million Euro)

Consolidated figures following IFRS accounting policies.

	FY 2016	FY 2017	% change	Q4 2016	Q4 2017	% change
Revenue	2,537	2,443	-3.7%	664	640	-3.6%
Cost of sales	(1,680)	(1,629)	-3.0%	(441)	(427)	-3.2%
Gross profit	857	814	-5.0%	223	213	-4.5%
Selling expenses	(344)	(336)	-2.3%	(87)	(81)	-6.9%
Research & Development expenses	(141)	(144)	2.1%	(36)	(35)	-2.8%
Administrative expenses	(167)	(169)	1.2%	(41)	(43)	4.9%
Other operating income	98	71	-27.6%	29	20	-31.0%
Other operating expenses	(137)	(98)	-28.5%	(69)	(35)	-49.3%
Results from operating activities	166	138	-16.9%	19	39	105.3%
Interest income (expense) - net	(8)	(7)	-12.5%	(2)	(2)	-
Interest income Interest expense	1 (9)	1 (8)	- -11.1%	- (2)	- (2)	- -
Other finance income (expense) - net	(43)	(32)	-25.6%	(9)	(9)	-
Other finance income	14	10	-28.6%	4	1	-75.0%
Other finance expense	(57)	(42)	-26.3%	(13)	(10)	-23.1%
Net finance costs	(51)	(39)	-23.5%	(11)	(11)	-
Share of result of equity accounted	-	(1)	-	-	(1)	-
investees – net of income tax Profit (loss) before income taxes	115	98	-14.8%	8	27	237.5%
Income tax expense	(35)	(53)	51.4%	(3)	(31)	933.3%
Profit (loss) for the period	80	45	-43.8%	5	(4)	-
Profit (loss) attributable to:
Owners of the Company	70	37	-47.1%	2	(7)	-
Non-controlling interests	10	8	-20.0%	3	3	-
Results from operating activities	166	138	-16.9%	19	39	105.3%
Restructuring and non-recurring items	(42)	(31)	-26.2%	(42)	(17)	-59.5%
Recurring EBIT	208	169	-18.8%	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	167,751,190	167,751,190		167,751,190	167,751,190
calculation Earnings per share (Euro)	0.42	0.22		0.01	(0.04)

Consolidated Statements of Comprehensive Income for the year ending December 2016 /

December 2017 (in million Euro)

Consolidated figures following IFRS accounting policies

	2016	2017
Profit / (loss) for the period		45
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:
Exchange differences:	37	(43)
Exchange differences on translation of foreign operations	26	(43)
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:	15	9
Effective portion of changes in fair value of cash flow hedges	5	35
Changes in the fair value of cash flow hedges reclassified to profit or loss		(8)
Changes in fair value transferred to adjust the initial measurement of the hedged item recognized	10	(14)
Income taxes	-	(4)
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:		53
Remeasurements of the net defined benefit liability	(143)	55
Income tax on remeasurements on the net defined benefit liability		(2)
Total other Comprehensive Income for the period, net of tax		20
Total Comprehensive Income for the period attributable to:		65
Owners of the Company	(13)	60
Non-controlling interests	8	5

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

December 2017 (in million Euro)

Consolidated figures following IFRS accounting policies

	Q4 2016	Q4 2017
Profit / (loss) for the period		(4)
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:
Exchange differences:	22	(8)
Exchange differences on translation of foreign operations	22	(8)
Exchange differences on disposal of foreign operations reclassified to profit or loss	-	-
Exchange differences on net investment hedge	-	-
Income tax on exchange differences on net investment hedge	-	-
Cash flow hedges:	(1)	5
Effective portion of changes in fair value of cash flow hedges	(3)	14
Changes in the fair value of cash flow hedges reclassified to profit or loss		(4)
Changes in fair value transferred to adjust the initial measurement of the hedged item recognized	1	(4)
Income taxes	1	(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:		53
Remeasurements of the net defined benefit liability	(143)	55
Income tax on remeasurements on the net defined benefit liability	8	(2)
Total other Comprehensive Income for the period, net of tax		51
Total Comprehensive Income for the period attributable to:		47
Owners of the Company	(114)	45
Non-controlling interests	4	2

Consolidated Statement of Financial Position (in million Euro)

Consolidated figures following IFRS accounting policies.

	31/12/2016	31/12/2017
ASSETS Non-current assets	1,066	985
Intangible assets and goodwill Property, plant and equipment	621 198	589 190
Investments in associates	6	5
Financial assets	10	11
Trade receivables	12	14
Receivables under finance lease	57	55
Other assets	13	6
Deferred tax assets	149	115
Current assets	1,286	1,248
Inventories	483	487
Trade receivables	493	503
Current income tax assets	64	63
Other tax receivables	25	23
Receivables under finance lease	30	30
Other receivables	13	14
Other assets	45	44
Derivative financial instruments Cash and cash equivalents	4 129	16 68
Total assets	2,352	2,233
EQUITY AND LIABILITIES
Equity	252	307
Equity attributable to owners of the Company	215	275
Share capital	187	187
Share premium	210	210
Retained earnings	841	878
Other reserves	(79)	(69)
Translation reserve	32	(8)
Post-employment benefits: remeasurements of the net defined benefit liability	(976)	(923)
Non-controlling interests	37	32
Non-current liabilities	1,382	1,241
Liabilities for post-employment and long-term termination benefit plans	1,264	1,149
Other employee benefits	13	13
Loans and borrowings	74	47
Provisions	4	5
Trade payables	6	4
Deferred income	2	2
Deferred tax liabilities	19	21
Current liabilities	718	685
Loans and borrowings	37	39
Provisions	74	66
Trade payables	219	220
Deferred revenue and advance payments	141	128
Current income tax liabilities	56	53
Other tax liabilities	37	34
Other payables	11	12
Employee benefits	132	128
Other liabilities	3	3
Derivative financial instruments	8	2
Total Equity and Liabilities	2,352	2,233

Consolidated Statement of Cash Flows (in million Euro) Consolidated figures following IFRS accounting

policies.
	FY 2016	FY 2017	Q4 2016	Q4 2017
Profit (loss) for the period	80	45	5	(4)
Adjustments for:
Depreciation, amortization and impairment losses	72	56	30	17
Changes in fair value of derivative financial instruments	2	(2)	1	(1)
Granted subventions	(8)	(9)	(2)	(2)
(Gains) / losses on sale of non-current assets	(12)	1	(2)	2
Net finance costs	51	39	11	11
Share of result of equity accounted investees – net of income tax	0	1	0	1
Income tax expense	35	53	3	31
	220	184	46	55
Change in inventories	34	(26)	60	36
Change in trade receivables	25	(38)	(1)	(32)
Change in trade payables	(18)	7	(1)	(3)
Change in deferred revenue and advance payments	(5)	(5)	(22)	(16)
Change in other working capital	(22)	5	15	17
Changes in non-current provisions and (post) employee benefits	(70)	(58)	(36)	(18)
Change in current provisions	(2)	(8)	2	(6)
Cash generated from operating activities	162	61	63	33
Income taxes paid	(20)	(22)	(3)	(8)
Net cash from / (used in) operating activities	142	39	60	25
Interest received	1	1	0	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	6	4	5	2
Proceeds from assets held for sale	14	0	0	0
Acquisition of intangible assets	(4)	(3)	0	(1)
Acquisition of property, plant and equipment	(40)	(43)	(15)	(16)
Changes in lease portfolio	(6)	0	(9)	(3)
Acquisition of subsidiary, net of cash acquired	0	(2)	0	0
Change in other investing activities	(3)	1	1	0
Net cash from / (used in) investing activities	(30)	(40)	(18)	(17)
Interest paid	(9)	(9)	0	(2)
Dividends paid to non-controlling interests	(12)	(10)	0	0
Proceeds from borrowings	0	0	0	0
Repayment of borrowings	(72)	(23)	(1)	(9)
Other financial flows	(15)	(13)	5	(3)
Net cash from / (used in) financing activities	(108)	(55)	4	(14)
Net increase (decrease) in cash and cash equivalents	4	(56)	46	(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	127	68

Consolidated Statement of changes in Equity (in million Euro)

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 Transactions with owners, recorded directly in equity Dividends Total transactions with owners, recorded directly in equity	- - - - -	- - - - -	70 - 70 - -	- - - - -	- (2) (2) - -	- 15 15 - -	- (135) (135) - -	- 39 39 - -	70 (83) (13) - -	10 (2) 8 (11) (11)	80 (85) (5) (11) (11)
Balance at December 31, 2016	187	210	841	(82)	2	1	(976)	32	215	37	252
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 Other comprehensive income, net of tax Total comprehensive income for the period	- - -	- - -	37 - 37	- - -	- 1 1	- 9 9	- 53 53	- (40) (40)	37 23 60	8 (3) 5	45 20 65
Transactions with owners, recorded directly in equity Dividends Total transactions with owners, recorded	-	-	-	-	-	-	-	-	-	(10)	(10)
directly in equity Balance at December 31, 2017	- 187	- 210	- 878	- (82)	- 3	- 10	- (923)	- (8)	- 275	(10) 32	(10) 307