Agfa-Gevaert publishes its second quarter results – Regulated information

Press Release / Mortsel - Belgium / 24th August 2011

Agfa-Gevaert today announced its second quarter 2011 results.
  • Group revenue increased by 3.7 percent, or 6.2 percent excluding currency effects
  • Recurring EBIT amounts to 36 million Euro
  • Positive net result of 4 million Euro, in spite of high raw material prices and uncertain economic conditions
Agfa-Gevaert Group – second quarter 2011
Euro millions Q2 2010 Q2 2011 % change
Revenue 736 763 3.7%
Gross Profit (*) 265 216 -18.5%
% of revenue 36.0% 28.3%
Recurring EBITDA (*) 107 59 -44.9%
% of revenue 14.5% 7.7%
Recurring EBIT (*) 84 36 -57.1%
% of revenue 11.4% 4.7%
Results from operating activities 69 25 -63.8%
Profit attributable to the owners of the Company 39 2 -94.9%

(*) before restructuring and non-recurring items.


In spite of the adverse exchange rate conditions and the uncertain economic climate in a number of its key markets, the Agfa-Gevaert Group posted a revenue growth of 3.7 percent. Excluding currency effects, the increase amounted to 6.2 percent. The increase was driven by the recent strategic steps, as well as by the growth in industrial inkjet, digital radiology and the new industrial materials.

Although both Agfa Graphics and Agfa HealthCare were successful in their efforts to tackle the high raw material prices, there still was a strong impact on the Group’s profitability in the second quarter. As a result of this impact and of changes in the mix of products, the Group’s recurring gross profit margin declined from 36.0 percent in the second quarter of 2010 to 28.3 percent. It should be noted that last year’s second quarter was influenced by an 8 million Euro beneficial one-off IP related effect in Agfa Graphics.

As a percentage of revenue, Selling and General Administration expenses decreased to 19.1 percent, versus 20.0 percent in the previous year.

The Group’s recurring EBITDA (the sum of Graphics, HealthCare, Specialty Products and the unallocated portion) decreased from 107 million Euro (99 million Euro excluding the IP related effect) to 59 million Euro. Recurring EBIT decreased from 84 million Euro (76 million Euro excluding the IP related effect) to 36 million Euro (4.7 percent of revenue).

Restructuring and non-recurring items resulted in an expense of 11 million Euro, versus an expense of 15 million Euro in 2010.

The net finance costs amounted to 20 million Euro, versus 22 million Euro in the second quarter of 2010.

Income tax expense amounted to minus 1 million Euro, compared to minus 8 million Euro in 2010. Current tax expense amounted to minus 3 million Euro and deferred tax income amounted to 2 million Euro.

A positive net result of 4 million Euro was booked (of which 2 million Euro is attributable to the owners of the company), compared to 39 million Euro in the very strong second quarter of 2010.

“The implementation of our price increases for traditional film products is gaining momentum. Furthermore, our continuously growing market shares in industrial inkjet and digital radiology show that we are a preferred partner for customers (in particular in the growth markets) who wish to shift from analogue to digital technology. We will continue to drive down all costs under our control and to implement other measures to improve productivity,” commented Christian Reinaudo, President and Chief Executive Officer of the Agfa-Gevaert Group.

Balance sheet and cash flow

– At the end of June 2011, total assets were 2,980 million Euro, compared to 3,086 million Euro at the end of 2010.

– Inventories amounted to 717 million Euro (or 123 days). Trade receivables (minus deferred revenue and advanced payments from customers) amounted to 496 million Euro, or 59 days and trade payables were 269 million Euro, or 46 days.

– Net financial debt amounted to 313 million Euro, versus 391 million Euro at the end of the second quarter of 2010 and 161 million Euro at the end of 2010.

– Net cash from operating activities amounted to minus 99 million Euro, mainly due to a 62 million Euro increase in working capital and the discontinuation of the securitization program (impact of 19 million Euro).

Agfa Graphics – second quarter 2011
Euro millions Q2 2010 Q2 2011 % change
Revenue 391 405 3.6%
Recurring EBITDA (*) 56.6 24.8 -56.2%
    % of revenue 14.5% 6.1%
Recurring EBIT (*) 46.1 14.8 -67.9%

(*)  before restructuring and non-recurring items.


In spite of the adverse currency effects, Agfa Graphics’ second quarter revenue increased by 3.6 percent (5.8 percent excluding currency effects) to 405 million Euro.

In prepress, Agfa Graphics continued to successfully implement the planned price increases for its film products. Together with the market-driven decline in this business, these measures impacted the business group’s volumes in the analogue computer-to-film (CtF) segment. Volumes in the digital computer-to-plate (CtP) business increased, but this was partially offset by the severe competitive pressure.

In industrial inkjet, both external and internal growth contributed to the revenue increase. In the wide-format segment, the :Anapurna product range performed strongly.

Regionally, revenue in North America increased due to the recent strategic moves. Eastern and Northern Europe performed strongly, whereas business in the South of Europe suffered from the uncertain economic conditions. In Asia, the revenue decline in analogue computer-to-film prepress was partially compensated by the growth in digital printing plates.

The high raw material prices and the competitive pressure in CtP weighed on Agfa Graphics’ profitability. The gross profit margin decreased to 25.7 percent, compared to 33.2 percent in the second quarter of 2010. Taking into account the before-mentioned 8 million Euro IP related one-off effect in 2010, Agfa Graphics succeeded in counterbalancing about half of the raw material impact.

Recurring EBITDA amounted to 24.8 million Euro (6.1 percent of revenue).

Recurring EBIT was 14.8 million Euro or 3.7 percent of revenue.

Agfa Graphics’ second quarter was colored by a number of important product releases in the industrial inkjet segment. The :Jeti family of wide-format printers was extended with two new systems. The 5 meter wide :Jeti 5048 UV XL features 48 print heads and supports an extensive range of print quality modes to allow the best balance between quality and speed on almost all flexible media. The :Jeti 3020 Titan FTR is a high-production inkjet printer. Thanks to the modular approach, its color and speed capabilities can be easily extended to keep up with the owner’s changing needs.

Furthermore, Agfa Graphics welcomed a new member to its high-end :M-Press family. The :M-Press Leopard is the ideal solution for display producers who look for the best quality and speed and who require fast change-over between print jobs.

The world’s first :M-Press Leopard was bought at the Fespa Digital 2011 trade fair (May 24 to May 27 – Hamburg, Germany) by Dambach Print+Service GmbH, one of the leading screen printers in Germany. Meanwhile, the installed base for the other member of the :M-Press family – the high-speed :M-Press Tiger – continues to grow. In the second quarter, Nutis Press, Inc. (Columbus, Ohio) purchased an :M-Press Tiger for the production of luxury point-of-purchase printwork.

In prepress, a number of important contracts were signed in Asia. In Korea, The Korean Economic Daily and The Seoul Shinmun newspaper companies both signed 5-year contracts for Agfa Graphics’ photopolymer printing plates. King Printers, one of the largest web-to-print companies in Osaka (Japan), will start using Agfa Graphics’ chemistry-free :Azura printing plates.

An important contract was also signed with Dansk Avis Tryk A/S. The largest contract newspaper printer in Denmark bought an :Advantage N DL XT platesetter with a three-year plate contract.

Agfa HealthCare – second quarter 2011
Euro millions Q2 2010 Q2 2011 % change
Net Sales 296 290 -2.0x%
Recurring EBITDA (*) 48.1 32.4 -32.6%
    % of revenue 16.3% 11.2%
Recurring EBIT (*) 35.6 20.8 -41.6%

(*) before restructuring and non-recurring items.


Agfa HealthCare’s top line was influenced by the adverse exchange rate conditions. Excluding these currency effects, revenue increased by 1.1 percent. In the Imaging segment, the volumes for traditional X-ray film products continued to decline. This was partly driven by Agfa HealthCare’s price increases and by the success of the business group’s strategy to assist healthcare providers in their technology shift from analogue X-ray to digital radiology, which includes Computed Radiography (CR), Direct Radiography (DR), hardcopy film and printers, as well as Picture Archiving and Communication Systems (PACS).

As governments often play a major role in financing healthcare investments, the uncertain economic conditions in a number of important markets weighed on Agfa HealthCare’s IT segment. Nevertheless, the Imaging IT business posted satisfactory growth, which was partly counterbalanced by adverse currency effects. It is expected that the strong order book will lead to further growth towards the end of the year. The Enterprise IT business’ revenue remained stable.

The emerging markets in general and Asia Pacific in particular, as well as North America posted significant growth. Eastern Europe and the Benelux performed well, whereas business in the South of Europe was soft.

Agfa HealthCare’s profitability was influenced by the high silver price. The gross profit margin amounted to 34.8 percent, versus 41.9 percent in the second quarter of 2010. Agfa HealthCare was able to counterbalance about a quarter of the raw material impact.

The business group’s recurring EBITDA amounted to 32.4 million Euro (or 11.2 percent of revenue). Recurring EBIT amounted to 20.8 million Euro, or 7.2 percent of revenue.

In June, Agfa HealthCare announced that it won a Performance Award from the Premier healthcare alliance. These awards recognize contracted suppliers for their efforts to provide clinical and financial value to the more than 2.500 Premier alliance hospitals.

In the field of Imaging, Agfa HealthCare announced that it already produced over 10.000 units of the CR 30-X system. This entry-level CR digitizer is key in Agfa HealthCare’s strategy to assist hospitals in their shift to digital radiology. The DR business continues to expand fast, with systems now installed in 16 different countries. At the German Radiology Congress (Deutscher Röntgenkongress), Agfa HealthCare announced the addition to its portfolio of the DXD-100 mobile X-ray unit in combination with the new wireless DXD-30 detector.

Furthermore, Agfa HealthCare signed a number of important Imaging IT contracts with leading care organizations. Both the Helsinki and Uusimaa hospital district (Finland) and the Hovedstaden Region (Denmark) chose Agfa HealthCare as provider for their regional image management solution. In Canada, the go-live of Agfa HealthCare’s IMPAX Data Center 2.0 and XERO solution was an important milestone for the Alberta Health Services Electronic Health Record initiative.

In the field of Enterprise IT, Agfa HealthCare continued to expand its presence in the French market with the introduction of its HYDMedia document management system, which was adopted by the Centre Hospitalier Alès-Cévennes and the Centre Hospitalier Jean Monnet in Epinal. Two large hospitals in the south of Germany, the Städtisches Klinikum Karlsruhe and the Kliniken des Landskreises Göppingen, decided to replace their existing clinical information systems with Agfa HealthCare’s ORBIS.

Agfa Specialty Products – second quarter 2011
Euro millions Q2 2010 Q2 2011 % change
Revenue 49 68 38.8%
Recurring EBITDA (*) 4.4 3.1 -29.5%
% of revenue 9.0% 4.6%
Recurring EBIT (*) 3.6 1.9 -47.2%

(*) before restructuring and non-recurring items.

Agfa Specialty Products’ revenue grew by 38.8 percent compared to the second quarter of 2010. Continuing the trend of the previous months, the printed circuit board film, Synaps synthetic paper and Orgacon conductive polymers businesses posted strong sales figures. Deliveries for the non-destructive testing segment also increased.

The gross margin was impacted by the high raw material prices. Consequently, recurring EBIT decreased to 1.9 million Euro and recurring EBITDA to 3.1 million Euro.

“We obviously are pleased with our performance in the second quarter. However, given the current uncertain economic environment and other elements beyond our control, we are unable to issue a more precise guidance. It goes without saying that we will continue to take all measures necessary to tackle the challenges our company is facing,” said Christian Reinaudo.

Half year results
Agfa-Gevaert Group – year to date
Euro millions H1 2010 H1 2011 % change
Revenue 1,400 1,499 7.1%
Gross Profit 494 447 -9.5%
% of revenue 35.3% 29.8%
Recurring EBITDA (*) 184 122 -33.7%
% of revenue 13.1% 8.1%
Recurring EBIT (*) 137 76 -44.5%
% of revenue 9.8% 5.1%
Results from operating activities 120 57 -52.5%
Profit attributable to the owners of the Company 57 7

(*)  before restructuring and non-recurring items. 


Agfa Graphics – year to date
Euro millions H1 2010 H1 2011 % change
Revenue 736 791 7.5%
Recurring EBITDA (*) 91.7 52.1 -43.2%
    % of revenue 12.5% 6.6%
Recurring EBIT (*) 70.7 31.8 -55.0%

(*)  before restructuring and non-recurring items. 


Agfa HealthCare – year to date
Euro millions H1 2010 H1 2011 % change
Revenue 572 577 0.9%
Recurring EBITDA (*) 87.9 64.2 -27.0%
    % of revenue 15.4% 11.1%
Recurring EBIT (*) 63.2 40.9 -35.3%

(*)  before restructuring and non-recurring items.


Agfa Specialty Products – year to date
Euro millions H1 2010 H1 2011 % change
Revenue 92 131 42.4%
Recurring EBITDA (*) 7.7 7.7 0%
% of revenue 8.4% 5.9%
Recurring EBIT (*) 5.9 5.4 -8.5%

(*) before restructuring and non-recurring items.

(end of message)

Management Certification of Financial Statements and Quarterly Report

This statement is made in order to comply with new European transparency regulation enforced by the Belgian Royal Decree of 14 November 2007 and in effect as of 2008.

“The Board of Directors and the Executive Committee of Agfa-Gevaert NV, represented by Mr. Julien De Wilde, Chairman of the Board of Directors, Mr. Christian Reinaudo, President and CEO, and Mr. Kris Hoornaert, CFO, jointly certify that, to the best of their knowledge, the interim consolidated financial statements included in the interim report and based on the relevant accounting standards, fairly present in all material respects the financial condition and results of Agfa-Gevaert NV, including its consolidated subsidiaries. Based on our knowledge, the interim report includes all information that is required to be included in such document and does not omit to state all necessary material facts.”

Statement of risk

This statement is made in order to comply with new European transparency regulation enforced by the Belgian Royal Decree of
14 November 2007
and in effect as of 2008.

“As with any company, Agfa is continually confronted with – but not exclusively – a number of market and competition risks or more specific risks related to the cost of raw materials, product liability, environmental matters, proprietary technology or litigation.

Agfa believes that the most noteworthy risks facing the company for the coming quarters would be the effects of the continued economic crisis on its key markets.”

Key risk management data is provided in the annual report (p.47) available on

Click here for the Consolidated Statements. 

Click here for the Condensed Interim Financial Statements as of June 30, 2011 

Viviane Dictus
Director Corporate Communication
Tel nr.: +32 (0) 3 444 7124
Fax nr.: +32 (0) 3 444 4485

Johan Jacobs
Corporate Press Relations Manager
Tel nr.: +32 (0) 3 444 8015
Fax nr.: +32 (0) 3 444 4485