Agfa-Gevaert NV

Quarterly Report • Aug 26, 2020

Consolidated Statement of Profit or Loss (in million Euro)*

Consolidated figures following IFRS accounting policies.

	Q2 2020	Q2 2019	H1 2020	H1 2019
		Re-presented	Re-presented	Re-presented
Continuing operations
Revenue	396	497	832	959
Cost of sales	(276)	(341)	(577)	(663)
Gross profit	120	157	255	295
Selling expenses	(51)	(68)	(114)	(137)
Administrative expenses	(34)	(38)	(71)	(78)
R&D expenses	(22)	(24)	(46)	(51)
Operating exchange variances	-	(2)	(2)	(3)
Net impairment loss on trade and other receivables, including contract assets	(1)	(2)	(3)	(1)
Other operating income	4	12	7	22
Other operating expenses	(47)	(15)	(52)	(24)
Results from operating activities	(32)	19	(26)	23
Interest income (expense) - net	(1)	(1)	(3)	(3)
Interest income	-	-	1	-
Interest expense	(1)	(1)	(3)	(4)
Other finance income (expense) - net	(8)	(7)	(13)	(14)
Other finance income	1	2	4	4
Other finance expense	(9)	(8)	(17)	(18)
Net finance costs	(9)	(8)	(16)	(18)
Share of profit of associates, net of tax	-	-	-	-
Profit (loss) before income taxes	(41)	11	(43)	5
Income tax expenses	(5)	(3)	(7)	(9)
Profit from continuing operations	(45)	8	(49)	(3)
Profit (loss) from discontinued operation, net of tax	713	8	719	15
Profit (loss) for the period	668	15	670	12
Profit (loss) attributable to:
Owners of the Company	666	15	668	11
Non-controlling interests	2	1	1	1
Results from operating activities	(32)	19	(26)	23
Restructuring and non-recurring items	(47)	(10)	(50)	(14)
Adjusted EBIT	15.6	28.9	22.8	38.5
Earnings per share (Euro) – continuing operations	(0.27)	0.04	(0.30)	(0.02)
Earnings per share (Euro) – discontinued operations	4.25	0.05	4.29	0.09

* Compliant with IFRS 5.33, the Company has disclosed in its Consolidated Statements of Profit or Loss and Comprehensive Income, a single amount comprising the total of the post-tax profit of discontinued operations and the post-tax gain on the disposal of the net assets constituting the discontinued operation. The Group has sold its reseller business in the US (July 2019) and part of Agfa HealthCare's IT business (May 2020). Therefore, the Company has re-presented these disclosures for prior periods presented being Q2 2019 and H1 2019 as well as Q1 2020 embedded in H1 2020.

Consolidated Statements of Comprehensive Income for the period ending June 2019 / June 2020

(in million Euro)*

Consolidated figures following IFRS accounting policies

	H1 2020	H1 2019
	Re-presented	Re-presented
Profit / (loss) for the period from continuing operations	(49)	(3)
Profit / (loss) for the period from discontinued operations	719	15
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:	(16)	12
Exchange differences:	(19)	7
Exchange differences on translation of foreign operations	(19)	7
Cash flow hedges:	3	5
Effective portion of changes in fair value of cash flow hedges	(2)	(4)
Changes in the fair value of cash flow hedges reclassified to profit or loss	1	2
Adjustments for amounts transferred to initial carrying amount of hedged items	5	7
Income taxes	-	-
Items that will not be reclassified subsequently to profit or loss:	(1)	1
Equity investments at fair value through OCI – change in fair value	(1)	1
Remeasurements of the net defined benefit liability	-	-
Income tax on remeasurements of the net defined benefit liability	-	-
Total other Comprehensive Income for the period, net of tax	(17)	13
Total Comprehensive income for the period from continuing operations	(67)	10
Total Comprehensive Income for the period from discontinued operations	719	15
Attributable to
Owners of the Company (continuing operations)	(67)	9
Non-controlling interests (continuing operations)	-	1
Owners of the Company (discontinued operations)	719	15
Non-controlling interests (discontinued operations)	-	-

* Compliant with IFRS 5.33, the Company has disclosed in its Consolidated Statements of Profit or Loss and Comprehensive Income, a single amount comprising the total of the post-tax profit of discontinued operations and the post-tax gain on the disposal of the net assets constituting the discontinued operation. The Group has sold its reseller business in the US (July 2019) and part of Agfa HealthCare's IT business (May 2020). Therefore, the Company has re-presented these disclosures for prior periods presented being Q2 2019 and H1 2019 as well as Q1 2020 embedded in H1 2020.

Consolidated Statements of Comprehensive Income for the quarter ending June 2019 / June 2020

(in million Euro)*

Consolidated figures following IFRS accounting policies

	Q2 2020	Q2 2019
		Re-presented
Profit / (loss) for the period from continuing operations	(45)	8
Profit / (loss) for the period from discontinued operations	713	8
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:	4	(2)
Exchange differences:	(2)	(2)
Exchange differences on translation of foreign operations	(2)	(2)
Cash flow hedges:	6	-
Effective portion of changes in fair value of cash flow hedges	4	(5)
Changes in the fair value of cash flow hedges reclassified to profit or loss	1	1
Adjustments for amounts transferred to initial carrying amount of hedged items	2	5
Income taxes	-	-
Items that will not be reclassified subsequently to profit or loss:	2	-
Equity investments at fair value through OCI – change in fair value	1	-
Remeasurements of the net defined benefit liability	1	-
Income tax on remeasurements of the net defined benefit liability	-	-
Total other Comprehensive Income for the period, net of tax	6	(2)
Total Comprehensive income for the period from continuing operations	(40)	5
Total Comprehensive Income for the period from discontinued operations	713	8
Attributable to
Owners of the Company (continuing operations)	(40)	6
Non-controlling interests (continuing operations)	-	(1)
Owners of the Company (discontinued operations)	713	8
Non-controlling interests (discontinued operations)	-	-

* Compliant with IFRS 5.33, the Company has disclosed in its Consolidated Statements of Profit or Loss and Comprehensive Income, a single amount comprising the total of the post-tax profit of discontinued operations and the post-tax gain on the disposal of the net assets constituting the discontinued operation. The Group has sold its reseller business in the US (July 2019) and part of Agfa HealthCare's IT business (May 2020). Therefore, the Company has re-presented these disclosures for prior periods presented being Q2 2019 and H1 2019 as well as Q1 2020 embedded in H1 2020.

Consolidated Statement of Financial Position (in million Euro)

Consolidated figures following IFRS accounting policies.

	30/06/2020	31/12/2019
Non-current assets	748	1,060
Goodwill	276	492
Intangible assets	22	74
Property, plant & equipment	127	142
Right-of-use assets	84	110
Investments in associates	-	4
Other financial assets	6	8
Trade receivables	17	21
Receivables under finance leases	76	62
Other assets	20	24
Deferred tax assets	121	125
Current assets	1,811	1,234
Inventories	496	436
Trade receivables	305	408
Contract assets	65	100
Current income tax assets	68	75
Other tax receivables	28	25
Receivables under finance lease	19	34
Other receivables	19	15
Other assets	25	21
Derivative financial instruments	3	1
Cash and cash equivalents	776	107
Non-current assets held for sale	9	10
TOTAL ASSETS	2,560	2,294

	30/06/2020	31/12/2019
Total equity	782	130
Equity attributable to owners of the company	735	83
Share capital	187	187
Share premium	210	210
Retained earnings	1,467	803
Reserves	(82)	(84)
Translation reserve	(23)	(5)
Post-employment benefits: remeasurements of the net defined benefit liability	(1,024)	(1,028)
Non-controlling interests	47	47
Non-current liabilities	1,148	1,402
Liabilities for post-employment and long-term termination benefit plans	1,064	1,137
Other employee benefits	12	12
Loans and borrowings	60	225
Provisions	5	5
Deferred tax liabilities	4	19
Trade payables	2	2
Contract liabilities	-	1
Other non-current liabilities	1	1
Current liabilities	629	761
Loans and borrowings	39	101
Provisions	62	45
Trade payables	219	232
Contract liabilities	122	151
Current income tax liabilities	30	49
Other tax liabilities	29	38
Other payables	6	9
Employee benefits	119	130
Other current liabilities	2	1
Derivative financial instruments	2	5
TOTAL EQUITY AND LIABILITIES	2,560	2,294

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

	H1 2020	H1 2019	Q2 2020	Q2 2019
Profit (loss) for the period	670	12	668	15
Income taxes	-	14	(5)	6
Share of (profit)/loss of associates, net of tax	-	-	-	-
Net finance costs	17	20	9	9
Operating result	687	46	672	31
Depreciation & amortization (excluding D&A on right-of-use assets)	21	28	10	14
Depreciation & amortization on right-of-use assets	17	19	8	10
Impairment losses	1	-	1	-
Impairment losses on right-of-use assets	(1)	4	-	1
Exchange results and changes in fair value of derivates	(2)	3	(1)	(1)
Recycling of hedge reserve	1	2	-	1
Government grants and subsidies	(4)	(6)	(1)	(3)
(Gains)/losses on the sale of intangible assets and PP&E and remeasurement of leases	(1)	-	-	-
Result on the disposal of discontinued operations	(701)	-	(701)	-
Expenses for defined benefit plans & long-term termination benefits	15	22	7	16
Accrued expenses for personnel commitments	42	41	16	15
Write-downs/reversal of write-downs on inventories	5	8	2	5
Impairments/reversal of impairments on receivables	2	3	1	2
Additions/reversals of provisions	40	8	40	10
Other non-cash expenses	(603)	81	(618)	43
Change in inventories	(70)	(31)	(31)	7
Change in trade receivables	54	26	36	8
Change in contract assets	(8)	(13)	1	(9)
Change in trade working capital assets	(24)	(18)	5	5
Change in trade payables	8	6	(36)	(6)
Change in contract liabilities	39	18	-	(8)
Changes in trade working capital liabilities	47	24	(36)	(15)
Changes in trade working capital	23	6	(30)	(9)
Cash out for employee benefits	(110)	(137)	(82)	(97)
Cash out for provisions	(14)	(18)	(5)	(10)
Changes in lease portfolio	-	1	(2)	1
Changes in other working capital	(11)	(7)	15	(2)
Cash settled operating derivatives	(4)	(9)	(2)	(5)
Cash generated from operating activities	8	15	(55)	(22)
Income taxes paid	(10)	(9)	(13)	(6)
Net cash from / (used in) operating activities	(2)	6	(68)	(28)

	H1 2020	H1 2019	Q2 2020	Q2 2019
Capital expenditure	(14)	(17)	(6)	(9)
Proceeds from sale of intangible assets and PP&E	3	3	2	2
Acquisition of subsidiaries, net of cash acquired	(1)	(10)	(1)	(3)
Disposal of discontinued operations, net of cash disposed of	914	-	914	-
Interests received	1	1	1	1
Dividends received	-	-	-	-
Net cash from / (used in) investing activities	903	(23)	910	(9)
Interests paid	(4)	(9)	(1)	(6)
Proceeds from borrowings	57	100	-	99
Repayment of borrowings	(246)	(109)	(245)	(42)
Payment of finance leases	(19)	(21)	(8)	(11)
Changes in borrowings	(208)	(30)	(253)	46
Proceeds / (payment) of derivatives	(4)	(1)	(2)	(3)
Other financing income / (costs) incurred	(5)	(2)	(1)	(1)
Net cash from/ used in financing activities	(220)	(42)	(261)	35
Net increase / (decrease) in cash & cash equivalents	681	(59)	581	(2)
Cash & cash equivalents at the start of the period	99	136	190	77
Net increase / (decrease) in cash & cash equivalents	681	(59)	581	(2)
Effect of exchange rate fluctuations on cash held	(6)	(1)	2	1
Cash & cash equivalents at the end of the period	775	76	775	76

*The Group has elected to present a statement of cash flows that includes all cash flows, including both continuing and discontinued operations.

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 INTERESTS NON	TOTAL EQUITY
Balance at January 1, 2019	187	210	854	(82)	1	(12)	(897)	(9)	252	38	290
Comprehensive income for the period
Profit (loss) for the period	-	-	11	-	-	-	-	-	11	1	12
Other comprehensive income, net of tax	-	-	-	-	1	5	-	7	13	-	13
Total comprehensive income for the period	-	-	11	-	1	5	-	7	24	1	25
Transactions with owners, recorded directly in equity
Dividends	-	-	-	-	-	-	-	-	-	-	-
Transfer of business to NCI without loss of control	-	-	2	-	-	-	-	(3)	(1)	1	-
Establishment of subsidiary with NCI	-	-	-	-	-	-	-	-	-	2	2
Total transactions with owners, recorded directly in equity	-	-	2	-	-	-	-	(3)	(1)	3	2
Balance at June 30, 2019	187	210	867	(82)	2	(7)	(897)	(6)	275	43	318
Balance at January 1, 2020	187	210	803	(82)	1	(3)	(1,028)	(5)	83	47	130
Comprehensive income for the period
Profit (loss) for the period	-	-	668	-	-	-	-	-	668	1	670
Other comprehensive income, net of tax	-	-	-	-	(1)	3	-	(18)	(16)	(1)	(17)
Total comprehensive income for the period	-	-	668	-	(1)	3	-	(18)	652	-	652
Transactions with owners, recorded directly in equity
Dividends	-	-	-	-	-	-	-	-	-	-	-
Reclasses of remeasurement on defined benefit liability related to entities divested Total transactions with owners, recorded directly in equity	- -	- -	(4) (4)	- -	- -	- -	4 4	- -	- -	- -	- -
Balance at June 30, 2020	187	210	1,467	(82)	-	-	(1,024)	(23)	735	47	782

in million Euro re-presented	Q1 2019	Q2 2019	Q3 2019	Q4 2019	FY 2019
Revenue	59	61	60	61	241
Adjusted EBITDA (*)	0.8	4.0	4.0	3.1	11.8
% of revenue	1.3%	6.6%	6.6%	5.1%	4.9%
Adjusted EBIT (*)	(1.9)	1.5	0.5	0.7	0.7
% of revenue	(3.2%)	2.4%	0.8%	1.1%	0.3%

HealthCare IT – re-presented 2019 P&L

(*) before restructuring and non-recurring items