Agfa-Gevaert NV

Quarterly Report • Nov 9, 2021

Consolidated Statement of Profit or Loss (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies.

	Q3 2021	Q3 2020	9M 2021	9M 2020
Continuing operations
Revenue	439	410	1,276	1,242
Cost of sales	(322)	(298)	(906)	(875)
Gross profit	118	112	370	367
Selling expenses	(56)	(52)	(169)	(166)
Administrative expenses	(37)	(34)	(116)	(105)
R&D expenses	(22)	(24)	(71)	(71)
Net impairment loss on trade and other receivables, including contract assets	(1)	-	(1)	(2)
Other & sundry operating income	5	6	31	16
Other & sundry operating expenses	(7)	(15)	(18)	(73)
Results from operating activities	(1)	(9)	26	(35)
Interest income (expense) - net	-	(1)	(1)	(4)
Interest income	-	-	1	1
Interest expense	(1)	(1)	(3)	(5)
Other finance income (expense) - net	(3)	(8)	(6)	(22)
Other finance income	-	(1)	6	3
Other finance expense	(3)	(7)	(12)	(25)
Net finance costs	(4)	(9)	(7)	(25)
Share of profit of associates, net of tax	-	-	-	-
Profit (loss) before income taxes	(4)	(17)	18	(61)
Income tax expenses	(1)	(8)	(15)	(15)
Profit (loss) from continuing operations	(5)	(25)	4	(76)
Profit (loss) from discontinued operation, net of tax	-	-	-	720
Profit (loss) for the period	(5)	(25)	4	644
Profit (loss) attributable to:
Owners of the Company	(5)	(27)	5	641
Non-controlling interests	-	2	(1)	3
Results from operating activities	(1)	(9)	26	(35)
Restructuring and non-recurring items	(7)	(9)	(5)	(58)
Adjusted EBIT	6	-	31	23
Earnings per Share Group (Euro)	(0.03)	(0.16)	0.03	3.82
of which continuing operations	(0.03)	(0.16)	0.03	(0.47)
of which discontinued operations	-	-	-	4.29

Consolidated Statements of Comprehensive Income for the period ending September 2020 / September 2021 (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies

	9M 2021	9M 2020
Profit / (loss) for the period	4	644
Profit / (loss) for the period from continuing operations	4	(76)
Profit / (loss) for the period from discontinued operations	-	720
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:
Exchange differences:	20	(31)
Exchange differences on translation of foreign operations	20	(31)
Cash flow hedges:	(5)	8
Effective portion of changes in fair value of cash flow hedges	4	3
Changes in the fair value of cash flow hedges reclassified to profit or loss	(2)	-
Adjustments for amounts transferred to initial carrying amount of hedged items	(8)	6
Income taxes	1	(1)
Items that will not be reclassified subsequently to profit or loss:	78	(1)
Equity investments at fair value through OCI – change in fair value	2	(1)
Remeasurements of the net defined benefit liability	82	-
Income tax on remeasurements of the net defined benefit liability	(6)	-
Total Other Comprehensive Income for the period, net of tax	91	(24)
Total Other Comprehensive Income for the period from continuing operations, net of tax	91	(24)
Total Other Comprehensive Income for the period from discontinued operations, net of tax	-	-
Total Comprehensive Income for the period, net of tax	96	620
Attributable to
Owners of the Company (continuing operations)	94	(102)
Non-controlling interests (continuing operations)	2	2
Owners of the Company (discontinued operations)	-	720
Non-controlling interests (discontinued operations)	-	-

Consolidated Statements of Comprehensive Income for the quarter ending September 2020 / September 2021 (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies

	Q3 2021	Q3 2020
Profit / (loss) for the period	(5)	(25)
Profit / (loss) for the period from continuing operations	(5)	(25)
Profit / (loss) for the period from discontinued operations	-	-
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:
Exchange differences:	5	(12)
Exchange differences on translation of foreign operations	5	(12)
Cash flow hedges:	(2)	5
Effective portion of changes in fair value of cash flow hedges	1	5
Changes in the fair value of cash flow hedges reclassified to profit or loss	-	(1)
Adjustments for amounts transferred to initial carrying amount of hedged items	(4)	1
Income taxes	1	(1)
Items that will not be reclassified subsequently to profit or loss:	(3)	-
Equity investments at fair value through OCI – change in fair value	-	-
Remeasurements of the net defined benefit liability	-	-
Income tax on remeasurements of the net defined benefit liability	(3)	-
Total Other Comprehensive Income for the period, net of tax	(1)	(7)
Total Other Comprehensive Income for the period from continuing operations, net of tax	(1)	(7)
Total Other Comprehensive Income for the period from discontinued operations, net of tax	-	-
Total Comprehensive Income for the period, net of tax	(6)	(32)
Attributable to
Owners of the Company (continuing operations)	(7)	(34)
Non-controlling interests (continuing operations)	1	2
Owners of the Company (discontinued operations)	-	-
Non-controlling interests (discontinued operations)	-	-

Consolidated Statement of Financial Position (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies.

	30/09/2021	31/12/2020
Non-current assets	779	714
Goodwill	276	265
Intangible assets	14	19
Property, plant & equipment	128	127
Right-of-use assets	72	78
Other financial assets	8	7
Assets related to post-employment benefits	61	-
Trade receivables	13	15
Receivables under finance leases	75	68
Other assets	12	16
Deferred tax assets	119	120
Current assets	1,369	1,490
Inventories	465	389
Trade receivables	303	297
Contract assets	73	64
Current income tax assets	60	63
Other tax receivables	21	15
Financial assets	3	9
Receivables under finance lease	14	29
Other receivables	4	9
Other assets	17	18
Derivative financial instruments	4	9
Cash and cash equivalents	401	585
Non-current assets held for sale	2	4
TOTAL ASSETS	2,147	2,204

	30/09/2021	31/12/2020
Total equity	695	620
Equity attributable to owners of the company	643	570
Share capital	187	187
Share premium	210	210
Retained earnings	1,315	1,412
Reserves	3	(76)
Translation reserve	(25)	(42)
Post-employment benefits: remeasurements of the net defined benefit liability	(1,047)	(1,122)
Non-controlling interests	53	51
Non-current liabilities	861	1,046
Liabilities for post-employment and long-term termination benefit plans	776	956
Other employee benefits	11	13
Loans and borrowings	50	54
Provisions	17	16
Deferred tax liabilities	5	4
Contract liabilities	1	2
Other non-current liabilities	-	1
Current liabilities	591	538
Loans and borrowings	27	29
Provisions	28	63
Trade payables	257	198
Contract liabilities	119	103
Current income tax liabilities	27	23
Other tax liabilities	17	24
Other payables	8	8
Employee benefits	99	88
Other current liabilities	3	1
Derivative financial instruments	4	2
TOTAL EQUITY AND LIABILITIES	2,147	2,204

Consolidated Statement of Cash Flows (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies.

	9M 2021	9M 2020	Q3 2021	Q3 2020
Profit (loss) for the period	4	644	(5)	(25)
Income taxes	15	8	1	8
Share of (profit)/loss of associates, net of tax	-	-	-	-
Net finance costs	7	26	4	9
Operating result	26	679	(1)	(9)
Depreciation & amortization	26	30	9	9
Depreciation & amortization on right-of-use assets	21	24	6	7
Impairment losses	-	-	-	-
Exchange results and changes in fair value of derivates	4	(5)	2	(4)
Recycling of hedge reserve	(2)	-	-	-
Government grants and subsidies	(8)	(5)	(3)	(1)
(Gains)/losses on the sale of intangible assets and PP&E and remeasurement of leases	(7)	(1)	-	-
Result on the disposal of discontinued operations Expenses for defined benefit plans & long-term termination benefits	- 21	(701) 34	- 7	- 19
Accrued expenses for personnel commitments	54	47	19	5
Write-downs/reversal of write-downs on inventories	8	8	2	3
Impairments/reversal of impairments on receivables	1	3	1	-
Additions/reversals of provisions	(4)	46	1	7
Operating cash flow before changes in working capital	138	158	43	36
Change in inventories	(88)	(43)	(24)	27
Change in trade receivables	10	56	(4)	2
Change in contract assets	(7)	(18)	(4)	(10)
Change in trade working capital assets	(85)	(6)	(33)	18
Change in trade payables	45	(11)	12	(20)
Change in contract liabilities	12	32	(3)	(6)
Changes in trade working capital liabilities	56	21	9	(26)
Changes in trade working capital	(28)	15	(23)	(8)

Cash out for employee benefits	(235)	(272)	(29)	(162)
Cash out for provisions	(31)	(17)	(6)	(3)
Changes in lease portfolio	8	(2)	4	(2)
Changes in other working capital	2	5	(1)	16
Cash settled operating derivatives	8	(4)	3	1
Cash generated from operating activities	(137)	(115)	(9)	(123)
Income taxes paid	(5)	(13)	(4)	(4)
Net cash from / (used in) operating activities	(142)	(129)	(12)	(127)
of which related to discontinued operations	-	28	-	-
Capital expenditure	(19)	(22)	(5)	(8)
Proceeds from sale of intangible assets and PP&E	11	3	-	1
Acquisition of subsidiaries, net of cash acquired	-	(1)	-	-
Disposal of discontinued operations, net of cash disposed of	-	915	-	-
Repayment of loans granted to 3rd parties	9	-	8	-
Interests received	2	2	1	-
Dividends received	-	-	-	-
Net cash from / (used in) investing activities	3	896	4	(7)
of which related to discontinued operations	-	912	-	-
Interests paid	(3)	(6)	(1)	(1)
Purchase of treasury shares	(21)	-	(12)	-
Proceeds from borrowings	1	57	1	1
Repayment of borrowings	(3)	(249)	-	(2)
Payment of finance leases	(21)	(27)	(6)	(8)
Changes in borrowings	(23)	(218)	(5)	(10)
Proceeds / (payment) of derivatives Other financing income / (costs) incurred	2 1	(8) (3)	1 -	(4) -
Net cash from/ used in financing activities	(43)	(235)	(18)	(14)
of which related to discontinued operations	-	(4)	-	-
Net increase / (decrease) in cash & cash equivalents	(182)	533	(25)	(148)
Cash & cash equivalents at the start of the period	585	99	427	775
Net increase / (decrease) in cash & cash equivalents	(182)	533	(25)	(148)
Effect of exchange rate fluctuations on cash held	(2)	(4)	(1)	1
Gains/(losses) on marketable securities	(1)	-	-	-
Cash & cash equivalents at the end of the period	400	628	400	628

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	of the net defined Remeasurement benefit liability	Translation reserve	Total	CONTROLLING INTERESTS NON	TOTAL EQUITY
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 Other comprehensive income, net of tax Total comprehensive income for the period	- - -	- - -	641 - 641	- - -	- (1) (1)	- 8 8	- - -	- (30) (30)	641 (23) 618	3 (1) 2	644 (24) 620
Transactions with owners, recorded directly in equity Dividends Reclasses of remeasurements on defined	- -	- -	- (4)	- -	- -	- -	- 4	- -	- -	- -	- -
benefit liability related to entities divested Total transactions with owners, recorded directly in equity	-	-	(4)	-	-	-	4	-	-	-	-
Balance at September 30, 2020	187	210	1,440	(82)	-	5	(1,024)	(35)	702	49	750
Balance at January 1, 2021	187	210	1,412	(82)	-	7	(1,122)	(42)	570	51	620
Comprehensive income for the period
Profit (loss) for the period	-	-	5	-	-	-	-	-	5	(1)	4
Other comprehensive income, net of tax	-	-	-	-	2	(5)	75	17	89	3	92
Total comprehensive income for the period	-	-	5	-	2	(5)	75	17	94	2	96
Transactions with owners, recorded directly in equity
Dividends	-	-	-	-	-	-	-	-	-	-	-
Purchase of own shares	-	-	-	(21)	-	-	-	-	(21)	-	(21)
Cancellation of own shares Total transactions with owners, recorded directly in equity	- -	- -	(103) (103)	103 82	- -	- -	- -	- -	- (21)	- -	- (21)
Balance at September 30, 2021	187	210	1,315	-	2	1	(1,047)	(25)	643	53	695