Agfa-Gevaert publishes its third quarter 2018 results – Regulated information

Press Release / Mortsel, Belgium / 7th November 2018


Agfa-Gevaert today announced its third quarter 2018 results.

·         Top line decline of 4.8%, excluding currency effects and the impact of portfolio rationalizations

·         Strong performance of Inkjet, HealthCare Information Solutions and certain Specialty Products ranges

·         Recurring EBITDA at 35 million Euro

·         Net loss at minus 5 million Euro

·         Net financial debt at 99 million Euro

 

“During this quarter, we continued to make excellent progress with the reorganization of our HealthCare IT activities into a stand-alone legal entity structure within the Group. The technical part of this complex exercise is almost behind us. We have also been focusing on clarifying the strategies of the future HealthCare IT company, as well as of the other activities of the Group. As already stated before, we aim at playing an important role in the consolidation of the offset industry. This strategy has translated into concrete actions in the past quarter. We entered into an alliance with the Chinese Lucky HuaGuang Graphics Co. Ltd., which will have far-reaching consequences for our business and for the prepress industry. Furthermore, we announced our intention to acquire the prepress business of the Spanish Ipagsa company. Finally, in order to optimize production capacity, we recently announced the intended closure of our printing plate factory in Branchburg.

I am confident that when the project is completed, two companies will emerge that will have the power and the means to pursue growth in the years to come. We will give more information on how we see the companies’ structures and strategies when we report on our full year results.

The strong third quarter performance of most of our growth engines was snowed under by the top line decrease of most of our traditional businesses. As expected, the top line of Agfa Graphics’ prepress business was impacted by the product portfolio reorganization. In Agfa HealthCare, the hardcopy business temporarily slowed down following a marked recovery in the first half of the year. However, we are confident that this business will pick up again in the coming quarters.

Our full year recurring EBITDA margin will be around 8% of revenue. Mainly based on our current actions in the field of the prepress and HealthCare IT businesses, we stick to our ambition to target a recurring EBITDA margin of around 10% of revenue on average in the years to come,” said Christian Reinaudo, President and CEO of the Agfa-Gevaert Group.

Agfa-Gevaert Group – third quarter 2018

in million Euro Q3 2017 Q3 2018 % change

(excl. FX effects)

Revenue 593 539 -9.1% (-7.9%)
Gross profit (*) 195 171 -12.1%
% of revenue 32.9% 31.8%
Recurring EBITDA (*) 53 35 -34.3%
% of revenue 9.0% 6.5%
Recurring EBIT (*) 40 21 -47.0%
% of revenue 6.8% 4.0%
Result from operating activities 31 6 -79.2%
Result for the period 14 (5)
Net cash from (used in) operating activities 18 (15)

(*) before restructuring and non-recurring items

The Agfa-Gevaert Group’s top line evolution was strongly impacted by the product portfolio reorganization in the Agfa Graphics business group’s prepress business.

Excluding portfolio rationalizations and currency effects, the Agfa-Gevaert Group’s revenue decline amounted to 4.8%. Several growth engines – including Agfa Graphics’ inkjet business, Agfa HealthCare’s HealthCare Information Solutions and several activities of Agfa Specialty Products – posted strong topline growth.

Mainly due to high aluminum prices and adverse product/mix effects, the Group’s gross profit margin decreased to 31.8% of revenue.

As a percentage of revenue, Selling and General Administration expenses increased to 21.4% of revenue.

R&D expenses amounted to 32 million Euro, or 6.0% of revenue.

Recurring EBITDA reached 6.5% of revenue, versus 9.0% in the third quarter of 2017. Recurring EBIT reached 4.0% of revenue.

Partly due to costs related to the transformation of the Company, restructuring and non-recurring items resulted in an expense of 15 million Euro, versus an expense of 9 million Euro in the previous year.

The net finance costs increased from 8 million Euro in the third quarter of 2017 to 11 million Euro.

Income tax expenses decreased to 0 million Euro.

As a result of the elements mentioned above, the Agfa-Gevaert Group posted a net loss of 5 million Euro.

 

Financial position and cash flow

  • At the end of the third quarter of 2018, total assets were 2,348 million Euro, compared to 2,233 million Euro at the end of 2017.
  • Trade working capital moved from 644 million Euro (26% of sales) at the end of 2017 to 653 million Euro (29% of sales) at the end of the third quarter of 2018.
  • Net financial debt amounted to 99 million Euro, versus 18 million Euro at the end of 2017.
  • Net cash from operating activities amounted to minus 15 million Euro.

 

Agfa Graphics – third quarter 2018

in million Euro Q3 2017 Q3 2018 % change

(excl. FX effects)

Revenue 284 257 -9.6% (-9.5%)
Recurring EBITDA (*) 14.2 7.9 -43.6%
% of revenue 5.0% 3.1%
Recurring EBIT (*) 8.2 2.2 -73.2%
% of revenue 2.9% 0.9%

(*) before restructuring and non-recurring items

Excluding the effects of the decision to discontinue certain prepress-related reseller activities in the United States and currency effects, Agfa Graphics’ top line decreased by 3.8%, which is markedly better than in the previous quarters of the year.

The main driver behind this positive evolution is the Inkjet segment, which grew its top line by over 9% based on the success of the recently released Jeti printers and on the good performance of the ink range.

On top of the portfolio reorganization, the prepress segment’s top line was impacted by the strong market-driven decline for analog computer-to-film products and by the pressure on volume for the digital computer-to-plate product offerings. The price pressure in this segment is now under control due to the recently announced global price increase program for printing plates. In recent months, important strategic steps have been taken which should help to restore the prepress segment’s top line.

 Mainly due to the high aluminum price and adverse product and regional mix effects, Agfa Graphics’ gross profit margin decreased from 27.6% of revenue in the third quarter of 2017 to 25.6%. Recurring EBITDA amounted to 7.9 million Euro (3.1% of revenue), versus 14.2 million Euro (5.0% of revenue) in the third quarter of 2017 and recurring EBIT reached 2.2 million Euro (0.9% of revenue), versus 8.2 million Euro (2.9% of revenue).

In the third quarter, Agfa Graphics took two major steps in its strategy to actively participate in the consolidation of the prepress industry. Firstly, the business group entered into a strategic alliance with Lucky HuaGuang Graphics Co. Ltd. The alliance should allow both companies to grow their businesses by optimizing their respective strengths in manufacturing, technology and distribution of prepress products and services. Secondly, Agfa Graphics announced its intention to acquire the prepress business of the privately-owned Spanish printing plate supplier Ipagsa Industrial S.L.

Also in the field of prepress, Agfa Graphics launched Avatar V-ZH, the first chemistry-free violet printing plate for newspaper printing that does not require pre-heating. Furthermore, Agfa Graphics released several new software solutions. The intelligent InkTune and PressTune tools offer print houses complete control over all printing elements, from ink use to compliance with ISO, G7 and client-specific standards, while also reducing production costs. Apogee v11 is the newest version of the business group’s workflow software for commercial printers. Apogee v11 takes print production to the next level by automating all prepress tasks.

In the field of inkjet, Agfa Graphics presented its new flagship Jeti Tauro H3300 LED inkjet printer to over 300 print professionals at an exclusive Red Carpet Event in June. Following the event, the business group booked multiple orders in the third quarter, mainly for the Jeti Tauro H2500 LED and the Jeti Tauro H3300 LED printers. In Belgium, for instance, the ReclameOnline.be/Publi-FDM company invested in two print engines from Agfa Graphics: a Jeti Tauro HS2500 LED and an Anapurna RTR 3200i.

In August, Agfa Graphics also won four prestigious Product of the Year awards from the Specialty Graphic Imaging Association (SGIA). The award-winning products are the brand-new Jeti Tauro H3300 LED printer, the Jeti Mira printer (winner in two categories) and the Anapurna H3200i LED printer.

Furthermore, Agfa Graphics introduced the fourth version of Arziro Design, a complete solution for the general security printing market. The Adobe Illustrator plug-in update includes several new functions and features that support designers of packaging and labels, tickets, stamps, certificates etc. in their battle against forgery.

 

Agfa HealthCare – third quarter 2018

in million Euro Q3 2017 Q3 2018 % change

(excl. FX effects)

Revenue 258 236 -8.5% (-6.0%)
Recurring EBITDA (*) 35.7 24.4 -31.6%
% of revenue 13.8% 10.3%
Recurring EBIT (*) 29.5 17.6 -40.5%
% of revenue 11.4% 7.4%

(*) before restructuring and non-recurring items

Excluding currency effects, Agfa HealthCare’s revenue decreased by 6.0%. Following a recovery in the first six months of the year, sales for the Imaging segment’s hardcopy business slowed down in the third quarter due to certain late effects of the reorganization of the distribution channels in China. The hardcopy business is expected to pick up again in the coming quarters.

The IT segment performed well, with the HealthCare Information Solutions range reporting double-digit top line growth and continuously strong order book growth. Overall, the Imaging IT Solutions range performed according to expectations, with good performances in most major geographies and a slowdown in the USA.

Mainly due to adverse product/mix effects in the Imaging segment and the above mentioned late effects of the reorganization of the hardcopy distribution channels, Agfa HealthCare’s gross profit margin evolved from 40.7% of revenue in the third quarter of 2017 to 40.0%. Recurring EBITDA decreased from 35.7 million Euro (13.8% of revenue) in the third quarter of 2017 to 24.4 million Euro (10.3% of revenue). Recurring EBIT reached 17.6 million Euro (7.4% of revenue), versus 29.5 million Euro (11.4% of revenue) in the previous year.

In the field of Imaging, Agfa HealthCare announced its new MUSICA Workstation. This ‘nerve center’ of the imaging environment offers a single, intuitive interface for smooth and efficient general radiography, fluoroscopy, mammography and full leg/full spine imaging. Built on mature and proven technologies and incorporating customer-driven innovations, it facilitates flexibility and customization.

In the USA, Florida Hospital, part of the Adventist Health System, decided to install Agfa HealthCare’s versatile DR 800 Multi-Purpose Direct Radiography solution at three facilities.

In the field of Imaging IT Solutions, the KLAS Performance Report 2018 identifies Agfa HealthCare as a strong and guiding partner for health systems rolling out enterprise imaging. KLAS is a research and insights firm aiming at improving healthcare delivery. Its reports are based on feedback from healthcare organizations and clinicians.

Also in Imaging IT Solutions, Agfa HealthCare announced the successful go-live of its Enterprise Imaging for Radiology suite at the Princess Alexandra Hospital in Harlow (Essex, UK). The hospital is part of the Princess Alexandra Hospital NHS Trust. Furthermore, the business group announced that the first phase of the implementation of Home Reporting as part of the Enterprise Imaging agreement with Alliance Medical Ireland has been successfully completed. The solution offers radiologists a variety of Remote Reporting configurations, matching their different requirements. For instance, radiologists can do their work at home with the same user experience as on-site.

Agfa Specialty Products – third quarter 2018

in million Euro Q3 2017 Q3 2018 % change

(excl. FX effects)

Revenue 50 45 -9.1% (-9.2%)
Recurring EBITDA (*) 4.9 3.5 -27.8%
% of revenue 9.8% 7.8%
Recurring EBIT (*) 4.0 2.5 -37.4%
% of revenue 8.2% 5.6%

(*) before restructuring and non-recurring items

 

Agfa Specialty Products’ top line decreased by 9.1% to 45 million Euro, mainly due to normal fluctuations in the contract business and the effect of the lower silver price.

Synaps Synthetic Paper and the Specialty Chemicals business (including Orgacon Electronic Materials) performed well.

The business group’s recurring EBITDA reached 3.5 million Euro (7.8% of revenue). Recurring EBIT amounted to 2.5 million Euro (5.6% of revenue).

 

Results after nine months

Agfa-Gevaert Group – year to date

in million Euro 9M 2017 9M 2018 % change

(excl. FX effects)

Revenue 1,803 1,647 -8.6% (-5.2%)
Gross profit (*) 600 529 -11.8%
% of revenue 33.3% 32.1%
Recurring EBITDA (*) 152 121 -20.6%
% of revenue 8.5% 7.3%
Recurring EBIT (*) 113 81 -28.3%
% of revenue 6.3% 4.9%
Result from operating activities 99 53 -46.7%
Result for the period 49 8
Net cash from (used in) operating activities 14 (19)

(*) before restructuring and non-recurring items

Agfa Graphics – year to date

in million Euro 9M 2017 9M 2018 % change

(excl. FX effects)

Revenue 893 777 -13.0% (-9.6%)
Recurring EBITDA (*) 57.0 29.1 -49.0%
% of revenue 6.4% 3.7%
Recurring EBIT (*) 38.7 11.5 -70.4%
% of revenue 4.3% 1.5%

(*) before restructuring and non-recurring items

Agfa HealthCare – year to date

in million Euro 9M 2017 9M 2018 % change

(excl. FX effects)

Revenue 761 723 -4.9% (-1.0%)
Recurring EBITDA (*) 84.1 77.2 -8.1%
% of revenue 11.1% 10.7%
Recurring EBIT (*) 65.3 57.7 -11.6%
% of revenue 8.6% 8.0%

(*) before restructuring and non-recurring items

 

Agfa Specialty Products – year to date

in million Euro 9M 2017 9M 2018 % change

(excl. FX effects)

Revenue 148 146 -1.3% (0.0%)
Recurring EBITDA (*) 14.5 17.1 18.0%
% of revenue 9.8% 11.7%
Recurring EBIT (*) 12.0 14.1 17.6%
% of revenue 8.1% 9.7%

(*) 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. Dirk De Man, CFO, jointly certify that, to the best of their knowledge, the consolidated financial statements included in the 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 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.”

Key risk management data is provided in the annual report available on www.agfa.com.

Contact:

Viviane Dictus
Director Corporate Communication
Septestraat 27
2640 Mortsel – Belgium
T +32 (0) 3 444 71 24
E viviane.dictus@agfa.com

 

Johan Jacobs

Corporate Press Relations Manager
T +32 (0)3/444 80 15

E johan.jacobs@agfa.com

The full press release and financial information is also available on the company’s website: www.agfa.com

 

 

 

Consolidated Statement of Profit or Loss (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies.

  Q3 2017 Q3 2018 9M 2017 9M 2018
Revenue 593 539 1,803 1,647
Cost of sales (397) (368) (1,202) (1,118)
Gross profit 196 171 601 529
Selling expenses (81) (79) (255) (240)
Research & Development expenses (35) (32) (109) (105)
Administrative expenses (40) (42) (126) (128)
Net impairment loss on trade and other receivables, including contract assets (2) (2) (1) (3)
Other operating income 17 12 49 46
Other operating expenses (24) (21) (60) (46)
Results from operating activities 31 6 99 53
Interest income (expense) – net (2) (3) (5) (5)
Interest income 1 1
Interest expense (2) (3) (6) (7)
Other finance income (expense) – net (6) (8) (23) (26)
Other finance income 4 (1) 9 2
Other finance expense (10) (7) (32) (27)
Net finance costs (8) (11) (28) (31)
Share of result of equity accounted investees – net of income tax (1) (1)
Profit (loss) before income taxes 23 (5) 71 21
Income tax expense (9) (22) (13)
Profit (loss) for the period 14 (5) 49 8
Profit (loss) attributable to:
    Owners of the Company 12 (5) 44 4
    Non-controlling interests 2 1 5 4
Results from operating activities 31 6 99 53
Restructuring and non-recurring items (9) (15) (14) (28)
Recurring EBIT 40 21 113 81
Earnings per share (Euro) 0.07 (0.04) 0.26 0.02

During 2018, the Group has consistently applied its accounting policies used in previous years, except for the presentation of the statement of profit or loss and comprehensive income that has changed resulting from the application of the new IFRS standard IFRS 9 ‘Financial Instruments’. According to this new standard the impairment losses on trade and other receivables are now shown on the face of the statement of profit or loss.      

 

 

Consolidated Statements of Comprehensive Income for the nine months ending September 2017 / September 2018 (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies

  9M 2017 9M 2018
Profit / (loss) for the period 49 8
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:
Exchange differences: (35) (1)
   Exchange differences on translation of foreign operations (35) (1)
Exchange differences on disposal of foreign operations reclassified to profit or loss
   Exchange differences on net investment hedge
   Income tax on exchange differences on net investment hedge
Cash flow hedges: 4 (14)
   Effective portion of changes in fair value of cash flow hedges 21 (8)
   Changes in the fair value of cash flow hedges reclassified to profit or loss (4) (5)
Adjustments for amounts transferred to initial carrying amount of hedged items (10) (5)
   Income taxes (3) 4
Items that will not be reclassified subsequently to profit and loss: (2)
Equity investments at fair value through OCI – change in fair value1 (1)
Remeasurements of the net defined benefit liability
Income tax on remeasurements on the net defined benefit liability (1)
Total other Comprehensive Income for the period, net of tax (31) (17)
 
Total Comprehensive Income for the period attributable to: 18 (9)
Owners of the Company 15 (13)
Non-controlling interests 3 4

 

1 Following the introduction of the new IFRS standard IFRS 9 ‘Financial Instruments’, the Group has adapted the presentation of the statement of comprehensive income. In this statement the change in fair value of equity instruments at fair value through OCI has shifted to ‘items that will not be reclassified to profit or loss’.

 

Consolidated Statements of Comprehensive Income for the quarter ending September 2017 / September 2018 (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies

  Q3 2017 Q3 2018
Profit / (loss) for the period 14 (5)
Other Comprehensive Income, net of tax
Items that are or may be reclassified subsequently to profit or loss:  
Exchange differences: (10)
   Exchange differences on translation of foreign operations (10)
Exchange differences on disposal of foreign operations reclassified to profit or loss
   Exchange differences on net investment hedge
   Income tax on exchange differences on net investment hedge
Cash flow hedges: (4) (3)
   Effective portion of changes in fair value of cash flow hedges 1 (3)
   Changes in the fair value of cash flow hedges reclassified to profit or loss (4)
Adjustments for amounts transferred to initial carrying amount of hedged items (3)
   Income taxes 2
Items that will not be reclassified subsequently to profit and loss:
Equity investments at fair value through OCI – change in fair value1
Remeasurements of the net defined benefit liability
Income tax on remeasurements on the net defined benefit liability
Total other Comprehensive Income for the period, net of tax (14) (3)
 
Total Comprehensive Income for the period attributable to:
Owners of the Company (1) (8)
Non-controlling interests 1

 

1 Following the introduction of the new IFRS standard IFRS 9 ‘Financial Instruments’, the Group has adapted the presentation of the statement of comprehensive income. In this statement the change in fair value of equity instruments at fair value through OCI has shifted to ‘items that will not be reclassified to profit or loss’.

 

 

Consolidated Statement of Financial Position (in million Euro)

Unaudited, consolidated figures following IFRS accounting policies.

 

 

31/12/2017 01/01/2018 (1) 30/09/2018
Goodwill
509 509 523
Intangible assets
80 80 91
Property, plant & equipment
190 190 187
Investments in associates
5 5 4
Other financial assets
11 11 10
Trade receivables
14 14 15
Receivables under finance leases
55 55 77
Other assets
6 6 5
Deferred tax assets
115 115 119
Non-current assets
985 985 1,032
Inventories 487 476 536
Trade receivables 503 419 394
Contract assets 105 122
Current income tax assets 63 63 67
Other tax receivable
23 23 41
Receivables under finance lease
30 30 18
Other receivables
14 14 11
Other assets
44 34 28
Derivative financial instruments
16 16 4
Cash and cash equivalents 68 68 95
Non-current assets held for sale
Current assets 1,248 1,248 1,317
TOTAL ASSETS 2,233 2,233 2,348
 

 

31/12/2017 01/01/2018 (1) 30/09/2018
Share capital 187 187 187
Share premium 210 210 210
Retained earnings 878 878 882
Other reserves (69) (69) (84)
Translation reserve (8) (8) (10)
Remeasurement reserve (IAS19) (923) (923) (924)
Equity attributable to owners of the company 275 275 261
Non-controlling interests 32 32 33
Total equity
307 307 294
Liabilities for post-employment and long-term termination benefit plans 1,149 1,149 1,102
Other employee benefits 13 13 15
Loans and borrowings 47 47 119
Provisions 5 5 7
Deferred tax liabilities 21 21 21
Trade payables 3rd parties 4 3 2
Contract liabilities
1 1
Other liabilities
2 2 1
Non-current liabilities
1,241 1,241 1,269
Loans and borrowings 39 39 75
Provisions 66 49 43
Trade payables 220 220 239
Contract liabilities 128 145 173
Current income tax liabilities 53 53 44
Other tax liabilities 34 34 45
Other payables 12 13 10
Employee benefits 128 128 135
Other liabilities 3 2 14
Derivative financial instruments 2 2 6
Current liabilities 685 685 784
TOTAL EQUITY AND LIABILITIES 2,233 2,233 2,348

1) During 2018, the Group has consistently applied its accounting policies used in previous year, except for the presentation of the balance sheet that has changed resulting from the application of the new IFRS-standard 15 ‘Revenue from Contracts with Customers’. The Group has adopted IFRS 15 using the cumulative effect method, with the effect of initially applying this standard recognized at the date of initial application, i.e. January 1, 2018. As a result, the Group will not apply the requirements of IFRS 15 to the comparative period presented.

The new standard has introduced the concept of contract assets and contract liabilities. At December 31, 2017 these assets and liabilities were included in other captions of the balance sheet. At January 1, 2018 recognized not billed revenue amounting to 84 million Euro, previously comprised in trade receivables, has been reclassified to contract assets. Reclassifications from inventory to contract assets amounted to 11 million Euro and mainly comprised work in progress. The reclassification from other assets to contract assets amounted to 10 million Euro and related to contracts with a third party that provides supporting services enabling the Group to deliver maintenance services to the customers.

On the liability side, contract liabilities at 1 January 2018 comprised ‘Deferred revenue and advance payments received from customers’ amounting to 128 million Euro, previously presented separately on the face of the balance sheet and bonuses and rebates related to goods and service purchased by customers during the period. The latter amounted to 17 million Euro and was previously presented as part of trade-related provisions.

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

2017 YTD

Restated (1)

2018 YTD Q3 2017

Restated (1)

Q3 2018
Profit (loss) for the period 49 8 14 (5)
Income taxes 28 13 15
Share of results of associated companies 1 1
Net finance costs 22 31 2 11
Operating result 99 52 31 6
Depreciation, amortization and impairment losses 39 40 12 13
Other non-cash expenses 115 101 45 31
         
Change in inventories (73) (82) (1) (26)
Change in trade receivables (6) 15 (6) (18)
Change in contract assets (17) (1)
Change in trade working capital assets (2) (79) (84) (7) (45)
Change in trade payables 10 21 (5) 17
Change in deferred revenue and advance payments 11 (16)
Change in contract liabilities 29 6
Changes in trade working capital liabilities (2) 21 50 (21) 23
Changes in trade working capital (58) (34) (28) (22)
Cash out for employee benefits (141) (155) (32) (53)
Cash out for provisions (11) (19) (1) (4)
Changes in lease portfolio 2 (10) (1)
Changes in other working capital (14) 5 (2) 6
Cash settled operating derivatives 16 16
Cash generated from operating activities                     31 (3) 25 (9)
Income taxes paid (14) (16) (7) (6)
Net cash from / (used in) operating activities (17) (19) 18 (15)
Capital expenditure (29) (31) (11) (10)
Proceeds from sale of intangible assets and PP&E 3 9 2
Acquisition of subsidiaries, net of cash acquired (2) (20) (7)
Interests received 1 2 1
Dividends received
Net cash from / (used in) investing activities (27) (41) (11) (14)
2017 YTD

Restated (1)

2018 YTD Q3 2017

Restated (1)

Q3 2018
Interests paid (7) (10) (1) (4)
Dividends paid to non-controlling interests (10) (3) (3)
Interests and dividends paid (13) (7)
Changes in equity
Changes in borrowings 14 99 (3) 43
Proceeds / (payment) of derivatives (1) (8)
Other financing income / (costs) incurred (2) (1)
Other financial flows (9) 3
Net cash from/ used in financing activities (40) 83 (1) 28
Net increase / (decrease) in cash & cash equivalents (50) 23 6 (1)
         
Cash & cash equivalents at the start of the period 127 67(3)
Net increase / (decrease) in cash & cash equivalents (50) 23 6 (1)
Effect of exchange rate fluctuations on cash held (3) (5) 1 (1)
Cash & cash equivalents at the end of the period 74 85(3) 5 (2)

1) During 2018, the Group has changed the presentation of the Consolidated statement of cash flows by separating following non‐cash expenses: write‐downs on inventories, impairment losses on receivables, additions and reversals of provisions and accrued expenses for personnel commitments and defined benefit plans and similar plans. These other non‐cash expenses were previously reflected in ‘Changes in Trade Working Capital’ and ‘Changes in Provisions’. By this new presentation, management believes to provide more relevant information to the users of the Consolidated Financial Statements. Therefore, the Group has restated the comparative period presented.

2) During 2018, the Group has consistently applied its accounting policies used in previous year, except for the presentation of the consolidated statement of financial position and the consolidated statement of cash flows that both have changed resulting from the application of the new IFRS‐standard 15 ‘Revenue from Contracts with Customers’. The Group has adopted IFRS 15 using the cumulative effect method, with the effect of initially applying this standard recognized at the date of initial application, i.e. January 1, 2018. As a result, the Group will not apply the requirements of IFRS 15 to the comparative period presented. Due to the changes in IFRS15, the cashflows on the different line items of the Trade Working Capital are not comparable with 2017 as the cash from / (used in) contract assets and contract liabilities for 2017 were reflected in the line items ‘Changes in inventories’, ‘Changes in trade receivables’ and ‘Changes in other working capital’. More information is provided in footnote (1) to the Consolidated statement of financial position.

3) Net of bank overdraft previously included in proceeds / repayments of borrowings (December 31, 2017: 1 million Euro / September 30, 2018: 10 million Euro

 

 

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 Remeasurements of the net defined benefit liability Translation reserve Total NON-CONTROLLING INTERESTS TOTAL EQUITY
 

Balance at January 1, 2017

187 210 841 (82) 2 1 (976) 32 215 37 252
   
Comprehensive income for the period    
Profit (loss) for the period 44 44 5 49
Other comprehensive income, net of tax 4 (33) (29) (2) (31)
Total comprehensive income for the period 44 4 (33) 15 3 18
                       
Transactions with owners, recorded directly in equity                      
Dividends (10) (10)
Total transactions with owners, recorded directly in equity (10) (10)
                       
Balance at September 30, 2017 187 210 885 (82) 2 5 (976) (1) 230 30 260
             
Balance at January 1, 2018 187 210 878 (82) 3 10 (923) (8) 275 32 307
                       
Comprehensive income for the period                      
Profit (loss) for the period 4 4 4 8
Other comprehensive income, net of tax (1) (14) (1) (1) (17) (17)
Total comprehensive income for the period 4 (1) (14) (1) (1) (13) 4 (9)
 
Transactions with owners, recorded directly in equity                      
Dividends (3) (3)
Total transactions with owners, recorded directly in equity (3) (3)
                       
Balance at September 30, 2018 187 210 882 (82) 2 (4) (924) (10) 261 33 294
2018-11-06T16:16:51+00:00