Agfa-Gevaert NV

Quarterly Report • Mar 10, 2021

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

Consolidated figures following IFRS accounting policies.

	2020	2019	Q4 2020	Q4 2019
	re-presented	re-presented	re-presented	re-presented
Continuing operations			unaudited
Revenue	1,709	1,975	467	529
Cost of sales	(1,215)	(1,387)	(340)	(373)
Gross profit	494	589	127	155
Selling expenses	(223)	(271)	(58)	(69)
Administrative expenses	(144)	(157)	(38)	(42)
R&D expenses	(95)	(103)	(23)	(27)
Net impairment loss on trade and other receivables, including contract assets	(2)	(5)	1	(1)
Other operating income	39	41	23	6
Other operating expenses	(123)	(127)	(49)	(81)
Results from operating activities	(52)	(34)	(17)	(59)
Interest income (expense) - net	(4)	(8)	(1)	(2)
Interest income	1	2	-	1
Interest expense	(6)	(10)	(1)	(3)
Other finance income (expense) -	(26)	(28)	(4)	(5)
net Other finance income	2	8	(1)	3
Other finance expense	(28)	(36)	(3)	(8)
Net finance costs	(31)	(36)	(5)	(7)
Share of profit of associates, net of tax	-	-	-	-
Profit (loss) before income taxes	(83)	(70)	(22)	(66)
Income tax expenses	(15)	(14)	-	(1)
Profit (loss) from continuing operations	(98)	(84)	(22)	(68)
Profit (loss) from discontinued operation, net of tax	719	36	(2)	11
Profit (loss) for the period	621	(48)	(24)	(57)
Profit (loss) attributable to:
Owners of the Company	613	(53)	(28)	(59)
Non-controlling interests	7	5	4	2
Results from operating activities	(52)	(34)	(17)	(59)
Restructuring and non-recurring items	88	111	(30)	(84)
Adjusted EBIT	36	77	13	25
Earnings per Share Group (Euro)	3.66	(0.32)	(0.16)	(0.35)
of which continuing operations	(0.63)	(0.53)	(0.16)	(0.42)
of which discontinued operations	4.28	0.21	(0.01)	0.06

* 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 Q4 2019 and FY 2019 as well as 4M 2020 embedded in FY 2020.

Consolidated Statements of Comprehensive Income for the year ending December 2019 / December 2020 (in million Euro)*

Consolidated figures following IFRS accounting policies

	2020	2019
	re-presented	re-presented
Profit / (loss) for the period from continuing operations	(98)	(84)
Profit / (loss) for the period from discontinued operations	719	36
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:
Exchange differences:	(39)	7
Exchange differences on translation of foreign operations	(39)	7
Cash flow hedges:	10	10
Effective portion of changes in fair value of cash flow hedges	7	(7)
Changes in the fair value of cash flow hedges reclassified to profit or loss	(1)	3
Adjustments for amounts transferred to initial carrying amount of hedged items	6	14
Income taxes	(2)	-
Items that will not be reclassified subsequently to profit or loss:	(100)	(132)
Equity investments at fair value through OCI – change in fair value	(1)	(1)
Remeasurements of the net defined benefit liability	(102)	(139)
Income tax on remeasurements of the net defined benefit liability	3	8
Total Other Comprehensive Income for the period, net of tax	(129)	(114)
Total Comprehensive Income for the period from continuing operations, net of tax	(227)	(198)
Attributable to
Owners of the Company (continuing operations)	(232)	(204)
Non-controlling interests (continuing operations)	5	5
Total Comprehensive Income for the period from discontinued operations, net of tax	719	36
Attributable to
Owners of the Company (discontinued operations)	719	36
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 Q4 2019 and FY 2019 as well as 4M 2020 embedded in FY 2020.

Consolidated Statements of Comprehensive Income for the quarter ending December 2019 /

December 2020 (in million Euro)*

Consolidated figures following IFRS accounting policies

	Q4 2020	Q4 2019
	unaudited	re-presented
Profit / (loss) for the period from continuing operations	(22)	(68)
Profit / (loss) for the period from discontinued operations	(1)	11
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:
Exchange differences:	(8)	(10)
Exchange differences on translation of foreign operations	(8)	(10)
Cash flow hedges:	2	6
Effective portion of changes in fair value of cash flow hedges	4	2
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
Income taxes	(1)	-
Items that will not be reclassified subsequently to profit or loss:	(99)	(132)
Equity investments at fair value through OCI – change in fair value	-	(1)
Remeasurements of the net defined benefit liability	(102)	(139)
Income tax on remeasurements of the net defined benefit liability	3	8
Total Other Comprehensive Income for the period, net of tax	(105)	(134)
Total Comprehensive Income for the period from continuing operations, net of tax	(127)	(202)
Attributable to
Owners of the Company (continuing operations)	(130)	(204)
Non-controlling interests (continuing operations)	3	2
Total Comprehensive Income for the period from discontinued operations	(1)	11
Attributable to
Owners of the Company (discontinued operations)	(1)	11
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 Q4 2019 and FY 2019 as well as 4M 2020 embedded in FY 2020.

Consolidated Statement of Financial Position (in million Euro)

Consolidated figures following IFRS accounting policies.

	31/12/2020	31/12/2019
Non-current assets	714	1,060
Goodwill	265	492
Intangible assets	19	74
Property, plant & equipment	127	142
Right-of-use assets	78	110
Investments in associates	-	4
Other financial assets	7	8
Trade receivables	15	21
Receivables under finance leases	68	62
Other assets	16	24
Deferred tax assets	120	125
Current assets	1,490	1,234
Inventories	389	436
Trade receivables	297	408
Contract assets	64	100
Current income tax assets	63	75
Other tax receivables	15	25
Financial assets	9	-
Receivables under finance lease	29	34
Other receivables	9	15
Other assets	18	21
Derivative financial instruments	9	1
Cash and cash equivalents	585	107
Non-current assets held for sale	4	10
TOTAL ASSETS	2,204	2,294

	31/12/2020	31/12/2019
Total equity	620	130
Equity attributable to owners of the company	570	83
Share capital	187	187
Share premium	210	210
Retained earnings	1,412	803
Reserves	(76)	(84)
Translation reserve	(42)	(5)
Post-employment benefits: remeasurements of the net defined benefit liability	(1,122)	(1,028)
Non-controlling interests	51	47
Non-current liabilities	1,045	1,402
Liabilities for post-employment and long-term termination benefit plans	956	1,137
Other employee benefits	13	12
Loans and borrowings	54	225
Provisions	16	5
Deferred tax liabilities	4	19
Trade payables	-	2
Contract liabilities	2	1
Other non-current liabilities	1	1
Current liabilities	538	761
Loans and borrowings	29	101
Provisions	63	45
Trade payables	198	232
Contract liabilities	103	151
Current income tax liabilities	23	49
Other tax liabilities	24	38
Other payables	8	9
Employee benefits	88	130
Other current liabilities	1	1
Derivative financial instruments	2	5
TOTAL EQUITY AND LIABILITIES	2,204	2,294

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

	2020	2019	Q4 2020 unaudited	Q4 2019
Profit (loss) for the period	621	(48)	(24)	(57)
Income taxes	8	28	-	4
Share of (profit)/loss of associates, net of tax	-	1	-	-
Net finance costs	31	38	5	8
Operating result	660	19	(18)	(46)
Depreciation & amortization (excluding D&A on right-of-use assets)	38	56	8	14
Depreciation & amortization on right-of-use assets	31	38	7	9
Impairment losses on goodwill	-	35	-	31
Impairment losses on intangible assets	-	11	-	10
Impairment losses on PP&E	2	27	1	27
Impairment losses on right-of-use assets	(1)	4	-	-
Exchange results and changes in fair value of derivates	(7)	1	(1)	(4)
Recycling of hedge reserve	(1)	3	(1)	1
Government grants and subsidies	(6)	(9)	(1)	(1)
(Gains)/losses on the sale of intangible assets and PP&E and remeasurement of leases Result on the disposal of discontinued operations	(9) (700)	- (6)	(8) 2	6 (6)
Expenses for defined benefit plans & long-term termination benefits	41	36	7	6
Accrued expenses for personnel commitments	65	91	18	25
Write-downs/reversal of write-downs on inventories	12	14	4	4
Impairments/reversal of impairments on receivables	2	4	(1)	-
Additions/reversals of provisions	76	24	30	12
Operating cash flow before changes in working capital	205	348	46	89
Change in inventories	25	50	68	61
Change in trade receivables	50	4	(6)	(33)
Change in contract assets	(10)	7	8	20
Change in trade working capital assets	64	62	70	48
Change in trade payables	2	19	13	7
Change in contract liabilities	23	(13)	(9)	(16)
Changes in trade working capital liabilities	25	6	4	(9)
Changes in trade working capital	89	68	74	39

	2020	2019	Q4 2020 unaudited	Q4 2019
Cash out for employee benefits	(403)	(226)	(131)	(51)
Cash out for provisions	(37)	(36)	(20)	(10)
Changes in lease portfolio	(3)	(9)	(1)	(4)
Changes in other working capital	15	18	10	18
Cash settled operating derivatives	(3)	(16)	1	(4)
Cash generated from operating activities	(136)	147	(21)	77
Income taxes paid	(17)	(24)	(4)	(10)
Net cash from / (used in) operating activities	(153)	123	(25)	67
of which related to discontinued operations	28	-	-	-
Capital expenditure	(33)	(38)	(11)	(13)
Proceeds from sale of intangible assets and PP&E	9	7	6	(4)
Acquisition of subsidiaries, net of cash acquired	(1)	(16)	-	(2)
Disposal of discontinued operations, net of cash disposed of	915	16	-	16
Proceeds from sale of other investments and non-current assets held for	-	1	-	1
sale Interests received	2	3	-	1
Dividends received	-	-	-	-
Net cash from / (used in) investing activities	892	(28)	(4)	(1)
of which related to discontinued operations	913	-	-	-
Interests paid	(7)	(15)	(1)	(3)
Proceeds from borrowings	59	127	1	23
Repayment of borrowings	(259)	(201)	(10)	(51)
Payment of finance leases	(34)	(42)	(7)	(10)
Changes in borrowings	(234)	(116)	(16)	(38)
Proceeds / (payment) of derivatives	(9)	3	(1)	1
Other financing income / (costs) incurred	-	(3)	4	-
Net cash from/ used in financing activities	(249)	(131)	(15)	(40)
of which related to discontinued operations	(4)	-	-	-
Net increase / (decrease) in cash & cash equivalents	490	(36)	(43)	25
Cash & cash equivalents at the start of the period	99	136	628	72
Net increase / (decrease) in cash & cash equivalents	490	(36)	(43)	25
Effect of exchange rate fluctuations on cash held	(3)	(2)	1	2
Gains/(losses) on marketable securities	(1)	-	(1)	-
Cash & cash equivalents at the end of the period	585	99	585	99

*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	-	-	(53)	-	-	-	-	-	(53)	5	(48)
Other comprehensive income, net of tax	-	-	-	-	(1)	10	(131)	7	(114)	-	(114)
Total comprehensive income for the period	-	-	(53)	-	(1)	10	(131)	7	(168)	5	(162)
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 December 31, 2019	187	210	803	(82)	1	(3)	(1,028)	(5)	83	47	130
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	-	-	613	-	-	-	-	-	613	7	621
Other comprehensive income, net of tax	-	-	-	-	(1)	10	(99)	(37)	(127)	(2)	(129)
Total comprehensive income for the period	-	-	613	-	(1)	10	(99)	(37)	486	5	491
Transactions with owners, recorded directly in equity
Dividends	-	-	-	-	-	-	-	-	-	(1)	(1)
Reclasses of remeasurement on defined benefit liability related to entities divested Total transactions with owners, recorded directly in equity	- -	- -	(4) (4)	- -	- -	- -	4 4	- -	- -	- (1)	- (1)
Balance at December 31, 2020	187	210	1,412	(82)	-	7	(1,122)	(42)	570	51	620

HealthCare IT – re-presented 2019 P&L

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%

(*) before restructuring and non-recurring items