Agfa-Gevaert NV

Quarterly Report • Aug 25, 2021

Consolidated Statement of Profit or Loss (in million Euro)

	Q2 2021	Q2 2020	H1 2021	H1 2020
Continuing operations
Revenue	441	397	836	832
Cost of sales	(305)	(277)	(584)	(577)
Gross profit	135	120	252	255
Selling expenses	(58)	(51)	(113)	(113)
Administrative expenses	(40)	(34)	(79)	(71)
R&D expenses	(24)	(22)	(49)	(47)
Net impairment loss on trade and other receivables, including contract assets	-	(1)	-	(2)
Other operating income	12	4	26	9
Other operating expenses	2	(47)	(10)	(58)
Results from operating activities	28	(31)	27	(27)
Interest income (expense) - net	-	(1)	(1)	(3)
Interest income	-	-	1	1
Interest expense	(1)	(1)	(2)	(3)
Other finance income (expense) - net	(3)	(8)	(3)	(14)
Other finance income	2	1	6	4
Other finance expense	(4)	(9)	(9)	(18)
Net finance costs	(3)	(9)	(4)	(17)
Share of profit of associates, net of tax	-	-	-	-
Profit (loss) before income taxes	25	(40)	23	(43)
Income tax expenses	(9)	(5)	(14)	(7)
Profit (loss) from continuing operations	15	(45)	9	(51)
Profit (loss) from discontinued operation, net of tax	-	714	-	720
Profit (loss) for the period	15	668	9	670
Profit (loss) attributable to:
Owners of the Company	15	667	10	668
Non-controlling interests	-	2	(1)	1
Results from operating activities	28	(31)	27	(27)
Restructuring and non-recurring items	3	(47)	2	(49)
Adjusted EBIT	25	16	24	23
Earnings per Share Group (Euro)	0.09	3.97	0.06	3.98
of which continuing operations	0.09	(0.27)	0.06	(0.30)
of which discontinued operations	-	4.25	-	4.29

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

	H1 2021	H1 2020
Profit / (loss) for the period	9	670
Profit / (loss) for the period from continuing operations	9	(51)
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:	12	(16)
Exchange differences:	15	(19)
Exchange differences on translation of foreign operations	15	(19)
Cash flow hedges:	(3)	3
Effective portion of changes in fair value of cash flow hedges	3	(2)
Changes in the fair value of cash flow hedges reclassified to profit or loss	(2)	1
Adjustments for amounts transferred to initial carrying amount of hedged items	(4)	5
Income taxes	-	-
Items that will not be reclassified subsequently to profit or loss:		(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	(3)	-
Total Other Comprehensive Income for the period, net of tax	92	(17)
Total Other Comprehensive Income for the period from continuing operations, net of tax	92	(17)
Total Other Comprehensive Income for the period from discontinued operations, net of tax	-	-
Total Comprehensive Income for the period, net of tax	102	653
Attributable to
Owners of the Company (continuing operations)	101	(67)
Non-controlling interests (continuing operations)	1	-
Owners of the Company (discontinued operations)	-	720
Non-controlling interests (discontinued operations)	-	-

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

	Q2 2021	Q2 2020
Profit / (loss) for the period	15	668
Profit / (loss) for the period from continuing operations	15	(45)
Profit / (loss) for the period from discontinued operations	-	714
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:	2	4
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	3	4
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)	2
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	1
Remeasurements of the net defined benefit liability	82	1
Income tax on remeasurements of the net defined benefit liability	(3)	-
Total Other Comprehensive Income for the period, net of tax	81	6
Total Other Comprehensive Income for the period from continuing operations, net of tax	81	6
Total Other Comprehensive Income for the period from discontinued operations, net of tax	-	-
Total Comprehensive Income for the period, net of tax	97	674
Attributable to
Owners of the Company (continuing operations)	96	(40)
Non-controlling interests (continuing operations)	-	-
Owners of the Company (discontinued operations)	-	714
Non-controlling interests (discontinued operations)	-	-

Consolidated Statement of Financial Position (in million Euro)

	30/06/2021	31/12/2020
Non-current assets	783	714
Goodwill	273	265
Intangible assets	17	19
Property, plant & equipment	128	127
Right-of-use assets	76	78
Other financial assets	8	7
Assets related to post-employment benefits	61	-
Trade receivables	14	15
Receivables under finance leases	75	68
Other assets	14	16
Deferred tax assets	117	120
Current assets	1,389	1,490
Inventories	445	389
Trade receivables	293	297
Contract assets	69	64
Current income tax assets	57	63
Other tax receivables	32	15
Financial assets	11	9
Receivables under finance lease	19	29
Other receivables	1	9
Other assets	24	18
Derivative financial instruments	6	9
Cash and cash equivalents	428	585
Non-current assets held for sale	2	4
TOTAL ASSETS	2,172	2,204

	30/06/2021	31/12/2020
Total equity	713	620
Equity attributable to owners of the company	662	570
Share capital	187	187
Share premium	210	210
Retained earnings	1,332	1,412
Reserves	4	(76)
Translation reserve	(28)	(42)
Post-employment benefits: remeasurements of the net defined benefit liability	(1,043)	(1,122)
Non-controlling interests	52	51
Non-current liabilities	873	1,046
Liabilities for post-employment and long-term termination benefit plans	784	956
Other employee benefits	13	13
Loans and borrowings	53	54
Provisions	17	16
Deferred tax liabilities	5	4
Contract liabilities	2	2
Other non-current liabilities	-	1
Current liabilities	586	538
Loans and borrowings	27	29
Provisions	34	63
Trade payables	240	198
Contract liabilities	120	103
Current income tax liabilities	26	23
Other tax liabilities	35	24
Other payables	8	8
Employee benefits	90	88
Other current liabilities	3	1
Derivative financial instruments	3	2
TOTAL EQUITY AND LIABILITIES	2,172	2,204

Consolidated Statement of Cash Flows (in million Euro)

	H1 2021	H1 2020	Q2 2021	Q2 2020
Profit (loss) for the period	9	670	15	668
Income taxes	14	-	9	(5)
Share of (profit)/loss of associates, net of tax	-	-	-	-
Net finance costs	4	17	3	9
Operating result	27	687	28	672
Depreciation & amortization	17	21	9	10
Depreciation & amortization on right-of-use assets	14	17	7	8
Impairment losses	-	-	-	1
Exchange results and changes in fair value of derivates	2	(2)	(1)	(1)
Recycling of hedge reserve	(2)	1	(1)	-
Government grants and subsidies	(5)	(4)	(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	-	(701)	-	(701)
Expenses for defined benefit plans & long-term termination benefits	13	15	6	7
Accrued expenses for personnel commitments	35	42	15	16
Write-downs/reversal of write-downs on inventories	5	5	2	2
Impairments/reversal of impairments on receivables	-	2	-	1
Additions/reversals of provisions	(5)	40	(7)	40
Operating cash flow before changes in working capital	95	123	54	51
Change in inventories	(64)	(70)	(29)	(31)
Change in trade receivables	14	54	4	36
Change in contract assets	(3)	(8)	5	1
Change in trade working capital assets	(52)	(24)	(20)	5
Change in trade payables	33	8	1	(36)
Change in contract liabilities	14	39	5	-
Changes in trade working capital liabilities	47	47	6	(36)
Changes in trade working capital	(5)	23	(14)	(30)

	H1 2021	H1 2020	Q2 2021	Q2 2020
Cash out for employee benefits	(206)	(110)	(162)	(82)
Cash out for provisions	(25)	(14)	(13)	(5)
Changes in lease portfolio	4	-	4	(2)
Changes in other working capital	3	(11)	2	15
Cash settled operating derivatives	5	(4)	3	(2)
Cash generated from operating activities	(128)	8	(127)	(55)
Income taxes paid	(1)	(10)	1	(13)
Net cash from / (used in) operating activities	(130)	(2)	(126)	(68)
of which related to discontinued operations	-	28	-	(10)
Capital expenditure	(14)	(14)	(8)	(6)
Proceeds from sale of intangible assets and PP&E	11	3	1	2
Acquisition of subsidiaries, net of cash acquired	-	(1)	-	(1)
Disposal of discontinued operations, net of cash disposed of	-	914	-	914
Repayment of loans granted to 3rd parties	1	-	1	-
Interests received	1	1	1	1
Dividends received	-	-	-	-
Net cash from / (used in) investing activities	(1)	903	(5)	910
of which related to discontinued operations	-	912	-	914
Interests paid	(2)	(4)	(1)	(2)
Purchase of treasury shares	(9)	-	(9)	-
Proceeds from borrowings	-	57	-	-
Repayment of borrowings	(2)	(246)	-	(245)
Payment of finance leases	(15)	(19)	(7)	(8)
Changes in borrowings	(18)	(208)	(7)	(253)
Proceeds / (payment) of derivatives	1	(4)	-	(2)
Other financing income / (costs) incurred	1	(4)	(2)	(1)
Net cash from/ used in financing activities	(26)	(220)	(19)	(261)
of which related to discontinued operations	-	(4)	-	(1)
Net increase / (decrease) in cash & cash equivalents	(157)	681	(150)	581
Cash & cash equivalents at the start of the period	585	99	578	190
Net increase / (decrease) in cash & cash equivalents	(157)	681	(150)	581
Effect of exchange rate fluctuations on cash held	(1)	(5)	-	2
Gains/(losses) on marketable securities	(1)	-	-	-
Cash & cash equivalents at the end of the period	427	775	427	775

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	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	- - -	- - -	668 - 668	- - -	- (1) (1)	- 3 3	- - -	- (18) (18)	668 (16) 652	1 (1) -	670 (17) 652
Transactions with owners, recorded directly in equity Dividends Reclasses of remeasurements on defined benefit liability related to entities divested	- -	- -	- (4)	- -	- -	- -	- 4	- -	- -	- -	- -
Total transactions with owners, recorded directly in equity	-	-	(4)	-	-	-	4	-	-	-	-
Balance at June 30, 2020	187	210	1,467	(82)	-	-	(1,024)	(23)	735	47	782
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	-	-	10	-	-	-	-	-	10	(1)	9
Other comprehensive income, net of tax	-	-	-	-	2	(3)	79	14	91	2	92
Total comprehensive income for the period	-	-	10	-	2	(3)	79	14	101	1	102
Transactions with owners, recorded directly in equity
Dividends	-	-	-	-	-	-	-	-	-	-	-
Purchase of own shares	-	-	-	(9)	-	-	-	-	(9)	-	(9)
Cancellation of own shares Total transactions with owners, recorded directly in equity	- -	- -	(90) (90)	90 81	- -	- -	- -	- -	- (9)	- -	- (9)
Balance at June 30, 2021	187	210	1,332	(1)	2	3	(1,043)	(28)	662	52	713