-
Annual Report 2021
2
Letter to the shareholders 4
Key figures 2021 9
Company profile 10
Agfa in the world 12
Highlights 2021 14
ANNUAL REPORT FROM THE BOARD OF DIRECTORS TO THE SHAREHOLDERS OF AGFA-GEVAERT NV
NON-FINANCIAL REPORT
Sustainability 17
Agfa’s approach to sustainability management 17
SDG Target and strategic relevance for Agfa-Gevaert 20
Our stakeholders 23
Planet 30
People 52
Performance 76
FINANCIAL REPORT
Comments on the financial statements 90
Comments on the consolidated financial statements 91
Comments on the statutory accounts of Agfa-Ge vaert NV 95
BUSINESS ACTIVITIES IN 2021
Radiology Solutions 96
HealthCare IT 104
Digital Print & Chemicals 112
Offset Solutions 122
FINANCIAL STATEMENTS 130
Table of contents of the financial statements 131
Consolidated financial statements 132
Notes to the consolidated financial statements 138
Statutory auditor’s report 235
Statutory accounts 241
Corporate governance statement 244
Remuneration report 256
GRI index table 262
GRI environmental indicators 263
EU-Taxonomy 263
Glossary 264
Overview consolidated statements 2017-2021 268
Shareholder information 271
Table of contents
3
AgfA-gevAert – AnnuAl report 2021
Letter to the shareholders
Frank Aranzana,
Chairman of the Board of Directors
Pascal Juéry,
CEO
4
Letter to the shareholders
Dear shareholder,
2021 was quite an eventful year. On the one hand, the COVID-19 virus continued to weigh on the world, forcing
the entire society to implement strict measures to prevent another lockdown. On the other hand, we have seen
a gradual improvement of demand which came with rapidly rising costs for raw materials, energy, packaging,
transport and wages, as well as supply chain issues, impacting the business.
In this complex environment, Agfa-Gevaert delivered key milestones in its transformation process and
improved profitability in 2021.
In our efforts to build a simple, agile and future-oriented organizational model, we announced in October 2021
the plan to partner with Atos for our internal IT operations. Under the terms of the intended partnership, a major
part of Agfa’s internal Information and Communication Services activities, including the dedicated positions
and employees, is to be transferred to Atos. In close cooperation with Agfa, Atos will design and implement first
class IT solutions for the company. This collaboration will allow us to fully concentrate on our customers and on
the evolution of our portfolio, while relying on a partner for our state-of-the-art IT solutions and developments.
Furthermore, the project to organize the Offset Solutions business into a stand-alone legal entity structure is
well on track and we have drastically simplified our go-to-market organization, from a matrix structure to a
global business unit structure.
In 2021, we finalized our de-risking pension program, which resulted in a substantially lower net liability and
reduced pension cash outs. Also in 2021, we announced a share buyback program with a volume of up to
50 million Euros. Last year, the Group bought approximately 7.31 million shares for an amount of 29 million
Euros. This lead to a cancellation of 11.3 million shares (including treasury shares already owned before the
start of the buyback program), or 6.6% of total shares. The program, which will continue this year, allows our
shareholders to benefit from the sale of part of the HealthCare IT business. It also demonstrates our
confidence in the transformation process of our company.
Finally, we are pleased to mention that in 2021 we were able to strengthen our Executive Management team
with two new members. Vincent Wille was appointed President of the Digital Print & Chemicals Division and
Gunther Koch was appointed Chief Human Resources Ocer for the Agfa-Gevaert Group . Early February 2022,
Nathalie McCaughley joined the Agfa-Gevaert Group as President of the HealthCare IT Division. She replaces
Luc Thijs who decided to leave the Agfa-Gevaert Group after a brilliant career of more than 30 years.
5
AgfA-gevAert – AnnuAl report 2021
The Agfa-Gevaert Group in 2021
In terms of business activity, we are seeing in our results the first tentative signs of a return to the normal,
pre-COVID-19 period. Demand for our solutions and products is picking up in most of our areas of activity,
although not everywhere at the same pace. Excluding currency effects, the Agfa-Gevaert Group posted 3.4%
top line growth. In spite of a slow start in the first months of the year – which were still strongly affected by the
pandemic – both the Digital Print & Chemicals division and the Offset Solutions division significantly improved
their top line due to successful price increase actions and volume increases. In the Radiology Solutions division,
the Direct Radiography business’ top line suffered from the uncertainty in the market. In the aftermath of the
pandemic, hospitals are reconsidering their priorities and postponing large DR projects. In the field of medical
film, price increases did not suce to offset the ongoing impact of the pandemic and the effects of the adapted
centralized procurement practices in China in early 2021. As expected, the HealthCare IT division saw an upturn
in both volumes and profitability towards the end of the year. In the course of the year, the division witnessed a
temporary delay in project implementations, but the order book always remained at a healthy level.
As successful price actions allowed the Group to partly mitigate cost inflation, its gross profit margin decreased
only slightly to 28.3% of revenue.
Sustainability
As a company, we believe we have a responsibility to create a better future for the generations to come. This is
why sustainability is the key driver in all our actions and behaviors.
While sustainability has always been a part of Agfa’s DNA, traditionally the efforts to include sustainability
priorities in the business strategy have been mainly addressed at team and divisional level. In 2020, we focused
on building an overall corporate approach to frame and coordinate projects and resources. The past year, we
continued to work on translating corporate goals into concrete actions and plans.
To do so, we have systematically linked our divisions and teams’ priorities to the societal impact at large via the
framework provided by the United Nations 2030 Agenda for Sustainable Development. We have also strength-
ened the integration of the Corporate Sustainability Oce within the global governance, to intertwine Agfa’s
sustainability strategy with the business operations. This year, we carried out for the first time a third party
rating of our sustainability performance via EcoVadis to benchmark our practices towards the best-in-class and
we were awarded a bronze medal. In 2021, we continued to invest resources to reduce our operational footprint,
both in terms of energy use and CO
2
emissions, increase materials circularity and reduce waste generation. The
Group is committed to elaborate a CO
2
emission reduction roadmap that is in line with the 2015 Paris agreement.
We also made further steps in increasing the transparency of our internal and external communication, for
instance by creating a dedicated section on our corporate website and we regularly inform our employees of
the progress we are making in this domain. All this while progressing as much as possible on a number of 2025
targets we set for key material topics, for instance increasing safety levels across operations. There have been
areas where we struggled to deliver the expected improvements, for instance on securing a higher share of
women in new hires. Corrective actions that will help us to perform at the best of the market capacity have
already been taken.
We know we are not anywhere near the end of this journey, but we are proud of the milestones achieved so far
and we are ready to keep going, supported by the enthusiasm of an increasing number of internal ambassadors.
Growth and innovation
In 2021, Agfa again invested 5.4% of sales in research and development, a constant demonstration of our com-
mitment to develop innovative solutions that offer significant added value to our customers and by extension to
6
society at large. Over the past 150 years, we have built an impressive intellectual property portfolio, which today
counts 814 active patent families.
We are constantly exploring how we can apply our technological strength to provide state-of-the-art, sustainable
solutions for a multitude of applications in the various markets in which we operate.
Early 2021, Agfa introduced its fastest Jeti Tauro inkjet press to date. Nicknamed ‘the Beast’, the Jeti Tauro
H3300 UHS LED inkjet engine prints media up to 3.3 m wide in four or six colors at a speed up to 600 m²/h.
In order to cope with growing volume demands, Agfa significantly expanded its inkjet ink production capacity.
A new manufacturing plant in Mortsel, Belgium , focusing on water-based inkjet inks, became operational
in 2021. The new plant enables Agfa to be a key supplier of aqueous inkjet inks for a wide range of novel
applications. Its target markets are the growing segment of printing on décor paper for the production of
laminate floorings and furniture panels; as well as several promising packaging applications.
For the offset printing industry, we are focusing on ecology, economy and extra convenience with our ECO
program. This makes printing processes more sustainable by giving the opportunity to reduce ink consumption,
create less waste and make printing processes cleaner, more cost ecient and easier. Thanks to our ECO
solutions, printers can save up to 30% on paper, 40% on ink and up to 90% on water, and waste volumes can
be reduced by 50%.
In 2021, Agfa introduced Amfortis, an all-in-one workflow solution for the offset packaging printing industry.
Amfortisfacilitates the lives of packaging converters by combining multiple unique software tools into one
powerful production workflow solution. It complements Agfa’s offering for offset packaging, which already
included durable printing plates and high-performing Computer-to-Plate systems.
In 2021, Agfa added the new high performance ZIRFON UTP 220 membrane to its membrane portfolio for the
production of green hydrogen. ZIRFON UTP 220 has excellent durability and its low resistivity allows for the
highest yield of hydrogen production. With the new membrane, Agfa is setting yet another productivity
standard for advanced alkaline electrolysis.
With our ZIRFON membranes, we are well positioned to play a significant role in the emergence of the green
hydrogen economy. A recent study by the Fraunhofer Institute using Agfa’s ZIRFON separator membranes
confirms that the alkaline electrolysis technology is the most cost ecient hydrogen production system to date.
Germany's Thyssenkrupp Nucera recently signed a purchase contract with us to supply a significant volume
of our ZIRFON separation membranes for use in large-scale hydrogen projects.
Agfa’s radiology solutions help hospitals all over the world in their fight against COVID. The DR 100s system,
for instance, can be used to perform high-quality bed-side X-ray examinations. That means that the patient
does not need to be taken to the imaging department to be examined. In November 2021, Agfa launched its new
VALORY digital radiography room at the RSNA event. VALORY delivers a simple design with functionality that
goes far beyond the ‘basics’, bringing reliability, productivity and ‘first-time-right’ imaging into reach for any
hospital. VALORY offers an ideal solution as a backup for large hospitals, or as the main X-ray system for smaller
healthcare facilities, where equipment reliability is not an option but a must.
In August 2021, Agfa HealthCare became one of the first companies to receive the new European Medical
Device Regulation (MDR) certification, issued by Intertek. Agfa HealthCare’s early certification, which covers
its Class IIa Enterprise Imaging and Xero Viewer solutions, allows the company to continue to expand the
Enterprise Imaging platform, its modules and components, and release innovations without any interruption.
A KLAS Research 2021 Enterprise Imaging Performance Report names Agfa HealthCare as one of the vendors
that is the most ready for future Enterprise Imaging adopters. The report positions Agfa HealthCare among the
Enterprise Imaging solutions providers scoring best at offering strategic guidance in the form of governance,
change management, and long-term vision.
7
AgfA-gevAert – AnnuAl report 2021
A recent survey on cybersecurity conducted by KLAS and Censinet positions Agfa HealthCare solutions not only
as a pioneer on cybersecurity transparency but also as ‘cybersecurity mature’ on all topics, including network
security, data protection and system resiliency.
Outlook
We expect that the impact of inflationary pressure, including salary cost inflation, will become more apparent in
the course of the year, but price actions are being taken accordingly. In the coming quarters, a number of price
increases that have been announced will come into full effect, but more price increases may be required.
Overall, the Agfa-Gevaert Group continues its tight working capital and cost management. Furthermore, the
Group expects that the uncertainty in most of its markets will continue well into 2022. More recently, the
Ukraine crisis created new uncertainties the Group is assessing. However, for the full year 2022, all divisions are
expected to grow their top line.
For the HealthCare IT division, 2022 will be a year of consolidation, as the focus is turning towards profitable
growth. Investments in a number of key resources are to be expected.
The ongoing transformation actions are expected to bring more agility and to further simplify the operations of
the Group. They will also allow the Group to further reduce its costs from 2023 onwards.
We sincerely thank our customers and distributors for the trust they placed in our company during this
challenging year. We are committed to continue supporting them with the most advanced, quality and reliable
products and services. We also thank our people. They were and are on the front lines of the pandemic while
supporting our customers in healthcare and other markets. Their motivation, their skills, their strive for
excellence, together with our strong brand recognition, our world class R&D capabilities and our integrated
solutions portfolio form a solid basis for success in our transformation program for the Company.
Finally, we also thank our shareholders for their continued support and confidence in the past year.
8
MILLION EURO
()()
Represented
PROFIT OR LOSS
Revenue
Change vs previous year % % % + %
Offset Solutions
Share of group sales % % % %
Digital Print & Chemicals
Share of group sales % % % %
Radiology Solutions
Share of group sales % % % %
HealthCare IT
Share of group sales % % % %
Gross profit
Results from operating activities () ()
Net finance costs () () () () ()
Income tax expense () () () () ()
Profit (loss) for the period () () ()
Attributable to owners of the Company () () ()
Attributable to noncontrolling interests
Restructuring/nonrecurring expenses () ()
Adjusted EBIT
Adjusted EBITDA
CASH FLOW
Net cash from (used in) operating activities () () ()
Capital expenditures
()
() () () () ()
STATEMENT OF FINANCIAL POSITION DECEMBER
Equity
Net financial debt () ()
Current assets minus current liabilities
Total assets
SHARE INFORMATION (EURO)
Earnings per share (eps) () () ()
Net operating cash flow per share () () ()
Gross dividend
Number of outstanding ordinary shares with
voting rights at yearend
()
Weighted average number of ordinary shares
EMPLOYEES (AT YEAR END)
Full time equivalent permanent (active)
(1) For intangible assets and property, plant and equipment.
(2) The Group has initially applied IFRS 16 at January 1, 2019, using the modified retrospective approach. Under this approach, comparative information is not restated.
There has been no impact to retained earnings of initially applying IFRS 16 at the date of initial application. Figures 2018 and 2019 relate to continuing operations.
(3) 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 FY 2019.
(4) See Note 12 p. 153
9
AgfA-gevAert – AnnuAl report 2021
The Agfa-Gevaert Group is a leading company in imaging technology, with over 150 years
of experience. Agfa develops, manufactures and markets analogue and digital systems
for the printing industry, for the healthcare sector, and for specific industrial applications.
The Group holds four divisions: Radiology Solutions, HealthCare IT, Digital Print &
Chemicals and Offset Solutions. The Agfa-Gevaert Group’s financial reporting is based on
this divisional structure.
Company Profile
10
Company Profile
Global production and sales network
The Agfa-Gevaert Group’s headquarters and parent company are located in Mortsel, Belgium . The Group’s
largest production and research centers are located in Belgium, the United States, Canada, Germany, Austria,
China and Brazil. Worldwide the Group is commercially active through wholly owned sales organizations in
more than 40 countries. In countries where it does not have its own sales organization, the market is served
by a network of agents and representatives.
Radiology Solutions
The Radiology Solutions division is a major player in the diagnostic imaging market, providing analog and digital
imaging technology to meet the needs of specialized clinicians in hospitals and imaging centers around the
world. Agfa’s innovative imaging equipment and its leading MUSICA image processing software set standards
in productivity, safety, clinical value and cost effectiveness. With over 150 years of experience, Agfa helps its
customers to improve the quality and eciency of their patient care. Every single day, Agfa proves that medical
imaging is in its DNA.
HealthCare IT
The HealthCare IT division supports healthcare professionals across the globe with secure, effective, and
sustainable imaging data management. Focused on its robust and unified Enterprise Imaging Platform the
division helps its clients manage resource allocation, improve productivity and provide clinical confidence
with patient-centric contextual intelligence. With its core commitment on delivering value, Agfa HealthCare’s
technology suits multi-specialty requirements and securely standardizes workflows, to collaborate seamlessly
between departments and across geographies. From product development to implementation, Agfa
HealthCare’s best-of-suite Imaging IT software solutions are purpose-built to reduce complexity and
support healthcare providers to achieve their clinical, operational and business strategies.
Digital Print & Chemicals
The Digital Print & Chemicals division serves a great variety of industries. Building on Agfa’s expertise in
chemistry and its deep knowledge of the graphic arts industry, the division has a leading position in inkjet
printing. Agfa supplies sign & display printing companies with a range of highly productive and versatile
wide-format inkjet printers with matched inks, powered by dedicated workflow software. In addition, it
develops high-performance inkjet inks & fluids for industrial inkjet applications, enabling manufacturers to
integrate print into their existing production processes. It also offers dedicated inkjet inks to specific hi-tech
industries such as the printed electronics industry. Furthermore, the division supplies membranes to the hydrogen
production industry, as well as a range of printable synthetic papers. The product assortment is completed by
films for micrography, non-destructive testing, aerial photography and printed circuit board production.
Offset Solutions
The Offset Solutions division is a global leading supplier to the offset printing industry, offering commercial,
newspaper and packaging printers the most extensive range of integrated prepress and printing solutions.
These span the entire prepress workflow right up to the press with computer-to-plate systems using digital
offset printing plates, pressroom supplies, and state-of-the-art software for workflow optimization, color
management, screening and print standardization. Agfa’s sustainable innovations for offset printing bring
value to printing companies in terms of ecology, economy, and extra convenience — or ECO³.
11
AgfA-gevAert – AnnuAl report 2021
HQ
USA
Bushy Park
Canada
Mississauga
Waterloo
Italy
Manerbio
Macerata
Israel
Netanya
Austria
Vienna
Belgium
Mortsel
Heultje
Ghent
Brazil
Suzano
Agfa in the world
Agfa’s major manufacturing and centers
12
Offset Solutions
Radiology Solutions
HealthCare IT
Digital Print & Chemicals
Manufacturing
R&D
Sales organization
“Agfa is committed to its mission: to be the partner of choice in imaging and information systems in all the markets
in which it operates, be it the graphics industry, the healthcare sector or the industrial specialty markets. We do
this by offering leading edge technologies, affordable solutions, innovative ways of working, based on our in-depth
understanding of the businesses and individual needs of our customers. Investing in innovation and delivering top
quality solutions are key in this. Operating in a responsible, sustainable and transparent way is as important. We are
convinced that this is the right approach for the long-term success of our Company.”
Pascal Juéry, CEO of the Agfa-Gevaert Group
China
Shanghai
Wuxi Imaging
Wuxi Printing
Germany
Munich
Peissenberg
Peiting
Schrobenhausen
Wiesbaden
Agfa in the world
Agfa’s major manufacturing and centers
13
AgfA-gevAert – AnnuAl report 2021
Highlights
2021
20 – The Board of Directors expresses the intention to
organize the Offset Solutions activities into a stand-alone legal
entity structure within the Agfa-Gevaert Group, as part of the
strategic transformation program.
10 – Agfa launches the Avinci CX3200 roll-to-roll dye sublimation printer, which delivers high productivity
and a consistently vibrant print quality on a wide range of polyester-based fabrics directly or via transfer paper.
15 – A study by the Fraunhofer Institute using Agfa’s
ZIRFON separator membranes confirms that the alkaline elec-
trolysis technology is the most cost ecient hydrogen production
system to date. Later in 2021, Agfa adds the new high performance
ZIRFON UTP 220 membrane to its membrane portfolio.
2 – Agfa announces that its #CountOnUs initiative has
already supported thousands of healthcare providers to deal with
the extraordinary pressure being placed by the COVID pandemic
on staff and resources. Hundreds of hospitals around the world
have benefitted from Agfa’s free MUSICA Chest+ software, which
speeds up bedside chest imaging by up to 30%.
2 – Agfa introduces the fastest Jeti Tauro inkjet printer to
date, targeting the high end of the sign & display market.
10 – Agfa announces a share buyback program with a volume of up to 50 million Euro. The program
allows shareholders to benefit from the sale of part of the HealthCare IT activities and shows the Group’s
confidence in its ongoing transformation process.
12 – A KLAS Research 2021 Enterprise Imaging Perfor-
mance Report names Agfa HealthCare as one of the vendors
that is the most ready for future Enterprise Imaging adopters.
The report positions Agfa HealthCare among the Enterprise
Imaging solutions providers scoring best at offering strategic
guidance in the form of governance, change management,
and long-term vision.
4 – Agfa introduces Amfortis, an all in one workflow solu-
tion for offset packaging printing. Amfortis facilitates the lives
of packaging converters by combining multiple unique software
tools into one powerful production workflow solution.
14
20 – Insaver installs 2,866 solar panels on the roof
of Agfa’s site in Mortsel. The brand new installation accounts
for 905 MWh of green energy per year, avoiding 158 tons of
CO
2
each year.
15 – Agfa takes into service its new manufacturing
plant for water-based inkjet inks. The new plant enables Agfa to
be a key supplier of aqueous inkjet inks for a wide range of novel
applications. Its first target is the growing market of printing on
decor paper for the production of laminate floorings and furni-
ture panels. The second target is the promising market of inkjet
printing on packaging.
27 – For the third time in a row, Agfa HealthCare
earned the #1 Customer Experience Rating in Vendor Neutral
Archive Solutions in a survey issued by Black Book Market
Research LLC. The survey measured customer experience
across 18 VNA solutions key performance indicators.
30 – Agfa wins a prestigious Pinnacle Product Award
from Printing United Alliance for its high-speed Jeti Tauro H3300
UHS LED system.
7 – Décor paper printing company Chiyoda installs
an InterioJet 3300 water-based printing press from Agfa at its
European headquarters in Genk, Belgium. Its new press will
enable Chiyoda to supply printed décor paper with exclusive
designs to flooring, furniture and car laminate panel makers.
21 – Royal Bolton Hospital (UK) decides to install three
fully automated DR 600 X-ray rooms from Agfa.
28 – As part of its global transformation program, Agfa announces the intention to partner with Atos,
a global leader in digital transformation. Under the terms of the intended partnership, a major part of Agfa’s
internal Information and Communication Services activities is to be transferred to Atos.
16 – Agfa announces the market launch of its
SYNAPS Xerographic Matt (XM) synthetic paper that includes an
agent which antagonizes the settlement and growth of bacteria
and viruses on its surface.SYNAPS XM
28 – Agfa launches its new VALORY digital radiogra-
phy (DR) room. VALORY delivers a simple design with functional-
ity that goes far beyond the basics, bringing reliability, productivi-
ty and first-time-right imaging into reach for any hospital.
15
AgfA-gevAert – AnnuAl report 2021
SUSTAINABILITY
Agfa’s approach to sustainability management
KPI progress overview
Our priorities
Our governance structure
Double materiality assessment
Risk management
Our stakeholders
Our certifications
PLANET
Circular Economy: resource scarcity and eciency (raw materials) waste management and product recycling
water use and waste water
Climate Action: energy consumption GHG other emissions to air
PEOPLE
Health & safety
Employee development & engagement
Respect for human rights
PERFORMANCE
Responsible production: product stewardship & service quality sustainable business solutions and production
sustainability in the value chain
Innovation & investments
Ethical business conduct & compliance
Annex : GRI index table
Annex : GRI environmental indicators
Annex : EUTaxonomy
Notes on changes to KPI data
In the 2021 report the following KPIs have been modified compared to the previous reports.
p. 37: 2019 'specific waste': from 187.8 to 187.6;
p. 38: 2019 'landfilling' and 'recycling': from 363 to 362 and from 22,836 to 22,815;
p. 38: 2015 % of waste directed to disposal: from 13.8 to 12.8%;
p. 40: 2020 'total consumption' and 'consumption excl. cooling water': from 2,956 to 2,974 and from 1,288 to 1,285;
p. 41: 'recycled euent water HQ': (2014) from 18.4% to 19.3%, (2015) from 20.2% to 20.3%, (2016) from 20.4%
to 21.5% (2020) from 11.4% to 11.5%;
p. 45: 2012 'primary energy': from 2,304 to 2,394;
p. 48: 'specific CO
2
emissions': for years 2012-2015 in the previous annual report they were shifted of one year
(value for 2014 mistakenly reported for 2015 and so on);
p. 59: 2020 and 2019 'frequency rate of reportable accidents (minimum one day lost)': from 3.35 to 3.51 and
from 5.15 to 5.14.
-
16
Sustainability
Agfa’s approach to sustainability management
We firmly believe that it is our duty to do business in a responsible, sustainable and
transparent way. This paramount belief has driven Agfa’s long tradition of good corporate
citizenship: striving for profitable growth, while making sure that our business strategy
accounts for our broader impacts on the environment and on society at large.
We have been traditionally operating with a high level of excellence, continuously improving
our processes, using legal compliance solely as the basis for further optimization. In
recent years we have critically reviewed our approach to responsible business to ensure
that our way of working is aligned with our stakeholders’ expectations as well as with our
core values and our ambition to keep our role as leading market player. This review made
us realize that we needed to bring our Corporate Social Responsibility to the next level by
fully incorporating high standards around Environmental, Social and Governance (ESG)
criteria into our day-to-day business. This understanding, coupled with an increased
collective awareness around global challenges, including the current climate emergency,
the well-being of our people in these ever changing times, and the increased markets
requirements, prompted us to refine our overall sustainability approach.
17
AgfA-gevAert – AnnuAl report 2021
2021 in a snapshot
In 2020, we stepped up the ambition about our sustainability transformation. 2021 was the year of acceleration,
where ambition was translated into concrete actions and bold plans for the future.
While sustainability has always been a part of Agfa’s DNA, traditionally the efforts to include sustainability
priorities in the business strategy had been mainly addressed at team and divisional level. In 2020 we focused
on building an overall corporate approach to frame and coordinate projects, resources and targets setting
between different geographies and departments.
In 2021, we continued to work on translating corporate objectives into concrete actions. The details of our work
and outcome of our efforts can be found in this report; here a list of the high level milestone that supported the
strategy roll out in 2021:
· We have systematically linked our divisions and teams’ priorities to societal impact at large via the framework
provided by the UN 2030 Agenda for Sustainable Development;
· We strengthened the integration of the Corporate Sustainability Oce within the global Agfa’s governance
to intertwine Agfa’s sustainability strategy with the business operations;
· We progressed on a number of 2025 targets we set for key material topics, for instance succeeding to
increase safety levels across operations;
· We carried out for the first time a third party rating of our sustainability performance via EcoVadis to
benchmark our practices towards the best in class and we were awarded a bronze medal;
· We made further steps in increasing the transparency of our internal and external communication,
for instance, by creating a dedicated section on our corporate website;
Accidents
with minimum
one day lost
-19%
(versus baseline 2019)
Agfa’s impressive IP portfolio:
814
active patent families
3,014
active patent rights
AGFA-GEVAERT NV (GROUP)
has been awarded a
Bronze medal
as a recognition of their EcoVadis Rating
2021
- D E C E M BE R 2 0 2 1 -
Valid until: December 2022
EcoVadis® is a registered trademark. © Copyright EcoVadis 2018 - All rights reserved
You are receiving this score/medal based on the disclosed information and news resources available to EcoVadis at the time of assessment. Should
any information or circumstances change materially during the period of the scorecard/medal validity, EcoVadis reserves the right t
o place the
business’ scorecard/medal on hold and, if considered appropriate, to re-assess and possibly issue a revised scorecard/medal.
CO
2
emissions (Scope 1 & 2)
dropped to
137.7
(ktonnes/year)
2017
182.1
2021
137.7
2019
162.7
18
2021 KPI progress overview
Beneath a summary of our progress regarding the main Key Performance Indicators.
More details about specific split, e.g. waste per destination type, and explanations about the actions driving the
changes are given in the following sections of this report.
We started tracking different KPIs at different points in time; hence, for some KPIs older data might be unavailable.
We plan to gradually increase the number of disclosed KPIs over time based on the needs identified in dialogue
with our internal and external stakeholders.
KPI Unit of Measure year years
Planet
Production volumes tonnes/year +% %
Percentage of aluminum
recovery
% % na na
Total waste volume tonnes/year +% %
Specific waste volume kg/tonne of product +% +%
Share of hazardous waste % % +%
Waste diverted from disposal % +% +%
Total water consumption m³/year +% %
Specific water consumption m³/tonne of product +% %
Total waste water volume m³/year +% %
Specific waste water volume m³/tonne of product % %
Waste water pollutant load tonnes per year % %
Total energy consumption TJ/year % %
Specific energy consumption GJ/tonne of product % +%
Total CO
emissions
(Scope + Scope ) to air
ktonnes/year % %
Specific CO
emissions to air ktonnes/tonne of product % +%
Emissions of ozonedepleting
substances
tonnes CO
equivalent/year +%
()
na na
NO
x
SO
VOC VIC emissions tonnes per year +% %
VOC emissions tonnes per year % %
Specific VOC emissions kg/tonne of product % %
People
Frequency rate (Fg) of
reportable accidents
(Number of accidents/
Performance hours) *
% %
Frequency rate (Fg) of
accidents with minimum
one lost working day
(Number of accidents/hours
worked) *
+% %
Number of accidents with
minimum one day lost
+% %
Degree of severity of accidents
involving minimum one
lost working day
(Number of working
days lost/hours worked) *
+% +%
Women total workforce % +% +%
Women on recruitment % % +%
Women High management
(level and )
% %
Women High management
(level )
% +% +%
Women Middle management % +% +%
Women Low management % +% +%
Women nonmanagement % +% %
Contracts signed by key and
core suppliers including
Agfa Supplier of CoC
% = na na na
Performance
% annual turnover invested in
R&D (for the full Group)
% % %
In 2021, we carried out a thorough review of the data reported in the past and used as benchmark of our progress. This exercise flagged a few typos.
These have all been corrected; notes to indicate what has changed are included under ‘Notes on changes to KPI data’ (p. 16).
(1)
This steep increase in 2021 was due to a serious internal defect of a cooling machine at the Mortsel site that could not be detected early.
All corrective measures have been taken in the meantime.
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AgfA-gevAert – AnnuAl report 2021
SDG SDG target Strategic relevance for Agfa-Gevaert Material topic
Good health and
well-being
Ensure healthy lives
and promote well-being
for all at all ages
We want to offer a safe, caring, inspiring
and inclusive working environment to our
people worldwide. We also want to market
products that are socially responsible,
contributing to improving well-being of
society at large.
· Health & Safety
· Product Stewardship &
Service Quality
· Employee well-being
Quality education
Ensure inclusive and
quality education for
all and promote
lifelong learning
We see continuous learning and develop-
ment as key for individual and organizati-
onal growth. Hence, we work to support
employees in developing their unique
capabilities and to acquire new and
advanced skills and knowledge.
· Human Capital, Learning
& Development
Gender equality
Achieve gender equality
and empower all women
and girls
We want to empower women to thrive in
an overall diverse and inclusive organiza-
tion, where differences are used to build
strength in our offer and mirror the society
we want to serve.
· Employee well-being,
Human Capital, Learning
& Development
Industry, innovation
and infrastructure
Build resilient infrastructure,
promote inclusive and
sustainable industrialization
and foster innovation
Innovation is part of our history and our
DNA. We are therefore constantly looking
for new ways of responding to the needs of
our customers and society at large.
· Sustainable business solutions
and production
· Innovation and investments
Responsible consumption
and production
Ensure sustainable
consumption and
production paterns
We believe that responsible consump-
tion and production start with a strong
governance and by taking full ownership of
processes across our value chain. Secondly,
transforming operations aiming at fully
circular processes would ensure achieving
a fully sustainable production.
· Waste management &
product recycling
· Water use and waste water
· Sustainability in the value chain
· Resource scarcity and eciency
· Sustainable production
· Ethical business conduct
and compliance
· Respect for Human Rights
Climate action
Take urgent action to
combat climate change
and its impacts
We believe that a thriving society is one
based on a thriving natural ecosystem.
Hence, we fully support the need for urgent
climate action and the objectives set by the
Paris agreement. To contribute to this call
for action, we are strongly committed to
continuously improve our environmental
performance. Firstly, in our own operati-
ons and equally important, by marketing
sustainable products and systems that help
our customers to contribute to the same
objectives.
· Greenhouse gas emissions
· Energy usage
Our priorities
The framework we use to define and interlink our priorities and describe our impacts is the UN 2030 Agenda for
Sustainable Development with its 17 Sustainable Development Goals (SDGs).
This helps us to define the objectives of our activities, the different implications at operational level as well as
the exchange with peers.
Our governance structure
The sustainability governance is fully integrated into the overall Agfa governance structure as it is part of the
core business of the organization. As explained in detail in our publicly available Corporate Governance Charter,
this means that the Board of Directors (BoD) is the ultimate management body of Agfa’s sustainability strategy.
The BoD entrusted the CEO, supported by the Executive Committee (Exco), to steer and supervise the
implementation of Agfa’s Sustainability Strategy. The Head of Sustainability reports bi-monthly directly to the
Exco and the BoD to provide updates on the progresses and seek strategic guidance.
The Corporate Sustainability Oce coordinates then the daily roll-out of all the activities in cooperation with all
the relevant departments.
Since a sustainable business practice entails embedding it in all the processes and at all levels of operations,
coordination between regions and between departments and business units is essential to successfully
implement the global strategy. Hence, the Corporate Sustainability Oce relies on the Sustainability Advisory
Group, which is composed of high-level managers leading teams across different business functions (i.e. R&D,
Procurement, Communications, Human Resources, Corporate Risk, …) and acting as sustainability ambassadors.
This group provides strategic advice on sustainability matters, suggests new ideas and ensures synergy and
cooperation between departments. More details on specific governance for the key material topics is provided
in the following chapters of this report under ‘Our management approach.’
Board of Directors
Executive Committee
Corporate Sustainability Oce
Divisions Shared Services Corporate Functions
Sustainability Advisory Group
Double materiality assessment
In 2019, we carried out for the first time a thorough materiality assessment to analyze our main non-financial
societal impacts. This internal analysis was then integrated with an external analysis about the significance
for our main stakeholders and, hence, how these issues would affect the business. The internal materiality
exercise was done in the context of a CSR workshop, attended by the CEO, Executive Committee members
and heads of the R&D Center, Innovation Oce, the divisions, Internal Audit, Investor Relations, HR and
Corporate Communications. The external analysis was conducted, instead, via media analysis, a peer review
and expert views. The workshop resulted in the identification of the key priorities on which our sustainability
strategy was to be shaped. Six SDGs were selected as the most relevant – based on the potential beneficial
impact that our activities can have in reaching these goals – and were grouped around three focus areas:
Planet, People and Performance.
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AgfA-gevAert – AnnuAl report 2021
The upper quadrant comprises the 13 themes with the highest materiality for our stakeholders and potential
impact of Agfa; these are, therefore, covered with most detail in this report.
We realize that materiality assessment is a constantly evolving process, which needs to be regularly revised.
Constant reviews allow to pursue the goal of continuous improvement, gradually stepping up our ambition
based on our maturity, and also to ensure relevance of the assessment versus the ever changing societal
context we operate in.
For this reason, in 2021 we surveyed our Sustainability Advisory Group to ensure the adequacy of the selected
goals. The survey confirmed that we are working on priorities that are relevant to the business context,
it identified areas where additional efforts will be needed and it showed an increased awareness of our teams
of the role they can play in driving the journey. We are also preparing to run in the near future a full double
materiality assessment, by including more directly our stakeholders in the external analysis process.
To assess our approach to sustainability management and benchmark our performance compared to the best in
the sector, in 2021 we carried out for the first time a third party assessment via EcoVadis.
EcoVadis is one of the world’s largest provider of business sustainability ratings, which we chose because it has
already rated more than 85,000 companies. The EcoVadis sustainability assessment is a paid service to assess a
company’s material sustainability impacts based on a questionnaire and extensive supporting documentation.
This material is assessed by the organization based on international standards such as the Global Reporting
Index (GRI), ISO 26000 and the guiding principles of the Global Compact. In 2021 we decided to start such
assessment by focusing on the sites of the group part of the Agfa -Gevaert NV entity. As a result, we scored 50
out of 100 and we were awarded a bronze medal, placing us in the top 50% companies assessed by EcoVadis.
The feedback received by EcoVadis is already being used to improve our processes for the whole group and we
are considering the potential to broaden the scope of such assessment in the future.
Planet
1. Resource scarcity and eciency (raw materials)
2. Circular economy: Waste management & product recycling
3. Water and waste water
4. Energy usage
5. Greenhouse gas emissions
6. Sustainability in the value chain
People
7. Employee well-being, Human Capital, Learning & Development
8. Respect for Human Rights
9. Health & Safety
Performance
10. Sustainable business solutions and production
11. Innovation and investments
12. Ethical business conduct and compliance
13. Product Stewardship & Service Quality
2
4
5
1
7
9
8
11
12
10
13
3
6
Influence on stakeholder
assessment & decisions
Significance of economic,
environmental & social impacts
Figure 1: Upper quadrant Agfa Materiality Matrix
Horizontal axis: potential (positive or negative) economic, environmental & social impacts of Agfa
Vertical axis: impact of the theme on the key Agfa stakeholders
22
Other
companies
listed on BE Stock
Exchange
Risk management
Prioritizing sustainability material topics – as well as delivering our growth strategy on the long term – relies on
appropriately identifying and managing risks that could affect our operations. Therefore, risk management is for
us an integral part of the decision making process on the business strategy as a whole.
At a higher level, Agfa’s Executive Management is responsible for the Group’s internal control and risk system,
including those regarding financial reporting as approved by the Board of Directors.
Specific/local control mechanisms and risk assessment procedures have been implemented where needed by
business units or by the corporate oces that provide cross-organizational support functions, each covering
the relevant scope. The policies and codes that are described throughout this report are one part of such risk
management process. The different risk management philosophies aim at ensuring the group fulfills its duties
towards its shareholders, but methods and tools are currently depending on the scope and are expected to
evolve over time to reflect the increasing attention towards assessing our double materiality.
For a description of the risks factors that are currently identified, in addition to those relevant for the financial
statements, refer to the chapter ‘Risk factors description’ at pages 251-252.
Our stakeholders
We consider stakeholders’ engagement as a key process to ensure we do business in the most responsible,
ecient and sustainable way. Regular exchange with our stakeholders serves as input to define our business
strategy, to understand expectations and needs of the integrated systems we are part of, to compare our
performance with the one of peers and to acquire new knowledge.
The landscape of Agfa’s stakeholders is quite diverse, due to the different markets we serve and the fact that we
are a publicly listed company and – as such – we have reporting and transparency duties. Our stakeholders can
be split into internal ones, i.e. our own Agfa employees and trade unions representatives, and external ones, i.e.
all those across the value chain.
Communities
Board &
Executive
Committee
Hospitals
Media/
newspaper
Distribution
partners
Direct market
competitors
Trade unions
Patients
Pressrooms
B2B
Customers/
retailers
BE Trade
association/
Federation
Industry
platform
Academia
General
press
Financial press
Trade press
Training
Centers
EU Trade
association/
Federation
Market peers
Education
Media
Chemicals
Water
treatment
Utilities
Suppliers
Financial
institutions
Financial
analysts
Investors
Equity sales
representatives
Financial
markets
Peers
Employees
Sustainability -
Advisory Group +
Expert Groups
Influencers &
think tanks
Consumers
Customers
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AgfA-gevAert – AnnuAl report 2021
In general, stakeholder engagement at Agfa is based on a local approach whereby all divisions and sites are
required to identify their respective stakeholders and establish suitable ways of engaging with them.
While we have built over time strong relationships with our stakeholders, in 2021 we have been progressively
structuring our dialogues about sustainability.
The level of engagement with each stakeholders’ group depends on the relevance of the topic and likely
varies over time and on the basis of other business priorities. In support of an easier and more transparent
communication, in 2021 we have set up a dedicated section on our corporate website that aims at providing
more information to anyone interested.
Employees
To ensure an appropriate level of engagement and of information exchange for its almost 7,500 employees,
Agfa makes use of different internal platforms, tools and processes providing a variable level of interaction,
some at local level and some at corporate level.
Moreover, in each country where it operates, Agfa enters into dialogue with employees’ representatives. In
most countries, works councils represent the employees. At the European level, a European Works Council is in
place. For health and safety matters, local committees, consisting of representatives of the employees and the
employer, are active.
In 2021 we:
· communicated regularly about sustainability progress by using our corporate channels, e.g. the quarterly
info tour meeting held by our CEO and Exco to clarify the company’s results and strategy;
· exchanged regularly via the Sustainability Advisory Group about status of projects, perceived gaps,
needs emerged during teams’ meetings;
· established additional internal platforms to address those relevant topics not yet covered by
existing committees;
· ran via the Corporate Sustainability Oce several one-to-one interviews with team leaders and presentations
to management/strategic teams to share corporate plans on sustainability and get input for the
definition of the strategy.
Customers, distributors and suppliers
The dialogue with customers, distributors and suppliers is primarily managed by the divisions through direct
contact with sales, service, procurement and marketing departments on different occasions such as trade
shows, open house events or tech days. Customer satisfaction surveys are carried out on a regular basis.
In 2021, due to the continued impact of COVID, many of these regular events were held virtually or postponed.
However, we continued to implement an adapted engagement strategy to ensure a high level of engagement
with our customers. We ran remote IT projects implementations and support, held a series of virtual demos,
organized webinars and contributed to global conferences and exhibitions virtually.
We also recognize that some of these newer forms of interaction emerged during the pandemic, in some
occasions foster more inclusive exchange. This is why they will not completely disappear once the global
sanitary emergency will be solved, but will rather be complementary to more traditional forms of engagement.
More details on how we engaged with our customers are provided under the chapters on the divisions' activities
at pages 96-129.
Financial markets
The engagement with shareholders, (potential) investors and analysts is organized at corporate level under
the coordination of the Investor Relations & Corporate Communications department. We regularly organize
investor events, shareholder and analyst meetings, roadshows and personal one-on-one meetings with Exco
members and the Investor Relations department.
24
In 2021 we:
· held our annual shareholders meeting physically on May 11, 2021, where 19 shareholders were represented.
The agenda and minutes are available on Agfa’s corporate website.
· held approximately 90 one-to-one investor calls to exchange on a series of financial and non-financial topics,
mainly addressing key strategic questions around the business evolution, the pension de-risking actions, the
use of proceeds from the sale of part of the Healthcare IT activities, the impact of the COVID-19 crisis and
the cost inflation.
Market peers, academia and policy makers
The collaboration with market peers, academia and policy makers is essential for Agfa to contribute to broader,
industrywide action on sustainable development and to create synergies that expand our knowledge and
potential to make a positive impact. These collaborations are normally topic/product-specific and are primarily
managed by the divisions through direct contact via research projects, monitoring of market developments via
dedicated press/communication channels and exchange in various industry associations.
On a less formal level, members of our senior management are often called upon or volunteer to participate in
public fora to discuss our business strategy and sustainable development approach. Such events provide the
opportunity to interact with various groups including business leaders, academics and civil society.
By the end of 2021, Agfa (either as Agfa HealthCare, Agfa Radiology Solutions, Agfa Offset Solutions or
Agfa-Gevaert) was an active supportive member of the following associations:
· AXREM – UK trade association representing suppliers of diagnostic medical imaging, radiotherapy,
healthcare IT and care equipment
· BELIR – Belgian Investor Relations Association
· BiR&D – association ofinternational industrial companies having major R&D operations in Belgium
· COCIR – European trade association representing medical imaging, radiotherapy,
health ICT and electromedical industries
· essenscia – Belgian Federation of the Chemical Industry
· EPLF – Association of European Producers of Laminate Flooring
· ESMA – European Specialist Printing Manufacturing Association
· FEFCO – European Corregated Packaging Association
· Hydrogen Europe – European industry, national associations and research
centers active in the hydrogen sector
· I&P – European Imaging and Printing Association
· MedTech Europe – European trade association for the medical technology industry
Agfa is also part of several networks and knowledge centres, for instance:
· Blauwe Cluster – Belgian innovation cluster for the sustainable blue economy
· CATALISTI – cluster for the chemical and plastics industry in Flanders
· European Clean Hydrogen Alliance – to support the EU’s commitment to reach carbon neutrality by 2050
· FESPA Belgium – organization bringing together people and organizations active in screen printing, digital
printing and textile printing
· Pack4Food – consortium of companies and research institutes working on the food packaging of the future
· VIGC – Flemish Innovation Center for Graphic Communication, independent knowledge center in the Benelux
· WaterstofNet – Belgian catalyst for sustainable hydrogen
Moreover, via the above platforms, Agfa is able to participate to knowledge sharing events and is invited to sit
at Advisory Committees or ad hoc working groups organized by partners, such as the Federation of Belgian
Enterprises (VBO) and the Belgian Risk Management Association (BELRIM).
We are also part to a series of platforms and networks via Agfa-Labs, our open innovation platform for
materials and coating research. For instance, the Belgian Association of Technicians from the Paint and Related
Industries (ATIPI), the Royal Flemisch Chemical association (KVCV) and the Organization for surface
characterization of materials (VOM).
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AgfA-gevAert – AnnuAl report 2021
“Agfa has been actively contributing for many years to the activities of
various networks such as trade organizations, professional federations,
educational institutions, social partners, … We value this engagement
as it is key to our success: it facilitates dialogue with our stakeholders,
it strengthens our know-how and it fosters new partnerships.”
,
Communities
We see ourselves as part of the communities where our operations are set and where our employees live. This
is why we always dedicate time and resources to engage with them, to inform them about what we do, answer
questions, listen to suggestions and ideas. In normal times this is done by organizing physical meetings to meet
the community, and in the last years by using more and more the virtual tools available, like publishing
a magazine to be distributed and our websites.
2021 was again a special year and we wanted to show our support even more and in a very concrete way. This
is why we kept helping our people as well as our customers and neighbors facing the impact of the COVID-19
health crisis.
Stakeholders’ expectations and next steps
The exchanges we regularly had in the course of the year helped us understand the expectations of each
stakeholder and will serve to shape our future actions.
For instance, our employees expect to be even more involved in decision making and priority setting and to
receive dedicated training regarding sustainability and how this can be integrated in the daily operations.
Our customers are increasingly requesting product specific sustainability information, e.g. carbon footprint for
a specific plate, and sustainability requirements are increasingly being included in bids and call for tenders.
The general element of the different requests is certainly that of increasing transparency and granularity
of the information we share and this is and will be the focus in the engagement with stakeholders for 2022
and beyond.
Our values: a new company culture for a company in transformation
At the beginning of 2019, a new organizational structure was implemented in the Agfa-Gevaert Group in order to
secure the future of our company by giving the different divisions the strength and the means to develop their own
strategy. At the same time, a global project was launched to shape a new, unified corporate culture for the new
Agfa. Structure and culture are both essential elements for the success of Agfa’s ambitious transformation project
in becoming a more simplified, agile and ecient organization. After mapping out the existing corporate culture,
it was determined that there was a need for new accents. The ultimate goal is a renewed corporate culture with
four basic principles: result-oriented (Results), innovative and inquisitive (Learning), self-assured and responsive
(Authority), caring and team-oriented (Caring). A crucial part of Agfa’s transformation story is the creation of the
Innovation Oce, which enabled us to embed the innovation concept in our organizational structure.
26
As of 2020, a fifth element was added: Sustainability. By adding this fifth value, we emphasize the increasing
importance of sustainability in all our activities. We express our commitment to contribute to a better inclusive
working environment and to a sustainable environment for the generations to come.
Basis for this Annual Report
The information covered in this annual report refers to the fiscal year 2021, starting on January 1, 2021 till
December 31, 2021.
This annual report complies with the European Non-Financial reporting guidelines (converted into Belgian law
of September 3, 2017).
This annual report uses the Global Reporting Initiative (GRI) standards (core option) as main guideline of
reference. Agfa understands and acknowledges the GRI standards as a reference to be applied in an
incremental way (see also p. 262).
The Agfa-Gevaert Group falls under the scope of the Taxonomy Regulation (Regulation (EU) 2020/852) and its
Delegated Regulation (EU) 2021/2178. This annual report contains a list of economic activities that might be
taxonomy eligible (see p. 263). Due to the current lack of expertise in the sector on how to apply the Regulations
in practice, data reported is still incomplete and might be subject to future adjustment.
27
AgfA-gevAert – AnnuAl report 2021
Our Certifications
Environmental, safety, energy and quality
management systems
USA
Bushy Park
Brazil
Suzano
Canada
Mississauga
Waterloo
Italy
Manerbio
Belgium
Mortsel
Heultje
Ghent
Austria
Vienna
28
Our Certifications
Environmental, safety, energy and quality
management systems
Offset Solutions
Radiology Solutions
HealthCare IT
Digital Print & Chemicals
ISO 9001 Quality
ISO 13485 Medical Devices
ISO 14001 Environment
OHSAS 18001 Safety
ISO 50001 Energy
ISO 27001 Information Security
EU MDR 2017/745
China
Wuxi Imaging
Wuxi Printing
Shanghai
Germany
Munich
Peissenberg
Peiting
Rottenburg
Schrobenhausen
Wiesbaden
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AgfA-gevAert – AnnuAl report 2021
Planet
30
Planet
Our values
We believe that a thriving society is one based on a thriving natural ecosystem. Hence, we fully understand the
need for urgent climate action and support the objective set by the Paris agreement.
To contribute to this global objective, we are strongly committed to continuously improve our environmental
performance: firstly, in our own operations, but equally importantly, by marketing sustainable products and
systems that help our own customers contributing to the same objectives.
Agfa’s products are designed, developed and manufactured so that production, storage, transport, use, but also
end-of-life waste management, have a minimal impact on the environment. Secondly, we make sure to serve
markets that are key for the net-zero transition, such as the clean energy market.
Our policies
Our values are reflected in the Group’s Code of Conduct (CoC). To support the translation of the CoC into clear
day-to-day processes, we rely on a series of policies and corporate guidelines, both at global and local level.
Our Corporate Safety, Health & Environment Policy is the main reference driving the processes addressed in
this chapter. Due to the nature of these material topics, their management is mostly coordinated at local level
and the focus of the different policies is defined at local level, both on the basis of the specific local and national
legal requirements and on the type of operations carried out at each plant. More details are given throughout
the chapter.
In 2021, we carried out for the first time a third party rating of our sustainability performance via EcoVadis to
benchmark our practices towards the best in class, obtaining a bronze medal and scoring our highest result
for the performance on ‘planet’. We will nevertheless use the feedback received to continuously improve our
processes and related performance indicators.
Scope of the data reported and reporting process
Unless stated otherwise, the quantitative data reported for the environmental performance cover all Agfa’s
manufacturing sites and administrative facilities worldwide; sales organizations are excluded from the data
scope. Each manufacturing site is responsible for its own data calculations. A global document of ‘Definitions
and Explanations’ is made available to each site contact point to ensure data are calculated accordingly. Once
per year the SH&E global department based in Agfa’s head oce collects the sites data for consolidation and
external reporting using an Excel-based tool.
While the quantitative data always refer to the full scope indicated above, to simplify the reading of this report
for some of the material topics we provide descriptive details on the management approach solely for the
sites having the biggest contribution to the overall impact. In these instances, the scope of the management
approach described is clearly stated in the text.
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AgfA-gevAert – AnnuAl report 2021
2021 in a snapshot
In short, 2021 was the year of the acceleration, where ambition wastranslatedinto concrete actions and bold
plans for the future.
While sustainability has always been a part of Agfa’s DNA, traditionally the efforts to systematically include
sustainability priorities in the business strategy had been mainly addressed at team and divisional level. In 2020
we focused on building an overall corporate approach to frame and coordinate projects, resources and targets
setting between different geographies and departments.
In 2021, we continued to invest resources to reduce our operational footprint, both in terms of energy use and
CO
2
emissions, increase materials circularity and reduce waste generation.
Beneath is a summary of the main achievements of 2021, showing the results of our continuous commitment to
the highest operational standards.
Compared to 2015, year in which the Paris Agreement was signed, we already delivered improvements in many areas.
While we are nowhere near the end of the journey, we also want to celebrate the milestones already achieved.
92.3%
waste diverted from disposal
specific
-27%
(m
/tonne product)
The specific VOC emissions decreased to
0.31 kg/tonne product
the lowest value over the last 10 years
of the total amount of aluminum used for the
production of printing plates was recycled
25.7%
2015
12.06
2021
8.80
2015
0.64
2021
0.31
2020
0.37
CO
2
emissions (Scope 1 & 2)
dropped to
137.7
(ktonnes/year)
2017
182.1
2015
86.2%
2021
137.7
2021
92.3%
20192020
162.7
92.1%
+ 0.2% 2020
32
1. Circular Economy
We believe that a thriving society is one based on a thriving natural ecosystem and that only fully circular
manufacturing processes will enable a fully sustainable production. However, according to the most recent
Circularity Gap Report, today the global economy is only 8.6% circular, which means actions to make business
circular are urgent and need to be accelerated.
We believe that Circular Economy, even when resulting from the interlink of numerous complex processes, can be
fundamentally explained on the basis of three main principles, as explained by the Ellen MacArthur Foundation:
· Design out waste and pollution;
· Keep products and materials in use;
· Regenerate natural systems.
At Agfa, we use different materials in our manufacturing sites and we place others on the market which can
be hard to recycle within the existing infrastructure or of which production waste can be dicult to further
minimize without a broader change of the business model. These are some of the reasons why circular economy
represents for us one of the greatest challenges, and therefore, one of the greatest opportunities in our
sustainable transformation journey.
Material topic: Resource scarcity and eciency (raw materials)
The way Agfa uses Earth’s limited resources in a sustainable manner while minimizing
impacts on the environment, i.e. how we deliver greater value with less input,
decoupling production volumes from materials input.
Relevance and boundaries
We are convinced that reducing the use of raw materials, especially for non-renewable resources, is an essential
step in achieving a circular economy. At Agfa, we do that by designing out waste and pollution, i.e. ensuring
ecient use of the primary raw materials used as input in our operations, and keeping products and materials in
use, i.e. by maximizing the recycling and reuse of any leakage and/or of any secondary material.
The focus of this section of the report is on the recycling of raw materials.
Our management approach
Raw materials eciency and recycling is coordinated at local level and it is normally material-stream specific.
Each production line is in charge of mapping the mass balance between its inputs and outputs and identifying
opportunities for improvement. In particular, production managers are continuously scouting for new ideas.
Best available technologies are implemented wherever possible to ensure the highest standards in managing
material flows, e.g. reducing losses, increasing output for unit of material input, …
Beneath more details are provided for the streams of some key materials.
Aluminum
Aluminum is for us an essential material, both for its intrinsic value to Agfa’s products, but also for the envi-
ronmental impacts of its production, e.g. a very high energy demand. To confirm that, in 2020 the European
Commission included bauxite, i.e. the precursor of aluminum, in the list of the 30 materials that are essential to
the functioning and integrity of a series of industries and, at the same time, have a high supply risk.
Therefore, we aim at raising the bar for the sustainable use of aluminum and increase its use eciency by:
· Implementing a circular supply chain model for our printing plates (from plate to plate);
· Recycling and preventing landfilling via secondary applications for the scraps (from plate to secondary use).
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AgfA-gevAert – AnnuAl report 2021
Plastic
In the case of plastics, the urgency for action is even greater because, in many cases, existing infrastructure is
not able to provide adequate collection and treatment for the materials placed on the market. This is why on the
one hand we are committed to contribute to the development of new technologies and partnerships to trans-
forming waste into value and, on the other hand, we are trying to provide a market for secondary raw materials
by incorporating recycled content in our own product portfolio.
Agfa produces more than 100 million m² of polyester-based film annually. Polyester waste from the film
production process or used polyester coming back from our customers is recycled in the form of shreds and
reused in our production process. For example, our film consists of 60% new PET material and 40% recycled PET.
Here some examples of multi-year projects we are part of to contribute to turning plastic into value:
· Plastics to Precious Chemicals (P2PC): to obtain precious chemicals that can compete with virgin oil-based
or agro-based chemicals. This government funded project (VLAIO) sees the collaboration of a consortium
of two SME’s, three industrial partners and two academic partners to evaluate the use fractions of pyrolysis
oil originating from plastic waste as a feedstock for chemical industry.
· PET2VALUE: Upcycling of PET for use in high value applications via supply chain collaboration between
Agfa-Gevaert NV, Centexbel, Luxilon, Tenco and BCF, UGent and VUB. The partners will use the PET-waste
from Agfa’s in house film processing and upcycle it into material that can be used to produce tennis racket
strings and 3D printed bike parts, e.g. handlebars, with comparable mechanical properties as the actual
materials made of virgin polymers.
Renewable raw materials
The use of renewable feed stock instead of fossil based raw materials is certainly something that is on the
spotlight of our R&D efforts. The possibility to use such materials depends on the possibility to maintain the
same technical performance and ensure economic viability of the final products. At the same time, it has to be
considered in view of the full life cycle, to avoid a regrettable substitution. An example is our project Tune2Bio,
a government funded project (VLAIO) that seeks to develop the knowledge and expertise needed to tune the
compostability of (bio)polyesters for more sustainable applications. With the support of Centexbel and
KULeuven, Agfa partners with Oleon, Sioen, Bio4plastics to work on film based products and process to reach
proof of concept for new and more sustainable products.
Silver
We produce silver-based light sensitive films for imaging products that serve for many applications. Silver halide
technology is key in X-ray technology and other medical applications and it is also used to test materials for
their safety in a non-destructive way, e.g. pipelines, cars, airplanes, … The captured X-ray images are recorded
on light sensitive films for diagnosis, consultation and archiving.
Thanks to its low contact resistance and the high electrical and thermal conductivity, silver is also used in
complex printed circuit boards (PCBs) that control all electronic devices.
Silver is therefore an essential material to our business, and we make efforts to recuperate and recycle it as
much as possible. Measures to reduce production losses vary between technological improvements and
education of the operators whenever it is necessary.
Our indicators
1. Production volumes (tonnes/year)
2. Percentage of aluminum recovery (%)
Our 2021 performance and activities
Compared to 2020, the worldwide volume by weight of manufactured products increased by 5.1%, but still
remains at a lower level than previous years.
34
Compared to 2020, the film manufacturing plants increased production volumes by 1.21% (total by weight); this
increase is driven by a 6.5% increase in the production of chemicals (including developing fluids) and a decrease of
approximately 3.7% in (PET) film production itself. The decrease in (PET) film production is a trend that has been
continuing in the last years due to overall reduction of market demand.
The global production of printing plates increased by 8.27% in 2021 compared to the previous year; in 2020
production volumes were particularly affected compared to the past due to the discontinuation of production at
two facilities.
The production volume by weight for equipment decreased by 5.7% in 2021. In terms of numbers, this includes
approximately 950 units produced for graphics applications (Manerbio and Mississauga) and approximately
2,295 units for medical applications (Munich, Peiting, Peissenberg and Wuxi).
Percentage of aluminum recovery (% versus total volume of used aluminium)
In 2021, 25.7% of the total amount of aluminum used for the production of printing plates was recycled. We are
glad we managed to recover substantially the same level as last year, even if the volumes processed in 2021
were higher due to a higher demand of offset plates. Moreover, as of 2020 the data scope is broader, including
the contribution from Agfa’s partner Lucky HuaGuang Graphics Co.
Percentage of recycled aluminum (versus total volume of used aluminum)
Percentage of recycled aluminum (versus total volume of used aluminum)
2020
18.0%
2021
18.1%
2017
11.5%
2018
15.5%
2019
18.1%
10.2%
8.6%
8.6%
7.8%
7.6%
Recovered aluminum by recollection of used plates (from plate to plate)
Prevented landfilling via scraps sale (from plate to secondary use)
Production volumes (tonnes/year)
2020 20212013 2014 2015 2016 2017 2018 20192012
118,148
124,167
219,043
218,444
190,671
172,884
167,800
167,799
150,164
241,531
21.7%
24.1%
26.7%
25.8% 25.7%
35
AgfA-gevAert – AnnuAl report 2021
While we see an increase of the total amount of recycled aluminum in 2021 compared to the year the monitoring
started, the market is clearly moving towards the recycling of aluminum as secondary raw material. This can be
explained by the complexity of the plate-to-plate model, which is an implementable solution only if the partners
in the value chain are geographically close, and by the general increase of the recycling by customers them-
selves. In the case of our system, it is progressively introduced at those customer sites that process sucient
volumes of printing plates and are also organizationally able to enter this system, since it requires an extensive
collaboration and engagement across the value chain.
The efforts to reduce the use of virgin materials are not limited to the KPIs reported above and our end goal
is the continuous increase the circularity of materials wherever possible. We are proud that in 2021 we were
selected by the Flemish Government to obtain the financial support of 1 million euros in the context of the
strategic ecology support (STRES) initiative. This amount will partially cover our investment in the new
‘twin-screw extruder’ technology at our site in Mortsel, which will enable us to reuse up to 1,250 tons of PET
per year while maintaining a high quality of the end product.
Another example is an improvement of the process flow of our coating line in Mortsel, where we were able to
recuperate 152 tonnes of MEK solvent from waste vapour.
Due to the relevance of the optimization of the process needed to increase materials’ eciency, as of January
2020 we have formally appointed one of our managers in Belgium as coordinator to handle more eciently our
process of projects proposals to contribute to circular economy.
Material topic: Waste management & product recycling
The way Agfa ensures highly effective waste management, process innovation and
optimization aiming at reducing the amount of overall waste produced. This also includes
measures aiming at maximizing recycling of products sold.
Relevance and boundaries
We firmly believe that one of the first principles for a successful circular business strategy is to design out
waste. This begins with a careful process design and it then entails a thorough mapping of waste sources to
fine-tune production processes. Firstly, when waste streams occur we investigate whether we can prevent the
waste generation; if not, we move on to considering the potential for internal reuse, which would avoid trans-
port, and then to sell it to third parties. Incineration for energy recovery and then landfilling are considered as
last options. Recycling means material recycling, i.e. energy recovery is not included in recycling. Ecient
waste separation is extremely important for adequate waste management.
The focus of this section of the report is on the waste management.
In the absence of national definitions, for this chapter the following scope is considered:
· waste: any subject or object set out in Directive 2006/12/EC, which the holder discards, or intends to discard
or is required to discard;
· hazardous waste: waste featuring on the list of hazardous waste (Council Decisions 1357/2014 and 2017/997);
· disposal: any of the operations provided for in Directive 2006/12/EC.
Even if outside the scope of this chapter, we also focus on delivering innovative products and solutions that
enable our customers to reduce their own waste generation.
Our management approach
Waste management is coordinated at local level and each plant is in charge of mapping its waste generation in
all areas of business operations and identifying opportunities for reducing it. While the general drive is certainly
to ensure that the highest standards for waste management are in place, the local management of our sites
is responsible to define the specific waste policy for the site. The focus of the different policies is defined at
36
local level, both on the basis of the specific local and national legal requirements and on the type of operations
carried out at each plant.
For instance, all our Belgian sites – together responsible for approximately 30% of the overall waste of Agfa –
thoroughly monitor waste production throughout the year under the responsibility of the Plant Waste Manager,
who prepares each year a detailed report identifying sources of waste per material and per production line.
This report is made available to all production managers and is used as the basis to define the 20 priority waste
streams for reduction for the following year.
Processes are set up in place to comply as a minimum with the guidelines of ISO 14001. External audits are
conducted in accordance with ISO 14001 requirements for those sites that are certified, i.e. Mortsel, Suzano,
Wiesbaden and Wuxi. Waste management audits might also be conducted in the context of the assessment of
the environmental management system as a whole according to the standard used as a reference at local level.
In partnership with different waste processors, possible optimizations of the waste routing are investigated.
The waste we provide is continuously sampled and monitored by the waste processors to identify viable ways to
recover materials or energy.
Beyond the efforts to reduce waste generation at the level of operations, we expect all our employees and all
our stakeholders to act in an environmentally conscious manner. We see this as a continuous process of raising
awareness, adjusting and improving waste separation.
To this extent, each plant sets up different activities to raise awareness of its employees about possibilities to
reduce waste and save energy, not only at work, but also in the everyday life outside the company, for instance
on how to safely and properly dispose of used batteries.
Our indicators
1. Total waste volume (tonnes/year)
2. Specific waste volume (kg/tonne of product)
3. Share of hazardous and non-hazardous waste (%)
4. Waste directed to disposal (%)
a. Incineration (without energy recovery)
b. Incineration (with energy recovery)
c. Landfill
5. Waste diverted from disposal (%)
a. Recycling
b. Physical-chemical treatment
c. Valorization
Our 2021 performance and activities
In 2021, both the total volume of generated waste and the specific waste volume increased, respectively by 7.1%
and 1.7%. This increase was due to changes in the frequency of production.
Waste volumes
2012
55,730
2017
32,041
2014
39,361
2019
28,164
2013
45,497
2018
32,232
2015
38,106
2020
24,714
2016
32,713
2021
26,478
Total (tonnes/year) Specific waste volumes (kg/tonne of product)
230.7
207.7
180.2
199.9
189.2
191.0
192.1
187.6
209.2
213.2
37
AgfA-gevAert – AnnuAl report 2021
While the volume of generated waste increased, we managed to further reduce the percentage of hazardous
waste, achieving a ratio of 4:1. In this context, we will continue to optimize and collaborate with waste
processors, so that the ratio between non-hazardous and hazardous waste will continue to improve.
Landfill
Incineration
Recycling
Energy recovery
Physicochemical
treatment
Valorization
TOTAL
(tonnes/year)
Nonhazardous % % % % % % % % % %
Hazardous % % % % % % % % % %
Waste directed
to disposal (%)
% % % % % % % % % %
Waste diverted
from disposal (%)
% % % % % % % % % %
Benificial use
of waste (%)
% % % % % % % % % %
Proportion waste
in landfill (%)
% % % % % % % % % %
Regarding the destination of the generated waste, we also managed to improve the already record figure from
last year, as the percentage of waste diverted from disposal increased to 92.3% in 2021. The share of waste
that ultimately remains ‘waste’ and is directed to landfill continues to decrease and it is now only a very small
fraction (0.6%) of the total volume of waste.
This trend reflects our continuous commitment to design out waste from our processes. Our commitment
translates into a constant high level of awareness and a continuous implementation of small improvements
within production to improve processes’ eciency. For instance, as of 2020 we are running a study to install
a second twin extruder to reduce waste generation in the PET extrusion line to further reduce waste in the
years to come.
Already in 2020, we had recorded an increase of the specific waste volume. In 2021 we started analyzing the waste
sources to determine possible corrective actions. In our operations waste is mostly generated in the start-up/
stop phase of production campaigns. Unfortunately, also in 2021 production frequency was affected by fluctuating
market demands and it was not possible to implement corrective actions to act on the specific waste.
This reduction of (specific) waste volumes will remain a point of attention in the coming years.
38
Operation Clean Sweep for ZERO PELLET LOSS
Operation Clean Sweep (OCS) is an international program - supported by
Plastics Europe - aiming at preventing spills of plastic pellets, i.e. the raw
material for plastic manufacturing. Pellets are produced, stored and trans-
ported in large volumes; this is why both the manufacturing industry and
the transport sector are supporting this initiative. Companies that sign this
program are committed to achieve zero pellet loss via monitoring, training
of employees, investing in ecient extracting systems, …
Since 2018, we have been supporting the initiative. We have set up specific
actions in our finishing processes to minimize pellet loss. For instance, the
lighting in the waste collection room has been optimized, chips from the
cutting lines are now transported in closed instead of open containers and
we prevent more strictly cracks in transport pipes and sleeves. In addition,
we have worked with the SGS company to make an inventory of potential
emission points to define where strict measuring is needed.
In light of the above, we have set up prevention and awareness raising pro-
grams among employees, by including relevant information in our regular
information tours, planning observation rounds on this topic, writing articles
in our internal magazines and hanging posters and banners around the plant.
Material topic: water use and waste water
The way Agfa ensures highly effective water management, prevents waste water and water pollution.
Relevance and boundaries
We acknowledge that water is a shared resource and that access to fresh water is essential for human life and is a
basic human right, as recognized by the United Nations (UN). This is why we are fully committed to minimize our
water-related impacts, prioritizing actions in areas that are part of water-stressed regions.
As a manufacturing company we use water as process and product water, for sanitary purposes and for cooling.
We strive to firstly minimize the amount of water used and then to reduce the water discharged and its
pollutants load as much as possible.
Our management approach
Water management is coordinated at local level and each plant is in charge of mapping its water use in all areas
of business operations and identifying opportunities for optimizing water consumption, prevent leakages,
reduce evaporation losses and pollutants load. While the general drive is certainly to ensure that highest
standards for water management are in place, the local management of our sites is responsible to define the
specific water policy for the site. The focus of the different policies is defined at local level, both on the basis of
the specific local and national legal requirements and on the type of operations carried out at each plant. The
profile of the receiving water body is always considered during negotiations with the licensing authorities.
For instance, for all our Belgian sites – together responsible for approximately 45% of the overall water
consumption of the Group – we plan several measurements per month, carried out by an accredited laboratory.
Monthly consumption is monitored by the responsible department to identify evolutions or anomalies.
39
AgfA-gevAert – AnnuAl report 2021
In addition to internal monitoring, external audits are conducted in accordance with ISO 14001 requirements for
those sites that are certified, i.e. Mortsel, Suzano, Wiesbaden and Wuxi.
In Agfa’s processes, water use is mostly driven by process and cooling water as the two most relevant use
categories. Waste water is always pre-treated onsite before discharge to the municipal WWTP to reduce the
pollution load. The reuse of waste water directly in our operations before discharge to the WWTP is stimulated
– as far as technologically possible.
Beyond the efforts to optimize water use at the level of operations, we expect all our employees and all our
stakeholders to act in an environmentally conscious manner.
Our indicators
1. Total water consumption (1,000 m³/year)
2. Specific water consumption (m³/tonne of product)
3. Total waste water (m³/year)
4. Specific waste water volume (m³/tonne of product)
5. Waste water reuse in Mortsel, Belgium (% total water consumption)
6. Waste water pollutant load (tonnes per year)
Our 2021 performance and activities
Water consumption
Total water consumption increased by 7.1% in 2021, due to the increase in the use of cooling water to support
higher production volumes. The specific water consumption increased slightly (+1.9%) compared to 2020, but it
is still well below the values of previous years.
The trend in reduction of absolute amounts of water used in processes that exclude cooling continues to
decrease, by 4.5% in 2021 compared to 2020; the associated specific value even decreased by 9.1% to 9.9 m³
per tonne of product produced. The specific process water consumption was further reduced to 3.6 m³ per
tonne of product produced.
While the overall performance leaves space for further improvement, especially regarding the optimization of
amounts of water used for cooling, we are proud of the results achieved so far by our continued efforts to use
water sparingly.
Total consumption (1,000 m
3
/year) Specific consumption (m
3
/tonne of product)
Excl. cooling water (1,000 m
3
/year) Specific excl. cooling water (m
3
/tonne of product)
6,638
3,129
13.0
27.5
2012
4,996
2,015
12.0
29.8
2017
5,503
2,603
11.9
25.2
2014
4,705
1,591
10.6
31.3
2019
5,783
2,792
12.7
26.4
2013
5,148
1,946
11.6
30.7
2018
5,610
2,384
12.5
29.4
2015
2,974
1,285
10.9
25.2
2020
5,295
2,163
12.5
30.6
2016
3,184
1,227
9.9
25.6
2021
40
As an example of the efforts in this area, in 2021 we set up a partnership with Hertecant Flanges and
Magazijnen Hendrickx to recuperate rainwater and use it in the production site of Heultje. After running a
study to assess the feasibility of different options in 2020, the partners agreed to build a large basin to collect
rainwater that Agfa and HF will use for their production needs.
Waste water volumes
The total volume of waste water increased slightly in 2021 by 1.4%; however, this increase is decoupled from the
increase in production volumes and the specific waste water volume decreased by 3.6%.
Total amount of waste water (m
3
/year) Specific volumes (m
3
/tonne of product)
1,342,577
1,077,783
1,092,343
1,700,664
1,810,981
1,939,076
2,298,754
2,537,258
2,649,374
3,012,470
12.47
12.10
11.62
12.06
11.22
10.79
10.14
8.94
9.12
8.80
2012 20172014 20192013 20182015 20202016 2021
As an example of our efforts to maximize the water reuse internally, we have installed in our head oce site in
Mortsel a biological water purification system for waste water. This is set up in a way that allows to reuse its ef-
fluent as washing or cooling water and we have traditionally reused a significant amount of water. In 2021, 11.7%
of the total water consumption was reused for useful application. The decrease compared to the past trend is
due to the overall reduction of water sent to treatment due to reduced production volumes.
Recycled euent water HQ
27.4%
2017
19.3%
2014
19.5%
2019
15.8%
2013
23.3%
2018
20.3%
2015
11.5%
2020
21.5%
2016
11.7%
2021
41
AgfA-gevAert – AnnuAl report 2021
The wastewater pollution load decreased by 2.2% in 2021. Further optimizations of the water purification
system continue to deliver positive results and the trends have been in the right direction for several years in a
row. The specific pollution load excluding aluminum decreased by 20.2% in 2021, which corresponds to a low
value of 1.3 kg per tonne of product produced and confirms the optimizations of the water treatment.
Specific volume
(m
/tonne of product)
COD
N
P
AOX
Heavy metals exl Al
Aluminum
TOTAL (tonnes/year)
The residual COD value fell further in 2021 by 12.8% to 155.1 tons per year, which is again the lowest value ever.
The nitrogen (N) value maintains its low figure and with the closure of the Leeds site, the load of phosphorus (P)
was almost completely eliminated. With regard to aluminum we recorded an increase, which was largely due to
the ineciency of an installation in Wiesbaden for which corrective measures have been taken in the meantime.
We are proud to see that the trends of our performance and the specific results achieved reflect the efforts and
commitment in the eciency of water management. This is a point of continuous attention for us and several
optimization measures – of a varying degree of impact – are put in place every year.
42
Environmental incidents and complaints
Another aspect that we monitor closely and that we consider relevant as a reflection of our overall performance
is the number of environmental incidents and complaints. Incidents are one-off events such as spills or releases,
for instance due to a malfunctioning of a machine, while complaints are those raised for instance by the
neighbors regarding smell or noise coming from one of our plants. We strive to minimize these occurrences to
the extent possible; based on regular monitoring, corrective actions are defined, depending on the severity of
the occurrence. Beneath is a summary of the evolution over time of such figures.
Incidents Complaints
2012 20172014 20192013 20182015 20202016 2021
39
13
26
27
5
22
23
8
15
24
10
14
28
6
22
31
13
18
27
13
14
21
8
13
19
8
11
21
17
38
Our commitment for the future on Circular Economy
We strongly believe that Circular Economy will have an increasing role to play in the future as one of the key
process design tools to achieve a sustainable way of doing business. This is why in the coming years we will
continue to be committed to improve our performance around three main areas:
1. Maximize resource eciency at all our sites;
2. Increase the amount of post-industrial recycling of our materials;
3. Increase partnerships with our customers and third parties to identify cooperative business models.
In addition to new technical implementations, we also plan to strengthen all activities of training and
awareness raising around key issues.
In the course of 2021, we have started assessing the possibility to set global targets on the specific KPIs
defined so far. While we considered it premature to do so, we have identified certain priority areas for action,
also thanks to a more focused exchange with our stakeholders, such as PET, packaging and the possibility to
increase the use of bio-based materials.
Even if outside the scope of this chapter, we also focus on delivering innovative products and solutions that
enable our customers to increase their own circularity (for more details refer to the section on Sustainable
Business Solutions) and this will certainly remain a high priority on our agenda.
43
AgfA-gevAert – AnnuAl report 2021
2. Climate Action
Today like never before it is evident the urgent need to fight – and prepare to adapt to - climate change. This
needs commitment and cooperation on many fronts: the compliance with the ambitious EU, local and national
policies, voluntary measures tailored to our organization and a societal behavioral change needed to support
such objectives.
This is why climate action is and will be one of the main points of attention in our future plans, both on reducing
our operational impact, and on delivering always better solutions to the market.
Material topic: Energy consumption
The way Agfa manages its energy consumption, plans to reduce it and how this affects emissions.
It also includes overall contribution of the company to climate change due to its energy usage and
the plans in place or under development to minimize this impact.
Relevance and boundaries
We fully support the global commitments of the Paris Agreement, which means we recognize the importance
of sustainable energy consumption and believe that every organization should contribute to a more ecient
energy use.
The reporting scope for this annual report covers primary energy, i.e. natural gas, fuel oil, etc., and secondary
energy, i.e. purchased electricity and steam. Energy consumption related to the local sites’ fleets is not included
in the indicators listed beneath.
Even if outside the scope of this chapter, energy eciency is also an important decision criterion when
evaluating and purchasing products and services. Moreover, we also focus on delivering innovative products
and solutions that enable our customers to reduce their own energy consumption.
Our management approach
Energy management is coordinated at local level and each plant is in charge of mapping its energy uses in all
areas of business operations and identifying opportunities for reducing energy consumption. While the general
drive is certainly to ensure the highest standards for energy management are in place, the local management
of our sites is responsible to define the specific energy policy for the site. The focus of the different policies is
defined at local level, both on the basis of the specific local and national legal requirements and on the type of
operations carried out at each plant.
To ensure the highest eciency in energy use, our sites in Suzano, Wiesbaden and Wuxi are certified ISO 50001,
a standard that provides us with a framework to continually improve energy management.
More details are provided regarding the management approach for Belgium, whose sites produce approximately
32% of our total production volumes and – as such – are among those driving the figures for our Group overall
energy use.
Our Belgian facilities comply with the National Energy Policy Agreement (EBO). The government runs an energy
audit on the plants every four years to assess the potential for projects to increase energy eciency. The EBO
sets applicability criteria defining thresholds for primary energy use and an EBO report is prepared annually.
44
Moreover, an Energy Management Team is in charge of monitoring and planning projects that can improve the
overall energy eciency, be it by reducing leakages from buildings, upgrading of machineries, purchasing of
electricity, … This team reports directly to the Production Plant Manager, who supervises the overall production
performance for Belgium. Beyond technical machineries maintenance, employees are regularly trained to en-
sure eciency in the operations. All works on machineries are carried out by recognized technicians and every
leak is reported to the government trough a logbook system.
Beyond the efforts to reduce the energy consumption at the level of operations, we expect our employees to
act in an energy-conscious manner and we set measures, e.g. shut down the heating of empty buildings during
holidays, to be mindful about our overall impact.
Our indicators
1. Total energy consumption (TJ/year)
2. Energy consumption of primary energy (TJ/year)
3. Energy consumption of secondary energy (TJ/year)
4. Specific energy consumption (GJ/tonne of product)
Our 2021 performance and activities
Energy consumption
Total energy consumption (primary and secondary together) slightly decreased by 0.4% in 2021 compared
to 2020, which is a satisfying result considering that it is decoupled from the increase in production volumes
(+5.1%). This decrease is the result of ongoing analysis, monitoring and optimization of energy eciency and is
mostly driven by a reduction in the use of natural gas and electricity.
The specific energy consumption also decreased by 5.2% to 17.1 GJ per tonne of produced product. However,
this value remains higher than in past years due to changes in the frequency of production as start-up/stop
phases of production campaigns are responsible proportionally of a higher share of energy consumption.
Energy consumption (TJ/year) Specific consumption (GJ/tonne of product)
Primary energy (TJ/year) Secondary energy (TJ/year)
1,141
3,534
2012
14.6
2,394
1,011
3,293
2013
15.0
2,282
962
3,367
2014
15.4
2,405
930
3,040
2015
15.9
2,111
835
2,812
2016
16.3
1,977
869
869
2,753
2017
16.4
1,884
804
2,733
2018
16.3
1,929
661
2,404
2019
16.0
1,743
558
2,133
2020
18.1
1,575
564
2,124
2021
17.1
1,561
The reduction in secondary energy was mainly driven by the closure of the Leeds site and by the reduced
amount of purchased electricity used for our installation of combined heat and power plants at the Mortsel film
factory, one of the biggest contributors to our overall global energy consumption.
The consumptions level of primary and secondary energy remained almost unchanged, with a decrease of 0.9%
for the former and increase of 1% for the latter. These fluctuations are also decoupled from the increase in
production volumes (+5.1%).
45
AgfA-gevAert – AnnuAl report 2021
In 2021, we kept investing to reduce our energy consumption and to improve its use eciency. For instance,
we installed a park of 2,866 solar panels on the roof of our film factory in Mortsel. These have a capacity of
1,075 KWp and can provide up to 905 MWh of green energy per year, avoiding 158 tons of CO
2
. The Agfa group
will consume 80% of the green electricity generated by the solar panels to supplement the combined heat and
power (CHP) units already installed at the site.
In Wiesbaden, where our factory is part of a broader business industry park, steam was extracted from the
central supply of the business park, thus improving the eciency of this installation.
In Heultje, we built an installation for cooling water production, which allowed us to use 2,200 MWh less steam,
consequently avoiding 430 ton CO
2
emissions.
In 2021, we also continued to upgrading to LED lamp lighting; for instance, just in 2021 in our Belgian buildings
we replaced 15,000 lamps, reducing our electricity consumption by approximately 1,400MWh.
Overall, further sub-optimizations of existing installations continue to be a point of effort, to continuously
improve the eciency of the installations and to tailor it to the needs and requirements; for instance, to recover
heat from the CPH that are installed at our sites.
A Flemish heat-net thanks to Agfa’s residual heat!
Beyond optimizing our in-house processes, another way to maximize the ecient use of energy is to join
forces with others. ‘Warmte Verzilverd’ is a project in Flanders with direct citizen participation, aimed at
using industrial residual heat to provide homes with heating. The residual heat from our Mortsel site will
supply the central heating and sanitary needs of more than 300 households.
The project is funded with direct citizen participation and financially supported by the Flemish government.
Material topic: Greenhouse gases (GHG) emissions
The way Agfa assesses its GHG emissions, plans to reduce them and
its overall contribution to climate change.
Relevance and boundaries
We fully support the need for urgent climate action and the objectives set by the Paris agreement. To contribute
to this global call for action, Agfa is strongly committed to continuously improve its environmental performance.
Firstly, in its own operations, but equally importantly, by placing on the market sustainable products and
systems that help our own customers contributing to the same objectives.
Agfa-Gevaert
Heat source
Heat transfer
station
House A House B
Heated waterResidual heat
Cooled water
Apartment
complex A
46
We understand GHGs as those set out by the United Nations Kyoto Protocol.
The data reported cover the sites under operational control of Agfa, i.e. Agfa manufacturing sites and
administrative facilities worldwide; sales organizations are excluded from the data scope.
The reporting scope of the data in this annual report covers:
· Direct (Scope 1) emissions from:
· Generation of electricity, heating, cooling and steam;
· Physical or chemical processing;
· Fugitive emissions.
· Energy indirect (Scope 2) emissions from:
· Generation of purchased electricity, heating, cooling and steam.
Direct (Scope 1) emissions coming from transportation of materials, products, waste workers and passengers
are not in scope. Other indirect (Scope 3) emissions are not in the scope for the time being.
The data reported refer to CO
2
equivalents generated from the activities’ scope indicated above. Other GHGs
emissions, e.g. CH
4
, PFCs, NF
3
, are not in scope of the calculations.
Even if outside the scope of this chapter, GHG emissions are also an important decision criterion when eval-
uating and purchasing products and services. Moreover, we also focus on delivering innovative products and
solutions that enable our customers to reduce their own GHG emissions.
Our management approach
The management of GHG emissions is coordinated at local level and each plant is in charge of mapping its
emissions in all areas of business operations and identifying opportunities for reducing them. While the general
drive is certainly to ensure that highest standards for emissions management are in place, the local manage-
ment of our sites is responsible to define the specific policy for the site. The focus of the different policies is
defined at local level, both on the basis of the specific local and national legal requirements and on the type of
operations carried out at each plant.
The direct (Scope 1) GHG emissions are calculated as tonnes of CO
2
equivalents by multiplying the amounts
of fuels with corresponding emission factors. The conversion factors used for natural gas, liquid fuel and coal
are those recommended by CEFIC. Regarding the calculations for Energy indirect (Scope 2) emissions, the
conversion factor used depends on the site.
More details are provided regarding the management approach for Belgium, whose sites produce approximately
32% of our total production volumes and – as such – are among those driving the figures for our Group overall
GHG emissions.
In addition to the provisions from the National Energy Policy Agreement (EBO), our Belgian sites comply with
the caps set by the European Emission Trading System (ETS). On this basis, we annually report our GHG
emissions data to the government by the end of March. As of 2020, due to optimization projects and to the
implementation of a low temperature waste heat grid, the Belgian site of Heultje is no longer covered by
the ETS scope.
Moreover, an Energy Management Team is in charge of monitoring and planning of projects that can improve
the overall energy eciency, be it by reducing leakages from buildings, upgrading of machineries, purchasing of
electricity, … This team reports directly to the Production Plant Manager, who supervises the overall production
performance for Belgium.
47
AgfA-gevAert – AnnuAl report 2021
Beyond technical machineries maintenance, employees are regularly trained to ensure eciency in the opera-
tions. The Energy Management Team is also in charge of calculating the annual GHG emission. Regarding the
calculations for Energy indirect (Scope 2) emissions, the CO
2
conversion factors are calculated following the
recommendations of the Belgian EBO and using the hourly gas mixture received from our electricity supplier.
Beyond the efforts to reduce the GHG at the level of operations, we expect our employees to act in an
environmentally conscious manner and we set measures to be mindful about our overall impact.
Our indicators
1. Total CO
2
emissions to air (ktonnes/year)
2. Direct CO
2
emissions (Scope 1) to air (ktonnes/year)
3. Indirect CO
2
emissions (Scope 2) to air (ktonnes/year)
4. Specific CO
2
emissions to air (ktonne/product)
Our 2021 performance and activities
CO
2
emissions to air
In 2021, both the direct amount of CO
2
emissions (Scope 1) and the indirect amount of CO
2
emissions (Scope 2)
decreased, by 3.2% and 7.6% respectively compared to 2020.
The specific CO
2
emissions (Scope 1 and 2 together) decreased by 9.4% in 2021. However, this value remains
higher than in past years due to changes in the frequency of production as start-up/stop phases of production
campaigns are responsible proportionally of a higher share of CO
2
emissions.
CO
2
Scope 1 (ktonnes/year) CO
2
Scope 2 (ktonnes/year)
Specific CO
2
emissions (Scope 1 & 2) to air kg/tonne of product
183.2
2016
78.6
104.7
1,060
184.7
2018
80.1
104.6
1,101
230.1
2012
105.4
124.6
953
218.5
2013
97.5
121.0
997
203.0
2015
91.5
111.5
1,065
203.1
2014
91.4
111.7
930
182.1
2017
102.8
1,085
79.4
162.7
2019
99.0
1,084
63.8
144.6
2020
1,224
53.7
90.9
137.7
2021
1,109
49.6
88.1
While we are glad that the absolute impact of our CO
2
emissions reflects our commitment to continuous
improvement of our processes, in the coming years we will strive for decoupling emissions from production to
reduce also the specific emissions.
The reduction of GHG emissions from our own operation is a point of continuous attention and it is extremely
important as a reflection of our company’s commitment towards fighting climate change. This is why several
optimization measures – of a varying degree of impact – are put in place every year. For instance, in 2021
we kept looking at our impact beyond operations and we ordered the first electric vehicles to go for the
electrification of our Belgian car-park, i.e. vehicles used for commuting by our staff.
48
We are on the move
Beyond addressing the emissions that occur directly at our production
lines, we strive to reduce our footprint in all areas of our processes.
This is why, wherever possible, we started the electrification of our
plants’ fleet. While this is a process that will take a few years,
in Mortsel electric vehicles already represent 25% of our fleet.
Material topic: Other emissions to air
The way Agfa assesses its emissions to air going beyond Greenhouse gases (GHG).
Relevance and boundaries
Even if we do not formally identify this topic as material in our materiality matrix, air emissions going beyond
GHGs are normally managed together and they are pollutants with adverse effects on climate, ecosystems and
air quality. Hence, striving to address these emissions is part of our overall strategy of continuously improving
our environmental performance and reducing our impacts.
The reporting scope of the data in this annual report covers:
· Ozone-depleting substances;
· NO
x
(Calculated as NO
2
);
· SO
2
;
· Volatile Organic Compounds (VOC);
· Volatile Inorganic Compounds (VIC), e.g., HNO
3
, HCI, NH
3
, H
4
N
2
, CI
2
, F
2
, HF, H
2
S, HCN.
Our management approach
As for other topics strictly linked to operational performance, the management of emissions to air is coordi-
nated at local level and each plant is in charge of mapping its emissions in all areas of business operations and
identifying opportunities for their reduction.
Air emissions must be closely monitored to comply with local regulations and emission limits might apply in
some countries for specific compounds according to local guidelines. Processes are set up in place to comply as
a minimum with the guidelines of ISO 14001.
Our indicators
1. Emissions of ozone-depleting substances (tonnes CO
2
equivalent/year)
2. NO
x
, SO
2
, VOC, VIC emissions (tonnes/year)
3. VOC emissions (tonnes/year)
4. Specific VOC emissions (kg/tonne of product)
Our 2021 performance and activities
Ozone-depleting substances (CO
2
tonnes equivalent/year)
For 2021, we unfortunately have to report a steep increase in emissions of ozone-depleting substances. This
was due to a serious internal defect of a cooling machine at the Mortsel site that could not be detected early.
All corrective measures have been taken in the meantime and the procedures and actions have been evaluated
to prevent similar situations as much as possible.
49
AgfA-gevAert – AnnuAl report 2021
We only report data starting from 2019 because we had previously
detected some misalignment in the calculations methodologies
between some of the sites. We consider the reported data more
representative for data comparison purposes as they have been
calculated in the same way by all sites.
NO
x
, SO
2
, VOC, VIC emissions to air
2012
327.4
2013
332.8
2014
276.8
2015
262.7
2016
231.4
2017
214.9
2018
192.0
2019
196.3
133.7
2020
135.2
2021
NO
X
SO
VOC
VIC
TOTAL
(tonnes/year)
VOC emissions to air
2012
171.6
0.71
2013
165.2
0.75
2014
129.3
0.59
2015
121.8
0.64
2017
112.7
0.67
2016
106.1
0.61
2018
88.8
0.53
2019
71.9
0.48
43.4
2020
0.37
38.2
2021
0.31
Total NO
x
, SO
2
, VOC, VIC emissions to air (tonnes/year)
VOC (tonnes/year) Specific VOC emisions to air (kg/tonne of product)
Ozone-depleting substances
(tonnes CO
2
equivalent/year)
2020
700.2
2019
1,508.5
3,008.1
2021
50
Air emissions excluding CO
2
rose slightly in 2021 by 1.1%. This increase is almost entirely due to the higher NO
x
emissions associated with natural gas consumption.
As a result of continuous efforts and optimization of processes, the trend of the VOC emissions is in continuous
decrease and the absolute emissions decreased by 16.2% in 2021. In parallel, specific VOC emissions decreased
to 0.31 kg per tonne produced, the lowest value over the last 10 years.
We also continue to increase the solvent recovery rate through improved business practices and plant
modifications. The decrease is also due to several optimizations made possible by automation of solvent
balance tracking.
Our commitment for the future on Climate Action
The commitment towards decoupling GHG emissions and energy use from production volumes is and
it will continue being one of the focus points of our work in the coming years.
We will keep reflecting this commitment in our corporate strategy by identifying annually priority
projects for impact, both in our operations but also in cooperation with partners along the value chain.
We will also continue fully supporting the implementation of the European Green Deal, which is a key
tool to achieve sustainable development. We consider this of the utmost importance to drive the entire
industry towards more sustainable production and we fully support it both via all our sectors’
associations and our own processes.
With a vison to gradually become a net-zero organization, we will gradually set targets for ourselves,
be it on overall emissions but also on specific areas or raw materials use. While some plans are already
very concrete, e.g. a significant increase in the purchase of green electricity for our Belgian sites in 2022,
others are still under definition. In those areas where we are not yet mature enough to make commitments,
we have already increased our efforts to transparently exchange with partners that can help us identify
gaps, define corrective actions and improve our overall performance.
To support the commitment above, in addition to new technical implementations, we also consider all
those activities of training and awareness raising around key issues that are key to drive behavioral
change and support innovation.
51
AgfA-gevAert – AnnuAl report 2021
People
52
People
Our values
Agfa owes its success to its people and builds its future on the competences, passion, creativity and
commitment of all its teams.
For this reason, our first commitment is towards our own employees and their families, striving to be the best
possible employer by creating a safe, caring, inspiring and inclusive work environment with equal opportunities
to thrive and grow. This also encompasses the corporate cultural values we promote as a company: our drive
to achieve results, learning on a company level, listening to our customers and being market-driven.
Secondly, our efforts are towards society at large, helping our customers to improve quality and eciency
of patients’ care, with their well-being at the center of the innovations of our healthcare activities.
Our policies
Our values are reflected in the Group’s Code of Conduct (CoC). To support the translation of the CoC into clear
day-to-day processes, we rely on a series of policies and corporate guidelines, both at global and local level.
Not listed in order of priority, here are some examples of the policies we rely on for the topics addressed in
this chapter:
· Corporate Safety, Health & Environment (SH&E) policy;
· HR Recruitment policy;
· Global Learning & Development policy;
· Compensation & Job evaluation policy.
Scope of the data reported and reporting process
Unless stated otherwise, the quantitative data reported for the sections under ‘People’ cover all Agfa Group
entities, i.e. manufacturing sites worldwide, administrative facilities and sales organizations. Individuals that have
an employment contract with Agfa, including contracts with an in-active (temporarily suspended) status are in
scope. Outsourced activities, external consultants, temporary staff hired from employment agencies (or on
payroll of the agency) are excluded from the data scope.
The quantitative data reported in the section on ‘Diversity & Inclusion’ are globally collected by the HR
department, using a single source SAP database to centralize the information. An internal report is generated
monthly to monitor changes.
The quantitative data reported in the section on ‘Health & Safety’ are gathered by the SH&E global department
based in Agfa’s head oce. Each manufacturing site is responsible for its own data submission to HQ and the
format of reporting varies depending on the type of data reported – more information is provided in the
dedicated section.
53
AgfA-gevAert – AnnuAl report 2021
LATIN AMERICA
NAFTA
13.47%
EUROPE
65.16%
ASIA
OCEANIA
AFRICA
15.88%
5.49%
NUMBER OF EMPLOYEES
in 2021 or 7,108
full-time equivalents
7,373
(1) General & Administration 17.78%
(2) Logistics & Supply chain 4.00%
(3) Production 31.19%
(4) Research & Development 11.73%
(5) Sales 15.35%
(6) Service 19.94%
(1) Offset Solutions 24.03%
(2) HealthCare IT 17.13%
(3) Digital Print & Chemicals 5.34%
(4) Radiology Solutions 18.65%
(5) Corporate 1.18%
(6) Support services 33.66%
(1)
(3)
(4)
(5)
(6)
(2)
(1)
(2)
(3)
(4)
(6)
(5)
(1)
(2)
(3)
(4)
(6)
We are Agfa
54
77.08% 22.92%
79.06% 20.94%
<20
0.26%
41-50
25.63%
21-30
6.33%
51-60
40.40%
31-40
16.95%
61-70
10.29%
70<
0.12%
69.12% 30.88%
81
5 :
EMPLOYEES
AMERICAN
EMPLOYEES
GERMAN
,
EMPLOYEES
BELGIAN
EMPLOYEES
CHINESE
EMPLOYEES
CANADIAN
We are Agfa
55
AgfA-gevAert – AnnuAl report 2021
2021 in a snapshot
In short, 2021 was the year of the acceleration, where ambition wastranslatedinto concrete actions and bold
plans for the future.
While sustainability has always been a part of Agfa’s DNA, traditionally the efforts to systematically include
sustainability priorities in the business strategy have been mainly addressed at team and divisional level. In 2020
we focused on building an overall corporate approach to frame and coordinate projects, resources and targets
setting between different geographies and departments. While the continued impacts of the COVID-19 worldwide
pandemic demanded flexibility in planning and extreme resilience from all our teams, in 2021 wecontinuedto work
on translating corporate objectives intoconcrete actionsand the main focus regarding our people was to:
· Continue ensuring safety for all our workers during the global COVID-19 crisis;
· Support our people’s managers by continuing providing tools and resources to coach and support team
members, emphasizing empathy and resilience. This included launching – completely virtually – our
New Leaders Track for 17 people newly become people managers;
· Prepare for the ‘future of work’, as hybrid meetings, learning and events remained an integral part of our work
and will be a way to appeal to a wider talent and stakeholders’ pool;
· Roll out a series of initiatives to progress on our 2025 targets for key areas, such as safety in operations and
Diversity & Inclusion;
· Ensure visibility across the organization for key topics, as well as refining processes and define data (sharing)
needs to work more eciently;
· Set up a reliable data management process to gather and regularly share internally the data needed to
monitor progress towards our 2025 targets on Diversity & Inclusion and Safety in the workplace.
To serve society at large in 2021 we:
· Kept supporting healthcare frontline workers by providing specific configurations in our solutions support;
· Continued working on our initiatives #countonus and #strongertogether to support customers worldwide in
facing challenging work conditions;
· Launched a series of services to further improve our solutions portfolio, to address even better the needs for
digitalization and eciency, e.g. the artificial intelligence program SMART XR for radiology workflow and the
new web technology in Enterprise Imaging for remote diagnostic imaging.
2025,
15% women
in high management positions
Our goal? To ensure a safe, inspiring, diverse and inclusive work
environment, with equal opportunities to thrive and grow!
People remained our
No. priority
during COVID-19:
#safetyfirst #countonus #strongertogether
versus
target -50% by 2025
-19%
Getting ready for the :
Average hours learning per employee
(per year online)
+47%
56
1. Health and safety
Relevance and boundaries
General Health & Safety (S&H) management, including occupational safety and industrial hygiene, is the series
of processes set in place to prevent work related injuries and accidents, monitor and evaluate employees’ po-
tential exposure to any hazard, both physical and psychological, and ensure proper identification and corrective
actions in those cases where preventive measures fail.
The health and safety of our employees are paramount for us. We consider it a moral obligation to provide
everyone with work conditions that ensure safety at all times. Furthermore, all employees should take respon-
sibility for their own safety and that of their colleagues and guests. Unsafe behavior is immediately addressed,
also with regard to visitors, contractors and suppliers: safe working is an absolute must in order to be allowed
to work at and with Agfa.
In addition to safety, we consider important and dedicate attention to all those aspects of people’s health that
can be influenced by work conditions, e.g. ergonomics, illness prevention, healthy life style, …
Our management approach
The activities around S&H management are built on the basis of our Corporate Safety, Health and Environment
(SH&E) policy. Each division appoints a SH&E Manager who contributes to the roll-out and evaluation of the
policy and objectives and is member of the Corporate SH&E Management Committee.
At least every three years the SH&E Management Committee re-evaluates the corporate policy, its organiza-
tion, management system and objectives. Every manager guarantees that every comment will be followed up
to prevent it from recurring. The SH&E Management Committee also monitors the constant development of
legislation worldwide regarding safety & health in our sites.
The local management of our sites is then responsible for implementing the Corporate SH&E policy and for
complying with the local legislation that is applicable to the operation of the manufacturing site itself, under the
coordination of the plant SH&E coordinator. To ensure the highest standards, we have different policies in place
at each site, including contractors and subcontractors wherever relevant. The focus of the different policies is
defined at local level, both on the basis of the specific local and national legal requirements and on the type of
operations carried out at each plant.
Full compliance with such standards begins with ‘soft’ measures to ensure a high level of safety awareness from
the first moment anyone steps foot in our premises, e.g. user-friendly guidelines that are easy for everyone to
follow. Then, we have strict protocols and control mechanisms in place to ensure the prevention of workplace
accidents and work-related injuries, as well as proper care in those cases where they occur. Depending on the
specific operations at each Agfa plant, we also ensure adequate monitoring and prevention of potential workers
and visitors’ exposure to chemicals.
Agfa’s local policies are made available to all employees in the local language(s) and local training programs are
in place.
In addition to Agfa’s specific policies, the Brazilian site in Suzano, the German one in Wiesbaden and the
Chinese one in Wuxi (Printing) are certified OHSAS 18001.
Material topic: Employees health and safety
The way Agfa ensures the health and safety of its human capital, starting with general health and safety
management, including occupational safety and industrial hygiene.
57
AgfA-gevAert – AnnuAl report 2021
Observation rounds on the work floor in particular are the main instrument to closely examine activities and
surroundings and to detect unsafe situations and conditions.
Adequate reporting of occurrences is key to ensure adequate follow up and, where needed, to report accidents
to the authorities according to national and local legislation. The cause of each reported incident, near-accident
and accident is investigated so that the most adequate corrective measures can be implemented. Important
matters are immediately communicated to all sites as a SH&E alarm and learning point.
As part of S&H measures we address also those aspects of people’s health that can be influenced by work con-
ditions. For instance, providing training for the correct set up of the work space considering ergonomics, advice
on how to keep active and have a healthy life style or medical check-ups at some of our plants.
Mental health
Mental health is also essential when preserving the health of our employees. In this regard, activities to monitor
and address any concern are defined at local level, depending on the local government bodies supporting such
programs and the specificity of the potential threats that differ based on the operations carried out at each site.
For our Belgian sites we run a survey every five years that allows us to monitor the mental well-being of our
employees. This survey is completed by all our employees and serves to understand their perception of working
conditions, communication and all other aspects that cause stress situations. Based on this survey, specific
actions are defined to address the improvement areas identified.
In some other countries, e.g. Agfa HealthCare UK and Ireland, Nordics, Netherlands and North America, we
run employee engagement surveys that give us valuable insights in our people’s mental well-being and areas of
potential risk.
Psychological assistance targeting this particular pandemic period was also envisaged in some cases.
Our target(s)
With a vision to get to zero accidents, we have set a target to reduce by 50% the number of accidents with
minimum one day lost by 2025 (compared to the 2019 baseline).
Our indicators
1. Frequency rate (Fg) of reportable accidents for Agfa employees
Frequency rate = (Number of accidents / Performance hours) * 1,000,000
2. Frequency rate (Fg) of accidents with minimum one lost working day
Frequency rate = (Number of accidents / hours worked) * 1,000,000
3. Number of accidents with minimum one lost working day
4. Degree of severity of accidents involving minimum one lost working day
Degree of severity = (Number of working days lost / hours worked) * 1,000
By definition a reportable accident is an accident that must be reported to the authorities according to national
and/or local legislation. Unfortunately, the legislation reporting requirements may differ widely in the different
countries where Agfa operates and, therefore, there is no universal definition of a reportable accident.
This is why we decided to refer to the frequency of these accidents and we used a generic definition to create a
coherent indicator.
Scope for these indicators: the quantitative data reported cover solely manufacturing operations.
Our 2021 performance and activities
The focus in 2021 was to increase safety at all levels of operations, while managing the COVID-19 impacts. Our
people safety was the number one priority in the course of the pandemic, and we kept implementing all the
necessary safety measures and adjustments to our way of working (more details in the next section). At the same
time, we worked on improving Health & Safety for all:
· We continued to analyze the root causes of the accidents across all our manufacturing sites to learn
from those with the lowest occurrences what measures have the most impact. This led to piloting the
58
6-S methodology (Sort, Set in Order, Shine and Inspect, Standardize, Sustain, Safety) for two pilot projects in
Mortsel, on the example of the Mississauga site (Canada). The 6-S process is a lean approach to space man-
agement that helps creating a safe and ecient workplace and maximizing value-added work.
· We kicked off a ‘Brain Based Safety’ initiative for our maintenance and services team in Mortsel, which has
historically been one of those recording a high number of accidents. The initiative, which will be further rolled
out in 2022, builds on neuroscience to deliver coaching that addresses the human behavior as root cause of
work related accidents.
· We worked on the harmonization of incidents reporting worldwide, to ensure we always have all data at hand
to carry out appropriate corrective actions.
· We introduced a new notification process for accidents to give these occurrences more visibility to the man-
agement and increase accidents’ investigation and follow-up.
· We increased overall communication to work on accidents prevention by raising awareness about potentially
dangerous situations, e.g. using our newsletters and internal communication channels.
As a result of these efforts, the frequency of reportable accidents has decreased in 2021, both compared to last
year and to when we first started tracking this value, almost reaching the absolute minimum ever recorded for
the Group.
The results also confirm that we are on the right trajectory to halve the accidents with minimum one working
day lost by 2025 since they already decreased by 19% in 2021 compared to the 2019 baseline
(1)
.
The frequency rate and severity rate of reportable accidents with minimum one working day lost, instead,
increased in 2021 compared to previous reporting years. These higher figures are due to the combination of
two factors, i.e. some accidents with particularly long recovery periods and a lower number of total hours worked
(approximately -4.5% compared to 2020 and -19% compared to the baseline year 2019).
2012 2013 2014 2015 2016 2017 2018 2020 20212019
Number of accidents with minimum one lost working day
Frequency rate of reportable accidents involving minimum one lost working day
Severity rate of reportable accidents involving minimum one lost working day
5.79
5.76
5.65
4.64
5.85
5.28
4.35
3.51
5.02
5.14
0.196
0.144
0.147
0.092
0.139
0.131
0.096
0.079
0.145
0.118
48
49
52
55
42
34
38
22
30
39
3.05
2012
3.21
2013
2.88
2014
1.66
2015
1.83
2016
1.89
2017
1.15
2018
2.40
2020
1.17
2021
2.03
2019
Frequency rate of reportable accidents
(1) The progress is measured by comparing the number of accidents occurred in 2021 with the 2019 share of accidents occurred in
the same sites that are still today part of the Group. This is why the reported progress is 19% and not 21% (resulting from comparing
2021 with total number of accidents in 2019). 59
AgfA-gevAert – AnnuAl report 2021
Given all the considerations and data reported above, we can report that the overall long term trend is still
declining and we are proud that several plants succeeded in having zero accidents with lost time, some plants
for several years in a row. Nevertheless, programs to further reduce accidents are and will continue running at
all locations. Planning and executing observation rounds remains the key instrument to spot potentially unsafe
situations and prevent accidents and injuries from happening.
Our commitment for the future
S&H constitutes for us our moral license to operate. Hence, we’ll continue investing in keeping a high level of
awareness and focus on preventive measures that avoid any physical or psychological harm to our people.
To achieve our target on reducing the number of accidents with minimum one lost working day, we will contin-
ue reinforcing safety programs and education in sites with the highest number of accidents. As of 2022, we will
analyze the impact of the 6-S program roll out in Mortsel and – if successful in reducing the occurrences of dan-
gerous or potentially dangerous situations – we will extend it to other departments beyond the piloted ones.
We will also keep getting ready for the future of work, which will entail more hybrid work and the need for
more virtual interaction on many levels, not only on the ways to maintain high level of attention, but also on
the ways accidents prevention trainings are given, update of procedures, acting on ergonomics, checking in
on mental well-being of people, …
2021: COVID-19 continued impacts
In 2021, the COVID-19 pandemic continued to be part of a ‘new normal’, not only being a health threat, but
keeping causing massive disruption to our families, societies and economies all over the world. Building on the
learnings of 2020, we are glad to say that this situation confirmed our ability to adapt as a company.
In continuing to manage this challenge, our number one concern has always been to protect the safety and
health of our employees, our clients, our partners and our communities.
To this extent, we kept monitoring the evolution of the COVID-19 outbreak on a global, regional and local scale
via a centralized corporate COVID Task Force. We kept following the recommendations of the World Health
Organization (WHO) and other relevant international guidelines, next to local and regional government ones.
We have regularly and clearly informed our people on the measures to be implemented at the workplace to
reduce the spread of the pandemic, while working with our social partners to limit as much as possible the eco-
nomic repercussion on our people. Psychological support was also made available in certain cases.
We are glad that also in 2021 we succeeded in avoiding any major outbreaks at our premises.
If safety management measures were essential to safely running operations that are linked to manufacturing,
as of 2020, we have accelerated our digitalization in all those areas where this was possible. To prepare for the
future of work, we defined Post-Pandemic Global Guidelines on Hybrid Working. This went hand in hand with
engaging virtually or in a hybrid way with our customers, via virtual demos or running virtual exhibitions, sup-
porting them remotely, etc., ... Our project implementations have also moved to virtual in most cases.
Although teams will continue to work together, working away from each other on a long term and continued
basis, can bring challenges that need to be addressed. To support our teams to succeed in their shift to hybrid
working, we kept building their competencies and new behaviors. We provided a series of resources and
60
trainings on a spectrum of topics, from the increase of resilience and remote team management strategies to
optimization of ergonomics, …
In addition to the impacts for our teams, the COVID-19 outbreak has kept posing enormous eciency and pro-
ductivity challenges for our customers and it has placed extraordinary pressure on healthcare providers. Hence,
we had to radically adapt our way of interacting and caring for our value chain.
This is the spirit that led to #CountOnUs and #StrongerTogether, two initiatives focusing on supporting care
providers by sharing customer cases, tips and know-how.
#CountOnUs
This is the Radiology Solutions division’s initiative to co-create and enable practical responses to the COVID-19
crisis. It started as a message of support and solidarity to our customers and, as the pandemic spread, it
evolved into a pragmatic, holistic approach to finding simple, practical solutions to exceptional problems. The
pandemic created demand for an unprecedented volume of images, to be made by busy professionals, wearing
bulky PPE, while keeping imaging units properly disinfected. We saw that we could help by increasing capacity
and productivity!
In the context of this initiative we have supported our customers worldwide to get faster and more accurate
X-ray images to battle the COVID-19 pandemic. We helped them by sharing successes, learnings and best prac-
tices to continue delivering high quality healthcare in challenging conditions. We are proud we have been
an enabler for our customers.
#StrongerTogether
As a healthcare IT partner, Agfa HealthCare is deeply committed to support care providers and the communi-
ties they serve, in addressing current COVID-19 challenges. Under the hashtag #StrongerTogether, the division
shares how its customers are making use of its software to eciently triage, report and collaborate on
COVID-19 cases across quarantine lines.
In addition, specific configurations are being designed together with care providers. Those are subsequently
published on the division’s website, so that others can benefit as well. From COVID-19 specific priority work-
lists and tools that allow home reporting and regional collaboration to solutions in collaboration with Microsoft,
DELL and Barco, Agfa HealthCare’s focus is on supporting its clients during these challenging times.
Agfa for the community
We are part of the communities where our operations are set and where our employees live. This is why we
always dedicate time and resources to engage with them, to inform them about what we do, answer questions,
listen to suggestions and ideas, and, above al, to make sure we do have a positive impact wherever possible. In
normal times we do this by organizing physical meetings where we can meet the community, and in these last
two years we used alternative communication channels, such as magazines or letters.
In addition to transparent communication and proactive engagement to understand what concerns shall
be addressed, we try to provide concrete support whenever possible, via monetary or materials/
equipment donations.
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2. Employee development and engagement
Governance
While details for each process are provided in the sections beneath, the general management and key
responsibilities for these topics fall under the remit of the department of Human Resources, due to its key
role in the different stages of engagement with employees.
Several Global and Regional HR Business Partners build, maintain and develop the relationship with the
senior leaders/managers and employees and act as point of contact for management, while being involved in
important business decisions.
All HR business partners convene annually at the Annual Global HR Meeting to set department objectives,
review progresses and policies and share best practices. Monthly check-in ensures through follow-up and
exchange in the course of the year.
As we have entered into a comprehensive transformation journey, strengthening our Human Resources
expertise is a top priority for the Group to help us put our people at the center of our transformation. This is
why in September 2021 the HR department was strengthened by the appointment of a Chief Human
Resources Ocer, who is now also a member of the Executive Committee.
In 2021, we carried out for the first time a third party rating of our sustainability performance via EcoVadis to
benchmark our practices towards the best in class, obtaining a bronze medal. In addition to the rating of our
current performance, the outcome of the EcoVadis assessment provided a list of recommendations for poten-
tial improvements that we are already addressing, including those for processes in the areas of health, safety,
labor and human rights. We will use the feedback received to continuously improve our processes and related
performance indicators.
Material topic: Employee Well-Being,
Human Capital and Learning & Development
The way Agfa ensures the well-being of its people, going beyond health and safety and considering
broader working conditions, work-life balance and promoting an inclusive culture.
This includes – without being limited to – all initiatives and programs that foster diversity
and inclusion, belonging and engagement, talent management, work-life balance and remuneration.
“The transformation of Agfa is not about processes and operating models.
It is about our people, culture and purpose. It’s about creating an envi-
ronment where our people feel they belong, where they can be their best
self and be emotionally invested to deliver on Agfa’s promise to society,
customers and shareholders.”
, .
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Diversity & Inclusion
Diversity at work means employing a workforce that reflects the society in which it exists and operates.
For Agfa, diversity means the variety of all the characteristics that make individuals unique, including gender,
race, age, way of thinking, education and so forth. Inclusion refers to the culture and the work environment
set up that makes everyone feel welcome and where diversity is an element of strength.
Relevance and boundaries
We strive to create a work environment that is safe, inspiring and inclusive, with equal opportunities to thrive
and grow by creating a climate of trust, tolerance and openness. We believe that diversity and, above all
inclusion and integration of such diversity, is a key factor to succeed in this vision. Agfa’s corporate culture
further aims to promote a caring environment, where people are connected to the company and experience a
sense of belonging, a safe psychological space where belonging can flourish.
Agfa is active in more than 100 countries and has its own production centers, R&D centers and sales
organizations in more than 40 countries. At Agfa, employees of 81 nationalities, with different backgrounds,
personalities and visions work together every day. This diversity enriches the organization as it is the engine
of Agfa’s performance, innovation and overall culture.
Job Level
Culture
Language
RACE
Physical
abilities
Perspectives
Ethnicity
Gender
Experiences
Sexual
orientation
Religion
Age
Nationality
Our management approach
Agfa has policies and procedures in place to ensure the implementation of its vision. Since 2003, the Agfa Board
of Directors implemented a policy of equal employment opportunities and it stands behind a zero-discrimination
policy in which there is no room for discrimination on the grounds of race, religion, political opinion, color,
gender, age, nationality, disability or any other legally unacceptable classification. This commitment is part of
Agfa’s Corporate Governance Charter under ‘Appendix A: Code of Conduct’ and is detailed in Agfa’s Diversity
Charter. Both documents can be consulted on Agfa’s website: www.agfa.com/investorrelations.
In the Diversity Charter, Agfa commits to the following:
· Apply the non-discrimination principle in all its forms and for all phases of life at Agfa, i.e. recruitment,
promotion, … ;
· Educate management and employees to enable them to deal with the challenges related to D&I;
· Actively address all kinds of discrimination.
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This charter is fully endorsed by Agfa’s management. Together with the social partners, the management is fully
committed to actively support it. Agfa also expects that all its employees respect the rights and individualities
of all individuals.
In addition to the behavior expected by the employees, Agfa’s management processes are designed in a way
that the employees are selected, hired, assigned, trained, promoted, transferred, dismissed and compensated
on the basis of their abilities and qualities without discrimination of any kind.
To support the translation of these principles into clear day-to-day processes, there are a series of local activities
and processes in place. On the one hand this ensures that we comply with any specific local requirement, on the
other hand this allows us to take into account the specificity of a particular plant population in terms of most
relevant aspects of D&I and in terms of maturity of the policies in place as the starting point.
As an example, the approach that we have in place regarding Diversity & Inclusion in our site in the USA,
where approximately 13% of our people work, is the result of a series of different processes in place, be it on
recruitment, be it for the approach to life @Agfa.
· As part of the Small Business Subcontracting Plan (SBA), our US plant is expected to dedicate part of
its budgeted annual sales spending to Small Businesses that are diversely owned, e.g. veteran-owned or
women-owned.
· Beyond the traditional platforms to advertise our vacancies, we utilize several additional tools, for instance:
· America’s Job Exchange – site 100% focused in diversity recruitment and is compliant with the Oce of
Federal Contract Compliance Programs;
· Handshake – virtual career center used by colleges and universities across the country,
· In February of every year, we contact social service type agencies around the US asking them to advertise
a diverse pool of candidates in case we have positions open.
· To encourage Accessibility, for every job vacancy posted for Agfa Corp and Agfa US Corp we provide easy
ways to apply to facilitate, for instance, applications from people with disabilities.
· We encourage celebrations of monthly heritage according to the national calendar to ensure everyone
feels welcome and respected.
Our target(s)
With a commitment to work on the different elements part of a D&I vision, we focused on gender balance as the
first area to set targets. By 2025, we aim to have as part of our Group:
1. 50% women on recruitment and;
2. 15% women in high management positions (level 0, 1 and 2).
Our indicators on Employee Well-being, Human Capital and Learning & Development
1. Total % man/woman workforce
2. % Man/woman per job category
3. % Man/woman in new hires
4. Employees by age group
5. Employees by nationality
6. Average salary/managerial level
Our 2021 performance and activities
Since we are committed to diversity and inclusion in its broad meaning, i.e. in terms of culture, ethnicity,
socio-economic status, age, gender, … related activities are not dealt with in a silo, but are embedded in the
different organizational processes described in this chapter. We also acknowledge that in the organization there
is currently room for improvement, this is why our management decided to focus on D&I as one of the priorities
for action in the sustainability roadmap in the years to come.
To make such strategy actionable in such a broad field, it was decided to tackle first the gender diversity area,
defining quantitative targets and a concrete action plan. For Agfa, this involves recruiting among a balanced
candidate pool for every vacancy and, above all, to increase retention and improve satisfaction of employees,
while also foster diversity within decision making roles.
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In 2021 we set in motion a series of activities to reach our targets, fully aware that quantitative results would
only be visible over time, due to the nature of the topic. We organize our activities around five pillars:
EMBED
Focusing on the integration of corporate objectives in teams' objectives and having robust data
management in place, by regularly reporting to the management on progress on the targets but
also creating a D&I coordination group to regularly align on activities and working together.
EMPOWER
Focus on understanding the needs of current workforce and bridge gaps identified for women to
climb the ladder and provide the right tools and training internally to address these topics.
ATTRACT
Make sure that our vacancies get the adequate visibility to a broad set of candidates, by using
non stereotyped wording, diverse promotional material and platforms for publication and
making sure that our career webpage properly portrays life @Agfa.
SPONSOR
Engaging at local level to develop future talents, e.g. working with schools and supporting
STEM initiatives.
SHARE
Increase visibility of these topics both internally and externally, e.g. creating dedicated communi-
cation material for our social networks and giving visibility to this topic in our newsletter.
As a result of our continuous actions, especially on social media, we have been nominated by LinkedIn for a
Talent Award in Belgium. The award is recognizing the best talent acquisition teams attracting and cultivating
talent and who have made a positive impact on the talent community of LinkedIn.
In parallel to these actions focused on gender, we started identifying areas for future action and made sure that
the training and communication would address the broader scope of D&I. Already as of 2015, the composition
of the Board of Directors (BoD) complies with the legal obligations relating to gender diversity as provided by
the Belgian law of July 28, 2011. More information regarding diversity for the BoD can be found in the Corporate
Governance Statement.
Regarding the progress on the whole workforce, beneath is the summary of our global 2021 performance.
For the purpose of reporting on D&I, we have divided the category of high management functions into two
groups. The channels to reach, retain and motivate these two groups are different and, therefore, it is more
practical to monitor our performance separately to understand the impact of our activities.
Headcount/management level
Woman Man Woman Man Woman Man Woman Man
Nonmanagement % % % % % % % %
Low management % % % % % % % %
Middle management % % % % % % % %
High management (level ) % % % % % % % %
High management (level and ) % % % % % % % %
TOTAL % % % % % % % %
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Percentage of man/woman employees on recruitment
Woman employees Man employees
71.56%
28.44%
2016
72.37%
27.63%
2017
69.29%
30.71%
2018
66.54%
33.46%
2020
69.12%
30.88%
2021
65.72%
34.28%
2019
Percentage of new employees by age group
≤ <
% % % % % % %
% % % % % % %
% % % % % % %
% % % % % % %
% % % % % % %
% % % % % %
% % % % % % %
Regardless of the different actions in place, in 2021 there was a decrease in the percentage of women in new
hires as well as a slight decrease of the percentage of women in high management positions.
The results are not going in the direction we are striving for and are to be attributed to a combination of
reasons. Some challenges are specific to our organization, as we operate in a tech/industry sector which is
male-dominated and, especially in 2021, we hired for a significant number of vacancies in manufacturing and
male oriented business positions, e.g. sales, service, applications ... Other barriers are, instead, common to the
market, specifically a proven worldwide female talent shortage and the undesired effect of the COVID-19 pan-
demic, which has shown the inequality still existing in our society, where women have been far more impacted
by homeworking and homeschooling during the pandemic.
In light of these considerations, in 2021 we have reviewed these first targets and decided that maintaining this
level of efforts and ambition is the right way to address the existing gaps.
Remuneration policies and practices
Relevance and boundaries
Employing people is a long-term strategic investment. Global organizations still experience competition in
recruiting and retaining staff. Therefore, Agfa considers market conform remuneration packages as a tool to
attract the best talents on the market. Furthermore, to support our overall commitments regarding Diversity &
Inclusion, we apply non-discriminatory remuneration.
Our management approach
For our Board of Directors and our Executive Management, the remuneration policy in place is described in our
Corporate Governance Charter and criteria are set by the Nomination and Remuneration Committee. The goal
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of the policy is to ensure that qualified and expert professionals can be recruited, retained and motivated, taking
into account the nature and scope of their individual responsibilities.
For the workforce, we have a global compensation policy in place, which ensures that salaries are in line with the
market, fair and consistently defined across different geographies. The policy is built on the principle that Agfa
is committed to Pay for Performance and – on this basis – the individual employee’s remuneration is based on
the following parameters:
· Criticality of position and scarcity of skills on the market;
· Performance and expertise in role;
· Future potential of the employee;
· External (market) benchmark;
· Internal benchmark, i.e. salaries of peers.
As a reference salary for our employees, we use a Total Target Cash level which is on average at the 50th per-
centile of the market.
A variable salary is an important part of the salary package. The amount of this variable part depends on the
results of the respective division and region and on the individual performance, as defined in the Global Bonus
Plan. For sales and service staff, the variable part is linked to specific targets in a ‘Sales Incentive Plan’ or a ‘Ser-
vice Incentive Plan.’ The Executive Committee validates the funding ratio, the regional distribution and the final
distribution of individual performance ratings.
In addition to the salary, we strive to offer competitive as well as cost-ecient short-term and long-term
benefits as part of the individual packages. The most important benefits are a pension plan, life insurance and
medical cost insurance.
Depending on local rules and customs, which can significantly vary, benefits could include a company car or
additional representation costs.
Our 2021 performance and activities
The table below gives an overview of the ratio average salary/management level between women and man
employees for the last years.
These figures should be interpreted with caution as they do not include the number of years of experience in a
particular position, the country of employment and seniority. However, it is the intention to make an additional
analysis and to further focus on gender-neutral remuneration.
Average salary/
management level
Woman Man Woman Man Woman Man Woman Man
Nonmanagement % % % % % % % %
Low management % % % % % % % %
Middle management % % % % % % % %
High management (level ) % % % % % % % %
High management (level and ) % % % % % % % %
TOTAL % % % % % % % %
To evaluate our management approach, we can rely on strict legislative requirements in place. In fact, the
Belgian government requires that a gender wages report is submitted to the national workers’ council every two
years. This ensures that data on this aspect are regularly reviewed by an external party.
In 2021, we revised the Global Bonus Plan to better link divisional and group parameters with the new 2021
group reorganized structure. The high-level principles on which the plan is based remain the same.
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Work-life balance
Relevance and boundaries
Agfa strives for a good work-life balance for all its employees. This balance entails much more than just the ra-
tio between work hours and private time. How much someone likes his or her job – and how much satisfaction
(s)he derives from it – is at least as important. The fact that many governments have recently raised the retire-
ment age also has a major impact on the well-being of employees. We are convinced that people with a good
work-life balance are less often sick, have less stress and feel more engaged. It is also important to acknowl-
edge that the right balance can be different for everyone and that people’s needs may change over time.
Our management approach
Agfa has a series of measures in place that are meant to strive for the best possible work-life balance:
· flexible working hours, where possible;
· part-time work options;
· working from home;
· thematic leave such as parental leave.
Agfa conducts awareness-raising campaigns that encourage people to work and live more healthily and consciously.
A cornerstone of this approach is the Finnish professor Ilmarinen’s House of Work Capacity model, which pays
a lot of attention to the work-life balance and takes numerous measures to support the achievement of this
balance. Within the framework of the House of Work Capacity, a minimum of three information sessions are
organized each year in which themes relating to well-being at work, such as stress management, are explained.
Our 2021 performance and activities
2021 was a challenging year, putting to the test our ability to adapt to work remotely on a long term basis and/or
in a very different environment than usual. Having colleagues joining new teams remotely and interacting with
our stakeholders in new ways.
In the course of 2021, we structured our approach to telework creating Agfa’s Post-Pandemic Global Guidelines
on Hybrid Working to provide the framework for eligibility, scheduling, arrangements and expectations. A hybrid
model involves a renewed set of key characteristics and behaviours from both managers and employees to be
successful. This is why we placed particular emphasis in developing these capabilities via training (more details
in the next section).
Career guidance, performance and talent management
The processes of career guidance, performance and talent management are those processes implemented to
ensure that each individual can thrive within Agfa and can make the best use of its potential to grow and con-
tribute to the overall company performance.
In particular:
· Career guidance is the facilitation of the employee in exploring their interests, talents and experiences in
order to identify possible career opportunities. The focus is on career change, personal development and
possible other career-related issues.
· Performance management is a framework to ensure that employees continuously receive formal and in-
formal feedback on their performance against a number of agreed targets, on both the ‘what’ and the ‘how’
these targets have been achieved. It entails setting targets for development and evaluation aimed at
achieving the company’s strategy and objectives through employee performance.
· Talent management is about how to attract, retain and engage the right people, at all levels of the organiza-
tion. It entails defining the competencies that Agfa needs (and will need) to grow successfully and identifying
the existing potential in the company or when expanding on the labor market.
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Relevance and boundaries
A skilled workforce and agile organization are essential for the continued success of our business. Failure to
attract, develop and retain and engage talents to satisfy current and future needs of the business would hinder
our performance.
Therefore, Agfa’s HR policies foresee a number of processes linked to the employee life cycle. An employee’s
career can be divided into different phases: recruitment and introduction, career evolution and end-of-career.
Competence management, performance management, continuous training and development opportunities, fair
and competitive remuneration and constructive feedback are essential elements in each of these phases.
Many employees will make more career moves in the future than was traditionally the case. A job-fit employee
is therefore necessary in order to remain professionally employable. To this end, Agfa is strongly committed to
support its workforce throughout all these phases.
Our management approach
Career guidance
An internal career coach is assigned to help to understand the strengths and weaknesses of the employee, what
is important for the employee in his or her work and life and in future career opportunities that lie ahead. The
most important goal is to give employees confidence in themselves and in their professional future.
Performance management
Agfa introduced FeedForward as a Performance Management Framework in 2018 to focus on coaching and
development rather than solely on evaluating performance. Our FeedForward framework provides guidance
and coaching tips for people managers and their employees to have value-driven conversations focusing on
goal progress, feedback and personal development.
This creates a more flexible performance culture in which both manager and employee play an active role:
· setting meaningful and result-oriented objectives;
· continuously clarifying expectations and redirecting objectives;
· giving, asking and exchanging feedback to improve performance;
· maintaining a dialogue on development.
Talent management
2021 saw a shift in strategy with a focus on an integrated talent management approach. People Managers
globally participate in the annual People Review process to proactively identify core talents in the organization,
Offboarding
Onboarding
People Review
Development
Competency
Management
Performance
Management
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select development actions such as job rotation, soft skills training for the year and plan succession and career
mapping steps. Our HR business partners and HR managers are trained annually on rolling out this review
and coaching people managers through this process. The results to a large extent determine the action plan
for development actions and programs for the rest of the calendar year and are followed up centrally by Talent
Development for each business division and corporate center. Specific learning communities such as New
Leaders (recently or soon to be promoted people managers) for example are then invited to a mandatory
12-month leadership track. It further nominates key talents per region, i.e. employees who show the potential
to take on roles with a broader scope and which are usually on Agfa’s succession bench for wider roles. These
Regional Talent Programs focus on acquiring the skills, knowledge and practice in building a concrete business
case within a nine-month track which is then presented to the regional leadership teams. Clear outcomes are
visibility of participants to management, better project management, business case and presentation skills
for participants.
The bi-annual Strategic Talent Review process is a global process in which senior managers are asked to identify
key competencies for their department for the future, draw up succession planning for key positions and list
high potentials.
Employee development is an integral part of performance management. The employee and the manager must
identify the personal development objectives. These support the achievement of short-term objectives and the
achievement of long-term personal career expectations. To a certain extent, financial rewards for employees are
based on the results of the performance management process.
Our 2021 performance and activities
In 2021 we kept supporting people’s managers through another challenging year by providing online resources
to coach and support team members, emphasizing empathy, mental well-being and resilience. Our efforts led to
an exponential increase in access to virtual collaboration courses.
We also rolled out – completely virtually – the New Leaders Track for 17 people newly become people managers
and we offered a 360 feedback survey to all participants from the 2020 New Leaders Track. 360 feedback is a
possible learning action arising from annual People Review process and in 2020 the HR community was retrained
on interpreting reports, accompanying and coaching participants. This tool is used to provide insights on how one
is perceived in one’s own role benchmarked against Hudson, in this case for junior leader competencies.
To support a more agile and business-driven approach, a digital and new Virtual Development Centre (VDC)
model, based on Hudson competencies, replaced the old model in 2021. After being nominated by a line manager
or HR Business Partner, employees are prepared via the VDC for new or broader roles, with a targeted develop-
ment track based on outcomes. The pool of participants in VDCs is global and centrally managed by Talent
Development, which makes it now possible to benchmark our employees’ performance in a more transparent way.
In 2021, we also increasingly digitalized our coaching tools and instruments which will as of 2022 be primarily
offered directly to employees through the corporate intranet and the online learning platform Percipio; already
90% of all training in 2021 shifted online. This is to underline and support digital learning driven by learner
accountability and learn anywhere anytime approach.
Learning & Development
Relevance and boundaries
We are convinced that continuous learning and development are essential for individual and organizational
growth: at Agfa learning is a mindset. The question is not what roles employees can be prepared for now but
how can we shift thinking so that employees are ready and able to succeed in whatever roles emerge ahead.
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With this in mind, Agfa continuously seeks the right balance between attracting competencies from outside
the company, developing internal competencies and increasing the overall employability of the employees by
encouraging online successful career transitions and mobility. Learning and development is the natural lever to
increase the employability of our employees.
Each employee must therefore be able to further develop their unique capabilities and skills or to acquire new
and advanced skills and knowledge.
Our management approach
Different roles require different skills and Agfa wants to equip its workforce with flexible skill-sets which pro-
mote success in a dynamic and complex environment. For this reason, we offer a wide range of internal, exter-
nal and web-based learning and development tools in technical, business and soft skills related areas. Examples
of such soft skills training tools are sales excellence programs, which promote a customer centric approach to
business via workshops on methodology and also mentoring to improve the quality of visits with customers.
The basis to define learning and development tracks, eligibility, accountability both for managers and employ-
ees, are set in the Global Learning and Development Policy. This policy is complemented by local and divisional
programs tailored to the needs of our teams. Employee development plans are aligned with competence man-
agement and integrated into the FeedForward framework.
The Agfa Talent Development team pursues the ADDIE approach to training, which stands for the five
stages of a development process: Analysis, Design, Development, Implementation, and Evaluation. The
ADDIE model relies on each stage being done in the given order but with a focus on reflection and iteration.
The model offers a streamlined, focused approach that provides feedback for continuous improvement.
Our indicators
1. Average hours learning per employee per year online (* per employees with computer access)
on the Percipio platform
2. Completed development tracks online via Percipio as an average of platform users
Our 2021 performance and activities
Learning & development is key to support the achievement of the objectives in all areas of the organization
SDGs and each new project should always be supported by adequate training.
To address the continuation of COVID restraints, we sought new ways to connect with our employees to enrich
their employee experience, learning networks and connect them more closely to Agfa.
For new hires we pursued a three step strategy:
1. We invited new hires to an online ‘Welcome to Agfa’ channel, which contains global resources, e.g. relevant
information on processes and good to knows 198 new joiners accessed this channel in 2021!
2. Virtual webinars were held every six weeks for new hires around the globe to give them the opportunity to
network with each other virtually six sessions for 95 new hires were held in 2021!
3. We organized follow-up webinars to become familiar with our online platform Percipio and learning offerings
at Agfa.
For all employees with computer access, we developed a global newsletter that was published every quarter.
Each newsletter focused on a specific topic, skill or competency flagged as a priority from the business and
included a video interview with an Agfa leader or specialist, an online self-assessment module as well as
additional learning resources on this topic. The purpose is to promote a learning culture, increase the uptake of
digital learning and growth mindset where own accountability is stressed and self-reflection and self-awareness
becomes a reflex.
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The topics addresses in 2021 were: resilience, change mindset, diversity and inclusion, focus.
To react in a flexible way to business demands, ‘learning bites’ (60 minute sessions) were rolled out on demand
to leadership teams on topics like ‘Working Across Generations’, ‘Motivating Hybrid Workers’, ‘Communicating
During COVID’ to approximately 100 employees.
Thanks to digital learning, driven by learner accountability and learn anywhere anytime approach, we saw an
overall increase in the uptake of digitalized learning content. For instance, for the employees having access to
the Percipio platform:
1. The number of users who accessed the platform increased by 55% from 2019 to 2021;
2. The amount of courses completed has increased from 747 in 2019 to 11,182 in 2021, with a completion rate of
33% as opposed to a rate of 28% for similar sized global companies (SkillSoft, Jan 2022);
3. The number of people seeking certification online doubled, with Service Management, Six Sigma,
Project Management, Microsoft and Oracle remaining popular.
We also saw an increase in the average hours learning per employee per year online.
1.35
2020
1.99
2021
0.94
2019
hours
Average hours learning per employee per year online
Note: Figure refers to employees using our Percipio platform, which does not cover colleagues part of Healthcare IT division, representing 17.3%
of the total employees. A complete set of data will be developed for the future.
In addition to training of our own people, we worked with different universities and schools and continued
offering internships to students in 2021.
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Our commitment for the future on Employee Well-Being, Human Capital
and Learning & Development
At Agfa, we are committed to create a caring, inspiring and inclusive work environment with equal opportu-
nities to thrive and grow.
To translate this commitment into actionable and measurable performance indicators, we developed a
corporate sustainability strategy and we started setting corporate targets. The ambition of the strategy and
the scope of the targets will certainly broaden in the coming years.
We started by setting specific targets on gender equality by 2025. To achieve them, we will continue focus-
ing on reinforcing or creating specific actions around women’s mentoring, adapting our hiring policies and
leveraging partnerships that can empower both our women employees and their allies.
This global commitment, will be supported by concrete regional and divisional objectives, which will be set
in the coming years on the basis of the business strategy of the Group and on the specific impact that each
team can harness.
In 2022, we will also develop an action plan to better structure our approach to other aspects of relevance in
the scope of D&I beyond gender.
We are also strongly committed to developing our people and, in fact, SDG 4 on ‘Quality Education’ is one
of the key SDGs for Agfa. To this end we benchmark Key Success Factors for Learning and Development
annually to empower our people with the skills to succeed in the (digital) future world of work. We aim to
increase the number of completed development tracks online and to keep addressing the learning needs of
our people and of the business. In 2022, four Regional Talent programs for HQ/EMEA, NAFTA, ASPAC and
LATAM will be rolled out.
STEM projects – building a sustainable future educating the scientists and technicians of tomorrow
We believe that education, with a long-term perspective, is one of the keys to succeed in building a better
future. This is why we support several Science, Technology, Engineering and Mathematics (STEM) projects
and related initiatives:
Science, Technology, Engineering and Mathematics (STEM) – Charter, Belgium:
http://stemcharter.be/charter.php
We participate as a STEM ambassador, acknowledging the importance of STEM in our current and future
society and stimulating the passion and interest for STEM educations and professions.
STEMfluencer, via essenscia Vlaanderen and Vlajo:
We are proud participants of this new project launched in 2021, where STEM professionals (< 35) teach one or
several classes in the 1st and 2nd year of high school.
Dual learning, via essenscia, Belgium:
https://www.essenscia.be/prioriteiten/talent/duaal-leren/
Dual learning was launched in 2017 to train students for jobs in the chemical industry by providing relevant
internships. We have been offering such opportunities and guiding several students over the last years.
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3. Respect for human rights
Material topic: Respect for human rights
How Agfa ensures that working conditions of its employees and of its partners in the
value chain are in line with international standards.
Human rights are the basic rights that form the foundation of freedom, justice and peace,
and that apply universally and equally to all countries (UN, Universal Declaration of Human Rights).
Relevance and boundaries
At Agfa, we consider respect of human rights as the moral imperative to our license to operate as a business.
Moreover, we believe that everyone has the right to be treated with respect, care and dignity. Therefore, Agfa
operates in full compliance with all binding legal provisions applying to our market segments in all locations and
with the general provisions of the Universal Declaration of Human Rights.
In this spirit, Agfa also respects the right of its employees to organize themselves in trade unions and other
organizations that represent the rights of employees in their relationship with Agfa as an employer.
We also expect our suppliers to follow the same standards and adhere to the same high-level commitment we
set for ourselves.
The adherence to such values is considered as the basis upon which all other policies and processes are set up
and as the minimum standard to be complemented by voluntary measures wherever necessary.
Our management approach
Agfa’s employees Code of Conduct (CoC)
According to the Group’s CoC, all employees working at Agfa are expected to act in accordance with the highest
standards of ethical conduct and integrity and in full compliance with all applicable laws of each jurisdiction in
which the Company transact business.
In addition to the behavior expected by the employees, Agfa’s management processes are designed in a way
that the employees are selected, hired, assigned, trained, promoted, transferred, dismissed and compensated
on the basis of their abilities and qualities without discrimination on the basis of race, color, religion, political
opinion, gender, age or nationality. Furthermore, the CoC prohibits:
· discrimination against any qualified employee or applicant on the grounds of physical or mental disability or
of his or her status as an invalid;
· to grant or refuse a job or a promotion for the purpose of providing or refusing sexual favors;
· to commit sexual harassment.
Agfa’s employees are obliged to respect the rights and peculiarities of all individuals in order to create a working
environment in which each employee is able to fully develop himself/herself individually.
Consultants and contracting parties operating with the Company are also required to respect the CoC.
In addition to the strict application of the CoC, most of Agfa’s subsidiaries have established a formal system to
support employees who wish to report problems such as harassment, discrimination or conflicts of interest.
Agfa’s employees can at any time submit any question or complaint via email, phone or letter to their immediate
superior or to the Group Compliance Oce. Complaints and questions are handled in a systematic and confi-
dential manner by the Group Compliance Oce; specialized and independent contact people may be appointed
for specific topics covered by the CoC in accordance with local regulation, e.g. a contact person within HR for
specific HR related matters.
In 2021, we carried out for the first time a third party rating of our sustainability performance via EcoVadis to
benchmark our practices towards the best in class, obtaining a bronze medal. In addition to the rating of our
74
current performance, the outcome of the EcoVadis assessment provided a list of recommendations for potential
improvements that we are already addressing, including those for processes in the areas of labor and human
rights and sustainable procurement. We will use the feedback received to continuously improve our processes
and related performance indicators.
Freedom of association and collective bargaining agreements
In each country where it operates, Agfa enters into dialogue with employee representatives. In most countries,
works councils represent the employees. At European level, a European Works Council is in place; it is led by
one member of our Management Committee and it is composed of representatives of the different business
divisions in Europe and of union representatives from different countries and divisions. It meets at least twice
a year to receive updates about the progresses of the different corporate activities and information of the
different business divisions.
For some categories of workers, and depending on the local legislation, at national level there are also some
collective bargaining agreements in place, where Agfa agrees with Labor Unions and regularly (re)negotiates the
contractual conditions for the represented categories. All the existing collective agreements are made available
to all employees via the relevant internal sharing platforms, e.g. the intranet, or upon request to HR.
Supply Chain
As an organization, we are part of an ecosystem, where suppliers are essential for providing our own products
and services to the market. In addition to risks related to ensuring the continuity of the business (see pages
251-252), having close relationships with suppliers means that their performance impacts ours, and that their
reputation can have an impact on that of our company, thus increasing our own reputation risk. This is why we
expect our suppliers to adhere to the same sustainability standards. Since 2012, we strive to have all our suppli-
ers contractually agreeing to our Agfa Supplier Code of Conduct. This is certainly the case for our key and core
suppliers, i.e. Tier 1 and Tier 2; representing approximately 30% of our total spend.
The Supplier CoC is available on our corporate website and it contains requirements in the field of compliance
to the laws of the applicable legal systems, of maintaining compliance systems and of the suppliers’ capacity
of demonstrating a satisfactory record of compliance with the laws and widely accepted forms of fairness and
human decency in their conduct. The covered areas are:
· prohibition of corruption & bribery;
· no unfair business practices;
· anti-discrimination;
· no harsh or inhumane treatment;
· freely chosen employment and prohibition of child labor;
· freedom of association & collective bargaining;
· fair working hours, fair wages & benefits;
· health & safety of employees;
· environmental protection;
· supply chain security (AEO and CT-PAT).
The Agfa Supplier CoC is part of our key suppliers’ contracts and is a condition to enter into business.
Agfa Purchasing Department ensures that suppliers sign the CoC.
Our performance in 2021 and our commitment for the future
In 2021, 100% of the contracts signed by key and core suppliers included the Agfa Supplier of CoC (100% in
2020). Key and core suppliers represented in 2021 32% of our total spend.
Respect of human rights is for us the moral imperative to our license to operate as a business. This will continue
to be one of the key pillars of the work we do, to define the partnerships we are going to engage in and the
priorities of our business strategy in the future.
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AgfA-gevAert – AnnuAl report 2021
Performance
76
Performance
Our values
Agfa strives to make its customers successful and be their partner of choice for the long term, be it for
imaging and information systems or for any other partnership aiming at sustainable innovation. We do
this by offering leading edge technology, affordable solutions and innovative ways of working, based on
our in-depth understanding of the businesses and the individual needs of our customers.
To succeed, investing in innovation and delivering top quality solutions are key.
Operating in a responsible, sustainable and transparent way is as important. We are convinced that this
is the right approach for the long-term success of our company.
Our policies
Our values are reflected in the Group’s Code of Conduct (CoC). To support the translation of the CoC into clear
day-to-day processes, we rely on a series of policies and corporate guidelines, both at global and local level.
These are some examples of the policies – not listed in order of priority – we rely on for the topics
addressed in this chapter:
· Corporate Safety, Health and Environment Policy;
· Policy on the use of chemical substances with carcinogenic, mutagenic and reprotoxic (CMR) properties;
· Global Information Security & Privacy Policy.
Scope of the data reported and reporting process
Unless stated otherwise, the quantitative data reported in this chapter cover all Agfa’s manufacturing sites,
administrative facilities and sales organizations worldwide. While the quantitative data always refer to the
full scope, to simplify the reading of this report for some of the material topics, we provide descriptive details
on the management approach solely for the sites having the biggest contribution to the overall impact.
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AgfA-gevAert – AnnuAl report 2021
Agfa’s ZIRFON UTP 220
highest possible
in hydrogen production
Our goal? Sustainable innovation!
2021 in a snapshot
In short, 2021 was the year of the acceleration, where ambition wastranslatedinto concrete actions and bold
plans for the future.
While sustainability has always been a part of Agfa’s DNA, traditionally the efforts to systematically include
sustainability priorities in the business strategy had been mainly addressed at team and divisional level. In 2020
we focused on building an overall corporate approach to frame and coordinate projects, resources and targets
setting between different geographies and departments.
In 2021, wecontinuedto work on translating corporate objectives intoconcrete actions and the main focus
regarding our performance was to:
· Carry out for the first time a third party rating of our sustainability performance via EcoVadis to benchmark
our practices towards the best in class, obtaining a bronze medal;
· Develop an in-house methodology to assess at the R&D design phase the improvement of the sustainability
profile of our products compared to their previous versions on the market;
· Support the global transition to a greener world by setting a new energy eciency standard for advanced
alkaline electrolysis in the production of hydrogen with our ZIRFON UTP 220 electrolysis membrane;
· Continue supporting our customers to be successful in this challenging year: by adapting to the needs of
flexibility and hybrid work environments, demo and training;
· Ensure compliance with the UK-REACH Regulation for chemicals following Brexit and with the requirement
of the EU REACH Regulation by updating our registration dossiers and implementing the new Annex II SDS
template of REACH;
· Continue complying with the highest standards required by care providers by being among the first to receive
the new European Medical Device Regulation certification for our Agfa HealthCare Class IIa solutions;
· Use collaboration and open innovation to accelerate the exploration and validation of ideas in new applica-
tions or unknown markets, but also to encourage a learning mindset inside the organization.
Agfa’s impressive IP portfolio:
814
active patent families
3,014
active patent rights
We invest
5.4%
of revenue in
R&D
AGFA-GEVAERT NV (GROUP)
has been awarded a
Bronze medal
as a recognition of their EcoVadis Rating
2021
- D EC E M BE R 2 0 2 1 -
Valid until: December 2022
EcoVadis® is a registered trademark. © Copyright EcoVadis 2018 - All rights reserved
You are receiving this score/medal based on the disclosed information and news resources available to EcoVadis at the time of assessment. Should
any information or circumstances change materially during the period of the scorecard/medal validity, EcoVadis reserves the right to place the
business’ scorecard/medal on hold and, if considered appropriate, to re-assess and possibly issue a revised scorecard/medal.
78
1. Responsible production
We take full responsibility for our products and thereby we critically examine the safety, health and environmen-
tal impacts and the legal compliances throughout each stage of the product’s life cycle. To do that, we apply a
three-steps approach:
1.
Plan for a strong
product stewardship
& service quality
2.
Design for sustainable
business solutions and
production solutions.
3.
Engage for
sustainability in
the value chain.
In this view, the principles of Agfa’s Corporate Safety, Health & Environment Policy are:
· Comprehensive environmental protection and occupational safety are given the same priority as customer
orientation, high product quality and commercial eciency;
· Products and processes are designed, developed and manufactured to minimize the impacts to the
environment and the occupational safety and health risks of all the phases of the life cycle;
· Agfa advises its customers, its employees and the authorities with an evaluation of its products and
manufacturing processes, in all matters pertaining to health, safety and environment;
· Agfa informs its stakeholders on a yearly basis on its safety, health and environment performance through
a Corporate Sustainability Report which is an integrated part of the Group’s Annual Report.
Material Topic: Product Stewardship & Service Quality
The way Agfa ensures its products are safe and manages the impacts of different products
and materials at different stages in their design, production, use and disposal.
Relevance and boundaries
As stated in our Safety, Health & Environment (SH&E) policy, product stewardship is a paramount corporate
commitment.
We buy, use and sell chemical products, electronics and services globally. Hence, the proactive management of
our products and services on-site and beyond, including the engagement with suppliers and downstream users,
is the pre-requisite to deliver safe and useful products to the market. Basis for a successful product steward-
ship are regulatory compliance to existing legislation, proactive anticipation of future requirements and a deep
understanding of the impacts on our products and services of market developments, to ensure service-oriented
customers’ relations. This section focuses specifically on SH&E regulatory affairs management.
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Our management approach
The different activities around SH&E management are built on the basis of our internal Corporate Safety,
Health & Environment (SH&E) policy. Each division unit appoints a SH&E Manager who contributes to the
roll-out and evaluation of the corporate SH&E policy and objectives and is member of the Corporate SH&E
Management Committee. The policy is reviewed at least every three years, unless the Management Committee
considers it relevant to do it more often. The SH&E Management Committee also monitors the constant devel-
opment of legislation worldwide for the chemicals, products and services we place on the market.
The local management of our sites is responsible for implementing the Corporate SH&E policy and for comply-
ing with the local legislation that is applicable to the operation of the manufacturing site itself, under the coordi-
nation of the plant SH&E coordinator. To ensure the highest SH&E standards, we have different policies in place
at each site. The focus of the different policies is defined at local level, both on the basis of the specific local and
national legal requirements and on the type of operations carried out at each plant.
Agfa
CEO - President of the EMM
Corporate SH&E_RA
Director
Member of EMM
Responsible for SH&E_RA
Member of EMM
Member of EMM
Global SH&E
Radiology Solutions
Global SH&E Oset Solutions
Corporate SH&E Regulatory
Aairs Manager
Global SH&E HealthCare IT
Global SH&E
Digital Print & Chemicals
Corporate Safety &
Health Oicer
A Rationalization Committee of Chemicals (RCC) is in place to support the overall implementation of legislation
regarding chemicals.
It is composed of managers appointed by different business lines and it meets every quarter to align on
chemicals substitution strategy or other actions to continue to stay compliant with current and future legisla-
tion. Due to the nature of our products, the RCC pays particular attention to certain (groups of) substances
and specific regulations:
· CMRs – following our CMR policy Agfa products by design do not contain any CMR category 1A or category
1B substances at market introduction. CMR category 2 substances are only allowed if a technical investigation
found their use unavoidable and safe use has been proven;
· REACH regulation;
· SVHC – for which we routinely assess safer potential alternatives;
· End-customers’ own restriction lists – we ensure our solutions meet compliance rules of specific procurement
criteria and restrictions that are defined by the end customers of our own products;
· Eco-labelling criteria – upon request of our customers, we provide products that fulfill the criteria of specific
labeling schemes, e.g. the Nordic Swan or the EU Ecolabel.
80
Our goal is to always strive for zero non-compliance regarding the different guidelines listed above.
For this reason, we have an internal system in place to report and assess any non-compliance; when one is
identified, either preventively by our own audit, or reported by a customer, a notified body, or an authority, we
ensure the process is adapted to prevent future occurrences.
Our 2021 performance and activities
In 2021, we continued our efforts around sound products and services’ management with the aim to ensure
full compliance of our portfolio to binding legislation.
In addition to the continuous processes supporting this, in the area of chemicals’ management in 2021 we
focused on:
· Achieving compliance with UK-REACH Regulation following the Brexit;
· Providing support to the Impact Assessment of the Chemicals Strategy on Sustainability performed by Cefic
to feed the development of the EU dossier;
· Implementing the new Annex II SDS template of REACH;
· Updating REACH dossiers as Agfa is involved in Cefic REACH Declaration of intent of the Cefic Improvement
Action plan.
Moreover, in 2021, Agfa HealthCare was among the first to receive by Intertek the new European Medical
Device Regulation certification for its Class IIa Enterprise Imaging and XERO Viewer solutions. The new MDR
CE marking confirms Agfa HealthCare’s compliance with the highest standards required by care providers,
addressing their needs and more stringent standards in both clinical and post-market areas. This certification is
representative of Agfa HealthCare’s long commitment and lifecycle approach to safety, backed by clinical data
and supported by clinical evaluation, risk management and quality management systems.
Material Topic: Sustainable business solutions and production
The way Agfa progressively improves the sustainability profile and performance of products
and services in its portfolio, ensuring they are environmentally and socially responsible.
Relevance and boundaries
We believe that sustainable business solutions and production are essential to realize our growth strategy.
This is why we consider sustainability as a decision factor in our go to market strategies. In 2020, we have for-
malized this commitment by defining the goal of ‘no sustainability throwback’ for new products. Simply put, we
want to market new products only having carried out a full assessment of their sustainability profile already at
design phase, on top of assessing the potential market success. Such assessment shall consider the impact of
new solutions along the full life cycle, both in terms of our own environmental and social footprint, but also en-
suring that new solutions can help our customers reducing their own footprint or bring consistent added value
to society at large, e.g. via more sustainable healthcare.
Our management approach
The topic of sustainable business solutions and production is broad and it comprises many different
processes and involves many different layers of our organizational structure. Hence, its management approach
is multi-layered:
· Global level: for the definition of corporate strategy, global goals and markets where we want to make an impact;
· Plant level: for the sustainability performance specific to the environmental footprint of products’ manufacturing;
· Division level: for the development of sustainable business solutions and services.
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AgfA-gevAert – AnnuAl report 2021
While the first two layers are described in the chapters on ‘Sustainability’ and ‘Planet’ respectively, the
development of new sustainable business solutions is driven by each Division with the support of the Corporate
Sustainability Oce. Our teams of products’ specialists are those best placed to identify improvements
opportunities and assess market readiness for new developments thanks to their knowledge of our customer
base and the way each line internally works.
To achieve these ambitious objectives, a series of processes are in place, including:
· Progressive transition to circular economy as essential for a sustainable society. This, together with the environ-
mental aspects (addressed more in detail under ‘Planet’) also entails the transformation of our business models
as a whole, closer cooperation and often shared resources and common strategy with customers and suppliers;
· More explicit focus on sustainability in the assessment of markets’ needs via stronger stakeholders’ engagement;
· Development of sustainability criteria at product level to allow decision-making at R&D level;
· Data management for ecient exchange of information, which allows for better decision making and
data protection.
For some of our products and services we also rely on insights coming from market guidance by making use of
sustainability certification and labelling schemes or sectoral best practices, if those exist. For instance, we refer
to certification for our inks.
The certification is granted to products that meet some of the world’s most rigorous chemical emis-
sions standards, helping to reduce indoor air pollution and the risk of chemical exposure. Our wide-format UV LED
inkjet inks obtained the Gold Certification, which includes health-based criteria for more than 360
Volatile Organic Compounds (VOCs) and also requires lower total VOC emission levels. This ensures that the
products are acceptable for use in sensitive indoor environments, like schools and healthcare facilities, and for
prints that cover all walls of a room – not just as signage or partial wall decoration.
Beneath are some examples of our sustainable solutions; more details under ‘Business Activities 2021’.
· Thin Ink Layer technology
Our patented ‘Thin Ink Layer’ technology offers extremely high-volume conductivity at low curing temperatures,
minimizing the amount of ink that is required to obtain a high-quality print.
· ECO³: Economy, Ecology and Extra convenience
ECO³ program is a made-to-measure screening of customers prepress and printing processes, optimizing the
whole process and resulting in saving on the use of ink, paper and water, and in reducing waste generation.
· Chemistry-free printing plates
Our chemistry-free computer-to-plate (CtP) systems allow printers to reduce their environmental footprint,
lower their operating costs and boost their eciency. Over the past decade, more than 90% of our customers in
the newspaper segment have already switched to chemistry-free technology.
· Circular business model for printing plates
The system allows printing plates to be offered to large printing houses in a closed supply system, in which
they are collected after use and sent back to the aluminum producer for recycling. This collaboration across the
supply chain between us, the aluminum supplier, the logistic partners and the printing company supports our
transition to a progressively more circular economy.
· Sustainable and safe healthcare
Our healthcare solutions provide professionals with tools and skills to transition from analog to digital imaging
technology and analyze data to predict and prevent potential care-related complications and can help managing
chronic diseases and detecting health problems developing in a population at an early stage.
These improvements in the quality and eciency of patients’ care goes together with high vigilance to ensure
the security of data and systems.
82
Our 2021 performance and activities
In 2021, we continued our efforts to provide sustainable solutions to the market. In particular, we:
· supported the global transition to greener energy production by introducing our newest hydrogen membrane
to the market: ZIRFON UTP 220. At half the thickness of our existing membrane types, it reduces resistivity
and it offers the highest possible eciency when used in hydrogen production. We were extremely proud to
read a recent scientific study by the German Fraunhofer Institute concluding that Agfa’s ZIRFON membranes
make alkaline electrolysis (AEL) the most ecient technology for hydrogen production;
· kept pushing the transition to additive inkjet technology for the Printed Circuit Boards (PCB) industry with
our DiPaMAT inks. This technology allows lower ink consumption for the same printed surface and it uses
solvent-free inkjet inks.
To better steer the sustainability of our innovations as a whole across our diverse product portfolio, in 2021 we
developed an in-house methodology to assess the environmental and social footprint of our products. After
benchmarking existing tools, we decided for a tailor made approach that could fit our needs. This method builds
on a questionnaire for our product development teams, and allows to identify at R&D design phase the products
sustainability improvements compared to their previous versions on the market. We tested the draft method
with two pilots and we plan to refine it in the course of 2022 to map our portfolio against it.
More sustainable healthcare – the role of our Enterprise Imaging Platform
Agfa HealthCare’s Enterprise Imaging Platform offers by default a comprehensive approach to our sustainability
strategy as a whole, contributing to several objectives at once:
· through digitized workflows, it maximizes remote collaboration and it reduces paper and film usage;
· by optimizing medical imaging equipment capacity across health systems, it maximizes the human potential;
· by minimizing unnecessary treatments and contributing to less human errors, it supports the quality of care;
· by better aligning medical treatments amongst professionals, and better engaging with the patients and their;
referring physicians, it increases satisfaction of both professionals and patients alike.
Over 2021, the COVID-19 outbreak has continued to pose enormous eciency and productivity challenges for
our customers.
As the Enterprise Imaging Platform is designed for modularity and flexible deployment, the value brought to
healthcare professionals was more meaningful than ever. Among other highlights, we created a single, scalable,
secure and modular platform that allowed our customers to implement an Enterprise Imaging strategy at their
own pace. In 2021, we introduced a new web technology as part of our technology innovations in Enterprise
Imaging to allow true remote diagnostic imaging workflow. This technology allows users to view, produce,
interpret images via any computer, eliminating connectivity issues. This is a further step in enabling even more
ecient healthcare, supporting medical staff with more flexibility in mobile and remote working, providing the
ability to work at any location where the ‘right’ software is installed.
We couldn’t be prouder to keep supporting the workers in the front lines in these dicult times!
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AgfA-gevAert – AnnuAl report 2021
Material topic: Sustainability in the value chain
The way Agfa manages its responsibility towards the sustainability practices of its supply chain.
This includes how to address economic impact.
Relevance and boundaries
Taking full responsibility for our products means looking at our value chain as a whole. Firstly, to ensure business
continuity, which is essential to fulfill our commitments towards our stakeholders. Secondly, to ensure we do
business with partners who respect our values and stand for ones we can support. This means considering part-
nerships as a key tool to drive business sustainability transformation. Our value chains are extended and diverse
due to the variety of products and services and the multitude of markets we work in. They include the wide
range of our suppliers, e.g. raw materials and packaging suppliers, our distributors, our customers and many
more. Basis for supply chain sustainability management are a detailed supply chain analysis and monitoring, an
informed risk assessment and a set of policies to deal with our partners, e.g. Supplier Sustainability Declaration
(SSD), Code of Conduct, SH&E, Supplier Performance Standard, … One of the horizontal enablers of these
processes is the exchange of information across the value chain. This section focuses specifically on the
exchange of information with two of our groups of partners, i.e. customers and suppliers.
Our management approach
The exchange of information across our value chain happens across multiple channels. At global level we use our
corporate website, e.g. to make Safety Data Sheets (SDSs) for all our products available, and our Annual Report to
disclose progress regarding our sustainability performance. These are complemented by a series
of tools relevant at local level and/or more adequate for specific markets.
The management of our engagement, instead, is normally specific to each target group.
Suppliers
The engagement with our suppliers is coordinated by the purchasing department, following the specific local
and national legal requirements. For some regions, depending on the business needs, we might appoint a dedi-
cated responsible contact.
To select our suppliers, we run a structured qualification and assessment process that looks into different areas
that will be of relevance in future relations, like resource and quality management.
To assess suppliers, we use an internal ‘scorecard’ system that looks at the performance of the suppliers,
including an assessment or audit rating, health hazard evaluations and number of complaints and corrective
actions taken on them.
Moreover, as already mentioned under the ‘People’ chapter, our key and core suppliers have signed the Agfa
Supplier Code of Conduct (CoC). The CoC is available on our corporate website and it contains requirements in
the field of compliance to the laws of the applicable legal systems, of maintaining compliance systems and of
the suppliers’ capacity of demonstrating a satisfactory record of compliance with the laws and widely accepted
forms of fairness and human decency in their conduct.
Customers
The engagement with our customers is coordinated at local level by each division, following the specific local
and national legal requirements.
Some regional programs are set up at regional level, based on the regional context and the customers’ interest
in engaging on sustainability specifically. For instance, we set up GreenWorks in North America, a customer ac-
creditation scheme that recognizes customers in the graphic communications industry who have demonstrated
environmental responsibility and achieved greener outcomes through the use of technology, products, services
and practices.
84
Our 2021 performance and activities
Our efforts in 2021 revolved mainly around increasing engagement across our supply chain on sustainability
topics, which is essential for the acceleration of our progress. We started by giving high visibility to the topics
we are currently working on, both internally and externally, and transparently communicate current strengths,
gaps and plans to address them. To do this we acted on different levels; specifically, we:
· Made sure to give internal visibility of sustainability targets, commitments and responsibilities, to make
sure to have all of our teams on board, e.g. by using our meetings, internal magazines, intranet, …;
· Improved our own skillset, e.g. providing training and ad hoc support to teams on sustainability
related impacts;
· Increased transparency and clarity in our communication towards our stakeholders, by regularly including
the topic in presentations for analysts and the press and creating a dedicated section on our website to
share regular updates;
· Answered several customers’ corporate social responsibility and sustainability questionnaires;
· Rated our current performance via the EcoVadis questionnaire, obtaining a bronze medal.
AGFA-GEVAERT NV (GROUP)
has been awarded a
Bronze medal
as a recognition of their EcoVadis Rating
2021
- D E C E M B E R 2 0 2 1-
Valid until: December 2022
EcoVadis® is a registered trademark. © Copyright EcoVadis 2018 - All rights reserved
You are receiving this score/medal based on the disclosed information and news resources available to EcoVadis at the time of assessment. Should
any information or circumstances change materially during the period of the scorecard/medal validity, EcoVadis reserves the right to place the
business’ scorecard/medal on hold and, if considered appropriate, to re-assess and possibly issue a revised scorecard/medal.
All the exchanges had served as the basis to refine our sustainability strategy and create the basis for the next
steps in our journey. The activation of our teams worldwide is translating in a continuous increase of focus on
these topics and a more proactive approach to address them with customers, peers and stakeholders in general.
In addition to the rating of our current performance, the outcome of the EcoVadis assessment provided a list of
recommendations for potential improvements that we are already addressing, including those for processes in
the areas of procurement and communication along the supply chain.
Our commitment for the future on responsible production
Product stewardship is certainly the area of responsible production where our management approach is more
mature; we have a dedicated team, clear policies, established processes and internal controls to define the
day-to-day management. It is already fully embedded in our way of working and in our DNA. This is why the
commitments ahead of us are clearer and more detailed. In this area, beyond complying with all the upcoming
new regulations, our efforts will be focused on the implementation of the requirements defined in the context
of the Green Deal and, in particular, the Chemicals Strategy for Sustainability. We consider this of utmost
importance to drive the entire industry towards more sustainable production and we will fully support it,
both via all our sectors’ associations and our own processes.
In the coming years we also intend to better structure our approach to delivering sustainable business solutions
and to managing sustainability in the value chain. We are already active in these areas and we mainly address
these processes at divisional level and ‘per market’. While the divisions know our customers better, and will
continue to be in charge of defining the right approach, we are structuring the definition of corporate
sustainability goals and targets.
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AgfA-gevAert – AnnuAl report 2021
2. Innovation and investments
Material topic: Innovation and investments
The way Agfa innovates and structures its investments in R&D to improve product,
process and application technologies through a customer-driven approach, investigating new
applications for existing products and improving sustainability and environmental protection.
This includes the digitalization of the current product portfolio.
Relevance, definition and boundaries
Innovating is part of our DNA and we consider it essential for the realization of our growth strategy. Each year,
we therefore invest 5-6% of our turnover in R&D. In addition to developing new products, we are constantly
looking for solutions that not only reduce our own ecological footprint, but also that of our customers, a deliber-
ate focus.
Product and technology innovation at Agfa strives for sustainable value creation for our customers and other
stakeholders, an objective which is embedded in our ideation processes.
Our management approach
Since 2019, Agfa’s Innovation Oce (IO) structures the innovation generation process at global level and it
ensures full synergy and cross-fertilization between different areas with a potential for innovation. The IO looks
at societal and market trends to identify where Agfa can develop new business in adjacent and less adjacent
markets and technologies. This is done either by leveraging existing core competencies, as well as by developing
new markets and technologies.
The IO reports directly to Agfa’s Executive Management and it is supported by our Materials Technology Centre
(MTC), an R&D group which has been historically operating as Agfa competence center by supporting the divi-
sions specifically on technological innovation for materials and processes.
The IO stimulates the innovation culture throughout the organization and fosters an entrepreneurial behavior,
looking both at internal and external sources. To this extent, the IO sets up a continuous ideation process se-
lecting, validating and ranking proposals. The ideas are assessed through a tailored scoring methodology, which
takes into account the attractiveness of the market segments, the commercial success factors, the technical
feasibility and sustainability criteria regarding People & Planet.
The evaluation of changing business models is also an important assessment criterion. A relevant example for
us is certainly within digitalization and Software as a Service.
We involve our customers and other industry stakeholders in our innovation process through our sales and ser-
vice teams. They are best placed to capture the needs of our customers – and by extension of society.
Collaboration and open innovation are stimulated to accelerate the introduction of solutions in markets where
we are not present today. Collaboration with startup and scale up networks is set up to accelerate the explora-
tion and validation of ideas in new applications or unknown markets, but also to encourage a learning mindset
and stimulate employees to dare to leave the comfort zone. For instance, by engaging the IO and other co-work-
ers in corporate venture projects and with business angels.
86
One way we share our chemistry expertise is via Agfa-Labs, our open innovation platform for materials and
coating research. Through this platform, we support the industry to investigate the potential use of materials in
applications such as life sciences, construction, plastic & polymers, …
To support the different processes that ensure continuous innovation, we invest each year 5-6% of our turnover
in R&D and innovation.
At this stage the IO and the MTC have been mainly supporting the DPC, Offset and Radiology divisions, while
the HealthCare IT business relies on the innovation focus of its dedicated R&D team.
Our indicators
1. % annual turnover invested in R&D (for the full group)
Our 2021 performance and activities
In 2021, we have invested 5.4% of our turnover in R&D, which confirms our strong focus on continuous in-
novation. Our strong commitment is also shown by the series of collaborative innovation projects we set up,
either Government/EU funded or industry funded, which aim is to contribute to continuous innovation either by
improving the performance of existing materials or by developing new materials.
In addition to the projects specifically aimed at environmental impacts reduction, described under the ‘Planet’
chapter, here are some examples of the spectrum of innovation activities we have been investing our resources in:
· DUVAL
An EU funded project in collaboration with one academic partner to develop know-how on thin film evaporation,
specifically for challenging products due to their chemical nature.
· Atom and Flex
Two projects funded by the Flemish Government to develop flow chemistry solutions for a safer and more
sustainable production of chemical building blocks. In the case of the Atom project, we are part of a wider
consortium consisting of four industrial and four academic partners.
· MMICAS
A project funded by the Flemish Government led by a consortium of three industrial and four academic partners
to evaluate the possible use of ultrasound technology at industrial scale. This technology fits very well in the
process intensification strategy, where solutions are developed for a more sustainable chemical production with
regard to raw material use, energy use, waste generation and process safety.
Breakdown R&D figures per division
Offset solutions 22.5%
Digital Print & Chemicals 24.7%
HealthCare IT 32.6%
Radiology Solutions 22.2%
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AgfA-gevAert – AnnuAl report 2021
In addition to these long-lasting projects, beneath are some examples of our innovations;
more details on p. 96-129
· We introduced Amfortis to the printing industry, a new software package for offset packaging printers that
combines a number of software tools into a single powerful workflow solution. Amfortis complements
Agfa’s offering of durable printing plates and computer-to-plate (CtP) systems for packaging printing;
· We launched the new Jeti Tauro H3300 UHS LED, Ultra High Speed inkjet printer for the sign & display
market. This printer is built for 24/7 printing and it allows advanced automation and low ink consumption;
· We introduced Smart XR, a first artificial intelligence program improving the workflow in radiology depart-
ments by tailoring exposure parameters, reducing post-processing tasks for operators and reducing the
number of image retakes needed.
As of January 15, 2022, Agfa owned 814 active patent families, together representing 3,014 active patent rights.
Of these, 2,289 patents have been granted and the others were still pending. This decrease compared to previ-
ous years is part of a planned optimization effort of the quality of our patent portfolio, maintaining solely those
patents with a high strategic value.
Our commitment for the future
2021 was a challenging and transformative year for us. As we are in a process of internal reorganization to adapt
our structure to the changing market demands, we remain convinced that a continuous investment in research
and innovation is the key to continue succeeding in our mission of being the partner of choice for the long term
for our customers. Hence, R&D and innovation will continue to be at the core of our growth strategy, focusing
both on improving the performance of existing solutions and in developing new ones.
3. Ethical business conduct & compliance
Material topic: Ethical business conduct & compliance
The way Agfa manages business practices regarding ethics, i.e. transparency, integrity, corruption,
litigation and claims. It also includes corporate governance.
Relevance, definition and boundaries
We firmly believe we shall assume our full responsibility as a socially responsible company in all countries in
which we operate worldwide. Our goal is to compete vigorously, independently, ethically and fairly.
Our management approach
The ethical behavior that we expect from our employees and that we commit to as a company is described in
our Global Code of Conduct (CoC).
The CoC lists high-level principles that reflect our objective to operate and grow in a sustainable way, taking
into account the wishes and wellbeing of our stakeholders, both internal and external. However, ethical conduct
is not limited to compliance with the Code, which is complemented by more detailed corporate, divisional and/
or local policies that define how to roll-out those principles per each domain. The CoC is included as an appen-
dix to the Corporate Governance Charter, available in the Investor Relations section of our website.
88
The CoC includes, among others, principles regarding:
· zero-tolerance policy for bribery and improper payments, both accepted and executed;
· zero-tolerance policy for conflict of interest and insider trading;
· full compliance with competition and anti-trust laws;
· strict respect of the intellectual property rights of third parties and agreed confidentiality rules and
non-disclosure commitments.
Violations of laws, regulations or Agfa-Gevaert Group policies – such as the CoC – on fraud, antitrust, corruption,
conflicts of interest and other similar areas, can have serious consequences for the Group. Possible consequences
include prosecution, fines, penalties, contractual, financial and reputational damage.
The behavior covered by the CoC is defined by the Board of Directors and reviewed on a regular basis.
All employees are expected to respect the rules set out in the CoC. Furthermore, at regular intervals, top manag-
ers (Level 2 and above) are asked to confirm that they have read and understood the Code of Conduct.
To track and ensure compliance with the principles of the Code, Agfa has implemented whistle-blowing
arrangements to deal with any issues that arise. Agfa’s employees can at any time submit any question or com-
plaint via email, phone or letter to their immediate superior or to the Group Compliance Oce. Complaints and
questions are handled in a systematic and confidential manner by the Group Compliance Oce; specialized and
independent contact people may be appointed for specific topics covered by the CoC in accordance with local
regulation, e.g. a contact person within HR for specific HR related matters.
In addition to the Global CoC there is also a specific CoC for the Agfa Purchasing department, due to the specif-
ic nature of the tasks of this department, one of our key interfaces with the outside world.
The suppliers’ CoC builds on the Global CoC and it specifically regulates the interactions with suppliers, govern-
ment ocials and other public bodies, providing specific examples of what is considered a potential breach of
the rules and of how employees are expected to behave in such circumstances.
Our 2021 performance and commitment for the future
One complaint was reported in 2021 via the whistle-blowing procedure for an alleged breach of the Agfa CoC.
Upon further analysis of the notification, the Internal Audit has concluded that there was no breach and the file
was closed without the need for follow-up or corrective action. We are very proud of this result and we strongly
encourage for compliance with the Agfa CoC for all employees and will continue to do so in the future. The 2021
Compliance Review was presented directly to the Board of Director before the end of the fiscal year.
In 2021, we carried out for the first time a third party rating of our sustainability performance via EcoVadis
to benchmark our practices towards the best in class, obtaining a bronze medal. In addition to the rating of
our current performance, the outcome of the EcoVadis assessment provided a list of recommendations for
potential improvements that we are already addressing, including those for processes in the areas of ethical
business conduct. We will use the feedback received to continuously improve our processes and related
performance indicators.
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AgfA-gevAert – AnnuAl report 2021
Comments on
the Consolidated
Financial Statements
90
Comments on
the Consolidated
Financial Statements
Revenue
Excluding currency effects, the Agfa-Gevaert Group posted 3.4%
top line growth. In spite of a slow start in the first months of the
year – which were still strongly affected by the pandemic – both
the Digital Print & Chemicals division and the Offset Solutions
division significantly improved their top line due to successful price
increase actions and volume increases. In the Radiology Solutions
division, the Direct Radiography business’ top line suffered from
the uncertainty in the market. In the aftermath of the pandemic,
hospitals are reconsidering their priorities and postponing large DR
projects. In the field of medical film, price increases did not suce
to offset the ongoing impact of cost inflation, the pandemic, and
the effects of the adapted centralized procurement practices in
China in early 2021. As expected, the HealthCare IT division saw
an upturn in both volumes and profitability towards the end of the
year. In the course of the year, the division witnessed a tempo-
rary delay in project implementations, but the order book always
remained at a healthy level.
Results
As successful price actions allowed the Group to partly mitigate
cost inflation, its gross profit margin decreased only slightly to
28.3% of revenue in 2021.
Driven by strict cost management and supported by the strong
performance in the fourth quarter, HealthCare IT’s gross profit
margin increased from 43.9% of revenue to 46.5%. Adjusted
EBITDA improved strongly to 30.2 million Euro (13.8% of revenue),
coming from 23.7 million Euro (10.3% of revenue) in 2020. Adjusted
EBIT amounted to 21.6 million Euro (9.9% of revenue) in 2021. The
HealthCare IT division is confident that its strategy to target cus-
tomer segments and geographies for which its Enterprise Imaging
solution is best fit and to prioritize higher value revenue streams
will ultimately allow it to reach the targeted growth of EBITDA:
starting from a mid-single-digit percentage in 2019 to percentages
in the high-teens over the next years.
The Radiology Solutions division’s strict cost management and
price actions for medical film products did not suce to offset
volume decreases in medical film and CR, product/mix effects in
DR and high raw material costs. The division’s gross profit margin
decreased from 35.3% of revenue to 33.9%. The adjusted EBITDA
margin amounted to 13.1% of revenue, versus 15.6% in 2020.
In absolute figures, adjusted EBITDA reached 60.7 million Euro
(75.8 million Euro in 2020). Adjusted EBIT amounted to 37.7 million
Euro (8.1% of revenue), versus 51.9 million Euro (10.7% of revenue)
in the previous year.
On the one hand, profitability of the sign & display part of the Digital
Print & Chemicals business improved considerably versus 2020,
but on the other hand high cost inflation, logistic challenges and
Share of Group revenue 2021
by division
Share of Group revenue 2021
by region
Revenue (million Euro)
2020
2021
1,709
1,760
Digital Print & Chemicals
19%
Offset Solutions
43%
Radiology Solutions
26%
HealthCare IT
12%
Europe
37%
Latin America
6%
NAFTA
20%
Asia
Oceania
Africa
37%
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AgfA-gevAert – AnnuAl report 2021
temporary manufacturing ineciencies in the fourth quarter had
a strong impact on the margins of the film products. The division’s
gross profit margin decreased to 26.3% of revenue (28.0% in 2020).
The adjusted EBITDA margin evolved from 6.5% of revenue (18.8
million Euro in absolute figures) in 2020 to 5.8% (19.2 million Euro
in absolute figures). Adjusted EBIT reached 7.4 million Euro (2.3% of
revenue) in 2021 versus 8.6 million Euro (3.0% of revenue) in 2020.
Price increases have been implemented in almost all business
areas to tackle the increasing raw material, packaging and freight
costs. The full impact of these price increases is not yet visible in
the 2021 numbers.
Although affected by cost inflation, the Offset Solutions division’s
gross profit margin improved from 20.0% of revenue in 2020 to
20.4%. This increase was mainly due to the closure of the factories
in Leeds (UK) and Pont-à-Marcq (France), price increases and mix
effects. Adjusted EBITDA improved to 12.4 million Euro (1.7% of
revenue) versus minus 2.6 million Euro (minus 0.4% of revenue) in
2020. Adjusted EBIT amounted to minus 6.0 million Euro (minus
0.8% of revenue), compared to minus 21.9 million Euro (minus 3.1%
of revenue) in 2020.
A further cost inflation impact is expected in the coming months,
mitigated by pricing actions when the contractual situation allows
for it.
Due to strict cost management, the Agfa-Gevaert Group was able
to keep Selling and General Administration expenses stable at
20.6% of revenue, in spite of a strong increase in transportation
costs. In absolute numbers, Selling and General Administration
expenses amounted to 363 million Euro.
R&D expenses increased by 1.5% compared to the previous year.
They amounted to 95 million Euro in 2021 or 5.4% of revenue.
Supported by the strong performance of the HealthCare IT division
in the fourth quarter, the Group’s adjusted EBITDA increased
from 99 million Euro (5.8% of revenue) in 2020 to 104 million Euro
(5.9% of revenue). Adjusted EBIT reached 42 million Euro, versus
36 million Euro in 2020.
Mainly due to investments in the Group’s transformation program
– including the preparation of the transfer to Atos of a major part
of Agfa’s internal Information and Communication Services –
restructuring and non-recurring items resulted in an expense of
33 million Euro. In 2020, an expense of 88 million Euro was booked,
mainly related to the adaptation of the manufacturing capacity
for printing plates and computed radiography equipment.
The net finance costs amounted to 8 million Euro versus 31 million
Euro in 2020.
Adjusted EBITDA
1
(million Euro)
2020
2021
99
104
Adjusted EBIT
1
(million Euro)
2020
2021
36
42
2020
2021
Result from operating
activities (million Euro)
Result for the period
(million Euro)
(1) Before restructuring and non-recurring items
(1) Before restructuring and non-recurring items
(52)
2020
(14)
2021
9
621
92
Income tax expenses amounted to 15 million Euro, versus 15 million
Euro in 2020.
As a result of the elements mentioned above, the Agfa-Gevaert
Group posted a net loss of 14 million Euro.
Statement of financial position
At the end of 2021, total assets were 2,095 million Euro, compared
to 2,204 million Euro at the end of 2020.
Trade working capital
In spite of supply chain issues and high raw material prices, trade
working capital improved from 27% of sales to 26%. In absolute
numbers, trade working capital evolved from 462 million Euro at
the end of 2020 to 449 million Euro at the end of 2021.
Financial debt
Driven by the extra pension funding and the share buyback
program, net financial debt (including IFRS 16) evolved from a
net cash position of 502 million Euro at the end of 2020 to a net
cash position of 325 million Euro.
Pension liabilities
In 2020, Agfa spend about 218 million Euro of the proceeds of the
sale of part of HealthCare IT (at an enterprise value of 975 million
Euro) to increase the funding ratio of the funded pension plans in
Belgium, the UK and the USA, as well as to implement pension
de-risking actions. During the first half of 2021, the remaining
130 million Euro were invested. The finalisation of our pension
de-risking program resulted in a substantially lower net liability
and reduced pension cash outs.
Equity
In 2021, equity amounted to 685 million Euro, against 620 million
Euro at the end of 2020.
Cash flow
In 2021, the Group generated a free cash flow of 8 million Euro,
before the extra pension funding of 130 million Euro.
Conclusion
The Agfa-Gevaert Group expects that the impact of inflationary
pressure, including salary cost inflation, will become more ap-
parent in the course of the year, but price actions are being taken
accordingly. In the coming quarters, a number of price increases
that have been announced will come into full effect, but more price
increases may be required.
Overall, the Agfa-Gevaert Group continues its tight working capital
and cost management.
Statement of financial
position (million Euro)
2020
2,204
2,204
2,095
2,095
2020
2021
2021
714
756
1,409
Dec.
2020
Dec.
2021
462
449
Trade working capital
(million Euro/% of sales)
Net financial debt (cash)
(million Euro)
(502)
2020
2021
non-current assets
liabilities
current assets
equity
1,490
620
1,339
685
1,583
27%
26%
(325)
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AgfA-gevAert – AnnuAl report 2021
Furthermore, the Group expects that the uncertainty in most of its markets will continue well into 2022.
However, for the full year 2022, all divisions are expected to grow their topline.
For the HealthCare IT division, 2022 will be a year of consolidation, as the focus is turning towards profitable
growth. Investments in a number of key resources are to be expected.
The ongoing transformation actions are expected to bring more agility and to further simplify the operations of
the Group. They will also allow the Group to further reduce its costs from 2023 onwards.
94
Comments on the Statutory Accounts of Agfa-Gevaert NV
The Annual Accounts as will be presented to the General Meeting of Shareholders of May 10, 2022, were tested
against the valuation rules by the Board of Directors, and approved in that form.
The following points, in particular, will be submitted to the General Meeting of Shareholders for approval:
The Annual Accounts close with a loss for the accounting year 2021 of 136,843,039.48 Euro.
Based on the profit or loss account, the Board of Directors concludes that the Company has suffered a loss for
two consecutive years. Article 3:6 1, 6° of the Code of Companies and Associations requires that the Board of
Directors justifies the accounting principles in the assumption of going concern. As the going concern assump-
tion of a holding company, such as Agfa-Gevaert NV, basically depends on the Group as a whole, the Board
refers to the net cash position at Group level and the undrawn credit facilities available at balance sheet date.
It is proposed to allocate the result as follows:
deduction of the result carried forward by 136,843,039.48 Euro. As a result, the result carried forward will
amount to minus 496,260,024.34 Euro.
Explanation of the most significant entries of the Annual Accounts
In 2021, the Company achieved a revenue of 409.8 million Euro. This means an increase of 10.8% compared to
the revenue of 2020 (369.9 million Euro). The decrease was mainly caused by an increase of the sales prices
(+6.9%), an increase of the volume/mix (+5.4%) and a negative currency exchange rate difference (-1.5%).
The 2021 operating loss amounts to 101.2 million Euro. This represents a decrease of 49.3 million Euro
compared to 2020.
The financial result improved with 46.6 million Euro compared to 2020, resulting in a loss from operating
activities before taxes of minus 136.9 million Euro versus a loss of 134.2 million Euro in 2020.
After income taxes (2021: 0.0 million Euro, 2020: 0.3 million Euro), the loss for the book year amounts to
minus 136.8 million Euro (2020: -133.9 million Euro). This is an increase of the loss with -2.9 million Euro
compared to 2020.
In 2021, the Company spent an amount of 11.1 million Euro on research and development in Belgium.
In 2021, the number of Agfa-Gevaert NV employees in Belgium decreased by 47 to 1,943 employees on
December 31, 2021. This decrease is the result of the recruitment of 105 new employees and 152 employees
leaving the Company.
In 2021, the permanent establishment of the Company in the UK booked a loss of 65.8 million Euro.
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AgfA-gevAert – AnnuAl report 2021
Radiology Solutions
Agfa’s Radiology Solutions division is using new technologies and traditional know-how
to create medical imaging solutions that open up new views to caretakers and meet the
ever evolving needs of healthcare providers. By supporting them in every step of the
patient’s journey, Agfa helps its customers to improve the quality and eciency of their
patient care. Every single day, Agfa proves that medical imaging is in its DNA.
96
Radiology Solutions
MILLION EURO 2021 2020
% change
(excl. currency effects)
Revenue % (%)
Adjusted EBITDA
(*)
%
% of revenue % %
Adjusted EBIT
(*)
%
% of revenue % %
Results from operating activities +%
(*)
Before restructuring and non-recurring items
Radiology Solutions in 2021
In the beginning of the year, medical film volumes were strongly impacted by the implementation of new
centralized procurement practices in a number of Chinese provinces. In the course of the year, medical film vol-
umes in China started to stabilize. In several countries and regions, the medical film business was still impacted
by the COVID situation. Price increases for all types of medical film to tackle the higher silver prices did not fully
offset these adverse elements. Despite the high raw material prices and supply chain issues, Agfa was able to
keep the margins for its medical film products stable versus 2020.
The market for Direct Radiography solutions continues to be marked by a high degree of volatility. As care orga-
nizations are reconsidering their priorities and access to hospital sites is often still limited, large DR implemen-
tations are often delayed. Although Agfa is standing its ground in these uncertain circumstances, the top line of
its DR business decreased versus 2020, when hospitals invested heavily in mobile DR equipment in response to
the challenges of the COVID-19 pandemic. In 2021, the focus started to shift back from mobile DR devices to
comprehensive DR X-ray rooms. Typically, the time between the order intake and the actual implementation and
sales recognition is longer for this type of solutions. After a slow first half of the year (mainly in North America),
the business recorded significant order growth in the second half. Agfa is reorganizing its North American DR
organization to adapt to changing market conditions.
In a declining market, Agfa continued to manage the Computed Radiography business to keep the profit mar-
gins. In order to improve its competitiveness, Agfa is adjusting its CR equipment production capacity to the
declining market trend. In 2021, the business was also hampered by component shortages and transport issues.
As a result of these elements, the top line of the Radiology Solutions division decreased by 4.1% excluding cur-
rency effects.
Strict cost management and price actions for medical film products did not suce to offset volume decreases in
medical film and CR, product/mix effects in DR and high raw material costs. The division’s gross profit margin de-
creased from 35.3% of revenue to 33.9%. The adjusted EBITDA margin amounted to 13.1% of revenue, versus 15.6%
in 2020. In absolute figures, adjusted EBITDA reached 60.7 million Euro (75.8 million Euro in 2020). Adjusted EBIT
amounted to 37.7 million Euro (8.1% of revenue), versus 51.9 million Euro (10.7% of revenue) in the previous year.
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The expert in medical imaging
Agfa is a global provider of traditional X-ray film, hardcopy film and printers, digital radiography equipment and
image processing software. Its roots are in traditional medical imaging, but in today’s healthcare market, digital
radiography has become the dominant technology.
Due to the competition of softcopy diagnosis, the market for hardcopy film – on which digital images are
printed – is declining in the US and Western Europe. In the emerging countries, this market segment is still
growing. Besides hardcopy film, Agfa also supplies hardcopy printers that enable clinicians to print digital
images made by general radiography equipment, as well as images made by other modalities, including CT
and MRI scanners.
In digital radiography, Agfa is active with both Computed Radiography (CR) and Direct Radiography (DR) sys-
tems. Compatible with traditional radiography equipment, CR offers image intensive departments an affordable
entry to digital imaging. DR is often the technology of choice for hospital departments demanding a higher
throughput and immediate availability of high-quality digital images. Furthermore, mobile DR equipment allows
for bed-side imaging, e.g. in emergency rooms or ICU’s. Many hospitals combine CR and DR technologies to
cover all their X-ray imaging needs. As a technology leader in both areas, Agfa is in a unique position to offer
tailor-made solutions to healthcare facilities planning to invest in digital imaging.
All Agfa’s CR and DR systems are offered with its leading MUSICA image processing software and its MUSICA
workstation for image identification, acquisition and quality control. Agfa’s SmartXR brings intelligence to digital
radiography equipment at the point of care: before the image is even made. It assists the radiology lab technician
by simplifying and automating a number of tasks. In this way, lab technicians can work faster, with more attention
to the patient.
98
60% / 30%
Healthcare organizations report that Agfa’s DR solutions
and MUSICA software allow them to reduce X-ray doses by
up to 60%
(1)
and to increase their productivity by up to 30%.
440,000
Agfa has installed over 10,000 DR systems all over the world.
Together, they account for over 440,000
imaging exams per day.
(1) Testing with board-certified radiologists has determined that Cesium Bromide (CR) and Cesium Iodide (DR) Detectors, when used with
MUSICA image processing, can provide dose reductions between 50 to 60%, compared to traditional Barium Fluoro Bromide CR systems.
Contact Agfa for more details.
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AgfA-gevAert – AnnuAl report 2021
Bed-side imaging helps to fight COVID
VALORY: Excellence. Pure and Simple.
Agfa’s solutions help hospitals
all over the world in their fight
against COVID. The DR 100s
system, for instance, can be used
to perform high-quality bed-side
X-ray examinations. That means
that the patient does not need to
be taken to the imaging department
to be examined.
In November 2021, Agfa launched
its new VALORY digital radiography
room at the RSNA event. VALORY
delivers a simple design with func-
tionality that goes far beyond the
‘basics’, bringing reliability, produc-
tivity and ‘first-time-right’ imaging
into reach for any hospital. VALORY
offers an ideal solution as a backup
for large hospitals, or as the main
X-ray system for smaller healthcare
facilities, where equipment reliabil-
ity is not an option but a must. With
VALORY, Agfa proves that ‘simple’ is
not a synonym for ‘basic’.
100
#CountOnUs
With its #CountOnUs initiative, Agfa has already supported thousands of
healthcare providers to deal with the extraordinary pressure being placed on
staff and resources by the COVID-19 pandemic.
Georges Espada, Radiology Solutions Business Group Leader at Agfa: “The
#CountOnUs initiative focuses on finding ways to support imaging departments
to meet their most immediate needs quickly, while offering value for the long
term. As long as our customers are facing the increased pressures and demands of
the health crisis, we are committed to working with them in solidarity.”
More information on the initiative can be found on
https://medimg.agfa.com/main/category/countonus/.
Commercial successes
2021 has been a challenging year for companies
that are active in the healthcare industry. Large
DR installations, for instance, were often delayed
as hospital access was limited due to the pan-
demic. However, even in these dicult circum-
stances, numerous hospitals and hospital groups
decided to invest in Agfa’s radiology solutions.
At the end of the year, Agfa had a global installed
base of over 75,000 DRYSTAR hardcopy printers
and over 89,000 digital radiography solutions, all
with its leading MUSICA Nerve Center and image
processing software.
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AgfA-gevAert – AnnuAl report 2021
In 2021, the 620-bed Royal Bolton Hospital ordered three fully automated DR 600 direct radiography rooms
from Agfa. The top-performance, ceiling-suspended DR 600 provides the radiology department with a fully
automated and integrated solution offering high-quality images and maximum versatility. It streamlines
workflow and increases throughput, enhancing the experience of patients and operators alike.
. , ,
:
“The Royal Bolton X-ray team takes great pride in
their imaging techniques and clinical image quality.
We were attracted to the DR 600 by the focus on
dose reduction and the positive impact that the
software design has on patient flow.”
The Natchitoches Regional Medical Center (NRMC), which operates 17 health-related clinics and facilities in
Louisiana, recently implemented the DR 800 multi-purpose digital imaging room at its 96-bed flagship hospital.
With the Dynamic MUSICA® image quality, dose reduction potential and innovative remote positioning technol-
ogy, the DR 800 will contribute to this growing network’s mission to offer a broad continuum of innovative care.
,
: “Agfa’s main focus is on general
radiography, and it shows: I have worked with
every system in the market, and am delighted
with the overall hardware quality, exceptional
image detail, dose reduction, functionality
and user-friendliness.”
102
Radiologie Münster, a leading Medical Imaging center,
recently implemented its first Agfa imaging solution:
the multi-purpose DR 800 direct radiography room.
The busy imaging center has a full portfolio of imaging
equipment for diagnosis and treatment. The dynamic
and fully integrated DR 800, powered by Agfa’s MUSICA®
software, was selected as the center’s digital X-ray
solution for its versatility and excellent image quality.
,
:
“The DR 800 was the best choice in terms of both image
quality and workflow. The innovative, multi-purpose
design enables us to maximize the productivity of a
small room in our busy center.”
Hospital Sant Joan de Déu in Barcelona, a teaching hospital specializing in pediatrics, gynecology and obstetrics,
added two mobile DR 100s direct radiography (DR) systems to its diagnostic imaging equipment portfolio. A
long-time Agfa customer, Hospital Sant Joan de Déu also has three DX-M computed radiography (CR) systems,
suitable for mammography, and a high-performance DR 800 multi-purpose imaging solution.
. , : “Our key reasons for choosing
Agfa included the excellent quality of chest images and the ability to use a low radiation dose, which is so important
for a hospital like ours with a pediatric focus.”
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HealthCare IT
At the forefront of Medical Imaging IT Software
Agfa HealthCare transforms the delivery of care through ‘anywhere, anytime’ access to
all patient imaging data. Built on a long history in healthcare and with a proven track re-
cord as innovators, in-depth medical knowledge and strategic guidance, Agfa HealthCare
is the partner of choice for leading healthcare organizations around the globe. With its
flagship Enterprise Imaging Platform, Agfa HealthCare provides secure, effective, modu-
lar and scalable imaging data management. The company strategically guides healthcare
providers to transition from volume-based imaging to value-based imaging, accompanies
growth, reduces complexity and redundancy, and improves care delivery and physician
experiences. Implementation of the Agfa HealthCare Enterprise Imaging Platform allows
the creation of an Imaging Health Record, or IHR, to align with and complete a health
system’s electronic health record strategy.
104
HealthCare IT
HealthCare IT in 2021
Having been resilient for over a year, the HealthCare IT division experienced a number of late effects of the
COVID pandemic in the course of 2021, including a temporary delay in project implementations in the third
quarter. Following a number of softer months, the division saw an upturn of demand and profitability towards
the end of the year. HealthCare IT’s order book remains at a very healthy level.
The division is confident that its strategy to target customer segments and geographies for which its Enterprise
Imaging solution is best fit and to prioritize higher value revenue streams will ultimately allow it to reach the
targeted growth of EBITDA: starting from a mid-single-digit percentage in 2019 to percentages in the high-
teens over the next years. Driven by strict cost management and supported by the strong performance in the
fourth quarter, HealthCare IT’s gross profit margin increased from 43.9% of revenue to 46.5%. Adjusted EBITDA
improved strongly to 30.2 million Euro (13.8% of revenue), coming from 23.7 million Euro (10.3% of revenue) in
2020. Adjusted EBIT amounted to 21.6 million Euro (9.9% of revenue) in 2021.
In August, Agfa HealthCare became one of the first companies to receive the new European Medical Device
Regulation (MDR) certification, which was issued by Intertek. This certification, which covers Agfa HealthCare’s
Class IIa Enterprise Imaging and XERO Viewer solutions, ensures that the company can continue to deliver
innovative solutions that meet its customers’ real challenges and address their needs and requirements.
MILLION EURO 2021 2020
% change
(excl. currency effects)
Revenue % (%)
Adjusted EBITDA
(*)
%
% of revenue % %
Adjusted EBIT
(*)
%
% of revenue % %
Revenue from operating activities +%
(*)
Before restructuring and non-recurring items
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Medical Imaging IT Software
Agfa HealthCare’s Medical Imaging IT Solutions equal reliability and eciency for care providers around the
world. With innovation deeply rooted in its DNA and building on more than 100 years of experience, Agfa
HealthCare became one of the first companies in the early 1990’s to supply radiology departments with its
Picture Archiving and Communication Systems (PACS) to eciently store, manage, process and distribute
digital medical images.
As health networks become bigger and bigger and the need for higher productivity and better care delivery in-
creases, care providers understand that it is crucial to eciently capture, aggregate, share and mine all imaging
related information. Across the globe care organizations start to look for a more integrated imaging strategy
and the convergence of fragmented, redundant and siloed Imaging IT solutions into a more unified enter-
prise-wide approach with scalability and systemness.
Agfa HealthCare anticipated on this demand and in 2014 pioneered again when bringing its flagship Enterprise
Imaging Platform to the market. The unified Enterprise Imaging Platform creates a true longitudinal Imaging
Health Record (IHR) for every patient, completing our customer’s EHR strategy. It is intended to address not
only Radiology and Cardiology, but also the numerous departments and service lines across the healthcare en-
terprise that generate various forms of images. Through Agfa HealthCare’s Enterprise Imaging platform images
and related data are instantly accessible throughout the hospital, the care organization, or even all care facilities
included in a regional network. This way, the Enterprise Imaging platform speeds up overall diagnoses, enhanc-
es patient care, fastens clinical collaboration across multi-specialties and multiple systems, improves physi-
cian and patient experience and satisfaction, and drives the health systems’ business, clinical and operational
excellence.
From product development to implementation, Agfa HealthCare’s best-of-suite Imaging IT software solutions
are purpose-built to reduce complexity and to support care providers to achieve success in their clinical, opera-
tional and business strategies.
106
Medical Device Regulation certification
In August 2021, Agfa HealthCare became one of the
first companies to receive the new European Medical
Device Regulation (MDR) certification, issued by
Intertek. Agfa HealthCare’s early certification, which
covers its Class IIa Enterprise Imaging and XERO
Viewer solutions, allows the company to continue to
expand the Enterprise Imaging platform, its modules
and components, and release innovations without any
interruption. This includes making significant changes
to the solutions and adding new functionalities to
meet the evolving needs of our customers and the
market, as well as allowing them to benefit from
state-of-the-art IT technologies.
Agfa HealthCare’s scalability attracts
high-volume customers
In the 2021 KLAS Enterprise Imaging Report, KLAS confirms that Agfa HealthCare’s Enterprise
Imaging solutions are mostly found in large health systems, including some academic settings
and community hospitals. Most deployments are facilities with >500 beds; one-third in facilities
with >1,000 beds. KLAS research finds Agfa HealthCare well established as a strong option for
enterprise imaging in recent years. Customers describe both the VNA and viewer as easy to use,
reliable, and well integrated.
“Selected commentary collected about Agfa HealthCare, KLAS® Enterprise Imaging 2021, © 2021 KLAS.
Visitklasresearch.comfor a complete view.”
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108
Pioneer on cybersecurity transparency
A recent survey on cybersecurity conducted by KLAS and Censinet positions Agfa HealthCare
solutions not only as a pioneer on cybersecurity transparency but also as ‘cybersecurity mature’
on all topics, including network security, data protection and system resiliency.
“Selected commentary collected about Agfa
HealthCare, from KLAS/Censinet Report on
Cybersecurity. May 2021 - © 2021 KLAS.
800+
Agfa HealthCare’s Enterprise Imaging Platform
is live in over 800 healthcare sites across the world.
The company’s XERO Universal Viewer supports
the extended care collaboration in close to
400 care organizations.
Commercial successes
Momentum in market adoption of the platform approach to enterprise imaging is evident in the company’s
growing business agreements, as leading health systems select Agfa HealthCare Enterprise Imaging Platform
that creates an Imaging Health Record.
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The Princess Alexandra Hospital NHS Trust (PAHT) in the UK has been leading
the path towards digital transformation in its Radiology Department when the
hospital embarked upon a consolidated Enterprise Imaging Platform strategy.
When Agfa HealthCare launched the RUBEE for AI framework – which embeds re-
sults from AI algorithms seamlessly in clinical workflows –, and with the COVID-19
pandemic adding pressure, the decision was made to implement CT AI Specialty
Package, that included RUBEE and ClearRead CT Algorithm from Riverain Technol-
ogies. Since going live with the solution, radiologists at PAHT are appreciating the
value of embedded AI and are reporting a 30% shorter reporting time.
A long-time user of Agfa HealthCare technology, Touro Clinic brought forward its experience with the company
when it joined LCMC Health. From IMPAX Radiology solutions to the more recently deployed Enterprise Imaging,
LCMC is focused on realizing its vision of growing health services throughout the greater New Orleans/Gulf Coast
region. Its leadership is working with Agfa HealthCare to design an infrastructure to both converge services and
improve cross-facility workflows and imaging information exchange.
,
,
“LCMC Health has dedicated a great deal of time evaluating
strategies to meet the health needs of patients throughout
the greater New Orleans/Gulf Coast area. We are commit-
ted to reduce complexity by aggregating patient imaging
and making it accessible through our EHR.
Agfa HealthCare’s vision of the Imaging Health Record has
helped us begin our enterprise imaging journey and their
guidance is important to our ongoing success.”
–
“This technology is proving to be of immense benefit to users and patients by
improving accuracy, reducing reporting times and increasing productivity.”
110
As the only locally owned and operated health system in San Antonio and Bexar
County, TX, USA, University Health takes to heart its responsibility to serve
the health needs of its community today and into the future.Serving patients
at more than two dozen locations, it is the premiere Level I trauma center
for South Texas and serves as the primary teaching facility for University of
Texas Health San Antonio.Agfa HealthCare is proud to partner with University
Health to leverage their technology investments to align with their core values,
including high quality, compassionate care and a wise use of resources.
. , ., , , . ,
“Prior to implementing Enterprise Imaging, our IT staff was frustrated with
the complexity of multiple systems to support and maintain. In addition, our
physicians were wasting valuable time navigating those multiple, disparate sys-
tems to gain access to a patient image. Working with Agfa HealthCare on our
Enterprise Imaging initiative, University Health has already achieved significant
cost savings and has streamlined our clinicians’ time to deliver care.”
Leeds Teaching Hospitals NHS Trust (LTHT) has successfully implemented Agfa HealthCare’s Enterprise
Imaging solution, which will help the organization maximize its productivity and collaborate with neighbouring
Trusts. LTHT is one of the largest Trusts in the UK, providing care to over 1.5 million patients every year, many
of whom have complex and urgent needs. Upgrading a major system like Enterprise Imaging had to be very
carefully planned to minimize any downtime.
,
“Enterprise Imaging has provided a much more stable
infrastructure. We immediately noticed the productivity
and eciency savings made by having fully-integrated
image viewing and reporting on a single platform with
a modern interface.”
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Digital Print & Chemicals
Agfa’s Digital Print & Chemicals division is a leading supplier of digital printing solutions
for sign & display and industrial markets as well as of innovative products for niche indus-
tries. The division develops, manufactures and sells state-of-the-art printing equipment
and software and a wide range of highly specialized inks for specific applications.
Furthermore, it supplies customers in a variety of industrial markets with a broad range
of innovative membranes, films and coated products.
112
Digital Print & Chemicals
MILLION EURO 2021 2020
% change
(excl. currency effects)
Revenue % (%)
Adjusted EBITDA
(*)
%
% of revenue % %
Adjusted EBIT
(*)
%
% of revenue % %
Results from operating activities %
(*)
Before restructuring and non-recurring items
Digital Print & Chemicals in 2021
The Digital Print & Chemicals division recovered from the COVID-19 impact, which is reflected in the strong top
line growth versus 2020. Furthermore, price increases have been implemented in almost all business areas to
tackle the increasing raw material, packaging and freight costs. The full impact of these price increases is not
yet visible in the 2021 numbers.
On the one hand, profitability of the sign & display part of the business improved considerably versus 2020,
but on the other hand high cost inflation, logistic challenges and temporary manufacturing ineciencies in the
fourth quarter had a strong impact on the margins of the film products. The division’s gross profit margin
decreased to 26.3% of revenue (28.0% in 2020). The adjusted EBITDA margin evolved from 6.5% of revenue
(18.8 million Euro in absolute figures) in 2020 to 5.8% (19.2 million Euro in absolute figures). Adjusted EBIT
reached 7.4 million Euro (2.3% of revenue) in 2021 versus 8.6 million Euro (3.0% of revenue) in 2020.
The sign & display business booked strong top and bottom line growth. The ink product ranges for sign & display
applications performed well, even exceeding pre-COVID levels. In spite of industry-wide logistics challenges, the
wide-format printing equipment business partially recovered from the strong COVID-19 impact. This business
benefited from the success of the recently introduced Jeti Tauro H3300 UHS LED system – the fastest Jeti
Tauro printing system to date.
In the second half of the year, the gradual come-back of trade events clearly improved market dynamics.
The sales of inks for industrial applications grew strongly, partly due to the solutions for new digital printing
applications. As a key sustainability investment, Agfa took into service its new manufacturing plant for
water-based inkjet inks in 2021. The new facility enables Agfa to be a key supplier of such inks for a wide range
of novel applications. For instance, the facility produces inks for Agfa’s new InterioJet inkjet system for printing
on décor paper used for interior decoration, such as laminate floors and furniture.
Agfa’s range of products for the production of printed circuit boards was hit by cost inflation. High silver costs
were only partially offset by price increase actions.
The specialty chemicals range of the division is well-positioned for future growth with products and solutions
that target specific promising markets. Agfa’s ORGACON conductive materials, for instance, are used in hybrid
and electric car technology. This business recorded solid revenue growth in 2021 and volumes are back to
pre-COVID levels.
The company’s range of ZIRFON membranes for advanced alkaline electrolysis is setting a new eciency
standard in the production of green hydrogen; and is being recognized by customers and experts as the industry
reference. Agfa’s specialty film and foil products are mostly used in industries that have been hit by the COVID-19
pandemic, including aviation, the oil and gas industry and the printing industry. In some of these areas, the
pandemic continues to have a strong impact on film volumes. In spite of temporary supply chain issues, sales
figures for the Synaps range of synthetic papers picked up strongly, based on the recovery of the relevant
printing markets and on the success of certain new applications.
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Digital printing solutions: state-of-the-art equipment, ink, software
and service
Agfa supplies state-of-the-art wide-format inkjet systems, consisting of printers, service, software and inks,
as well as UV-curable and water-based inks.
Sign & display print houses, as well as industrial customers in need of digital printing, use Agfa’s solutions to
print on a wide variety of substrates, for an ever-growing range of applications, such as signs, posters and
displays, promotional materials, packaging, leather goods, laminated flooring and decorative materials.
For many applications, inkjet has become the most important alternative for screen printing, gravure printing
and flexo printing technologies, offering unseen possibilities of personalization, shorter runs, just in time
printing reducing waste and working capital, etc.
Besides hardware and software, Agfa also supplies a range of UV LED inks with which its sign & display
customers can produce high-quality prints on a wide variety of rigid and flexible substrates. In addition to
its inks for sign & display customers, Agfa also markets a unique range of high-performance UV-curable
inks and water-based inks for a broad range of industrial applications.
600 m²/h
Early 2021, Agfa introduced its fastest Jeti Tauro inkjet press
to date. Nicknamed ‘the Beast’, the JetiTauroH3300UHSLED inkjet
engine prints media up to 3.3 m wide in four or
six colors at a speed up to 600 m²/h.
3,000
By the end of 2021, over 3,000 Anapurna
and Jeti printers were installed at
printing sites all over the world.
114
Award-winning equipment
In 2021, Agfa’s Jeti Tauro H3300 LED conquered a coveted Pinnacle
Product Award from Printing United Alliance, one of the
largest printing and graphic arts associations in the world.
The Jeti Tauro H3300 won in the UV/Latex Hybrid category
(more than 500,000 US dollar). Suited for a variety of rigid and
flexible substrates, the printer provides exceptional quality
performance at production speeds.
Agfa increases inkjet
ink production capacity
In order to cope with growing volume demands, Agfa
significantly expanded its inkjet ink production capacity.
A new manufacturing plant in Mortsel, Belgium, focusing
on water-based inkjet inks, became operational in 2021.
The new plant enables Agfa to be a key supplier of aqueous
inkjet inks for a wide range of novel applications. Its target
markets are the growing segment of printing on décor paper
for the production of laminate floorings and furniture panels,
as well as several promising packaging applications.
Commercial successes
In the second half of 2021, the wide-format equipment business started to recover from the effects of the
COVID-19 pandemic. Even in tough market conditions, the Anapurna and Jeti wide-format print engines
continued to convince sign & display printers all over the world of their excellent print quality and high
production speeds. The dedicated Asanti workflow software – which streamlines operations and guarantees
color consistency – is often named by customers as an important advantage over the competition.
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One of the UK’s largest fabric printers, Northern Flags, is flying the flag with Agfa, having invested in three
Avinci fabric-printing engines, an Anapurna roll-to-roll sign & display printer and an Asanti workflow solution for
their Leeds facility.
In the autumn of 2021, Northern Flags became the first printing company in the UK to acquire Agfa’s latest
dye-sublimation soft signage printer, the Avinci CX3200. It’s a highly productive, large-format unit, printing up
to 3.2 m wide with low ink consumption – both on transfer paper and directly on textile.
-,
:
“I decided to go for Agfa again because we
were looking for the perfect balance between
great machines and after-sales service, and
Agfa have really delivered for us on that. We
have a real partnership. Whenever we’ve
wanted to develop things, Agfa have always
listened and been really responsive.”
GSP, a leading provider of high-impact visual solutions for the retail market, expanded their production
capabilities with the addition of the first Jeti Tauro H3300 UHS LED system in the USA.
GSP’s customers will benefit from the Jeti Tauro H3300 UHS’ cutting-edge technology. The system is 30%
faster than its predecessors and combines industry-leading print quality with versatility and productivity.
,
:
“Choosing to add this technology to our
portfolio illustrates the partnership between
our two companies. Our ability to grow and
enhance our customer-facing offerings is
predicated by our vendors growing with us.
The Agfa Jeti Tauro H3300 UHS is an
important part of our growth strategy.”
116
In October 2021, décor paper printing company
Chiyoda installed an InterioJet 3300 water-based
printing press from Agfa at its European headquarters
in Genk, Belgium. Their new press will enable Chiyoda
to supply printed décor paper with exclusive designs
to flooring, furniture and car laminate panel makers.
The InterioJet lets them run a reliable 24/7 digital
printing production with consistent color quality.
The system enables the printing of complex designs
and non-repetitive patterns, thus surpassing the
limitations of gravure printing.
, :
“Agfa’s unique knowledge of chemistry, inks and
software warrants the highest print quality and color
consistency, ensuring that our customers can use the
InterioJet prints in exactly the same way as gravure
prints without any modification to their laminate
production process.”
., .
Hataya was founded in 1982 as a silk screen printer. Since then, the company has steadily digitized its
operations. It now specializes in the planning and manufacturing of signs and displays. By investing in Agfa’s
Asanti workflow software, Hataya has become a forerunner in its field. Asanti has improved productivity
while significantly reducing output errors.
. , :
“Thanks to Asanti, I feel that we can proceed faster to
the finishing stage, including the cutting process, and
that the productivity of the overall production process
has improved. The number of mistakes has decreased
dramatically thanks to Asanti.”
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Chemicals: innovative solutions for industrial applications
Agfa develops and manufactures specialty chemicals for promising growth markets, such as membranes
for green hydrogen production and conductive polymers for electric cars. Next to specialty foils & films for
applications such as security documents, print media and printed circuit boards, the division also offers
coatings, synthetic paper and classic film types for several industrial uses, such as non-destructive testing,
aerial photography and micro-film storage. Through Agfa-Labs, the company shares its research knowledge
and infrastructure commercially with third parties.
Materials for Printed Electronics: Agfa is a recognized expert in the field of conductive polymers for use in
antistatic protection layers for films and components as well as transparent electrodes. Based on these
products, Agfa has further developed its conductive ORGACON product line of printing inks, pastes and
formulations used in electronic devices and in – among other applications – capacitive sensors, touch
screens and membrane switches.
A promising growth market for ORGACON is the
hybrid vehicle industry. This business recorded
solid revenue growth in 2021 and volumes are back
to pre-COVID levels. Agfa’s portfolio includes
highly innovative silver inks for the production of
rigid and flexible printed electronic circuitry. Typical
applications areprinted RFID antennas, touch
sensors and metallization grids for photovoltaics.
118
Materials for Printed Circuit Boards: Agfa is the world’s
most important manufacturer of phototooling film for the
production of printed circuit boards (PCB) for the electron-
ics industry. Manufacturers of electronics use the film to
transfer the circuitry layout onto a copper laminate.
As inkjet is identified as a promising technology for future
PCB manufacturing, Agfa is focusing its R&D efforts on
the development of inkjet inks for the production of PCB’s.
These inks are marketed under the DiPaMat brand and
include etch resist, legend and solder mask inks.
Agfa’s photooling films and inks find their application
also in chemical milling for the manufacturing of small
mechanical parts and in metal decoration.
No.
With its Idealine range, Agfa is the number 1 phototooling
film supplier worldwide. That makes it very likely that
Agfa contributed to the production of your television set,
PC, washing machine or any other object that operates
with the use of PCB’s.
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A new standard
In 2021, Agfa added the new high performance ZIRFON UTP 220 membrane to
its membrane portfolio. ZIRFON UTP 220 has excellent durability and its low
resistivity allows for the highest yield of hydrogen production.
With the new membrane, Agfa is setting yet another productivity standard for
advanced alkaline electrolysis.
ZIRFON membranes have advanced the traditional alkaline electrolysis technology allowing it to operate at
400% higher current densities.
Materials for green hydrogen production: With its ZIRFON membranes, Agfa is in a good position to benefit
from the rise of the green hydrogen economy. Agfa’s membranes are an essential part of electrolysis technol-
ogies for green hydrogen production. ZIRFON is a high yield separator membrane for use in advanced alkaline
water electrolysis systems (separating water into oxygen and hydrogen) with exceptional durability even in a
dynamic power supply environment. It is rapidly becoming the preferred choice of major research institutes
and system developers as the replacement material for the traditional structures that include felt or asbestos. A
recent study by the Fraunhofer Institute using Agfa’s ZIRFON separator membranes confirms that the alkaline
electrolysis technology is the most cost ecient hydrogen production system to date. In March 2022, Agfa
announced that it will supply a significant volume of its ZIRFON separator membranes to Thyssenkrupp Nucera
within the framework of a number of large-scale hydrogen projects. This confirms Agfa’s position as technology
leader in this field.
Agfa is a member of the European Clean Hydrogen Alliance, which brings together all stakeholders in the
hydrogen value chain. With its investment and projects program, the alliance will support the deployment
of green hydrogen production, application demand and distribution.
ZIRFON
120
Synthetic Paper: Agfa develops and markets a range of synthetic paper types as an alternative to laminated
paper for applications with high demands on durability. Branded Synaps, the papers are valued for their print
eciency thanks to exceptionally quick ink acceptance and their water repellence and resistance to tearing and
UV light. Synaps papers can be printed with standard inks on offset presses as well HP Indigo and dry toner
printers. They are suitable for a wide variety of applications, including labels, indoor and outdoor displays,
signage and promotion printing. In spite of temporary supply chain issues, sales figures for the Synaps range of
synthetic papers picked up strongly in 2021, based on the recovery of the relevant printing markets and on the
success of certain new applications.
SYNAPS XM: enemy of bacteria and viruses
Around the world, the COVID pandemic has profoundly
changed the way we view hygiene and health. We have
adopted new habits to protect the community and ourselves
against infections. In this context, Agfa has started to think
about products that help combat the spread of harmful
organisms. One result is the new version of the SYNAPS XM
synthetic paper, which was introduced in 2021. This product
now contains an agent that inhibits the establishment and
growth of bacteria and viruses on its surface. SYNAPS XM
can be used to produce menus, loyalty cards, flight safety
cards and signage, among other things.
Security Documents: The ever increasing attention for security and identification incites authorities to invest in
high-tech ID documents of which the authenticity can be checked quickly and effectively. Agfa responds to this
need for fraud-proof ID documents with film and chemistry solutions for ABSOLUT-ID, an innovative solution
for card manufacturing.
Non-Destructive Testing (NDT): Agfa produces high-quality X-ray film for non-destructive testing of – among
others – welds in pipelines, steel structures and fuselages. When Agfa divested its NDT business group to the
General Electric Company (GE) in 2003, both parties signed a long-term agreement under which Agfa continues
to supply X-ray film to GE Inspection Technologies (now Waygate Technologies). Agfa now acts as the exclusive
manufacturer of Waygate Technologies’ NDT X-ray films and related chemicals.
Aerial Photography: For the aerial photography industry, Agfa supplies films, chemicals and photo paper.
Microfilm: Agfa has a long-term exclusive supply agreement for microfilm with Eastman Park Micrographics
(EPM). Under the agreement, Agfa manufactures microfilm and related chemicals for EPM. EPM distributes
these products worldwide under its own brand name. Agfa’s microfilm is known for its high sensitivity and
exceptional image quality.
Agfa-Labs: Through Agfa-Labs, third parties have access to the knowhow of Agfa’s researchers and the facilities
of Agfa’s Materials Technology Center. Agfa-Labs offers both analytical and development services in the field
of materials and coatings. The Agfa-Labs website (agfa.com/agfa-labs/cases) contains case studies that show
how Agfa assists companies in tackling challenges in various application fields.
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Offset Solutions
Agfa’s Offset Solutions division aims to be a leading supplier of integrated prepress
solutions for commercial, newspaper and packaging printing, based on an ideal combination
of printing plate technology equipment and advanced software. Its mission is to enable
graphic businesses to control their costs, improve profitability and stay ahead of their
competition. The division delivers integrated solutions, which excel by being innovative,
reliable as well as sustainable. By doing so, it enables its customers to cost-effectively
adjust to new market demands. Agfa’s range of consumables, hardware, software and
services combines in-house and leading manufacturers’ technologies and know-how.
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Offset Solutions
MILLION EURO 2021 2020
% change
(excl. currency effects)
Revenue % (%)
Adjusted EBITDA
(*)
() +%
% of revenue % %
Adjusted EBIT
(*)
() ()
% of revenue % %
Results from operating activities () () +%
(*)
Before restructuring and non-recurring items
Offset Solutions in 2021
Reflecting a partial recovery from the impact of the COVID pandemic, the Offset Solutions division’s top line
improved by 6.5% compared to 2020 (excluding currency effects). The revenue increase was also fueled by price
increases that have been implemented to tackle among others the raw material, packaging, energy and freight
cost inflation.
Although affected by cost inflation, the Offset Solutions division’s gross profit margin improved from 20.0% of
revenue in 2020 to 20.4%. This increase was mainly due to price increases and mix effects. Adjusted EBITDA
improved to 12.4 million Euro (1.7% of revenue) versus minus 2.6 million Euro (minus 0.4% of revenue) in 2020.
Adjusted EBIT amounted to minus 6.0 million Euro (minus 0.8% of revenue), compared to minus 21.9 million
Euro (minus 3.1% of revenue) in 2020.
A further cost inflation impact is expected in the coming months, compensated for by pricing actions whenever
the contractual situation allows for it.
To improve profitability and to address the decline in market demand, Agfa is reviewing its offset business model,
simplifying its organization and streamlining its product offering.
In March 2021, Agfa unveiled a global program of price increases for its offset printing plates to address the
increasing raw material, packaging and freight costs. A series of quarterly price increases has been successfully
implemented throughout the year. The most recent wave of price increases came into effect as of February 2022.
The division is also looking into ways to adapt the revenue model for certain services it provides to its customers.
In January 2021, Agfa expressed the intention to organize the Offset Solutions activities into a stand-alone legal
entity structure and organization within the Agfa-Gevaert Group. The implementation of this project is proceeding
according to plan.
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A trusted partner for professional printers
Agfa’s Offset Solutions division is a leading supplier of integrated prepress solutions, and security printing
software. All over the world, professional printers and publishers rely on the division’s experience and
first-rate technology.
Prepress
The term prepress is used for the chain of processes that precede the actual printing process. Prepress activities
begin after the print layout decisions have been made and end where the printing process itself begins.
Printers rely on Agfa’s equipment, consumables (such as printing plates and graphic film), software and services
for almost every stage in the preparatory process. The software tools are key elements in the overall solution
offered to printers. They automate the prepress processes, guarantee better quality and improve cost eciency,
even on the press itself.
Although Agfa’s prepress solutions mainly target the info printing segment of the graphics industry, the Offset
Solutions division also supplies prepress technology to customers specializing in offset and flexo printing for
packaging purposes.
Agfa is a worldwide market leader in digital printing plates as well as in the field of eco-friendly chemistry-free
printing plates. In addition, Agfa is one of the few remaining suppliers of graphic film.
30% - 50% - 90%
With Agfa’s ECO³ program, printers can save up to 30% on ink, 50%
on waste, and up to 90% on water.
When developing and creating solutions – which include hardware,
software and consumables – Agfa focuses on ecology, economy and
extra convenience (ECO³). By doing so, it makes the prepress and
printing processes cleaner and more cost ecient.
Globally, one in two
newspaper printing
companies are using
Agfa’s technology.
1/2
124
Globally, one in two
newspaper printing
companies are using
Agfa’s technology.
Security printing
Agfa offers valuable software solutions to the different markets suffering from counterfeiting. Its dedicated
security packages help designers of passports, tax stamps, lottery tickets, packaging and labels, concert tickets,
stamps, certificates,… to stay a few steps ahead of counterfeiters and forgers.
Amfortis
In 2021, Agfa introduced Amfortis, an all in one workflow
solution for the offset packaging printing industry.
Amfortisfacilitates the lives of packaging converters
by combining multiple unique software tools into one
powerful production workflow solution. It complements
Agfa’s offering for offset packaging, which already
included durable printing plates and high-performing
Computer-to-Plate systems.
70%
70% of all banknote printers in the
world are using security printing
software solutions developed by Agfa.
125
AgfA-gevAert – AnnuAl report 2021
126
Commercial successes
In a structurally declining offset printing industry, Agfa continues to support its customers with state-of-the-art
solutions and services.
Both in the commercial and the newspaper segment of the printing market, Agfa in 2021 confirmed its strong
position in the field of eco-friendly prepress technology. With these chemistry-free computer-to-plate (CtP)
solutions, printers can minimize their environmental footprint, reduce their operational costs and boost their
eciency. In the commercial segment, Agfa is a technological and market leader with this chemistry-free CtP
technology. Also in the newspaper segment, Agfa is setting the standard. Over 90% of Agfa’s newspaper
customers worldwide are now using chemistry-free technology.
In addition to platesetters and other equipment and printing plates, CtP solutions often include state-of-the art
workflow software. At the end of the year, more than 9,500 Apogee software systems were installed at com-
mercial print houses around the world. Agfa is also the world’s leading supplier of prepress workflow software
for the automation of the production of printed newspapers. Publishers can operate these Arkitex workflow
systems in their local prepress departments, but Agfa also offers the software as a cloud solution.
Operating in a declining market
In the past two years, the COVID-19 pandemic added to the structural issues in the offset industry. To improve
profitability and to address the significant decline in market demand, Agfa is reviewing its offset business
model, simplifying its organization and streamlining its product offering. In January 2021, Agfa expressed the
intention to organize the Offset Solutions activities into a stand-alone legal entity structure and organization
within the Agfa-Gevaert Group. The project will be completed in April 2022.
In spite of the market evolution, Agfa has repeatedly expressed its commitment towards its customers. The com-
pany is determined to continue to support them with state-of-the-art equipment, software and consumables.
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AgfA-gevAert – AnnuAl report 2021
Commercial printing company Cassochrome has been relying on Agfa’s solutions for more than forty years.
Recently, they made the switch to Agfa’s process-free printing plate Eclipse. Cassochrome specializes in art
books. Eclipse helps them to achieve the impeccable quality that their customers desire, and on top of that,
it fits perfectly in their sustainability strategy.
,
:
“For high-quality printing, it is extremely important
that all elements are perfectly matched to each
other. Eclipse is one of the best go-getters I’ve ever
seen. The scratch resistance is extremely good.
Stability is also exemplary. And we can use the
plate in normal light!”
-
The Sun-Sentinel, a Tribune Publishing paper, is a long-time user of Agfa’s OptiInk. When Agfa rolled out its
innovative SPIR@L screening technology that lowers ink consumption while improving image quality, Tribune
Publishing agreed to a trial at its largest site. The Sentinel’s pressroom operations manager, Kurt Moody, didn’t
think they could recover additional ink savings until they tested Agfa’s new SPIR@L screening technology.
, ,
-:
“We tried many different technologies. SPIR@L
screening is just a totally different concept. We
are saving between five to eight percent more
in ink with SPIR@L,” states Moody. “It’s a great
technology. I didn’t think we could lean on our
calibration anymore because we are as lean as
can be, but SPIR@L delivered.”
128
For its site in Heerenveen, Metaprint has invested
in a completely new prepress configuration from
Agfa. The company specializes in printing on metal,
such as aerosol cans. The core of the investment is
a thermal VLF (Very Large Format) platesetter from
Agfa’s Avalon N range. Furthermore, an Arkana 125
processor and Energy Elite Eco printing plates offer
the company time-saving plate processing with
minimal consumption of chemicals.
Litografía Francisco Jaramillo has been in the market for 60 years. It specializes in publicity materials and
packaging. In line with their environmental objectives for their production chain, the company recently switched
to Agfa’s process-free Eclipse printing plates. With Eclipse, the company found a printing plate that combines
the benefits of process-free technology with effortless printing.
, :
“Eclipse is really easy to handle and enables us to save time, as there are no errors or scratches that might
otherwise cause delays in the print production process.”
,
:
“We are ISO 14001 certified and are constantly look-
ing for the latest ecological solutions throughout the
entire packaging production chain that have the small-
est possible environmental impact. As our partner for
prepress, Agfa can optimally support our strategy in
the field of sustainability.”
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AgfA-gevAert – AnnuAl report 2021
Financial Statements
OPINION ON THE FAIR PRESENTATION IN ACCORDANCE WITH THE ROYAL DECREE OF
NOVEMBER 14, 2007
The Board of Directors and the Executive Management of Agfa-Gevaert NV, represented
by Mr. Frank Aranzana, Chairman of the Board of Directors, Mr. Pascal Juéry, President and
Chief Executive Ocer and Mr. Dirk De Man, Chief Financial Ocer, hereby declare that,
to the best of their knowledge,
· the consolidated financial statements give a true and fair view of the Group’s net worth
and financial position and of its results in accordance with International Financial
Reporting Standards as adopted by the EU;
· the annual report gives a true and fair view of the developments and results of the
Company and its subsidiaries included in the consolidated financial statements,
as well as a description of the main risks and uncertainties which the Group is facing.
The accompanying notes are an integral part of these consolidated financial statements.
130
Financial Statements
-
Profit or loss
Comprehensive income
Financial position
Changes in equity
Cash flows
BASIS OF PREPARATION
Reporting entity
Basis of accounting
Functional and presentation currency
Use of estimates and judgements
Changes in significant accounting policies
PERFORMANCE OF THE YEAR
Reportable segments
Alternative performance measure
Revenue
Other operating income and expenses
Net finance costs
Information on the nature of expenses
Earnings per share
EMPLOYEE BENEFITS
Postemployment benefit plans
Longterm termination benefits
Sharebased payment transactions
Other employee benefits
TAXES
Income taxes
Other taxes
ACQUISITIONS AND DISPOSALS
Acquisitions
Disposals
FINANCIAL RISKS AND
FINANCIAL INSTRUMENTS
Market risk
Credit risk
Liquidity risk
Capital management
Accounting classification and fair values
Items of income expense gains and losses
on financial instruments recognized in
profit or loss
ASSETS
Goodwill and Intangible assets
Property plant and equipment
Rightofuse assets
Investments in associates and other
financial assets
Receivables under finance lease
Inventories
Other receivables
Cash and cash equivalents
Noncurrent assets held for sale
Other assets
EQUITY AND LIABILITIES
Equity
Loans and borrowings
Provisions
Trade and other payables
Other liabilities
LIST OF SUBSIDIARIES
Investments in subsidiaries
Equity accounted investees
OTHER INFORMATION
Operating leases
Commitments and contingencies
Related party transactions
Events subsequent to December
Information on the auditor’s assignments
and related fees
ACCOUNTING POLICIES
Basis of measurement
Significant accounting policies
New standards and interpretations
issued but not yet effective
Comparative figures for five years (profit or
loss cash flows financial position)
131
AgfA-gevAert – AnnuAl report 2021
Agfa-Gevaert Group - Consolidated statement of profit or loss
The accompanying notes on pages 138 to 234 are an integral part of these consolidated financial statements.
MILLION EURO Note
CONTINUING OPERATIONS
Revenue 1,709 1,760
Cost of sales (1,215 ) (1,263 )
Gross profit 494 497
Selling expenses (223 ) (231 )
Research and development expenses (95 ) (95 )
Administrative expenses (144 ) (155 )
Net impairment loss on trade and other receivables including contract assets (2 ) (2 )
Other operating income 39 41
Other operating expenses (122 ) (47 )
Results from operating activities (52 ) 9
Interest income (expense) net (4 ) (1 )
Interest income 1 2
Interest expense (6 ) (3 )
Other finance income (expense) net (26 ) (6 )
Other finance income 2 10
Other finance expense (28 ) (16 )
Net finance costs (31 ) (8 )
Share of profit of associates net of tax - -
Profit (loss) before income taxes (83 ) 1
Income tax expense (15 ) (15 )
Profit (loss) from continuing operations (98 ) (14 )
DISCONTINUED OPERATIONS
()
Profit from discontinued operation net of tax 719 -
Profit (loss) for the year 621 (14 )
Profit (loss) attributable to:
Owners of the Company 613 (17 )
Noncontrolling interests 7 4
Earnings per share (Euro)
Basic earnings per share / diluted earnings per share (Euro) 3.66 (0.11 )
Basic earnings per share (Euro) continuing operations (0.63 ) (0.11 )
Basic earnings per share (Euro) discontinuing operations 4.28 -
(1) 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 part of Agfa HealthCare's IT business in May 2020.
132
Agfa-Gevaert Group - Consolidated statement of comprehensive income
The accompanying notes on pages 138 to 234 are an integral part of these consolidated financial statements.
MILLION EURO Note
Profit (loss) for the period 621 (14 )
Profit (loss) for the period from continuing operations (98 ) (14 )
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:
(39 ) 30
Exchange differences on translation of foreign operations (39 ) 30
Cash flow hedges:
Effective portion of changes in fair value of cash flow hedges 7 4
Change in fair value of cash flow hedges reclassified to profit or loss (1 ) (1 )
Adjustments for amounts transferred to initial carrying amount
of hedged items
6 (13 )
Income taxes (2 ) 2
Items that will not be reclassified subsequently to profit or loss: (100 ) 91
Equity investments at fair value through OCI change in fair value (1 ) 2
Remeasurement of the net defined benefit liability (102 ) 96
Income tax on remeasurement of the net defined benefit liability 3 (7 )
Total other comprehensive income for the period net of tax: (129 ) 112
Total other comprehensive income from continuing operations (129 ) 112
Total other comprehensive income from discontinued operations - -
Total comprehensive income for the period attributable to: 491 99
Owners of the Company 486 91
Noncontrolling interests 5 8
Total comprehensive income for the period from continuing
operations attributable to:
(227 ) 99
Owners of the Company (continuing operations) (232 ) 91
Noncontrolling interests (continuing operations) 5 8
Total comprehensive income for the period from discontinued
operations attributable to:
Owners of the Company (discontinued operations) 719 -
Noncontrolling interests (discontinued operations) - -
(1) 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 part of Agfa HealthCare's IT business in May 2020.
133
AgfA-gevAert – AnnuAl report 2021
Agfa-Gevaert Group - Consolidated statement of financial position
The accompanying notes on pages 138 to 234 are an integral part of these consolidated financial statements.
MILLION EURO Note
December
December
ASSETS
Noncurrent assets 714 756
Goodwill 265 280
Intangible assets 19 13
Property plant and equipment 127 129
Rightofuse assets 78 68
Investments in associates - 1
Other financial assets 7 8
Assets related to postemployment benefits - 40
Trade receivables 15 12
Receivables under finance lease 68 70
Other assets 16 11
Deferred tax assets 120 124
Current assets 1,490 1,339
Inventories 389 418
Trade receivables 297 307
Contract assets 64 76
Current income tax assets 63 63
Other tax receivables 15 19
Other financial assets 9 2
Receivables under finance lease 29 30
Other receivables 9 4
Other current assets 18 18
Derivative financial instruments 9 1
Cash and cash equivalents 585 398
Noncurrent assets held for sale 4 3
TOTAL ASSETS 2,204 2,095
EQUITY AND LIABILITIES
Equity 620 685
Equity attributable to owners of the Company 570 632
Share capital 187 187
Share premium 210 210
Retained earnings 1,412 1,284
Other reserves (76 ) (1 )
Translation reserve (42 ) (15 )
Postemployment benefits: remeasurement of the net defined benefit liability (1,122 ) (1,033 )
Noncontrolling interests 51 54
Noncurrent liabilities 1,046 812
Liabilities for postemployment and longterm termination benefit plans 956 735
Other employee benefits 13 11
Loans and borrowings 54 46
Provisions 16 12
Deferred tax liabilities 4 6
Contract liabilities 2 1
Other noncurrent liabilities 1 -
Current liabilities 538 597
Loans and borrowings 29 27
Provisions 63 42
Trade payables 198 252
Contract liabilities 103 111
Current income tax liabilities 23 28
Other tax liabilities 24 28
Other payables 8 9
Employee benefits 88 99
Other current liabilities 1 -
Derivative financial instruments 2 2
TOTAL EQUITY AND LIABILITIES 2,204 2,095
134
Agfa-Gevaert Group - Consolidated statement of changes in equity
The accompanying notes on pages 138 to 234 are an integral part of these consolidated financial statements.
ATTRIBUTABLE TO OWNERS OF THE COMPANY
NONCONTROLLING INTERESTS
TOTAL EQUITY
MILLION EURO
Note
Share capital
Share premium
Retained earnings
Reserve for own shares
Revaluation reserve
Hedging reserve
Remeasurement of the
net defined benefit liability
Translation reserve
TOTAL
Balance at January 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
Transactions with owners recorded directly in equity changes in ownership
Dividends - - - - - - - - - (1 ) (1 )
Reclass of remeasurement on
defined benefit liability related
to entities divested
Total transactions with owners
recorded directly in equity
Balance at December 187 210 1,412 (82 ) - 7 (1,122 ) (42 ) 570 51 620
Balance at January 187 210 1,412 (82 ) - 7 (1,122 ) (42 ) 570 51 620
Comprehensive income for the period
Profit (loss) for the period - - (17 ) - - - - - (17 ) 4 (14 )
Other comprehensive income
net of tax
- - - - 2 (9 ) 89 26 109 4 112
Total comprehensive income
for the period
(17 ) 2 (9 ) 89 26 91 8 99
Transactions with owners
recorded directly in equity
changes in ownership
Dividends - - - - - - - - - (5 ) (5 )
Purchase of own shares - - - (29 ) - - - - (29 ) - (29 )
Cancellation of own shares - - (111 ) 111 - - - - - - -
Total transactions with owners
recorded directly in equity
Balance at December 187 210 1,284 - 2 (2 ) (1,033 ) (15 ) 632 54 685
135
AgfA-gevAert – AnnuAl report 2021
Agfa-Gevaert Group - Consolidated statement of cash flows
The accompanying notes on pages 138 to 234 are an integral part of these consolidated financial statements.
MILLION EURO Note
Profit (loss) for the period 621 (14 )
Income taxes 8 15
Share of (profit)/loss of associates net of tax - -
Net finance costs 31 8
Operating result 660 9
Depreciation and amortization (excluding D&A on rightofuse assets) / 38 34
Depreciation and amortization on rightofuse assets 31 28
Impairment losses on goodwill - -
Impairment losses on intangibles - -
Impairment losses on PP&E 2 -
Impairment losses on rightofuse assets (1 ) 1
Recycling of hedge reserve (1 ) (1 )
Government grants and subsidies (6 ) (13 )
Gains/losses on the sale of intangible assets and PP&E (9 ) (8 )
Gains on the disposal of discontinued operations (700 ) -
Expenses for defined benefit plans and long term termination benefits 41 30
Accrued expenses for personnel commitments 65 75
Writedowns/reversals on inventories 12 11
Impairments/reversals on receivables 2 2
Additions/reversals of provisions 76 13
Exchange results and changes in fair value of derivatives (7 ) 5
Operating cashflow before changes in working capital 205 186
Change in inventories 25 (48 )
Change in trade receivables 50 6
Change in contract assets (10 ) (8 )
Change in trade working capital assets 64 (50 )
Change in trade payables 2 38
Change in contract liabilities 23 3
Change in trade working capital liabilities 25 41
Changes in trade working capital 89 (10 )
Cash out for employee benefits (403 ) (273 )
Cash out for provisions (37 ) (39 )
Changes in lease portfolio (3 ) (1 )
Changes in other working capital 15 17
Cash settled operating derivatives (3 ) 12
Cash generated from operating activities (136 ) (108 )
Income taxes paid (17 ) (8 )
Net cash from (used in) operating activities (153 ) (116 )
of which related to discontinued operations 28 -
136
MILLION EURO Note
Capital expenditures (33 ) (26 )
Proceeds from sale of intangible assets and PP&E / 9 12
Proceeds from assets held for sale - -
Acquisitions of associates and subsidiaries net of cash acquired / (1 ) (1 )
Disposal of discontinued operations net of cash disposed of
()
915 -
Repayment of loans granted to rd parties - 9
Interest received 2 4
Dividends received - -
Net cash from (used in) investing activities 892 (2 )
of which related to discontinued operations 913 -
Interest paid (7 ) (4 )
Dividends paid to noncontrolling interests - (5 )
Purchase of treasury shares - (29 )
Proceeds from borrowings 59 2
Repayment of borrowings (259 ) (3 )
Payment of finance leases (34 ) (29 )
Proceeds/(payment) of derivatives (9 ) (2 )
Other financing income/(costs) received/paid - 4
Net cash from (used in) financing activities (249 ) (67 )
of which related to discontinued operations (4 ) -
Net increase (decrease) in cash and cash equivalents 490 (185 )
Cash and cash equivalents at the start of the period 99 585
Net increase/(decrease) in cash & cash equivalents 490 (185 )
Effect of exchange rate fluctuations (3 ) (1 )
Gains/(losses) of marketable securities (1 ) (1 )
Cash and cash equivalents at the end of the period
()
585 398
(1) The Group has elected to present a statement of cash flows that includes all cash flows, including both continuing and discontinued operations.
(2) Bank overdrafts are presented in minus of cash and cash equivalents in the cash flow statement: December 2021 0.1 million Euro, December
2020 0.3 million Euro.
Agfa-Gevaert Group - Consolidated statement of cash flows (continued)
The accompanying notes on pages 138 to 234 are an integral part of these consolidated financial statements.
137
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
BASIS OF PREPARATION
1. REPORTING ENTITY
Agfa-Gevaert NV (‘the Company’) is a company established in Belgium. The address of the Company’s
registered oce is Septestraat 27, 2640 Mortsel.
The 2021 Consolidated Financial Statements of the Group include the Company and 96 consolidated
subsidiaries (2020: 95 consolidated subsidiaries) controlled by the Company. Investments in subsidiaries
are listed in Note 42.
Non-controlling interests have a material interest in nine subsidiaries in greater China and the ASEAN region.
The financials are explained in Note 37.8. In Europe, there are a few subsidiaries in which non-controlling
interests have an interest that is of minor importance to the Group.
2. BASIS OF ACCOUNTING
The consolidated financial statements have been prepared in accordance with the International Financial
Reporting Standards (IFRS) issued by the International Accounting Standards Board (IASB), as adopted by
the European Union up to December 31, 2021.
The Group has not early adopted any new IFRS requirements that were not yet effective in 2021. Further
information is provided in Note 51 ‘New standards and interpretations issued but not yet effective.’ The
consolidated financial statements were authorized for issue by the Board of Directors on March 22, 2022.
3. FUNCTIONAL AND PRESENTATION CURRENCY
The consolidated financial statements are presented in Euro, which is the Company’s functional currency.
All financial information presented in Euro has been rounded to the nearest million, except when otherwise
indicated. By using rounded numbers, the sum of line items presented in a table may not always match with
(sub)totals as this total itself has been rounded to the nearest million and is not the sum of rounded data.
4. USE OF ESTIMATES AND JUDGEMENTS
In preparing these consolidated financial statements, management has made judgements and estimates that
affect the Group’s accounting policies and the reported amounts of assets, liabilities, income and expense.
Revisions to accounting estimates are recognized prospectively. Accounting estimates and underlying
assumptions are continually reviewed but may vary from the actual values.
The areas involving a higher degree of judgment or complexity, or areas where assumptions and estimates are
significant to the consolidated financial statements are listed below with reference to the respective note(s)
where more information is disclosed.
138
Area of judgements assumptions and accounting estimates Explanatory notes
The discounted cash flows used for impairment testing Note ‘Goodwill and intangible assets’
The useful lives of intangible assets with finite useful lives Note ‘Goodwill and intangible assets’
The assessment of the adequacy of liabilities for pending
or expected income tax audits over previous years
Note ‘Income taxes’
The recoverability of deferred tax assets Note ‘Income taxes’
The actuarial assumptions used for the measurement
of defined benefit obligations
Note ‘Postemployment benefits’
Revenue recognition with regard to multipleelement arrangements Note ‘Revenue’
Impairment of financial assets expected credit losses Note ‘Expected credit losses’
5. CHANGES IN SIGNIFICANT ACCOUNTING POLICIES
Financial reporting standards applied for the first time in 2021
The consolidated statements of the Group as disclosed in this annual report take into account new standards
applicable as from January 1, 2021. Following standards and amendments were applied for the first time to the
Group’s financial statements for the year 2021. These standards were either not applicable or did not have a
material impact to the Group’s financial statements.
It relates to :
· Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 Interest Rate Benchmark Reform – Phase 2
(issued on August, 27 2020)
· Amendments to IFRS 4 Insurance Contracts – deferral of IFRS 9 (issued on June 25, 2020)
· Amendments to IFRS 16 Leases: COVID-19-Related Rent Concessions beyond June 30, 2021 (issued on
March, 31 2021) – effective as from April 1, 2021. The pronouncement amended IFRS 16 Leases to pro-
vide lessees with an exemption from assessing whether a COVID-19-related rent concession is a lease
modification. On issuance, the practical expedient was limited to rent concessions for which any
reduction in lease payments affects only payments originally due on or before June 30, 2021. Since
lessors continue to grant COVID-19-related rent concessions to lessees and since the effects of the
COVID-19 pandemic are ongoing and significant, the IASB decided to extend the time period over
which the practical expedient is available for use.
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AgfA-gevAert – AnnuAl report 2021
PERFORMANCE OF THE YEAR
Excluding currency effects, the Agfa-Gevaert Group posted 3.4% top line growth. In spite of a slow start in the
first months of the year - which were still strongly affected by the pandemic - both the Digital Print & Chemicals
division and the Offset Solutions division significantly improved their top line due to successful price increase
actions and volume increases. In the Radiology Solutions division, the Direct Radiography business’ top line
suffered from the uncertainty in the market. In the aftermath of the pandemic, hospitals are reconsidering their
priorities and postponing large DR projects. In the field of medical film, price increases did not suce to offset
the ongoing impact of cost inflation, the pandemic and the effects of the adapted centralized procurement
practices in China in early 2021. As expected, the HealthCare IT division saw an upturn in both volumes and
profitability towards the end of the year. In the course of the year, the division witnessed a temporary delay in
project implementations, but the order book always remained at a healthy level.
As successful price actions allowed the Group to partly mitigate cost inflation, its gross profit margin decreased
only slightly to 28.3% of revenue. Due to strict cost management, the Group was able to keep Selling and
General Administration expenses stable at 20.6% of revenue, in spite of a strong increase in transportation
costs. Supported by the strong performance of the HealthCare IT division in the fourth quarter, the Group’s
adjusted EBITDA increased from 99 million Euro (5.8% of revenue) in 2020 to 104 million Euro (5.9% of revenue).
Adjusted EBIT reached 42 million Euro, versus 36 million Euro in 2020.
6. REPORTABLE SEGMENTS
The activities of the Group have been grouped into four divisions: Offset Solutions (the offset business of
the former Agfa Graphics business group), Digital Print & Chemicals (the inkjet business of the former
Agfa Graphics business group and the activities of the former Agfa Specialty Products business group),
Radiology Solutions (the imaging activities of the former Agfa HealthCare business group), and HealthCare IT
(the IT activities of the former Agfa HealthCare business group). This divisional structure is technology and
solutions based and will allow the business to seek future partnerships.
The Group’s management has identified the aforementioned divisions as its operating segments. They equal
the Group’s reportable segments. All operating segments have strong market positions, well-defined strategies
and full responsibility, authority and accountability.
To allow for a more accurate assessment of the performance of the operating segments some costs of
Corporate functions at Group level (e.g. Investor Relations, Corporate Finance, Internal Audit, Innovation Oce)
are not attributed to the operating segments. These costs are reported under ‘Corporate Services.’
The Group’s operating segments reflect the level at which the Group’s CEO and the Executive Committee review
the business and make decisions about the allocation of resources and other operating matters. The reportable
segments comprise the following activities:
Radiology Solutions
Agfa’s Radiology Solutions division is a major player on the diagnostic imaging market, providing analog and
digital imaging technology to meet the needs of specialized clinicians in hospitals and imaging centers around
the world. Agfa’s innovative imaging equipment and its leading MUSICA image processing software set
standards in productivity, safety, clinical value and cost effectiveness.
With over 150 years of experience, Agfa helps its customers to improve the quality and eciency of their
patient care. Every single day, Agfa proves that medical imaging is in its DNA.
140
HealthCare IT
The HealthCare IT division supports healthcare professionals across the globe with secure, effective, and
sustainable imaging data management. Focused on its robust and unified Enterprise Imaging Platform the
division helps its clients manage resource allocation, improve productivity and provide clinical confidence
with patient-centric contextual intelligence.
With its core commitment on delivering value, Agfa HealthCare’s technology suits multi-specialty requirements
and securely standardizes workflows, to collaborate seamlessly between departments and across geographies.
From product development to implementation, Agfa HealthCare’s best-of-suite Imaging IT software solutions
are purpose-built to reduce complexity and support healthcare providers to achieve their clinical, operational
and business strategies.
Digital Print & Chemicals
Agfa’s Digital Print & Chemicals division serves a great variety of industries. Building on Agfa’s expertise in
chemistry and its deep knowledge of the graphic arts industry, the division has a leading position in inkjet
printing. Agfa supplies sign & display printing companies with a range of highly productive and versatile wide-
format inkjet printers with matched inks, powered by dedicated workflow software. In addition, it develops
high-performance inkjet inks & fluids for industrial inkjet applications, enabling manufacturers to integrate print
into their existing production processes. It also offers dedicated inkjet inks to specific hi-tech industries such
as the printed electronics industry. Furthermore, the division supplies membranes to the hydrogen production
industry, as well as a range of printable synthetic papers. The product assortment is completed by films for
micrography, non-destructive testing, aerial photography and printed circuit board production.
Offset Solutions
The Offset Solutions division is a global leading supplier to the offset printing industry, offering commercial,
newspaper and packaging printers and the most extensive range of integrated prepress and printing solutions.
These span the entire prepress workflow right up to the press with computer-to-plate systems using digital
offset printing plates, pressroom supplies, and state-of-the-art software for workflow optimization, color
management, screening and print standardization. Agfa’s sustainable innovations for offset printing bring value
to printing companies in terms of ecology, economy, and extra convenience — or ECO³.
6.1 Principles applied in determining segment results, segment assets and liabilities
The Group’s management has identified the aforementioned divisions as its operating segments. They equal the
Groups reportable segments.
There are no transactions between operating segments.
Segment results, assets and liabilities are attributed to a reportable segment based on the following principles:
· Direct attributable to a reportable segment whenever possible; otherwise
· Allocated to a reportable segment on a reasonable basis, preferably activity based or effortized.
To allow for a more accurate assessment of the performance of the operating segments some costs of Corporate
functions at Group level (e.g. Investor relations, Corporate Finance, Internal Audit, Innovation oce) are not
attributed to the operating segments. These costs are currently reported under ‘Corporate Services.’ Also the
costs and liabilities for inactive employees (see below) and closed defined benefit plans are not attributed to
operating segments as they cannot be allocated on a reasonable basis to one or more reportable segments.
These unallocated data are included in the reconciling items between the total reportable segment information
and the consolidated profit or loss, total assets and total liabilities. This reconciliation is provided in Note 6.3.
Inactive employees are defined as permanently retired employees, former employees with vested rights, and
other employees who are not expected to return to active status, e.g. early retirement. Employees who are in
principle only temporarily inactive, e.g. long-term disability or illness, maternity leave, military service, etc. are
treated as active employees and are consequently assigned to one of the reportable segments.
Segment assets and liabilities do not comprise current income tax receivables and payables and deferred taxes
(see reconciliation in Note 6.3).
141
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
6.2 Key data by business
Key data for the reportable segments have been calculated as follows:
· Adjusted EBIT is the result from operating activities before restructuring expenses (2021: 20 million Euro,
2020: 84 million Euro) and non-recurring items (2021: 13 million Euro, 2020: 4 million Euro). Non-recurring
items comprise impairment losses, strategic transformation projects related costs (consultancy), results on
the sale of intangible assets and PP&E and Pension plan adjustments;
· % of revenue is the ratio of adjusted EBIT to revenue;
· Adjusted EBITDA = adjusted EBIT before depreciation and amortization;
· Segment result is the profit from operating activities;
· Segment assets are those operating assets that are employed by a reportable segment in its operating activities;
· Segment liabilities are those operating liabilities that result from the operating activities of a reportable segment;
· Net cash from (used in) reportable segments is the excess of cash receipts over cash disbursements from
activities that result from a reportable segment. The financial flows, the interest received and cash flows from
other investing activities are not attributed to a reportable segment;
· Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are
expected to be used for more than one year;
· Other non-cash items include impairment losses and reversal of impairment losses of receivables, write
downs of inventories and reversals of write downs, past service costs (credits) and gains and losses on settle-
ments of defined benefit liabilities, granted subventions and additions and reversals of provisions, excluding
provisions for income tax, to the extent reflected in results from operating activities.
Reportable segment Offset Solutions
Radiology
Solutions
Digital Print
& Chemicals HealthCare IT TOTAL
MILLION EURO
Revenue
Change % % % % % % % % % %
Adjusted EBIT () ()
% of revenue % % % % % % % % % %
Amortization and
depreciation
Depreciation rightofuse assets
Adjusted EBITDA ()
Segment result () () ()
Segment assets
Segment liabilities
Net cash from (used in)
reportable segments
Capital expenditures
Impairment losses recognized
on noncurrent assets
()
Other noncash items
Research and development
expenses
Average number of employees
(Full time equivalents)
()
(1) The figures comprise permanent and temporary contracts.
142
6.3 Reconciliation of revenue, adjusted EBIT, profit or loss, assets, liabilities and cash flows
MILLION EURO
Revenue
Revenue for reportable segments
Consolidated revenue
Adjusted EBIT
Adjusted EBIT for reportable segments
Adjusted EBIT not allocated to a reportable segment
()
() ()
Consolidated adjusted EBIT
Profit or loss
Segment result ()
Profit (loss) from operating activities not allocated to a reportable segment
()
() ()
Results from operating activities ()
Other unallocated amounts:
Interest income (expense) net () ()
Other finance income (expense) net () ()
Share of profit of associates net of tax
Consolidated profit (loss) before income taxes ()
Assets
Total assets for reportable segments
Operating assets not allocated to a reportable segment
()
Financial assets
Deferred tax assets
Derivative financial instruments
Cash and cash equivalents
Other unallocated receivables
Consolidated total assets
Liabilities
Total liabilities for reportable segments
Operating liabilities not allocated to a reportable segment
()
Loans and borrowings
Deferred tax liabilities
Derivative financial instruments
Other unallocated liabilities
Equity
Consolidated total equity and liabilities
Cash flows
Net cash from (used in) reportable segments
Operating cash flows not allocated to a reportable segment () ()
Net interest and dividend paid to noncontrolling interests () ()
Purchase of treasury shares ()
Net proceeds from borrowings () ()
Acquisitions and disposals of business
Proceeds/(payment) of derivatives () ()
Other
Consolidated net increase (decrease) in cash and cash equivalents ()
(1) Operating results, assets and liabilities and cash flows, not allocated to a reportable segment, relate mainly to corporate functions at Group
level and inactive employees.
143
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
6.4 Reconciliation of other material items for 2020 and 2021
Other material items 2020
The segmented other material items as presented in the table under Note 6.2 can be reconciled with the
consolidated figures as follows:
MILLION EURO Note
REPORTABLE
SEGMENTS TOTAL Adjustments TOTAL
Capital expenditures (cash outflows) /
Amortization and depreciation /
Depreciation rightofuse assets (IFRS )
Impairment losses recognized on noncurrent assets //
Other noncash items
Research and development expenses
Other material items 2021
MILLION EURO Note
REPORTABLE
SEGMENTS TOTAL Adjustments TOTAL
Capital expenditures (cash outflows) /
Amortization and depreciation /
Depreciation rightofuse assets (IFRS )
Impairment losses recognized on noncurrent assets //
Other noncash items
Research and development expenses
6.5 Geographical information for 2020 and 2021
The Group distinguishes four geographical regions: Europe, NAFTA, Latin America and Asia/Oceania/Africa.
The Group’s country of establishment is Belgium.
MILLION EURO
Revenue
by market
()
Revenue
by market
()
Europe
of which related to home market Belgium
NAFTA
Latin America
Asia/Oceania/Africa
TOTAL
All foreign countries
Germany
France
Italy
UK
US
Canada
Brazil
India
China
Japan
Other countries
TOTAL CONSOLIDATED
(1) Location of customer
144
MILLION EURO
Noncurrent
assets
()
Noncurrent
assets
()
Europe
of which related to home market Belgium
NAFTA
Latin America
Asia/Oceania/Africa
TOTAL
All foreign countries
Germany
Belgium
United Kingdom
US
Canada
Brazil
China
Hong Kong
Other countries
TOTAL
(1) Excluding deferred tax assets based on the location of the assets.
7. ALTERNATIVE PERFORMANCE MEASURE
Management has presented the performance measures ‘Adjusted EBIT’ and ‘Adjusted EBITDA’ because it
monitors these performance measures by division and believes that these measures are relevant to an
understanding of the financial performance of the Group’s operating segments.
‘Adjusted EBIT’ is the result from operating activities before restructuring and non-recurring items.
‘Adjusted EBITDA’ is the result from operating activities before depreciation, amortization, restructuring
expenses and non-recurring items. Restructuring expenses mainly relate to employee related termination
costs. These costs are presented in ‘Other expense’ (see Note 9.2).
At year-end 2021, non-recurring items amount to 13 million Euro and mainly comprise strategic transformation
projects related costs of 20 million Euro (stand-alone of Offset Solutions and changing the organizational structure
into a lean, agile and future-oriented structure), lawyer expenses of 1 million Euro, an exceptional write-down of
inventories of 1 million Euro, an exceptional write-down of unrecoverable balance sheet amounts of 1 million Euro,
a provision related to the exit of a leased facility in the US of 1 million Euro, a gain on the sale of assets of 7 million
Euro and a positive impact of 4 million Euro related to pensions and simular plans (see Note 9).
At year-end 2020, non-recurring items amount to 4 million Euro and mainly comprise impairment losses of
3 million Euro, strategic transformation projects related costs of 9 million Euro, consultancy and lawyer expenses
of 2 million Euro, an exceptional write-down of unrecoverable balance sheet amounts of 2 million Euro and an
accrual of 1 million Euro for an environmental provision, a gain on the sale of assets of 8 million Euro and a
positive pension adjustment of 5 million Euro.
145
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The following table gives an overview of the performance of each reportable segment.
Reportable segment
Offset
Solutions
Digital Print
& Chemicals
Radiology
Solutions
HealthCare IT TOTAL
MILLION EURO
Segment result (*) () () ()
Adjusted EBIT () ()
Adjusted EBITDA ()
(*) Segment result: the profit from operating allocated to a reportable segment.
Reconciliation of segment adjusted EBIT to results from operating activities
Segment adjusted EBIT
Adjusted EBIT from operating activities not allocated to
a reportable segment: mainly related to ‘Corporate Services’
() ()
Adjusted EBIT
Restructuring () ()
Nonrecurring () ()
Results from operating activities ()
Reconciliation of adjusted EBIT to adjusted EBITDA
Adjusted EBIT
Depreciation and amortization on Intangible assets and PP&E
Depreciation rightofuse assets (IFRS impact)
Adjusted EBITDA
Reconciliation of segment adjusted EBITDA to adjusted EBITDA
Segment adjusted EBITDA
Adjusted EBITDA from operating activities not allocated to
a reportable segment: mainly related to ‘Corporate Services’
() ()
Adjusted EBITDA
8. REVENUE
MILLION EURO
Revenue from contracts with customers
Revenue from other sources:
Cash Flow hedges
Revenue from other sources:
Leasing activities
TOTAL REVENUE
Excluding currency effects, the Agfa-Gevaert Group’s revenue increased by 3.4%. In spite of a slow start in the
first months of the year – which were still strongly affected by the COVID-19 pandemic – both the Digital Print
& Chemicals division and the Offset Solutions division significantly improved revenue due to successful price
increase actions and volume increases. In the Radiology Solutions division, the Direct Radiography business’ top
line suffered from the uncertainty in the market. In the aftermath of the pandemic, hospitals are reconsidering
their priorities and postponing large DR projects. In the field of medical film, price increases did not suce to
offset the ongoing impact of the pandemic and the effects of the adapted centralized procurement practices
in China in early 2021. As expected, the HealthCare IT division saw an upturn in both volumes and profitability
towards the end of the year. In the course of the year, the division witnessed a temporary delay in project
implementations, but the order book always remained at a healthy level.
146
8.1 Nature of goods and services
The Group generates revenue from the sale of goods, the rendering of services and offers multiple-element
arrangements to customers. Other sources of revenue include rental income from owned and leased
equipment under finance leases and immaterial amounts related to hedge accounting.
Revenue from the sale of goods includes the sale of consumables, chemicals, spare parts, stand-alone
equipment sales and software licenses. Revenue from the sale of goods are recognized when the customer
obtains control of the goods and when it is probable that the agreed transaction price will be
collected. In evaluating whether collectability is probable, the entity considers the customer’s ability and
intention to pay that amount when it is due.
Revenue from the rendering of services includes installation services, maintenance and post-contract support
services. Under the IFRS 15 standard, as the customer simultaneously receives and consumes the benefits
related to these services, the revenue from rendering of services is recognized over time. In case the Group
sells multiple services, the total consideration in service contracts will be allocated to all services based on their
stand-alone selling price. The stand-alone selling price will be determined based on the list prices at which the
Group sells the services in separate transactions.
The Group moreover enters into multiple-element arrangements with customers whereby several deliverables
such as software, licenses, hardware, services and maintenance are combined and offered to the customer. In
accordance with IFRS 15, the Group has assessed whether these deliverables qualify as separate performance
obligations, based on the criteria of separate identifiability and whether or not the customer can benefit from
goods or services on its own or with resources readily available to him. The Group concluded that for
arrangements not requiring substantive customization of the software, these criteria were met.
The application of the Group’s accounting policy on recognition of revenue with regard to multiple-element
arrangements requires judgement from management in allocating the total arrangement fee, including any
discounts, to each performance obligation. Changes to the performance obligations in a multiple-element
arrangement and the respective value allocated to the performance obligations could materially impact the
amount of earned and unearned revenue.
Within the HealthCare IT and Radiology Solutions business segment, the vast majority of the arrangements do
not require significant customization or modification. Within the Offset Solutions and Digital Print & Chemicals
business segment, equipment sales that require substantive installation activities are recognized when the
installation of the equipment is finalized in accordance with the contractually agreed specifications.
Under IFRS 15, installation services and equipment are considered highly interrelated and are identified as one
performance obligation that will be recognized at a point in time, i.e. at installation at the client’s premises.
Within HealthCare IT, the Group has defined standard payment terms which differ between regions based on
local practices. Payment terms are kept as short as possible. In Europe, LATAM, NAFTA and ASPAC these
payment terms are on average 30 days after invoicing date, except for Southern Europe where these range
between 60-90 days after invoicing date.
In other divisions of the Group payment terms are set based on business and geographical requirements.
Deviations from this policy are reviewed by the Credit Committees and approved based on different criteria.
Contract assets related to multiple-element arrangements within the HealthCare IT business amount 66 million
Euro (2020: 54 million Euro), and to 9 million Euro within the Radiology Solutions division (2020: 9 million Euro).
There are limited contract assets outstanding within the Offset Solutions division and in the Digital Print &
Chemicals division per December 31, 2021 and per December 31, 2020. Contract liabilities related to multiple-
147
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
element arrangements within the HealthCare IT business amount to 58 million Euro (2020: 57 million Euro),
within Radiology Solutions to 27 million Euro (2020: 27 million Euro), within Digital Print & Chemicals to
11 million Euro (2020: 5 million Euro) and within Offset Solutions to 16 million Euro (2020: 15 million Euro).
8.2 Disaggregation of revenue from contracts with customers
The disaggregation of revenue from contracts with customers at December 31, 2021, and December 31, 2020,
as required by IFRS 15 can be presented as follows:
MILLION EURO
Offset
Solutions
Digital Print
& Chemicals
Radiology
Solutions
HealthCare IT TOTAL
Geographical region
Europe
NAFTA
Latin America
Asia/Oceania/Africa
Total revenue by geographical region
(destination perspective)
Revenue by nature
Revenue from the sale of goods
Revenue from the sale of services
Timing of recognition
Revenue recognized at a point in time
Revenue recognized over time
MILLION EURO
Offset
Solutions
Digital Print
& Chemicals
Radiology
Solutions
HealthCare IT TOTAL
Geographical region
Europe
NAFTA
Latin America
Asia/Oceania/Africa
Total revenue by geographical region
(destination perspective)
Revenue by nature
Revenue from the sale of goods
Revenue from the sale of services
Timing of recognition
Revenue recognized at a point in time
Revenue recognized over time
Transaction prices allocated to unsatisfied performance obligations are not disclosed as the contracts have in
general original expected durations of one year or less.
8.3 Trade receivables and contract balances
The Group has recognized following revenue-related receivables, contract assets and contract liabilities:
MILLION EURO
Trade receivables
Contract assets
Assets recognized for costs to fulfill contracts
Goods/services transferred before payment is due
Contract liabilities
Deferred revenue
Advance payments received from customers
Expected volume discounts/rebates
148
At December 31, 2021, contract assets amounted to 76 million Euro (2020: 64 million Euro). Contract assets
primarily relate to the Group’s rights to consideration for work performed that is not yet billed. Contract assets
are transferred to receivables when the right to payment becomes unconditional. Assets recognized for costs
to fulfill contracts comprise all costs that are directly related to a contract such as direct labor, direct materials
(WIP balances) and costs that are explicitly chargeable to a customer under a contract. The Group does not
capitalize costs to obtain a contract because the amortization period of this asset is less than one year.
At December 31, 2021, contract liabilities amounted to 112 million Euro (111 million Euro current and 1 million
Euro non-current) and comprise ‘Deferred revenue and advance payments received from customers’ and
accruals for bonuses and rebates to goods and service purchased by customers during 2021.
Deferred revenue comprises amounts invoiced in accordance with contractually agreed terms but unearned
whereas advance payments reflect the amounts paid by customers who have not yet received an invoice and
to whom the Company still has to fulfill its commitment, i.e. delivery of goods and/or services. Deferred revenue
primarily results from milestone billing in arrangements combining multiple deliverables such as software,
hardware, services, … (multiple-element arrangements) and from the advance billing of service and
maintenance contracts.
8.4 Evolution of contract balances
Following table shows how much of the revenue recognized in the current period relates to the carry forward of
contract balances and how much relates to performance obligations that were satisfied in a prior period:
MILLION EURO Contract assets Contract liabilities
Opening balance of contract balances
Revenue recognized that was included in the contract liability
at the beginning of the period
- ()
Revenue recognized from performance obligations satisfied
in previous periods
- -
Advance billings to customers during the year -
Advance payments received from customers during the year -
Revenue recognized during the period ()
Contract assets recognized during the period -
Transfer from contract assets to receivables () -
Impairment of contract assets -
Contract assets (work in progress) released in COGS during the period ()
Change in volume discounts/rebates ()
Exchange differences
Closing balance of contract balances
9. OTHER OPERATING INCOME AND EXPENSES
9.1 Other operating income
MILLION EURO
Exchange gains and changes in fair value of derivatives
Finance lease income
Gains on the sale of property plant and equipment
Gain from curtailment of pension plan in France
Past service credits related to pension plans in UK Germany and France
Gains on freeze and settlement of defined benefit plan in Sweden
Income from reversal of unutilized provisions
Other income
TOTAL
149
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Finance lease income mainly comprises interest income and income from the sale of receivables under finance lease.
For 2021, gains on the sale of property, plant and equipment relate for 7 million Euro to the sale of our former
production site in Leeds (UK), previously classified as held-for-sale (see Note 35). In 2020, gains on the sale of
property, plant and equipment related for 8 million Euro to the sale of our former production site in Branchburg
US. Its carrying amount was previously classified as held-for-sale.
The closure of our manufacturing site in Pont-à-Marcq (France) in 2020 has resulted in the recognition of a
curtailment gain on pension entitlements amounting to 4 million Euro.
The past service credits shown in 2021 are the result of restructuring exercises in France during the year. In
2020, past service credits amounting to 3 million Euro have been recognized, resulting from the legal GMP
equalization adjustment related to the Agfa UK Pension Plan and the decrease in benefits for German book
reserve plans.
In Sweden, the Company has transferred out its pension liabilities in the course of Q1 2021 to an insurance
company resulting in a one-time cash-out of 16 million Euro and a one-time gain of 5 million Euro.
9.2 Other operating expenses
MILLION EURO
Restructuring expenses
Exchange losses and changes in fair value of derivatives
Other impairment losses on goodwill intangible assets PP&E and
rightofuse assets related to the closure of Wilmington (US)
Settlement loss for Agfa Corporation Pension Plan in US
Past service cost ‘Jubilee’ plan Belgium
Housing expenses related to empty space
Other expenses
TOTAL
The Company has recognized 20 million Euro restructuring expenses in 2021, mainly comprising costs linked
to the reorganization of the Company’s ICS department and the announced partnership with Atos, a global
leader in digital transformation (14 million Euro), costs related to the closure of Ipagsa, a printing plate sup-
plier operating in the low cost business (4 million Euro), additional costs related to the closed production sites
in Leeds and Pont-à-Marcq (3 million Euro) and costs for LT termination benefit resulting from new collective
labor agreements (2 million Euro), offset by a positive impact of 10 million Euro due to the reassessment of the
reorganization costs for the factories in Peisenberg and Peiting (Germany).
In 2020, the Company has recognized restructuring expenses amounting to 84 million Euro that mainly com-
prised employee termination costs. They mainly related to the closure of our Offset factories in Leeds (UK) and
Pont-à-Marcq (France) as well as the announced reorganization of our activities of our Computed Radiography
equipment factories in Peissenberg and Peiting.
Due to the closure of our production site in Wilmington (US), the Company has recognized in 2021 an impairment
loss on right-of-use assets amounting to 1 million Euro related to the rent of buildings.
For 2020, impairment losses on property, plant and equipment amounted to 2 million Euro and related to assets
that were previously used for the production of photovoltaic backsheets belonging to the Cash Generating Unit
DPC, an activity that has been stopped.
During 2020, an annuity purchase and lump sum project took place for the Agfa Corporation Pension Plan which
resulted in a settlement loss of 2 million Euro.
150
‘Jubilee’ benefits in Belgium relate to travel vouchers granted on 25-, 35-, and 40-year service anniversaries.
They have been valued for the first time at December 31 2021, resulting in the recognition of a past service cost
amounting to 2 million Euro.
10. NET FINANCE COSTS
MILLION EURO
Interest income
on bank deposits
TOTAL INTEREST INCOME
Interest expense on financial liabilities measured at amortized cost
on bank loans () ()
on debentures
TOTAL INTEREST EXPENSE () ()
Other finance income
Exchange gains on nonoperating activities net of changes in fair value of derivative
financial instruments not part of a hedging relationship
Interest income on derivatives not part of a hedging relationship
Gains on revaluation of deferred contingent consideration business combinations
Other
TOTAL OTHER FINANCE INCOME
Other finance expense
Net periodic pension cost treated as other finance income (expense) and
interest portion on other interestbearing provisions
()
() ()
Exchange losses on nonoperating activities net of change in fair value of derivative
financial instruments not part of a hedging relationship
() ()
Interest expense on derivatives not part of a hedging relationship () ()
Interest expense on cash flow hedges ()
Interest expense on other receivables ()
Interest expense for leases () ()
Impairment loss on marketable securities () ()
Unwinding of discount on provisions ()
Other () ()
TOTAL OTHER FINANCE EXPENSE () ()
NET FINANCE COSTS ()
()
()
()
(1) The interest portion of other interest-bearing provisions primarily comprises the allocation of interest on provisions for pre-retirement.
(2) The above finance income and finance costs include the following interest income and expense in respect of assets (liabilities)
not at fair value through profit or loss.
Total interest income on financial assets
Total interest expense on financial liabilities (8) (5)
151
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
11. INFORMATION ON THE NATURE OF EXPENSES
The following table gives an overview of the major expenses/income (incl. subject to restructuring) of the
Group’s operating result classified by nature (including continuing and discontinued operations):
MILLION EURO Note
Revenue
of which continuing operations
Cost of raw materials goods purchased for resale and production
related costs (including changes in inventories)
() ()
Cost of services and other goods () ()
Personnel expenses () ()
Amortization and depreciation / () ()
of which continuing operations (63) (62)
Impairment losses on goodwill intangible assets and PP&E () ()
Writedowns/writeoffs on inventories () ()
Impairment losses on receivables () ()
Changes in provisions excl restructuring
Restructuring expenses // () ()
of which continuing operations (84) (20)
Other tax expenses () ()
Other expenses () ()
Other tax income
R&D tax credits
Interest income from leasing activities
Capitalized expenses (projects assets under construction)
Gain on the sale of intangible assets and PP&E
Gain on the disposal of discontinued operations
Other income
Operating result
Elimination of discontinued operations ()
Operating result (from continuing operations) ()
Cost of raw materials, goods purchased for resale and production related costs cover all costs incurred to
purchase raw materials, goods purchased for resale, spare parts, changes in inventory and all costs that have a
clear link to production such as costs for recutting and refurbishing, to the extent reflected in the cost of sales
as comprised in profit or loss for the year.
Cost of services and other goods mainly cover:
· the external preliminary work for the processing or manufacturing of products and projects on behalf of
the Company;
· transport, freight, duties, storage and handling expenses;
· utilities and energy expenses;
· travel and entertainment;
· expenses from leasing activities.
Personnel expenses in 2021 amounted to 593 million Euro compared to 637 million Euro in 2020 (see also Note 13).
Personnel expense comprises:
· payroll related expenses: wages and salaries and social security contributions;
· expenses for retirement benefits;
· accrued expenses for personnel expenses (such as annual vacation and annual variable payments);
· other personnel expenses (such as temporary staff, training, recruitment and outplacement).
Personnel related restructuring expenses are reported as restructuring expenses.
152
The average number of employees in full-time equivalent heads for 2021 amounted to 7,126 (2020: 7,591).
Classified per corporate function, this average comprising permanent and temporary contracts can be
presented as follows:
Manufacturing/Engineering
Research and Development
Sales and Marketing/Service
Administration
TOTAL
12. EARNINGS PER SHARE
12.1 Basic earnings per share / Diluted earnings per share
The calculation of earnings per share at December 31, 2021, was based on the profit (loss) attributable to own-
ers of the Company of minus 17 million Euro (2020: a profit of 613 million Euro) and a weighted average number
of ordinary shares outstanding during the year ended December 31, 2021, of 165,003,570 (2020: 167,751,190).
Number of shares issued
Own shares (see Note ) ()
Number of outstanding ordinary shares with voting rights December (see note )
Effect of options exercised during
Effect of stock options on issue
Weighted average number of ordinary shares at December
Euro
Basic earnings per share / Diluted earnings per share ()
EPS continuing operations () ()
EPS discontinuing operations
The average fair value of one ordinary share during 2021 was 3.86 Euro per share.
153
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
EMPLOYEE BENEFITS
Employee benefit liabilities
MILLION EURO December December
Liabilities for postemployment benefits
Longterm termination benefits
Liabilities for postemployment and longterm benefit plans
Other noncurrent employee benefits
Noncurrent employee benefit liabilities
Current employee benefit liabilities
Total employee benefit liabilities
Employee benefit expenses
MILLION EURO
Payroll related expenses
Expenses for retirement benefits included in EBIT
Accrued expenses for personnel expenses
Other personnel expenses
Total employee benefit expenses included in EBIT
13. POST-EMPLOYMENT BENEFIT PLANS
The Group provides retirement benefits in most countries in which it operates, mainly through defined
contribution plans. In some countries, however, the Group organizes its retirement benefits via defined benefit
plans. The net defined benefit liability for Belgium, Germany, UK and US together (within Agfa in this context
also referred to as ‘material countries’) represent 98% (2020: 96%) of the total net defined benefit liability of
the Group. A major part of these liabilities relate to closed pension plans, meaning that no further benefits are
accrued under these plans. This is the case in the UK, the US and for a major part of the German pension plans.
In Belgium, the major pension plan – referred to as ‘Fabriekspensioenplan’ – has been closed to new managers
entering as from January 2019.
The following table summarizes the impact of the Group’s post-employment benefit plans on its consolidated
statements of financial position and profit or loss, broken down into material countries and other countries.
154
MILLION EURO
December December
Belgium/
Germany/
UK/US
Other
countries
TOTAL
Belgium/
Germany/
UK/US
Other
countries
TOTAL
Liabilities for postemployment benefits
Assets related to postemployment benefits () ()
Net balance sheet position
% %
MILLION EURO
Belgium/
Germany/
UK/US
Other
countries
TOTAL
Belgium/
Germany/
UK/US
Other
countries
TOTAL
Defined contribution plans net premiums and taxes
Postemployment defined benefit plans
current service & administrative cost
-
Postemployment defined benefit plans
past service cost (gain)
() () () ()
Postemployment defined benefit plans
loss (gains) on settlements
() () () ()
Belgian defined contribution plans with
return guaranteed by law
Expenses related to postemployment benefits
included in EBIT
()
Net interest cost related to postemployment benefits
including administrative costs of closed DBplans
Total expenses related to postemployment benefits ()
In Sweden, the Company has transferred out its pension liabilities in the course of Q1 2021 to an insurance
company resulting in a one-time cash-out of 16 million Euro and a one-time gain of 5 million Euro. The transfer
of the Swedish pension plan to an external insurer mainly explains the evolution of the pension liabilities for the
Group's non-material countries.
The evolution of the pension liabilities for the Group’s material countries is explained in section 13.2.
13.1 Defined contribution plans
The Agfa-Gevaert Group companies’ contributions to publicly or privately administered defined contribution
pension funds or insurance contracts totaled 8 million Euro in 2021 (4 million Euro in 2020) of which 4 million
Euro relates to the Group’s material countries (2 million Euro in 2020). Once the contributions have been paid,
the Group companies have no further payment obligation. The regular contributions constitute an expense for
the year in which they are due.
Defined contribution plans in Belgium are for the purpose of the IFRS accounting treatment not considered
as defined contribution plans but instead as defined benefit plans. More information on these plans is
provided hereafter.
13.2 Defined benefit plans
13.2.1 Belgian defined contribution plans with return guaranteed by law
Belgian ‘Defined Contribution’ plans are subject to the Occupational Pensions Act of April 2003. In accordance
with article 24 of the Occupational Pensions Act, aliated persons are entitled to a guaranteed return with regard
to contributions made by the organizer of the plan and by the employee. Until December 31, 2015, the minimum
guaranteed return amounted to 3.25% on employer contributions and of 3.75% on employee contributions.
155
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The Act of December 18, 2015, which entered into force on January 1, 2016, has introduced several amendments to
the Act of April 28, 2003. As of January 1, 2016, the guaranteed return is aligned with the percentage (65%) of the
average return on June 1 over the last 24 months of Belgian State linear bonds (‘OLOs’) with a maturity of 10 years,
with a minimum of 1.75% and a maximum of 3.75%. As of 2016, the return guaranteed by law is set at 1.75% and
applies to both personal contributions made by the employee and contributions made by the employer.
With regard to the application of the guaranteed return in case of modification of the interest rate, the Act of De-
cember 18, 2015 introduced the ‘horizontal method’ applicable for all insured plans which guarantee a fixed return
up to the retirement age (so-called Branch 21 insured products) and the ‘vertical method’ in all other situations.
Within our Belgian group companies, all insured pension plans are managed via ‘Branch 21’ insured products.
The application of the ‘horizontal method’ is comparable to a fixed-rate term deposit account. The previous
interest rate is applicable until exit, retirement or abolition of the pension engagement – whichever occurs first
– to the contributions due on the basis of the plan rules before the modification. The new interest rate is then
applicable to contributions due on the basis of the plan rules from the modification onwards until the first of the
aforementioned occurrences.
Therefore, for all of the Group’s defined contribution plans with return guaranteed by law, the minimum return
of 3.25% (employer contributions) and 3.75% (employee contributions) still apply for contributions made until
December 31, 2015. For these contributions, aliated persons are entitled to at least a return of 3.25%/3.75%
until retirement age (or exit/abolition of the pension engagement). For contributions made as from 2016, the
employer is committed to a minimum return of 1.75% until occurrence of retirement age, exit or abolition of the
pension engagement.
As insurance companies apply technical interest rates – i.e. agreed interest rates excluding profit-sharing – below
the minimum return guaranteed by law, not all actuarial and investment risks relating to these insured plans
are transferred to the insurance company managing the plans. Therefore these plans do not meet the definition
of defined contribution plans under IFRS and are by default classified and measured as defined benefit plans.
In Belgium, the DC-plans comprise pension plans, group insurance plans and bonus pension plans that provide
for deferred compensation for employee bonuses. The net liability at December 31, 2021 amounted to 5 million
Euro and is almost fully attributable to the bonus pension plans.
The total defined benefit cost recognized in profit or loss for 2021 amounted to 9 million Euro (2020: 19 million
Euro) or a decrease of 9 million Euro mainly explained by the lower employee bonuses awarded over the 2021
service year.
Except for a group insurance plan for managers and executives, all DC-plans are fully financed by employer
contributions. In 2021, the annual employer contributions amounted in total to 8 million Euro (2020: 16 million
Euro). The Group expects a higher contribution amount in 2022.
13.2.2 Defined benefit plans excluding defined contribution plans with return guaranteed by law
The Group’s post-employment defined benefit plans primarily relate to retirement benefits.
The Group Pension Committee, created as a subcommittee of the Executive Committee (Exco) of the Group
assists the Exco in the oversight and supervision of the different pension plans and other post-employment
arrangements that exist within the Group.
The Committee advises the Exco on benefit plan design matters such as amendment to or termination –
in whole or in part – of the benefit plans and their respective funding arrangements. Next to providing advice
to the Exco, the Group Pension Committee is also responsible for advising local management – i.e. local
management of the pension funds as well as local management of the sponsoring employers of the benefit
plans – in fulfilling their responsibilities in relation to pension matters.
156
The Group Pension Committee has set a strategic asset allocation for its major plans that are financed through
a separate pension fund. The committee reviews the asset allocation targets regularly to ensure that they
remain appropriate to the pension fund liability profiles. For the management of the plan assets, the Group
Pension Committee is assisted by the Group Pension Investment Committee. The Group Pension Investment
Committee has issued a Group Investment Guideline which was approved by the Group Pension Committee.
The Group Pension Committee monitors the proper application of this guideline.
The Group, through its Group Pension Committee, investigates liability reduction solutions and seeks to de-risk
the Group’s post-employment benefit liabilities. In recent years, the Group Pension Committee has proposed
different measures that have been realized, among which the closure of the ‘Fabriekspensioenplan’ for new
managers entering as from January 2019, the offer in December 2018 to transfer to a third party insurer a
certain portion of the benefits built under the Agfa UK Pension Plan and a terminated vested cash-out project
for the Agfa Corporation Pension Plan launched in 2018. In 2019, an annuity purchase project has taken place
for the pensioners of the Agfa Corporation Pension Plan. In 2020, the de-risking activities continued with a
terminated vested cash-out, an annuity placement on retirees and an age 59.5 in-service distributions for the
Agfa Corporation Pension Plan. In 2021, the Agfa UK Pension Plan entered into an annuity buy-in contract
backing 70% of the pensioner liabilities of the plan.
The Group’s major defined benefit plans generally provide benefits that are related to an employee’s remuneration
and years of service. Their characteristics and associated risks are explained in more detail hereafter.
Belgium
In Belgium, the defined benefit obligation relates mainly to ‘Fabriekspensioenplan’ that is financed through
contributions paid to an external Organization for Financing Pensions (OFP). This fund has the duty to foresee
the payments of the pensions promised by its participating employers, being Agfa-Gevaert NV, Agfa NV and
Agfa Offset BV to the beneficiaries of the plan.
As of January 1, 2019, the ‘Fabriekspensioenplan’ has also been closed for new managers of the Group. For the
‘Fabriekspensioen’, the plan participants are eligible for a benefit based on a last yearly income formula. As this
funded pension plan is still open to future accruals and new entrants except for managers, the plan exposes the
Company to a salary increase risk, next to an interest rate risk, an investment risk and a longevity risk. Although
this plan has been set up as an annuity plan, more than 95% of the members choose to take their benefit as a
lump sum pension payment at the retirement age.
The legal and regulatory framework for the ‘Fabriekspensioen’ is based on the applicable Belgian law, i.e. the
law of October 27, 2006 on the supervision of institutions for occupational retirement provision and the law on
supplementary pensions (WAP), applicable as from January 1, 2004. Based on this legislation a funding valuation
is prepared annually. The valuation method, used to determine the contributions to the Belgian OFP, is the
‘aggregate cost method’.
The contribution, according to the calculation method defined in the financing plan, is expressed as an annual fixed
percentage of payroll in order to finance the total service liability. According to the latest actuarial valuation report
on the Belgian OFP, dated January 2021, the Long Term Provision funding ratio was 116.86% (2020: 108.55%).
The Board of Directors of the ‘Pensioenfonds Agfa-Gevaert OFP’ bears the ultimate responsibility for the man-
agement of the assets and liabilities of the ‘Fabriekspensioenplan’. They have delegated investment oversight
of the plan’s assets to the Local Investment Committee who in turn operates within the framework set by the
Group Pension Committee. The Statement of Investments Principles (SIP), prepared by the Local Investment
Committee in accordance with the Group Investment Guidelines, has been formally ratified at the Extraordinary
General Meeting of the ‘Pensioenfonds Agfa-Gevaert OFP’ on January 31, 2020. The Local Investment Committee
needs to ensure that plan assets are invested effectively and prudently, in full compliance with all applicable
laws, and for the benefit of plan participants and beneficiaries.
157
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Germany
In Germany, no legal or regulatory minimum funding requirements apply, and as such the Group’s German
defined benefit retirement plans are all unfunded plans.
The German pension plans include a basic plan related to pension relevant salary up to the Social Security
Ceiling (SSC) and a supplementary plan covering benefits attributed on pension relevant salary above the
Social Security Ceiling. Additionally, Agfa is obliged to provide pension plans according to the Collective
Labor Agreement (CLA) regulation of the Chemical Sector.
In Germany, we have two main pension plans: the ‘old pension plan’ that was closed to new entries as from
2005 and the ‘new pension plan’ applicable to employees joining as from 2005. The ‘old pension plan’ was closed
to future benefit accrual as of December 31, 2009 and the participating employees joined the ‘new pension plan’
for future benefit accrual on enhanced benefit terms. Both plans comprise a basic and a supplementary plan.
Under the ‘old pension plan’, the basic plan is managed by the Bayer Pensionskasse (Penka). The Bayer Pen-
sionskasse is a multi-employer plan accounted for as if it were a defined contribution plan (IAS 19.34 (a)). The
plan is a defined benefit plan under control of the Group’s former parent company Bayer AG. It is accounted for
as a defined contribution plan as the Group has no right to obtain the necessary data for defined benefit plan
accounting. In case of a deficit, this plan may expose the Group to investment and actuarial risk. The Group
however considers these risks insignificant. From 2004 onwards, Agfa has been responsible for adjustments to
the pension payments processed by the Bayer Pensionskasse in accordance with Sec. 16, 1 and 2 of the German
Pension Act (BetrAVG – Betriebsrentengesetz). The base pension including the adjustments processed
according to the aforementioned legal regulations up until 2003 are paid by the Penka directly. Consequently,
the defined benefit liability disclosed in Agfa’s accounts in respect of this basic plan solely relate to the post-
2003 adjustments to the pension payments.
The benefits accrued under the supplementary plan are accounted for as a defined benefit plan. They are
based on ‘contributions’
(1)
calculated as a fixed percentage of pensionable salary above the SSC. Then, an age
independent factor is used for converting those ‘contributions’
(1)
into individual pension entitlements.
The ‘new pension plan’ includes a basic pension plan, i.e. benefits entitlements on pensionable salary up to the
SSC, and a supplementary pension plan accruing benefits on pensionable salary above the SSC. The basic plan
is funded through contributions paid to the Rheinische Pensionskasse. Employees contribute to the Rheinische
Pensionskasse by deferred compensation. Once the contributions have been paid to the Rheinische Pension-
skasse, in principle the group companies have no further payment obligation. This plan is consequently ac-
counted for as a defined contribution plan. The new supplementary plan, which is accounted for on the balance
sheet as a direct pension commitment, has no upper ceiling for pensionable salary.
The benefits accrued under the supplementary plan are based on ‘contributions’
(1)
calculated as a fixed
percentage of pensionable salary above the SSC. In contrast to the old pension plan, ‘contributions’
(1)
to the
new supplementary pension plan are then converted into pension entitlements based on age-dependent
pension factors and considering a pre-determined annual increase of those entitlements. As of 2012, the plan
introduced an option to pay out lump sums instead of monthly pension payments.
Employees who participated in the ‘old pension plan’ when it was closed to future accrual as of December 31,
2009, receive supplementary pension entitlements based on a matching ‘fifty-fifty’ approach meaning that the
employer pays contributions to the extent of the employee contributions. The structure itself is similar to the
new supplementary pension plan as described above.
The pension plan according to the CLA of the Chemical Sector is based on ‘contributions’
(1)
that are converted
into individual pension entitlements using age-dependent pension factors. Employees also contribute to this
plan by deferred compensation.
(1) ‘Contributions’ in this context means a calculation base which is used to finally determine the pension entitlements.158
In Germany, Agfa has a number of smaller plans from previous corporate acquisitions. These plans are all closed
to future benefit accrual.
The defined benefit liability in Germany also includes pension plans that are fully based on deferred compensa-
tion models. The benefits accrued under these plans are based on the annually deferred compensation amount
of each beneficiary converted into pension entitlements and in some cases additionally considering a pre-
determined annual increase of those entitlements.
For HealthCare IT employees, there are pension plans managed by different external funds (Pensionskassen).
These plans are mainly financed by deferred compensation models and are accounted for as defined contribution
plans. Additionally, top management of Agfa HealthCare IT in Germany is provided with a salary related pension
scheme, processed by a congruently funded multi-employer plan (kongruent rückgedeckte Unterstützungskasse).
The different defined retirement benefit plans expose the Company to actuarial risks such as interest rate risk,
pension indexation risk and longevity risk.
The expense for the German defined contribution plans is included in the amount disclosed in Note 13.1 with
regard to the Group’s material countries.
UK
As from 2010, the Agfa UK Pension Plan has been fully closed. It is financed through contributions paid by its
participating employers, being at year-ends 2020 and 2021: Agfa-Gevaert NV, Agfa HealthCare UK Ltd and Agfa
Graphics Ltd. The plan members are eligible for a benefit based on a final average pay formula. From the age of 55,
benefits accrued under this plan can be paid partly in cash with the remainder paid in monthly payments.
If the benefit is taken before the normal retirement age of 65 there is an actuarial reduction of the benefit’s value.
Deferred plan members are entitled to an inflation increase, based on CPI (Consumer Price Index), of their
accrued benefits until retirement payments are taken.
Pension payment increases are in line with RPI (Retail Price Index) with a minimum increase of 3% and a max-
imum increase of 5%. Next to inflation risk, the frozen defined benefit plan exposes the Company to actuarial
risks such as investment risk, interest rate risk and longevity risk.
The defined benefit plan is governed by a benefit trust whose decision making body is a Board of Trustees. They
have a fiduciary duty to act solely in the best interests of the beneficiaries according to the trust rules and UK law.
The required funding is determined by a funding valuation carried out every three years based on legal
requirements and funding valuation assumptions that meet the UK regulatory body’s current requirements
and are also agreed between the Company and the Trustees. Following the latest funding valuation which took
place in 2019, Agfa has entered in July 2020 into an agreement with the trustees to pay a cash sum of 60 million
Pound Sterling followed by quarterly fixed payments for the next five years to fund the current deficit. In 2021,
the Agfa UK Pension Plan entered into an annuity buy-in contract backing 70% of the pensioner liabilities of the
plan. To support this de-risking activity the Group made a contribution of 90 million Pound Sterling (105 million
Euro) to the plan in 2021, effectively bringing forward the contributions expected under the agreement with the
trustees, and so no further contributions are expected to be made in 2022.
US
As from 2009, the Agfa Corporation Pension Plan has been fully closed. Agfa Corporation, Agfa HealthCare
Corporation, Agfa Materials Corporation, Agfa Finance Corporation and Agfa US Corporation are participating
employers in this pension plan.
159
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The plan participants are eligible for a benefit based on a final average pay formula. This frozen defined benefit
plan exposes the Company to actuarial risks such as investment risk, interest rate risk and longevity risk.
The defined benefit plan assets are held in a trust. The Board of Directors of Agfa Corporation, the plan sponsor,
delegate investment decisions and oversight of the plan’s assets to a local investment committee, the Benefits
Plan Investment Committee (BPIC). The BPIC members have a fiduciary duty to act solely in the best interests
of the beneficiaries according to the trust agreement and US law. The legal and regulatory framework for the
plan is based on the applicable US legislation Employee Retirement Income Security Act (ERISA). Based on this
legislation a funding valuation is prepared annually.
The plan sponsor and participating employers contribute such amounts as are deemed necessary on an actuarial
basis to provide sucient funds to meet the benefits to be paid to plan members. Minimum contributions are
based on the requirements prescribed by the provisions of the Employee Retirement Income Security Act (ERISA)
of 1974 and the Pension Protection Act of 2006 (PPA). Pursuant to the PPA, each year the actuary is required to
certify the plan’s funded percentage. Agfa did not need to certify the plan’s 2020 funding percentage in July due
to the ongoing pandemic. The US government passed legislative relief allowing plan sponsors to use the 2019
funded percentage for the 2020 plan year. Agfa did certify the 2020 funding percentage of 113.34% in December
2020. This funding percentage did not take into account the impact of the de-risking activities that took place in
2020. The 2021 funding percentage amounts to 102.91% and has been determined in September 2021.
During 2020, an annuity purchase and lump sum project took place for the Agfa Corporation Pension Plan.
The lump sum was offered to terminated vested participants and active participants age 59.5 as of December
1, 2020. For participants in this project that elected an annuity rather than a lump sum, an additional annuity
purchase has been offered. For these three transactions together, the cash out from plan assets amounted to
211 million Euro and resulted in a settlement loss of 1.9 million Euro.
13.2.3 Evolution net defined benefit liability and its components
The following three tables show a reconciliation from the opening balances to the closing balances for the net
defined benefit liability and its components.
Evolution net defined benefit liability during 2020 and 2021
MILLION EURO
Retirement
plans
(excl Belgian
DCplans)
Belgian
DCplans
with return
guaranteed
by law
TOTAL
Retirement
plans
(excl Belgian
DCplans)
Belgian
DCplans
with return
guaranteed
by law
TOTAL
Net liability at January
Defined benefit cost included in
profit or loss
Total remeasurements included in OCI () () () ()
Net transfer in/(out) including
impact of business combinations
and divestitures
() ()
Cash flows
Employer contributions () () () () () ()
Benefits paid directly by the company () () () ()
Currency effects: charge (or credit) () ()
Net liability at December
The employer contributions for 2020 and 2021 have been impacted by one-time payments for US (114 million
Euro in 2020), for UK (67 million Euro in 2020 and 105 million Euro in 2021) and Belgium (37 million Euro in 2020
and 9 million Euro in 2021).
160
Defined benefit costs for 2020 and 2021
MILLION EURO
Retirement plans
(excl Belgian
DCplans)
Belgian
DCplans
TOTAL
Retirement plans
(excl Belgian
DCplans)
Belgian
DCplans
TOTAL
Service cost
Service cost exclusive of
employee contributions
Past service cost () ()
(Gain) loss on settlements
Total service cost
Net interest cost
Interest expense on DBO
Interest (income) on plan assets () () () () () ()
Total net interest cost
Administrative expenses and taxes
DEFINED BENEFIT COST INCLUDED
IN PROFIT OR LOSS
Actuarial losses (gains)
Experience losses (gains)
on plan liabilities
() () () () () ()
Demographic assumptions () ()
Financial assumptions () () ()
Return on plan assets excl
Interest income
() ()
Total remeasurements included in OCI () () () ()
TOTAL DEFINED BENEFIT COST
RECOGNIZED IN PROFIT OR LOSS
AND OCI
() ()
The total defined benefit credit recognized in profit or loss and Other Comprehensive Income (OCI) for 2021
for the Group’s material countries amounted to 53 million Euro (2020: cost of 156 million Euro). Of this amount,
41 million Euro expense is reflected in the Group’s Consolidated Statement of Profit or Loss over 2021 (2020:
55 million Euro expense). The balance, being a credit of 94 million Euro for 2021 (a cost of 101 million Euro for
2020) is reflected in OCI under ‘Remeasurement of the net defined benefit liability’. These remeasurements
originate from experience gains on plan liabilities, changes in demographic and financial assumptions as well
as from experience adjustments on the fair value of assets.
161
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Evolution defined benefit obligation, fair value of assets and funded status during 2020 and 2021
The defined benefit obligation, plan assets and funded status for the Group’s material countries are shown below.
MILLION EURO
Retirement
plans (excl
Belgian
DCplans)
Belgian
DCplans
with return
guaranteed
by law
TOTAL
Retirement
plans (excl
Belgian
DCplans)
Belgian
DCplans
with return
guaranteed
by law
TOTAL
Change in defined benefit obligation
Defined benefit obligation at January
Service cost
Current service cost exclusive of
employee contributions
Past service cost () ()
(Gain)/loss on settlements
Interest expense
Cash flows
Benefit payments () () () () () ()
Employee contributions
Premiums Paid
Increase (decrease) due to transfers
including impact of business
combinations and divestitures
() () ()
Remeasurements
Effect of changes in demographic
assumptions
() ()
Effect of changes in financial
assumptions
() () ()
Effect of experience adjustments () () () () () ()
Currency effects: charge (or credit) () ()
Defined benefit obligation
at December
Change in plan assets
Fair value of assets at January
Interest income
Employer contributions
Employee contributions
Benefit payments () () () () () ()
Administrative expenses and taxes () () () ()
Premiums Paid
Increase (decrease) due to transfers
including impact of business
combinations and divestitures
() () ()
Return on plan assets
(excluding interest income)
() () () ()
Currency effects: (charge) or credit () ()
Fair value of assets at December
Funded status at December
Funded status
Effect of asset ceiling/onerous liability
Net liability (asset) at December
At December 31, 2021, the total defined benefit obligation for the Group’s material countries, excluding defined
contribution plans with return guaranteed by law, amounted to 1,767 million Euro (1,863 million Euro at December
31, 2020). Of this amount, 1,088 million Euro (1,126 million Euro at December 31, 2020) is related to wholly or
partly funded plans and 679 million Euro (737 million Euro at December 31, 2020) is related to unfunded plans.
162
At December 31, 2021, the financing deficit for the Belgian defined contribution plans with guaranteed return
amounted to 5 million Euro (9 million Euro at December 31, 2020). The net pension liability for these plans is
calculated as the difference between the present value of the defined benefit obligation (DBO) amounting to
191 million Euro (198 million Euro at December 31, 2020) and the fair value of the plan assets amounting to
187 million Euro (189 million Euro at December 31, 2020).
In 2020, benefit payments amounted to 321 million Euro and have been impacted by 211 million Euro settlement
payments in US. For the Group’s material countries, no settlement payments were made in 2021.
13.2.4 Defined benefit obligation - Principal actuarial assumptions at the reporting date
The liabilities and defined benefits cost of the Group’s retirement plans are determined using actuarial
valuations that involve several actuarial assumptions. At the end of the reporting periods 2020 and 2021,
the following principal actuarial assumptions (weighted averages) have been used:
December December
Discount rate % %
The above stated average discount rate and salary increases have been determined based on the actuarial
assumptions applied in the different defined benefit plans of the Group’s material countries weighted by the
defined benefit obligation of the respective plan.
The discount rates used are determined by reference to the rates available on high-quality corporate bonds,
that have a credit rating of at least AA from a main rating agency, that have maturity dates approximating the
terms of the Group’s obligations.
Weighted average duration
The Group has consistently calculated the weighted average duration by taking the average of the durations ob-
tained via sensitivities +25 bps and -25 bps on the discount rate for the retirement plans of the Group’s material
countries. At December 31, 2021, the weighted average duration is 13.2 years (13.5 years at December 31, 2020).
Sensitivity analysis
The following information illustrates the sensitivity to a change as at December 31, 2021 in certain assumptions
for the retirement plans of the Group’s material countries.
MILLION EURO
Effect on December
Defined benefit obligation
bp decrease in discount rate
bp increase in discount rate ()
Change in mortality table assuming employees live one year longer
Change in mortality table assuming employees live one year shorter ()
13.2.5 Plan assets
Fair value of assets, split by major asset class
For the Group’s material countries, plan assets comprise following major asset classes:
MILLION EURO December December
Cash cash equivalents and other
Equity instruments
Debt instruments
Investment funds
Assets held by insurance company
()
TOTAL
(1) Mainly Belgian ‘DC’ plans with return guaranteed by law, and the annuity buy-in contract in the UK.
163
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The de-risking activity in the UK in 2021 included the purchase of an annuity buy-in contract backing 70% of
the pensioner liabilities (239 million Euro at December 31, 2021) as well as a change in the investment strategy
for the plan to include LDI investment funds to better match the UK plan liabilities and reduce interest rate and
inflation risks.
For the equity and debt instruments the Group applies a passive or semi-passive management (index tracking).
At 2020 and 2021 year-ends, the fair value of assets does not comprise equity or debt instruments of the
Company or its subsidiaries.
13.2.6 Expected defined benefit costs and cash flows for 2022
For 2022, the Group expects for the defined benefit plans of its material countries a total defined benefit cost in
profit or loss of 42 million Euro, comprising of 32 million Euro service cost (of which 14 million Euro related to
defined contribution plans in Belgium), 2 million Euro administrative expenses and taxes and 8 million Euro net
interest costs.
During the next fiscal year 2022, the Group expects to contribute 14 million Euro to its material retirement
plans. This amount excludes the estimated contribution payments for the defined contribution plans in Belgium
amounting to 14 million Euro.
The expected cash out for 2022 is 55 million Euro, excluding Belgian DC-plans, and is 123 million Euro lower
than the Company’s cash out for 2021 which amounted to 178 million Euro, comprising of 138 million Euro em-
ployer contributions and 40 million Euro benefit payments directly paid by the Company to the beneficiaries.
14. LONG-TERM TERMINATION BENEFITS
Long-term termination benefits result from the Group’s commitment to either terminate the employment
before the normal retirement date, or provide termination benefits as a result of an offer made to encourage
voluntary redundancy. At December 31, 2021, long-term termination benefits amounted to 8 million Euro
(9 million Euro at December 31, 2020) and mainly relate to severance payments in connection with early
retirement arrangements with employees of the Group’s Belgian entities.
15. SHARE-BASED PAYMENT TRANSACTIONS
In the course of 2020, the Board of Directors has appointed Mr. Pascal Juéry as CEO of the Agfa-Gevaert Group
and Managing Director. Mr. Juéry is eligible for a long-term variable compensation, embedded in a Stock
Appreciation Rights Plan that can result in an additional cash bonus.
The key components of the Stock Appreciation Rights Plan are the following:
· Over a period of five years, commencing on February 1, 2020, Mr. Juéry will annually receive 200,000 Stock
Appreciation Rights;
· The strike price for these Stock Appreciation Rights has been set for the year 2020 at 4.75 Euro (to be adjusted
downwards for any dividend distribution). As of 2021, the strike price is depending on the average closing
price of the Agfa-Gevaert share during the 30 days preceding the grant date. The strike price for this second
tranche was 3.9445 Euro. At December 31, 2021, the total outstanding stock appreciation rights amount to
400,000; 200,000 at strike price of 4.75 Euro and 200,000 at strike price of 3.9945 Euro.
· The Stock Appreciation Rights will vest for one/third of each grant at the end of each calendar year over
three years;
· The Stock Appreciation Rights can be exercised at the earliest three years after grant.
The fair value of the Stock Appreciation Rights Plan is calculated using a Black & Sholes model with expected
life of 10 years and expected volatility of 38.27% for the first tranche and a volatility of 38.24% for the second
tranche, and is presented as a liability with corresponding changes in fair value recognized in profit or loss
(2021: 0.3 million Euro; 2020: 0.1 million Euro).
164
In the course of 2021, a long-term variable compensation, embedded in a Stock Appreciation Rights Plan that
can result in an additional cash bonus was granted to key personnel members of the Group.
The key components of this Stock Appreciations Rights Plan are the following:
· At March 9, 2021 an amount of 830,000 Stock Appreciation Rights have been granted to key member
personnel. The outstanding Stock Appreciation Rights at December 31, 2021 amount to 830,000;
· The strike price of these Stock Appreciation Rights have been set at 3.7793 Euro;
· The Stock Appreciation Rights will vest for one/third of each grant at the end of each calendar year over
three years;
· The Stock Appreciation Rights can be exercised at the earliest three years after grant.
The fair value of the Stock Appreciation Rights Plan is calculated using a Black & Sholes model with expected
life of five years and expected volatility of 38.26%, and is presented as a liability with corresponding changes in
fair value recognized in profit or loss (2021: 0.3 million Euro).
16. OTHER EMPLOYEE BENEFITS
The split between long-term and short-term employee benefits is presented in the table below:
MILLION EURO
Longterm employee benefits
Shortterm employee benefits
Liabilities for social expenses
Payroll liabilities
Other shortterm liabilities
TOTAL
Long-term employee benefits comprise a long-term disability plan in the US, the plans ‘Jubilee’ and
‘Pensionsurlaub’ in Germany, Jubilee benefits in Belgium and some other long-service leave and service awards.
At December 31, 2021, these amounted to 11 million Euro (13 million Euro at December 31, 2020). This amount
comprises for 2 million Euro Jubilee benefits in Belgium which have been valued for the first time at December 31,
2021. The benefits relate to travel vouchers on 25-, 35-, and 40-year service anniversaries.
Other short-term employee benefits comprise liabilities set up all commitments relating to the workforce in
the broadest sense such as accruals for vacation entitlements and flexi-time surpluses, continuation of wage
and salary payments in the event of sickness amounts payable within 12 months, short-term disability benefits,
accruals for bonuses of all kinds, payments under profit-sharing plans.
165
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
TAXES
17. INCOME TAXES
The Group is subject to income taxes in numerous jurisdictions. Uncertainties exist with respect to the
interpretations of complex tax regulations in the respective countries. The Group establishes accruals for
anticipated tax audit issues based on reasonable estimates of whether additional taxes will be due, considering
various factors such as experience with previous tax audits and differing legal interpretations by the taxable
entity and the responsible tax authority.
Differences arising between the actual results and the assumptions made, or future changes to such
assumptions, could necessitate adjustments to tax income and expense in future periods.
The breakdown of the income tax expenses by origin is as follows:
MILLION EURO
Taxes paid or accrued
Related to this year
Related to prior years ()
Deferred tax expense (income) () ()
From temporary differences () ()
From tax loss carryforwards and tax credits () ()
Income tax expense
From continued operations
From discontinued operations ()
Last year’s current tax expense of 19 million Euro comprises for 5 million Euro expenses related to discontinued
operations. Current tax expenses on continuing operations have therefore evolved from 15 million Euro last year
to 20 million Euro in 2021. The increase of 5 million Euro is due to one-off costs, 3 million Euro to changes in the
group structure and 1 million Euro tax impact on the positive outcome of a court case on indirect taxes.
Deferred tax income has decreased from 11 million Euro in 2020 to 5 million Euro in 2021 but disregarding last
year’s impact of discontinued operations, i.e. a deferred tax income amounting to 12 million Euro, deferred tax
income has increased by 6 million Euro. This evolution can be largely explained by the inclusion in 2021 of a
deferred tax asset on tax losses of previous years.
Further information on the major components of tax expense (income) is provided in the table reflecting the
reconciliation between the theoretical tax rate and the effective tax rate in Note 17.3.2.
17.1 Current income tax assets and liabilities
At December 31, 2021, current income tax assets amount to 63 million Euro (2020: 63 million Euro), of which
70% relates to the refund of R&D tax credits. An amount of 1.6 million Euro is relating to uncertain tax positions,
linked to an ongoing tax procedure.
Current income tax liabilities amount to 28 million Euro (2020: 23 million Euro), of which 17 million Euro (2020:
17 million Euro) relates to uncertain tax positions. From these uncertain tax positions 9 million Euro is relating to
ongoing tax audits, procedures and litigations in various jurisdictions (2020: 8 million Euro). Another 8.4 million
Euro is relating to potential discussions in respect of transfer pricing. Although the Group is confident that all of
its intragroup dealing are at arm’s length and documented, transfer pricing is a topic that continues to trigger
scrutiny from tax authorities worldwide. Some discussions may lead to double taxation, whereby the outcome
of mutual agreement procedures or other procedures might still have a negative effect on the tax expense.
Current income tax for current and prior periods are, to the extent unpaid, recognized as a liability. If the
amount already paid in respect of current and prior periods exceeds the amount due for those periods,
the excess is recognized as an asset.
Current income tax assets are offset against current income tax liabilities when they relate to taxes levied by the
same taxation authority and are intended to be settled on a net basis.
166
The Group believes that its accruals for tax liabilities are adequate for all open tax years based on its
assessment of many factors as explained above.
17.2 Deferred tax assets and liabilities
Deferred tax assets are the amounts of income taxes recoverable in future periods in respect of deductible
temporary differences, the carry-forward of unused tax losses and the carry-forward of unused tax credits.
Deferred tax assets are recognized where it is suciently probable that taxable income will be available in the
future to enable the deductible temporary differences, tax loss carry forwards and tax credits to be utilized.
The Group’s management regularly assesses the recoverability of its deferred tax assets, mainly based on the
long-term business plans for the divisions Offset Solutions, Digital Print & Chemicals, Radiology Solutions and
HealthCare IT and considering historical profitability and projected future taxable income of the individual
consolidated entities that are involved. Other parameters such as the expected timing of the reversals of
existing temporary differences and tax planning strategies are considered as well in this assessment. Material
changes to business plans and/or business (goods and services) flows impacting the taxable profit or loss of
certain entities of the Group may influence the realization of deferred tax assets. Differences arising between
the actual results and the assumptions made, or future changes to such assumptions, could necessitate
reversing certain deferred tax assets resulting in an increase of the Group’s effective tax rate.
Deferred tax liabilities are the amounts of income taxes payable in future periods in respect of taxable
temporary differences. Deferred tax assets and deferred tax liabilities are offset if they relate to income taxes
levied by the same taxation authority.
Deferred tax assets and liabilities are attributable to the following items:
MILLION EURO
December December
Assets Liabilities Net Assets Liabilities Net
Intangible assets and goodwill
Property plant and equipment
Rightofuse assets () ()
Investments in associates and noncurrent
financial assets
() ()
Inventories
Receivables ()
Provisions and liabilities for postemployment
benefits
Lease liabilities
Other current assets and other liabilities ()
Deferred tax assets and liabilities related
to temporary differences
Tax loss carryforwards
Excess tax credits
Deferred tax assets/liabilities
Set off of tax () () () ()
Net deferred tax assets/liabilities
The movement in temporary differences during 2020-2021 is disclosed in Note 17.4.
At December 31, 2021, the net deferred tax assets of 118 million Euro (2020: 116 million Euro) primarily relate
to deductible temporary differences, more in particular with regard to defined benefit plans in Germany, mostly
related to active employees.
95% of the Group’s tax losses is concentrated in 7 entities in Belgium, US and Germany and only for 8% of the
total tax loss a deferred tax asset has been recognized.
167
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Deferred tax assets have not been recognized in respect of ‘tax loss carry forwards,’ ‘tax credits’ and ‘temporary
differences’ for the amounts stated hereafter because it is not probable that future taxable profit will be avail-
able against which the Group can utilize the benefits there from:
· tax loss carry-forwards: 373 million Euro (2020: 310 million Euro);
· tax credits: 17 million Euro (2020: 24 million Euro);
· temporary differences: 158 million Euro (2020: 169 million Euro).
The deferred tax asset impact on unused temporary differences, tax losses and tax credits expires as follows:
MILLION EURO Temporary differences Tax losses Tax credits TOTAL
Expiry in:
- - - -
- - - -
- - - -
- - - -
- - - -
- - - -
after - -
No expiry
TOTAL
17.3 Relationship between income tax expense and profit (loss) before income taxes
17.3.1 Summary 2020 and 2021
MILLION EURO
Profit (loss) before income taxes
Income tax expense
Tax rate %
17.3.2 Reconciliation of effective tax rate 2020 and 2021
MILLION EURO
Profit (loss) before income taxes
Theoretical income tax expense (income)
Theoretical tax rate
()
% %
Disallowed items
Impact of tax credits and other deduction from tax basis () ()
Tax losses of the year for which no deferred tax asset has been recorded
Tax losses used this year for which no deferred tax asset was recorded () ()
Tax income recorded on losses of previous years () ()
Prior year adjustments
Tax expense/(income) due to movement in deductible temporary differences for which no
deferred tax asset was recorded
() ()
Tax expense/(income) due to other elements in taxable profit (notional interest deduction
innovation income deduction other …)
()
Impact of business combinations and divestments ()
Withholding taxes
Impairments on goodwill and other assets for which no deferred tax asset has been recorded ()
Impact of adjustment in deferred tax rates
Other ()
Income tax expense
Effective tax rate %
(1) The theoretical tax rate is the weighted average tax rate of the Company and all subsidiaries included in the consolidation.
168
17.4 Movement in temporary differences during 2020-2021
MILLION EURO
December
Change in
accounting policies
PPA Adjustments
Change in
consolidation scope
Recognized in
profit or loss
Recognized in other
comprehensive income
Translation reserves
December
Change in
consolidation scope
Recognized in
profit or loss
Recognized in other
comprehensive income
Translation reserves
December
Intangible assets
and goodwill
()
Property plant and
equipment
() ()
Rightofuse assets () () () ()
Investments in
associates and
noncurrent
financial assets
() () ()
Inventories () ()
Receivables () () ()
Provisions and
liabilities for
postemployment
benefits
() () () ()
Lease liabilities () () ()
Other current
assets and other
liabilities
() () ()
Deferred tax assets
and liabilities
related to tempo
rary differences
() ()
Tax loss
carryforwards
()
Excess tax credits
Deferred tax
assets/liabilities
() ()
The deferred tax asset on provisions and liabilities for post-employment benefits which is recognized in other
comprehensive income is related to the remeasurement of the net defined benefit liability (IAS 19R).
18. OTHER TAXES
Other tax receivables amount to 19 million Euro (2020: 15 million Euro) and other tax liabilities amount to
28 million Euro (2020: 24 million Euro).
Other tax receivables and liabilities relate to other tax, such as VAT and other indirect taxes.
Other tax receivables are offset against other tax liabilities when they relate to taxes levied by the same
taxation authority, there is a legal right to offset and are intended to be settled on a net basis.
169
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ACQUISITIONS AND DISPOSALS
19. ACQUISITIONS
19.1 Acquisitions 2021
During 2021 the Group made no acquisitions.
19.2 Acquisitions 2020
During 2020, the Group made no acquisitions, but the Group finalized its former acquisition of Ningbo
Hongtai Medical Equipment Ltd., a leading distributor of hardcopy film in China. The remaining deferred
contingent consideration of 1 million Euro related to Ningbo Hongtai Medical Equipment Ltd. was paid,
and is presented as cash out for acquisitions in the consolidated statement of cash flows.
20. DISPOSALS
20.1 Disposal 2021
During 2021 there were no disposals.
20.2 Disposal 2020
On May 4th, 2020, the Agfa-Gevaert Group has successfully completed the sale of part of Agfa HealthCare’s IT
business to the Dedalus Group at a consideration received of 949 million Euro.
The part that has been divested consists of the Healthcare Information Solutions activities (Electronic Health
Record, the ORBIS platform) and the Integrated Care activities in Germany, Austria, Switzerland, France and
Brazil as well as the Imaging IT activities to the extent that these activities are tightly integrated into the
Healthcare Information Solutions activities in these geographies.
In North America and all other international markets, Agfa HealthCare pursues its Imaging IT software
business, which is not included in the sale. Based on the flagship Enterprise Imaging platform and the IMPAX
solutions, Agfa HealthCare will continue to deliver superior value to its Imaging IT customers.
The sale of this business is a major step in Agfa’s transformation process. Given the uncertainty of the current
economic context, at this point in time the Group has chosen to use the majority of the proceeds of the sale to
secure the future of our company, to further execute the strategies of our divisions and to address long-term
liabilities. Part of the proceeds of the sale has been used to increase the funding ratio of the Company’s funded
pension plans in Belgium, the UK and the USA. This will significantly decrease the future pension cash-outs.
The consolidated statement of profit or loss and other comprehensive income has been re-presented to show
the discontinued operation separately from continuing operations. The profit from discontinued operations –
net of tax is fully attributable to owners of the company.
During 2020, there has been a service agreement in place in which the Group has provided ICS services, Finance
services, HR services and other support services to the Dedalus Group. The Agfa-Gevaert Group has invoiced
6 million Euro over 2021 for these services delivered (2020: 5 million Euro). Some services run over several years.
170
Result of discontinued operations
MILLION EURO Four months
Revenue
Cost of sales ()
Gross profit
Selling expenses ()
Research and development expenses ()
Administrative expenses ()
Net impairment loss on trade and other receivables including contract assets
Other operating expenses
Other operating income
Results from operating activities
Interest income (expense) net
Other finance income (expense) net ()
Income tax expense
Share of profit of associates net of tax
Profit (loss) from operating activities net of tax
Gain on the sale of discontinued operations
Income tax on gain on sale of discontinued operations
Profit (loss) from discontinued operations net of tax
Effect of disposal on the financial position of the Group
MILLION EURO
Goodwill ()
Intangible assets ()
Property plant and equipment ()
Rightofuse assets ()
Investments in associates ()
Deferred tax assets ()
Inventories ()
Trade receivables ()
Contract assets ()
Current income tax assets ()
Other current assets ()
Cash and cash equivalents ()
Liabilities for postemployment benefit plans
Noncurrent lease liabilities
Deferred tax liabilities
Current lease liabilities
Provision
Trade payables
Contract liabilities
Current income tax liabilities
Other tax liabilities
Current employee benefits
Total identified net assets divested ()
Consideration received
Directly attributable costs ()
Gain on disposal
Cash inflow from disposal net of cash disposed of and net of
directly attributable costs
The 2020 net cash flows attributable to the operating, investing and financing activities of discontinued
operations is provided in the statements of consolidated cash flows.
171
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FINANCIAL RISKS AND FINANCIAL INSTRUMENTS
In the normal course of its business, the Group is exposed to a number of financial risks such as currency risk,
interest rate risk, commodity price risk, liquidity risk and credit risk that could affect its financial position and its
result of operations. The Group’s objectives, policies and processes in managing these financial risks are described
further in this note. In managing these risks, the Group may use derivative financial instruments. The use of
derivative financial instruments is subject to internal controls and uniform guidelines set up by the Group’s
Treasury Committee. Derivatives used are over-the-counter instruments, particularly forward exchange contracts.
Since a few years, the Group also concludes metal swaps.
21. MARKET RISK
21.1 Foreign currency risk
Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate
due to changes in foreign exchange rates. The foreign currency risk management distinguishes between three
types of foreign currency risk: foreign currency transaction risk, foreign currency translation risk and foreign
currency economic risk.
The Group incurs foreign currency transaction risk on accounts receivable, accounts payable and other
monetary items that are denominated in a currency other than the Company’s functional currency. Foreign
currency transaction risk in the Group’s operations also arises from the variability of cash flows in respect
of forecasted transactions.
Foreign operations which do not have the Euro as their functional currency give rise to a translation risk.
The foreign currency economic risk is the risk that future cash flows and earnings generated by foreign operations
may vary. Foreign currency economic risk is highly connected with other factors such as the foreign operations’
competitive position within an industry, its relationship with customers and suppliers.
In monitoring the foreign currency risk exposures, the central treasury department focuses on the transaction
and translation risk exposures whereas business management seeks to manage the foreign economic risk
through natural hedges.
Each of the above types of foreign currency risk exposure impacts the financial statements differently.
The following significant exchange rates have been applied:
Yearly average rate Yearend closing rate
EUR/USD
EUR/GBP
EUR/RMB
EUR/CAD
EUR/AUD
EUR/INR
EUR/HKD
The central treasury department monitors and manages foreign currency exposure from the view of its impact
on either the statement of financial position or profit or loss.
21.1.1 Foreign currency transaction risk in the statement of financial position
The currencies that primarily impact the net foreign currency exposure on the statement of financial position
are as follows:
172
MILLION FOREIGN
CURRENCY
Net exposure of receivables
and payables
Hedging
Net position
Cash cash equivalents
loans & deposits
Derivative financial
instruments
December
USD () ()
RMB () ()
GBP () ()
CAD () ()
AUD ()
INR () ()
HKD () ()
December
USD ()
RMB ()
GBP ()
CAD () ()
AUD ()
INR () ()
HKD ()
The Group uses cash, cash equivalents, loans and deposits held in a foreign currency as natural hedges of the
net exposure of receivables and payables held in these respective currencies.
The aim of the Group’s management regarding transaction exposure in the statement of financial position is to
minimize, over the short term, the revaluation results – both realized and unrealized – of items in the statement
of financial position that are denominated in a currency other than the Company’s functional currency.
In order to keep the exposures within predefined risk adjusted limits, the central treasury department
economically hedges the net outstanding monetary items in the statement of financial position in foreign
currency using derivative financial instruments such as forward exchange contracts. As of December 31, 2021,
the outstanding derivative financial instruments are mainly forward exchange contracts with maturities of
generally less than one year.
Where derivative financial instruments are used to economically hedge the foreign exchange exposure of
recognized monetary assets or liabilities, no hedge accounting is applied. Changes in the fair value of these
derivative financial instruments are recognized in profit or loss.
21.1.2 Foreign currency translation risk in the statement of financial position
When the functional currency of the entity that holds the investment is different from the functional currency
of the related subsidiary, the currency fluctuations on the net investment directly affect other comprehensive
income (‘Translation reserve’) unless any hedging mechanism exists.
All subsidiaries have as functional currency the currency of the country in which they operate. The currencies
giving rise to the Group’s translation risk in the statement of financial position are primarily the US Dollar,
Chinese Renminbi, Brazilian Real, Mexican Peso, Australian Dollar, British Pound and Argentina Peso.
MILLION FOREIGN CURRENCY
Net investment in a foreign entity
December December
USD
RMB
BRL
AUD
MXN
GBP () ()
ARS
173
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The central treasury department monitors the translation exposure in the statement of financial position of
the Group at least on a quarterly basis. The Treasury Committee proposes corrective actions if needed to the
Executive Management.
21.1.3 Foreign currency risk in profit or loss
Foreign currency risk in profit or loss includes both the risk of the variability of cash flows in respect of forecasted
transactions as a result of changes in exchange rates and the risk that the profit (loss) for the year generated
by foreign operations may vary in amount when translated into the presentation currency (Euro). The central
treasury department monitors and manages both risks simultaneously.
The currencies that primarily impact the net foreign currency exposure in profit or loss are US Dollar, currencies
highly correlated to the US Dollar – i.e. Hong Kong Dollar, Chinese Renminbi, Canadian Dollar, Pound Sterling,
Australian Dollar, Korean Won, Indian Rupees, Japanese Yen and Swiss Franc.
The Executive Management decides on the hedging policy of aforementioned currency exposures considering
the market situation and upon proposal of the Treasury Committee. The objective of the Group’s management
of exposure in profit or loss is mainly to increase the predictability of results but also to allow the business to
react to the changing environment (e.g. by adapting prices or shifting production).
The Group uses forward exchange contracts to hedge its currency risk related to a forecasted exposure. These
forward exchange contracts are designated as cash flow hedges. The Group designates only the spot element
of forward foreign exchange contracts to hedge its foreign currency risk and applies a hedge ratio of 1:1. The
forward element of forward exchange contracts is excluded from the designation of the hedging instrument and is
separately accounted for in financial result. The Group’s policy is to align the critical terms of the forward exchange
contracts with the hedged item. The existence of an economic relationship between the hedged item and the
hedging instrument is based on the currency, amount and timing of the respective cash flows. The Group assesses
whether the derivative designated in the hedging relationship is expected to be and has been effective in offsetting
changes in cash flows using the hypothetical derivative method. Very little ineffectiveness is expected from these
cash flow hedges. In these relationships, the main sources of ineffectiveness are the counterparty risk and the
Group’s own credit risk on the fair value of the forward exchange contracts which is not reflected in the fair value.
Also changes in the timing of the hedged transactions can cause hedge ineffectiveness.
In the course of 2020, the Group designated foreign exchange contracts as ‘cash flow hedges’ of its foreign
currency exposure in US Dollar and Chinese Renminbi related to highly probable forecasted revenue over the
following 15 months.
The portion of the gain on the forward exchange contracts that is determined to be an effective hedge is
recognized directly in ‘Other comprehensive income’ (December 31, 2021: -2 million Euro net of tax;
December 31, 2020: 2 million Euro).
During 2021, losses amounting to 3 million Euro have been recognized in ‘Other comprehensive income.’
An amount of 1 million Euro has been reclassified from ‘Other comprehensive income’ and has been included
in Turnover. Taxes amounting to 1 million Euro have been deducted from ‘Other comprehensive income.’
During 2020, gains amounting to 4 million Euro have been recognized in ‘Other comprehensive income.’
An amount of 1 million Euro has been reclassified from ‘Other comprehensive income’ and has been included
in Turnover. Taxes amounting to 1 million Euro have been deducted from ‘Other comprehensive income.’
A reconciliation in tabular format is provided in Note 21.4 ‘Summarizing table of cash flow hedge reserve.’
174
The following table summarizes the effect of the cash flow hedges related to currency risk on the financial
statements:
MILLION EURO
During the period
Nominal amount
Carrying
amount
Assets
Liabilities
Line item in statement of financial
position where the hedging
instrument is included
Changes in the value
of the hedging instrument
recognized in OCI
Hedge ineffectiveness
recognized in P&L
Line item in profit or loss that
includes hedge ineffectiveness
Amounts reclassified from
hedging reserve to profit or loss
Amounts reclassified from hedging
reserve to cost of inventory
Line item in profit or loss affected
by the reclassification
Forward exchange
contracts designated
as cash flow hedges ()
Derivative
financial
instruments ()
Other
finance
expense () Revenue
MILLION EURO
During the period
Nominal amount
Carrying
amount
Assets
Liabilities
Line item in statement of financial
position where the hedging instru
ment is included
Changes in the value
of the hedging instrument
recognized in OCI
Hedge ineffectiveness
recognized in P&L
Line item in profit or loss that
includes hedge ineffectiveness
Amounts reclassified from hedging
reserve to profit or loss
Amounts reclassified from hedging
reserve to cost of inventory
Line item in profit or loss affected
by the reclassification
Forward exchange
contracts designated
as cash flow hedges
Derivative
financial
instruments ()
Other
finance
expense () - Revenue
Cash flow hedges hedging its exposure in foreign currency have the following maturities:
Maturity
months months More than year
Forward exchange contracts designated as cash flow hedges
Nominal amounts net in millions of foreign currency USD
Average EUR:USD forward contract rate
Maturity
months months More than year
Forward exchange contracts designated as cash flow hedges
Nominal amounts net in millions of foreign currency USD
CNY
Average EUR:USD forward contract rate
Average EUR:CNY forward contract rate
175
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
21.1.4 Sensitivity analysis foreign currency risk
A strengthening/weakening of the Euro by 10% against the currencies listed hereafter with all other variables held
constant, would have increased (decreased) profit or loss by the amounts shown below. The analysis has been
carried out on the budgeted net exposure by currency for the year 2021, net of the use of cash flow hedges.
MILLION EURO
Profit or loss
Strengthening of the
Euro by %
Weakening of the
Euro by %
Strengthening of the
Euro by %
Weakening of the
Euro by %
USD and currencies highly
related to the USD ie HKD
() ()
RMB () ()
CAD () ()
GBP () ()
AUD () ()
INR () ()
KRW () ()
CHF () ()
JPY () ()
With regard to cash flow hedges, a strengthening/weakening of the Euro by 10% against the US Dollar would
have an impact to Other Comprehensive income, net of tax of 1 million/(1) million Euro. This analysis assumes
that all other variables, in particular interest rates remain constant and ignores any impact of forecasted sales.
21.2 Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to
changes in market interest rates.
The Group’s exposure to changes in interest rates primarily relates to the Group’s net financial debt position,
including the FX-swaps and its interest component that economically hedge intercompany loans and deposits.
For the most important currencies the following interest rate profile exists at the reporting date:
MILLION EURO
Profit or loss
Outstanding amount Outstanding amount Outstanding amount Outstanding amount
At floating rate At fixed rate At floating rate At fixed rate
EUR () ()
USD () ()
GBP ()
RMB () ()
AUD () ()
JPY
BRL
CAD () ()
HKD () ()
PLN () ()
KRW () ()
ZAR () ()
INR () ()
Other ()
TOTAL () ()
NET FINANCIAL DEBT () ()
176
21.2.1 Sensitivity analysis interest rate risk
A change of 100 basis points in interest rates at December 31, 2021 would have increased (decreased) profit or
loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign currency
rates, remain constant.
The analysis is performed on the same basis for 2020.
Profit or loss
bp increase bp decrease
December
Net impact ()
December
Net impact ()
21.3 Commodity price risk
The Group’s most important raw material exposures relate to silver and aluminum. The Group’s commodity
price risk – i.e. the risk that its future cash flows and earnings may vary because of changed material prices – is
highly connected with other factors such as the Group’s competitive position within an industry, its relationship
with customers and suppliers.
In order to prevent negative effects from potential future price rises or price volatility of aluminum, the Group applies
for aluminum a strategy of purchasing at spot rates combined with a system of ‘Rolling layered forward buying.’
This ‘Rolling layered forward buying’ model has been set up mainly for increasing the predictability with
respect to raw material prices. According to this model, the Group purchases a predefined % of the planned
yearly consumption.
The Commodities Steering Committee periodically reviews the commodity purchasing and hedging strategy.
Deviations from the predefined ‘Rolling layered forward buying’ model are possible in which case the Chief
Executive Ocer takes the final decision.
This ‘Rolling layered forward buying’ is achieved by means of metal swap agreements. These metal swap
agreements are concluded with banks and are designated as ‘cash flow hedges,’ hedging the Group’s exposure
to fluctuations in commodity prices related to highly probable forecasted purchases of aluminum.
These commodity contracts are held for the purpose of the receipt of commodities in accordance with the
Group’s expected usage requirements. The Group designates the metal swap agreement as hedging the change
in the aluminum price LME (hedged item) and applies a hedge ratio of 1:1. By designating only a component of
the hedged item, the Group assumes very little ineffectiveness. The Group determines the existence of an
economic relationship between the hedged item and the hedging instrument based on the currency, amount
and timing of the respective cash flows. The Group assesses whether the derivative designated in the hedging
relationship is expected to be and has been effective in offsetting changes in cash flows using regression
analysis. In these relationships, the main sources of ineffectiveness are the counterparty risk and the Group’s
own credit risk on the fair value of the swap contracts which is not reflected in the fair value. Also changes in
the timing of the hedged transactions can cause hedge ineffectiveness.
At December 31, 2021, there are no outstanding metal swap agreements. The portion of the gain or loss on
the swap contracts that is determined to be an effective hedge is recognized directly in ‘Other comprehensive
income’ (December 31, 2021: 0 million Euro net of tax; December 31, 2020: 4 million Euro net of tax). During
2020, gains amounting to 2 million Euro have been recognized in ‘Other comprehensive income.’ An amount of
6 million Euro has been reclassified from ‘Other comprehensive income’ and has been capitalized in ‘Inventory.’
177
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Taxes amounting to 1 million Euro have been deducted from ‘Other comprehensive income.’
During 2021, gains amounting to 7 million Euro have been recognized in ‘Other comprehensive income.’
An amount of 13 million Euro has been reclassified from ‘Other comprehensive income’ and has been deducted
in ‘Inventory.’ Taxes amounting to 1 million Euro have been included in ‘Other comprehensive income.’
A reconciliation in tabular format is provided in Note 21.4 ‘Summarizing table of cash flow hedge reserve.’
The following table summarizes the effect of the cash flow hedges related to commodity risk on the financial
statements:
MILLION EURO
During the period
Carrying amount
Line item in statement of
financial position where the
hedging instrument is included
Changes in the value of the
hedging instrument recognized
in OCI
Hedge ineffectiveness
recognized in profit or loss
Line item in profit or loss that
includes hedge ineffectiveness
Amounts reclassified from
hedging reserve to profit or loss
Amounts reclassified from
hedging reserve to cost
of inventory
Line item in profit or loss affected
by the reclassification
Assets Liabilities
Metal swap agreements
Derivative
financial
instruments
()
MILLION EURO
During the period
Carrying amount
Line item in statement of
financial position where the
hedging instrument is included
Changes in the value of the
hedging instrument recognized
in OCI
Hedge ineffectiveness
recognized in profit or loss
Line item in profit or loss that
includes hedge ineffectiveness
Amounts reclassified from
hedging reserve to profit or loss
Amounts reclassified from
hedging reserve to cost
of inventory
Line item in profit or loss affected
by the reclassification
Assets Liabilities
Metal swap agreements
Derivative
financial
instruments
It should also be noted that the Group’s management will react on increased raw material prices by mitigating
this impact through sales price adaptations and cost eciency measures amongst other measures, depending
on the size of the price increases of the raw materials and considering currency evolutions and the general
market circumstances.
178
Cash flow hedges hedging its exposure in commodity price risk have the following maturities:
Maturity
months months More than year
Metal swap agreement
Fair value (in millions of foreign currency) USD
Average LME swap rate USD/ton
Maturity
months months More than year
Metal swap agreement
Fair value (in millions of foreign currency) USD
Average LME swap rate USD/ton
21.3.1 Sensitivity analysis commodity price risk
For 2021, the Group’s exposed tonnage of silver is around 89 tons (2020: 95 tons). For every US Dollar/troy
change in the silver price, the impact on the Group’s consolidated profit or loss statement is estimated at
2.8 million US Dollar on a yearly basis (2020: 3 million US Dollar). The analysis has been carried out on the
actual exposed volume for the year 2021. The aforementioned Group’s exposed tonnage of silver disregards the
ability to partly charge its customers without existing silver clauses on the variability of the silver price.
For 2021, the Group’s exposed tonnage of aluminum is around 72 kilotons (2020: 89 kilotons).
For every 100 US Dollar/ton change in the European alu metal price (LME), the impact on the Group’s aluminum
spending is estimated at 3 million Euro on a yearly basis (2020: 4.3 million Euro).
For every 500 Chinese yuan/ton change in the Chinese alu metal price (SHME & CNAL), the impact on the
Group’s aluminum spending is estimated at 1.8 million Euro on a yearly basis (2020: 2 million Euro).
Both analyses have been carried out on the budgeted exposed volume for the year 2021 converted at the
budgeted rate of respectively the US Dollar and Chinese Yuan to Euro.
The aforementioned Group’s exposed tonnage of aluminum disregards both the ability to partly charge its
customers on the variability of the aluminum metal price, as well as any hedging done.
By year-end 2021, the Offset Solutions division had updated a majority of its contracts for printing plates with
quarterly price adjustment clauses, hence reducing drastically the exposure to aluminum.
21.4 Summarizing table of cash flow hedge reserve: currency risk and commodity risk
The following table provides a summary of the effect in accumulated other comprehensive income of cash flow
hedges by type of risk:
Cash flow hedges related to
TOTAL
Currency risk Commodity risk
Other comprehensive income at January () ()
Effective portion of changes in fair value booked in OCI
Changes in fair value of cash flow hedges reclassified to turnover () ()
Adjustments for amounts transferred to initial carrying amount of inventory
Income taxes () () ()
Other comprehensive income at December
Other comprehensive income at January
Effective portion of changes in fair value booked in OCI ()
Changes in fair value of cash flow hedges reclassified to turnover () ()
Adjustments for amounts transferred to initial carrying amount of inventory () ()
Income taxes
Other comprehensive income at December () ()
There are no balances in hedge reserve related to hedge relationships for which hedge accounting is no
longer applied.
179
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
22. CREDIT RISK
Credit risk is the risk that the counterparty to a financial instrument may fail to discharge an obligation and
cause the Group to incur a financial loss.
The Group manages exposure to credit risk by working with upfront agreed counterparty credit limits and
through diversification of counterparties.
Credit risk arises mainly from the Group’s receivables from customers, investments and foreign currency
forward contracts.
The exposure to credit risk from customer receivables is monitored on an ongoing basis by the Credit Committee.
Credit limits are set for each customer based on its creditworthiness and are reviewed periodically by the Credit
Committee. In monitoring the credit risk, customers are grouped in risk categories according to their financial
characteristics. It is the Group’s policy to cover a portion of the receivables portfolio through credit insurance to
cover default risk.
Goods sold are subject to retention of title clauses, so that in event of non-payment the Group may have a secured
claim. In normal circumstances, the Group does not require collateral in respect of trade or other receivables.
Transactions involving derivative financial instruments and deposits are to be kept within predefined credit
limits set by counterparty based on the Standard & Poor’s rating of the related financial institution. To minimize
the concentration of counterparty risk, the Group enters into derivative transactions with a number of financial
institutions. Investments are only allowed in liquid assets.
22.1 Exposure to credit risk
As a result of the Group’s broad customer portfolio, there were no significant concentrations of credit risk at
December 31, 2021. The maximum exposure is kept within predefined limits.
The carrying amounts of the financial assets, including derivative financial instruments, in the statement of
financial position reflect the maximum exposure to credit risk. The maximum exposure to credit risk at the
reporting date per class of financial asset is as follows:
MILLION EURO Note
Financial assets at fair value through OCI
Equity instruments
Financial assets at fair value through profit or loss
Derivatives not part of a hedging relationship – assets
Financial assets at amortized cost and contract assets
Trade receivables
Contract assets
Receivables under finance lease
Other receivables
Other investments and loans measured at cost
Cash
TOTAL
180
At December 31, 2021 and 2020, the exposure to credit risk for trade receivables, contract assets and lease
receivables by geographic region was as follows:
MILLION EURO
Trade
receivables
Contract
assets
Lease
receivables
Trade
receivables
Contract
assets
Lease
receivables
Europe
NAFTA
Latin America
Asia/Oceania/
Africa
TOTAL
22.2 Expected credit loss
With regard to impairment of trade receivables, lease receivables and contract assets, the Group applies the
simplified approach for the impairment evaluation, which implies that credit losses for these categories of
assets are always measured at an amount equal to lifetime expected credit losses. Credit losses are measured
as the present value of all cash shortfalls – i.e. the difference between the cash flows to which the entity is
entitled to and what the entity expects to receive.
The inputs and assumptions to the expected credit loss model are the following: significant financial diculty
of the counterparty, a default of more than 90 days past due, a possible bankruptcy of the counterparty, …
The evaluation of possible credit-impairment takes into account forward-looking elements. For the major part
of the accounts receivable balances, debtors are scored and rated based on quantitative and qualitative infor-
mation on an ongoing basis through Credit Risk Application in place. All customers are classified into different
risk categories which are reassessed on a yearly basis based on relevant forward-looking information such
as data from external credit bureaus, age of business, country risk and the credit manager’s assessment. To
mitigate the credit risk, credit insurance and other risk mitigation tools such as letter of credit, bank guarantees,
mortgage are used within the Group.
The ageing of trade receivables and receivables under finance lease at the reporting date was:
MILLION EURO
Gross
value
Impairment
loss Net
Gross
value
Impairment
loss Net
Trade receivables
Not past due () ()
Past due days
Past due days
Past due days ()
Past due days () ()
Past due more than days () ()
TOTAL TRADE RECEIVABLES () ()
Receivables under finance lease
Not past due
Past due days
Past due days
Past due days
Past due days
Past due more than days () ()
TOTAL RECEIVABLES UNDER FINANCE LEASES () ()
181
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Past due amounts more than 360 days mainly arise in Belgium and are mainly caused by commercial disputes.
These overdues are for the major part written down. Overdues by region are very closely monitored case by
case by the Credit Committees within the Group.
The following table provides information about the exposure to credit risk for trade receivables from individual
customers at December 31, 2021:
MILLION EURO
Weighted average
loss rate
Gross carrying amount Loss allowance
Not past due % ()
Past due days %
Past due days %
Past due days %
More than days % ()
The movement in the allowance for impairment in respect of trade, lease receivables and contract assets during
the year is shown in the following table. The loss amount is measured at an amount equal to lifetime expected
credit losses.
MILLION EURO
Impairment losses
on trade and
lease receivables
Impairment losses
on contract assets
Impairment losses
on trade and
lease receivables
Impairment
losses on
contract assets
Balance at January
Additions/reversals charged
to profit or loss
Deductions from allowance
()
()
Disposals () ()
Exchange differences ()
Balance at December
(1) Write-offs for which an allowance was previously recorded.
The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of
recovering a financial asset in its entirety or a portion thereof. The Group individually makes an assessment for
each type of financial asset based on whether there is a reasonable expectation of recovery. Financial assets
that are written off are still subject to enforcement activities of the Group for recovery of amounts due.
The impairment loss relates to several other customers that indicated not to be able to pay their outstanding
balances mainly due to economic circumstances.
The Group partly invested cash in short-term money market funds (161 million Euro), with an A credit rating.
In the course of 2021, an impairment loss of 1 million Euro has been registered on these money market funds,
as a result of negative interests on short-term investments. The remaining part of the cash held, is deposited
with banks having an A credit rating.
182
23. LIQUIDITY RISK
Liquidity risk is the risk that the Group will encounter diculties in meeting commitments related to financial
liabilities when they fall due.
The Group ensures that it has sucient liquidity to meet its liabilities. Liquidity risk is managed by maintaining
a sucient degree of diversification of funding sources. The Group has a policy in place to limit concentrations
related to liquidity risk. The total share of gross drawn term debt and all undrawn committed facilities provided
by one bank or bank group should not exceed predetermined limits. Risk concentrations are monitored on an
ongoing basis by the Treasury Committee.
In managing its liquidity risk the Group has a revolving credit facility it can access to meet its liquidity needs.
The notional amount of this credit facility amounts to 230 million Euro with maturity date March, 2024, with a
possibility of extension of the term two times with one year. Drawdowns under these lines are made for shorter
periods but the Group has the discretion to roll-over the liability under the existing committed loan agreement.
In the liquidity analysis, repayments of the committed facilities are included in the earliest time band the Group
could be required to repay its liabilities. At December 2021, there are no drawdowns under these lines (2020:
0 million Euro).
The following are the remaining contractual maturities at the end of the reporting period of financial liabilities,
including estimated interest payments based on conditions existing at the reporting date, i.e. exchange rates
and interest rates. With regard to derivatives, the maturity analysis comprises liabilities arising from derivatives
and all gross settled forward exchange contracts. The contractual cash flows for forward exchange contracts
are determined using forward rates.
2021
MILLION EURO
Carrying
amount
Contractual cash flows
TOTAL
months
or less
months
years
More than
years
Nonderivative financial liabilities
Debenture
Revolving credit facility
()
()
EIB loan
Other loans
Lease liabilities
Bank overdrafts
Trade payables
Other payables
Derivative financial liabilities
Forward exchange contracts designated as cash flow hedges:
Outflow () () ()
Inflow
Other forward exchange contracts:
Outflow () () () ()
Inflow
Swap contracts designated as cash flow hedges:
Outflow
Inflow
(1)Transaction costs (1 million Euro) are presented as a reduction of the carrying amount of the financial liability.
183
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2020
MILLION EURO
Carrying
amount
Contractual cash flows
TOTAL
months
or less
months
years
More than
years
Nonderivative financial liabilities
Debenture
Revolving credit facility
()
EIB loan
Other loans
Lease liabilities
Bank overdrafts
Trade payables
Other payables
Derivative financial liabilities
Forward exchange contracts designated as cash flow hedges:
Outflow () () () ()
Inflow
Other forward exchange contracts:
Outflow () () ()
Inflow
(1) Transaction costs (0.2 million Euro) are presented as a reduction of the carrying amount of the financial liability.
The following table indicates the periods in which the cash flows associated with cash flow hedges are expected
to occur and impact the profit or loss with the fair value of the related hedging instruments.
2020
MILLION EURO
Fair
value
Expected cash flows
TOTAL
months
or less
months
years
More than
years
Derivative financial instruments designated as cash flow hedges
Forward exchange contracts designated as cash flow hedges:
Outflow () () () ()
Inflow
Swap contracts designated as cash flow hedges:
Outflow
Inflow
2021
MILLION EURO
Fair
value
Expected cash flows
TOTAL
months
or less
months
years
More than
years
Derivative financial instruments designated as cash flow hedges
Forward exchange contracts designated as cash flow hedges:
Outflow () () ()
Inflow
Swap contracts designated as cash flow hedges:
Outflow
Inflow
184
24. CAPITAL MANAGEMENT
The Executive Management seeks to maintain a balance between the components of the shareholders’ equity
and the net financial debt at an agreed level. Net financial debt is defined as current and non-current loans and
borrowings and lease liabilities less cash and cash equivalents. There were no changes in the Group’s approach
to capital management during the year.
The Group is not subject to any externally imposed capital requirements, with the exception of the statutory
minimum equity funding requirements that apply to its subsidiaries in the different countries.
In March 2021, the Group announced a share buyback program with a volume of 50 million Euro. The program
allows shareholders to benefit from the sale of part of the HealthCare IT activities during 2020, and shows the
Group’s confidence in its ongoing transformation process. In the course of 2021, 7,312,537 shares for an amount of
29 million Euro have been purchased, and 11,344,336 shares were destructed for an amount of 111 million Euro.
25. ACCOUNTING CLASSIFICATION AND FAIR VALUES
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date.
All derivative financial instruments are recognized at fair value in the statement of financial position.
The Group aggregates its financial instruments into classes based on their nature and characteristics.
The following table shows the carrying amounts and fair values of financial assets and liabilities by category
and a reconciliation of the corresponding line items in the statement of financial position. It does not include
fair value information for financial assets and liabilities not measured at fair value if the carrying amount is a
reasonable approximation of fair value. During 2021 and 2020, there have been no reclassifications of financial
assets between categories.
The other payables classified as mandatorily at fair value through profit or loss in the fair value hierarchy 2
(2021: 2 million Euro, 2020: 3 million Euro) relate to a deposit of 3.4 ton silver placed by a metal recovery and
refining company, valued at fair value (quoted market price).
185
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2020
MILLION EURO
Note
Financial assets/liabilities: carrying amount
Hedging
instruments
Mandatorily
at fair value
through P&L –
Others
Fair value
through OCI –
Equity
instruments
Financial
assets at
amortized
cost
Financial
liabilities at
amortized
cost
TOTAL
Fair
value
Fair value hierarchy
Assets
Other financial assets
Trade receivables
(a)
Receivables under
finance lease
(a)
Other receivables
(a)
Derivative financial instruments:
Other forward exchange
contracts
Swap contracts used
for hedging
Other swap contracts
Cash and cash equivalents
TOTAL ASSETS
Liabilities
Loans and borrowings
Revolving credit facility
(b)
Bank overdrafts
Other bank liabilities
Debenture - - - - - - - -
Lease liabilities
(c)
Trade payables
(a)
Other payables
(a)
Derivative financial instruments:
Forward contracts used
for hedging
Swap contracts used for
hedging
Other forward exchange
contracts
TOTAL LIABILITIES
Fair value hierarchy:
Fair value hierarchy 1 means that the fair value is determined based on quoted prices in active markets.
Fair value hierarchy 2 means that fair value is determined based on inputs other than quoted prices that are observable for that
related asset or liability.
Fair value hierarchy 3 means that fair value is determined based on inputs that are not based on observable market data:
related to other payables.
(a) The Group has not separately disclosed the fair value of trade and other receivables and the fair value of trade payables and other payables as
these assets and liabilities are mainly short-term receivables and payables for which the carrying amount is an approximation of fair value.
(b) Transaction costs are included in the initial measurement of the financial liability (0.2 million Euro).
(c) Fair value is not disclosed for lease liabilities in accordance with IFRS 7.
186
2021
MILLION EURO
Note
Financial assets/liabilities: carrying amount
Hedging
instruments
Mandatorily
at fair value
through P&L –
Others
Fair value
through
OCI – Equity
instruments
Financial
assets at
amortized
cost
Financial
liabilities at
amortized
cost
TOTAL
Fair
value
Fair value hierarchy
Assets
Other financial assets
Trade receivables
(a)
Receivables under
finance lease
(a)
Other receivables
(a)
Derivative financial instruments:
Forward contracts used
for hedging
Swap contracts used
for hedging
Other forward
exchange contracts
Other swap contracts
Cash and cash equivalents
TOTAL ASSETS
Liabilities
Loans and borrowings
Revolving credit facility
(b)
() ()
Bank overdrafts
Other bank liabilities
Lease liabilities
(c)
Trade payables
(a)
Other payables
(a)
Derivative financial instruments:
Forward contracts used
for hedging
Swap contracts used for
hedging
Other forward
exchange contracts
Other swap contracts
TOTAL LIABILITIES
Fair value hierarchy:
Fair value hierarchy 1 means that the fair value is determined based on quoted prices in active markets.
Fair value hierarchy 2 means that fair value is determined based on inputs other than quoted prices that are observable for that
related asset or liability.
Fair value hierarchy 3 means that fair value is determined based on inputs that are not based on observable market data:
related to other payables.
(a) The Group has not separately disclosed the fair value of trade and other receivables and the fair value of trade payables and other payables as
these assets and liabilities are mainly short-term receivables and payables for which the carrying amount is an approximation of fair value.
(b) Transaction costs are included in the initial measurement of the financial liability (1 million Euro).
(c) Fair value is not disclosed for lease liabilities in accordance with IFRS 7.
187
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The following table shows a reconciliation between opening and closing balance for level 3 fair values:
Balance at December
Gains included in finance income – net change in fair value (unrealized)
Amounts paid during
Balance at December
25.1 Basis for determining fair values
Significant methods and assumptions used in estimating the fair values of financial instruments are as follows.
The fair value of investments in equity securities is determined by reference to their quoted market price at the
reporting date.
The fair value of forward exchange contracts and swap contracts is valued using quoted forward exchange rates
and yield curve data at reporting date.
The fair value of trade and other receivables and trade and other payables is not disclosed as it mainly relates to
short-term receivables and payables for which their carrying amount is a reasonable approximation of fair value.
The fair value of financial liabilities is calculated based on the present value of future principal and interest cash
flows, discounted at market rates of interest at the reporting date. The fair value of the debenture is the quoted
market price at the reporting date.
The fair value for the current bank liabilities approximates nominal amounts excluding transaction costs, as
drawdowns are made for short periods.
The fair value of the deferred contingent consideration from business combinations is calculated using a dis-
counted cash flow model. The valuation model considers the present value of the expected future payments,
discounted using a risk-adjusted discount rate. Significant observable inputs are the expected cash flows and
the risk-adjusted discount rate. The estimated fair value would increase (decrease) if the expected performances
are higher (lower).
188
26. ITEMS OF INCOME, EXPENSE, GAINS AND LOSSES ON FINANCIAL
INSTRUMENTS RECOGNIZED IN PROFIT OR LOSS
MILLION EURO
Financial assets
at amortized cost
Derivatives
Financial liabilities
carried at
amortized cost
Financial liabilities
at fair value
TOTAL
Interest income
Interest expense () () ()
Finance lease income
Impairment charges () ()
Income from reversal of
impairment losses
Change in fair value of financial
instruments not part of a hedging
relationship
() ()
Net result from ineffectiveness of
hedging instruments designated
as cash flow hedges
() ()
Change in fair value () ()
MILLION EURO
Financial assets
at amortized cost
Derivatives
Financial liabilities
carried at
amortized cost
Financial liabilities
at fair value
TOTAL
Interest income ()
Interest expense () ()
Finance lease income
Impairment charges () ()
Income from reversal of
impairment losses
Change in fair value of financial
instruments not part of a
hedging relationship
189
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
ASSETS
27. GOODWILL AND INTANGIBLE ASSETS
MILLION EURO
Goodwill
Intangible assets
Indefinite
useful
lives
Finite useful lives
Trademarks
Capitalized
development costs
Acquired technology
Contractual customer
relationships
Trademarks
Management
information systems
Software licenses
concessions and IP rights
Advance payments to
acquire intangible assets
TOTAL
Cost at December
Exchange differences () () () () ()
Business combinations additions
Business combinations divestment () () () () () () () ()
CHP certificates and emission rights (noncash)
Capital expenditures
Disposals and retirements () ()
Construction in progress put into use
Reclasses ()
Cost at December
Exchange differences ()
Business combinations additions
Business combinations divestment
CHP certificates and emission rights (noncash)
Capital expenditures
Disposals and retirements () () () () ()
Construction in progress put into use
Reclasses
Cost at December
Accumulated amortization and impairment
losses December
() () () () () () () () ()
Exchange differences
Business combinations divestment
Amortization during the year () () () () ()
Impairment loss during the year
Disposals and retirements
Reclasses ()
Accumulated amortization and impairment
losses December
() () () () () () () ()
Exchange differences () () () () ()
Business combinations divestment
Amortization during the year () () () ()
Impairment loss during the year
Disposals and retirements
Reclasses
Accumulated amortization and impairment
losses December
() () () () () () ()
()
Carrying amount December
Carrying amount December
Carrying amount December
190
In 2021, the cash relevant capital expenditures for intangible assets amount to 1 million Euro (2020: 2 million
Euro) and mainly relate to software and licences.
Business combinations divestment in 2020 relate to the sale of part of HealthCare’s IT business (see Note 20).
At year-end 2021, the Group does not hold intangible assets with indefinite useful lives for impairment. The
Group has assessed whether there was an indication of impairment for intangible assets with finite useful lives.
These tests did not result in the recording of any impairment loss.
The Group’s management has reviewed the appropriateness of the useful lives of its major intangible assets
at year-end 2021. This review has not resulted in revised amortization periods for intangible assets belong to
Radiology Solutions, Digital Print & Chemicals and HealthCare IT.
More information on the underlying assumptions of the useful lives is provided in section 27.3 of this Note.
27.1 Impairment tests for goodwill
For the financial statements of the Group, goodwill is tested for impairment annually and whenever there is an indica-
tion of impairment. For the purpose of impairment testing, goodwill is allocated to a cash-generating unit (CGU).
In line with the definition of cash-generating units, the management of the Group has identified the reportable
segments as the cash-generating units, i.e. Offset Solutions, Radiology Solutions, Agfa HealthCare IT and
Digital Print & Chemicals. The operating segment is the lowest level within the Group at which the goodwill is
monitored for internal management purposes (see Note 6 ‘Reportable segments’).
At the end of 2021, the impairment test for goodwill was performed for the cash-generating units Radiology
Solutions and the remaining part of HealthCare IT. This test was not required for Digital Print & Chemicals nor
for Offset Solutions because Digital Print & Chemicals does not comprise any goodwill and the goodwill belong-
ing to the cash-generating unit Offset Solutions was already fully impaired in 2019.
The impairment testing has been carried out by comparing the carrying amount of each cash-generating unit
to its recoverable amount. The recoverable amount of the CGU has been determined based upon a value in use
calculation. The value in use is determined as the present value of estimated future cash flows that are derived
from the current long-term planning of the Group. The discount rate used in calculating the present value of the
estimated future cash flows, is based on an average market participant’s weighted average cost of equity and
debt capital (WACC).
The WACC considers a debt/equity ratio for an average market’s participant increased with an additional risk
premium to the cost of equity. The cost of debt is based on the conditions on which comparable companies can
obtain long-term financing.
The discount rate is calculated for each cash-generating unit independently, considering the debt/equity ratio
of each peer group. The pre-tax discount rates are derived from the WACC by means of iteration.
27.1.1 CGU Offset Solutions
At December 31, 2021, the carrying amount of the CGU Offset Solutions comprises no goodwill.
27.1.2 CGU Radiology Solutions
At December 31, 2021, the carrying amount of the CGU Radiology Solutions comprises goodwill of 66 million
Euro. At year-end 2021, the Group tested its goodwill of the CGU Radiology Solutions for impairment.
Based on the assumptions used, the calculated value in use of the CGU was higher than its carrying amount and
no impairment loss was recognized.
191
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The value in use of the CGU Radiology Solutions has been determined based on estimated cash flow projections
covering the next five years. The estimated cash flow projections are based upon the strategic business plan
formally approved by the Board of Directors. After five years a terminal value is computed using a weighted
average growth rate of minus 0.19%. These growth rates are derived from respective market information.
The weighted average growth rate has increased compared to last year as the business unit of Direct
Radiography solutions (DR), having a positive terminal growth rate, has gained more weight in the business plan.
Key assumptions are:
· after-tax WACC: 7.94% (2020: 7.16%);
· pre-tax discount rate: 9.67% (2020: 8.88%);
· weighted average terminal growth rate (after five years): minus 0.19% (2020: minus 3.21%);
· silver: 25 USD/Troz. (2020: 19.3 USD/Troz.);
· exchange rate USD/Euro: 1.13 (2020: 1.2);
· revenue and gross margin: revenue and gross margin reflect management’s best expectations, based on past
experience and taken into account the specific business risks.
Sensitivity analyses on changes in key assumptions, i.e. substantially increased silver prices and WACC
changes, have been performed. The sensitivity analysis was based on a substantially increased silver price
(+ 2 USD/Troz. over the long term horizon) and a 150 basis point increase in the weighted average cost of
capital. These sensitivity analyses have not revealed any risk for impairment loss. Based upon these sensitivity
analyses, management is of the opinion that a reasonable, possible change in one of these key assumptions
would not trigger an impairment loss to occur.
27.1.3 CGU Agfa HealthCare IT
At December 31, 2021, the carrying amount of the CGU Agfa HealthCare IT comprises goodwill of 214 million
Euro. At year-end 2021, the Group tested its goodwill of HealthCare IT for impairment.
Based on the assumptions used, the calculated value in use of the CGU was higher than its carrying amount and
no impairment loss was recognized.
The value in use of the CGU Agfa HealthCare IT has been determined based on estimated cash flow projections
covering the next five years. The estimated cash flow projections are based upon the strategic business plan
formally approved by the Board of Directors. After five years a terminal value is computed using a growth rate
in the division Information Technologies (IT Solutions) of 1.5%. These growth rates are derived from respective
market information.
The main assumptions used in the annual impairment test are determined by the reportable segment’s key
management and are based on past performance and management’s expectations for the market development.
Key assumptions are:
· after-tax WACC: 7.91% (2020: 7.61%);
· pre-tax discount rate: 9.51% (2020: 9.36%);
· terminal growth rate (after five years): 1.5% for IT Solutions (2020: 1.5%);
· exchange rate USD/Euro: 1.13 (2020: 1.2);
· revenue and gross margin: revenue and gross margin reflect management’s best expectations, based on past
experience and taken into account the specific business risks.
Sensitivity analyses on changes in key assumptions, i.e. substantial changes in WACC, have been performed.
The sensitivity analysis was based on a 100 basis point increase in the weighted average cost of capital.
These sensitivity analyses have not revealed any risk for impairment loss. Based upon these sensitivity analyses,
management is of the opinion that a reasonable, possible change in one of these key assumptions would not
trigger an impairment loss to occur.
192
27.1.4 CGU Digital Print & Chemicals
At December 31, 2021, the carrying amount of the CGU Digital Print & Chemicals comprises no goodwill.
27.2 Impairment tests for intangible assets with indefinite useful lives
At year-end 2021, the Group has no intangible assets with indefinite useful lives on its balance sheet.
27.3 Useful lives of intangible assets with finite useful lives
The useful life of an intangible asset is the period over which the asset is expected to contribute directly or
indirectly to the future cash flows of the Group. Acquired technology and customer relationships are the most
crucial recognized intangible assets with finite useful lives for the Group. For acquired technology, the
estimation of the remaining useful life is based on the analysis of factors such as typical product life cycles
in the industry and technological and commercial obsolescence arising mainly from expected actions by
competitors or potential competitors.
At December 31, 2021, the net carrying amount of the Group’s acquired technology amounted to 0 million Euro
(2020: 0 million Euro).
For acquired contractual customer relationships, the estimated remaining useful life is assessed by reference
to customer attrition rates. For the estimation of appropriate customer attrition rates, the Group assesses the
probability that existing contracts will be renegotiated. For the assessment of the probability that existing con-
tracts can be renegotiated, demand as well as competition and other factors such as technological lock-in and
related sunk costs are of importance. At December 31, 2021, the net carrying amount of the Group’s remaining
acquired contractual customer relationships amount to 9 million Euro (2020: 12 million Euro).
The Group’s acquired contractual customer relationships have an estimated weighted average remaining useful
life of approximately two years. The useful lives are periodically reviewed and revised if necessary.
While the Group believes that the assumptions (such as attrition rates and product life cycles) used for the
determination of the useful lives of aforementioned intangibles are appropriate, significant differences in actual
experience would affect the Group’s future amortization expense.
193
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
28. PROPERTY, PLANT AND EQUIPMENT
MILLION EURO
Land
buildings and
infrastructure
Machinery
and technical
equipment
Furniture
fixtures and
other equipment
Construction in progress
and advance payments to
vendors and contractors
TOTAL
Cost at December
Exchange differences () () () () ()
New lease contracts
Capital expenditures
Business combinations divestment () () () ()
Disposals and retirements () () () ()
Construction in progress put into use ()
Reclasses ()
Cost at December
Exchange differences
New lease contracts
Capital expenditures
Business combinations divestment
Disposals and retirements () () () () ()
Construction in progress put into use ()
Reclasses ()
Cost at December
Accumulated depreciation and
impairment losses December
() () () () ()
Exchange differences
Depreciation during the year () () () ()
Impairment loss during the year () () ()
Business combinations divestment
Disposals and retirements
Reclasses
Accumulated depreciation and
impairment losses December
() () () () ()
Exchange differences () () () ()
Depreciation during the year () () () ()
Impairment loss during the year ()
Business combinations divestment
Disposals and retirements
Reclasses
Accumulated depreciation and
impairment losses December
() () () () ()
Carrying amount December
Carrying amount December
Carrying amount December
In 2021, capital expenditure for property, plant and equipment amount to 25 million Euro (2020: 31 million Euro),
of which 16 million Euro (2020: 18 million Euro) relates to machinery and technical equipment, mainly in Belgium
and of which 4 million Euro (2020: 7 million Euro) relates to construction in progress mainly for production
eciency, maintenance and IT-related projects in Belgium and Germany.
The Group, as lessor, included assets subject to operating leases in its statement of financial position under the
caption ‘Other Equipment.’ At the end of December 2021, the assets subject to operating leases have a total
net carrying amount of 6 million Euro (2020: 5 million Euro) (see Note 44).
Impairment losses on PP&E amount to 2 million Euro in 2020 and related to assets that were used for the
production of PV belonging to the CGU DPC.
194
During 2020, an additional amount of 2 million Euro was transferred from land, buildings and infrastructure
to non-current assets held for sale relating to the sale of the closed Leeds (UK) production site (see Note 35).
The sale was finalized in 2021.
29. RIGHT-OF-USE ASSETS
Due to the application of IFRS 16, the Group – as lessee – recognizes as of 2019 right-of-use assets representing
its right to use the underlying assets and lease liabilities representing its obligation to make lease payments.
Exemptions are however made for short-term leases and leases of low value items such as the major part of the
Group’s ICT-equipment.
The right-of-use asset is initially measured at cost and subsequently depreciated using the straight-line method
from the commencement date to the end of the lease term, unless the lease transfers ownership of the under-
lying asset by the end of the lease term or the cost of the right-of-use asset reflects that the Group will exercise
a purchase option. In these cases, the right-of-use asset is depreciated over the useful life of the underlying
asset, compliant with the methodology applicable for property, plant and equipment.
The following table shows a reconciliation to the closing balances at December 31, 2021, for the right-of-use
assets, broken down by category. The Group distinguishes four categories: 1) Right-of-use land, buildings and
infrastructure, 2) Right-of-use cars, 3) Right-of-use other transportation equipment, mainly related to our
manufacturing organizations and 4) Right-of-use other assets.
MILLION EURO
Rightofuse
land buildings
infrastructure
Rightof
use cars
Rightofuse
other transportation
equipment
Rightofuse
other assets
TOTAL
Cost at December
Exchange differences () () ()
New lease contracts
Lease revaluations
Disposals and retirements () () ()
Business combinations divestment () () ()
Reclasses () () ()
Cost at December
Exchange differences
New lease contracts
Lease revaluations ()
Disposals and retirements () () ()
Reclasses () () ()
Cost at December
Accumulated depreciation and
impairment losses December
() () () ()
Exchange differences
Amortization during the year () () () ()
Impairment loss during the year
Disposals and retirements
Business combinations divestment
Reclasses
Accumulated depreciation and
impairment losses December
() () () ()
Exchange differences
Amortization during the year () () () ()
Impairment loss during the year () ()
Disposals and retirements
Business combinations divestment
Reclasses
Accumulated depreciation and
impairment losses December
() () () ()
Carrying amount December
Carrying amount December
195
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
New lease contracts concluded during 2021 amounted to 12 million Euro (2020: 23 million Euro) and primarily
related to buildings and cars. The increase in right-of-use assets equals the increase in lease liabilities.
For additional information on the evolution of the lease liabilities, see Note 38.
Lease revaluations made during 2021 amounting to 7 million Euro (2020: 2 million Euro) mainly relate to
contract extensions. Business combinations divestment relates to the sale of part of HealthCare’s IT business
(see Note 20).
In 2021, impairment losses amounting to 1 million Euro (2020: 1 million Euro) have been recognized on onerous
lease contracts.
30. INVESTMENTS IN ASSOCIATES AND OTHER FINANCIAL ASSETS
30.1 Investments in associates
In the course of 2021, the Group established with other investment partners the company Penny Black, a start-
up private limited liability company providing software and printing solutions for the e-commerce business.
The Group holds an investment of 49.63% in this company. The investment in this associate is measured using
the equity method. During 2021, the Group has recognized losses amounting to 0.2 million Euro in relation to
its interest in this associate. The carrying amount of the investment in Penny Black amounts to 0.7 million Euro
after equity pick-up.
In May 2020, the Group divested its 26.4% equity stake in the company My Personal Health Record Express Inc.
(MphRx) to the Dedalus Group (see Note 20 ‘Disposals’). The investment in the associate was measured using
the equity method.
MILLION EURO
MPhRX ( %) Penny Black (%)
Carrying amount of interests including goodwill
Net loss after taxes ()
Group’s share of net loss after taxes ()
Other Comprehensive Income of MphRx
Group’s share of Other Comprehensive Income
Summarized financial information
Noncurrent assets
Current assets
Equity
Current liabilities
Group’s share of equity
Goodwill included in carrying amount of the investment
Carrying amount of investment in other aliates
30.2 Financial assets
At December 2020 and 2021, financial assets at fair value through OCI comprise the investment in Digital Illustrate
Inc., a Korean UV printer manufacturer. The Group owns 15% of the shares of this company. This investment is
carried at fair value, being the quoted price on the stock exchange with changes in fair value booked in OCI.
The Group designated this investment as at FVOCI because this represents an investment that the Group
intends to hold for the long term for strategic purposes. During 2021, no dividends have been received
(2020: 0 million Euro).
196
During 2020, the financial assets at amortized cost comprised a 9 million Euro Borrower’s promise, issued in
relation to the sale of the Branchburg site. This promise to pay matured in July 2021 and beared an interest
rate of 3.5% per annum.
MILLION EURO
Financial assets at fair value through OCI Equity instruments
Financial assets at amortized cost
TOTAL
31. RECEIVABLES UNDER FINANCE LEASES
Lease agreements in which the other party, as lessee, is to be regarded as the economic owner of the leased
assets give rise to accounts receivable in the amount of the discounted future lease payments. These
receivables amounted to 102 million Euro as of December 31, 2021 (2020: 98 million Euro) and will bear interest
income until their maturity dates of 10 million Euro (2020: 9 million Euro).
As of December 31, 2021, the impairment losses on the receivables under finance leases amounted to 2 million
Euro (2020: 2 million Euro).
The receivables under finance leases can be presented as follows:
MILLION EURO
Total future
payments
Unearned
interest income
Present
value
Total future
payments
Unearned
interest income
Present
value
Not later than one year
Year +
Year +
Year +
Year +
Later than five years
Total minimum lease payments
Unguaranteed residual value
TOTAL
Impairment losses () ()
Receivables under finance lease
The Group leases out its commercial equipment under finance leases mainly via Agfa Finance (i.e. Agfa Finance
NV, its subsidiaries, Agfa Finance Corp. and Agfa Finance Inc.) and via Agfa sales organizations in Australia
and Belgium.
At the inception of the lease, the present value of the minimum lease payments generally amounts to at least
90% of the fair value of the leased assets.
The major part of the leases concluded with Agfa Finance typically run for a non-cancellable period of four
years. The contracts generally include an option to purchase the leased equipment after that period at a price
that generally lies between 2% and 5% of the gross investment at the inception of the lease.
Sometimes, the fair value of the leased asset is paid back by means of a purchase obligation for consumables
at a value higher than its market value, in such a way that this mark-up is sucient to cover the amount initially
invested by the lessor.
In these types of contracts, the mark-up and or the lease term can be subject to change.
197
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Agfa Finance offers its products via its subsidiaries in France and Italy and its branches in Europe (Spain,
Switzerland, Benelux, Germany, UK and the Nordic countries), via Agfa Finance Corp. in the US and Agfa
Finance Inc. in Canada. As of December 31, 2021, the present value of the total future lease payments before
impairment losses for Agfa Finance amounted to 101 million Euro (2020: 97 million Euro).
Agfa sales organization in Australia offers customer financing of graphical equipment with an average remaining
term of 12 months and in Belgium, Agfa Offset BV is the lessor of offset equipment. As of December 31, 2021,
the present value of the total future lease payments before impairment losses for these sales organizations are
1 million Euro (2020: 1 million Euro).
During 2021 and 2020, the Group hasn’t sold any receivables under finance lease.
32. INVENTORIES
MILLION EURO
Raw materials and auxiliaries
Work in progress and semifinished goods
Finished goods
Goods purchased for resale including spare parts
Inventory in transit & other inventory
TOTAL
In 2021, inventories are written down to net realizable value for an amount of 12 million Euro (2020: 12 million
Euro). These write-downs relate to obsolete, damaged or expired inventory.
The cost of those inventory items has been fully written down. As a consequence, the Group has no inventory
carried at fair value less cost to sell at December 31, 2021.
Write-downs of inventories are included in cost of sales in the consolidated statement of profit or loss.
33. OTHER RECEIVABLES
Other receivables can be presented as follows:
MILLION EURO
Other receivables
Uninstalled leases
()
Subsidies and grants
Payroll receivables
Other receivables
TOTAL
(1) Leased equipment not yet installed at the client’s premises.
198
34. CASH AND CASH EQUIVALENTS
The reconciliation of cash and cash equivalents with its corresponding items in the statement of financial
position can be presented as follows:
MILLION EURO
Total cash and cash equivalents as reported in the consolidated
statement of financial position
Bank overdrafts (reported under current loans and borrowings)
Total cash and cash equivalents as reported in the consolidated
statement of cash flows
35. NON-CURRENT ASSETS HELD FOR SALE
The non-current assets, classified as held for sale, relate to the planned sale of the site of two closed offset
printing plate factories, one in Vallese (Italy) and one in Pont-à-Marcq (France), both belonging to the Offset
Solutions segment. The sale of these assets is planned in next year. Related land, buildings and infrastructure
are measured at their carrying amount at December 31, which is lower than the fair value less costs to sell.
The site in Leeds (UK), classified as held-for-sale last year was successfully sold in 2021 with a gain amounting
to 7 million Euro (see Note 9.1 ‘Other operating income’).
36. OTHER ASSETS
Other non-current and current assets can be presented as follows:
MILLION EURO
Noncurrent
Multi year service contracts (strategic suppliers)
Prepayments (see Note ‘Other related party transactions’)
Total noncurrent
Current
Multi year service contracts (strategic suppliers)
Advances on costs
Guarantees and deposits
Prepayments
Other
Total current
TOTAL
199
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
EQUITY AND LIABILITIES
37. EQUITY
The various components of Equity and the changes therein from January 1, 2020 to December 31, 2021 are
presented in the Consolidated Statements of Changes in Equity.
37.1 Share capital and share premium
At December 31, 2021 and 2020, the issued capital of the Company amounts to 187 million Euro. The outstand-
ing ordinary shares with voting rights amount to 160,438,653 at December 31, 2021 (2020: 167,751,190 out-
standing shares).
37.2 Reserve for own shares
The reserve for the Company’s own shares comprises the cost of the Company’s shares held by the Group.
At December 31, 2021, the Group held 68,053 (2020: 4,099,852) of the Company’s shares.
On March 10, 2021, the Group has announced a share buyback program with a volume up to 50 million Euro.
The program allows shareholders to benefit from the sale of part of the HealthCare IT activities in 2020 and
show the Group’s confidence in its ongoing transformation process.
During 2021, the Group has purchased 7,312,537 own shares for an amount of 29 million Euro. These shares,
except for 68,053 shares, were cancelled in the course of 2021 together with the formerly held own shares.
In total 11,344,336 own shares were cancelled in the course of 2021 for an amount of 111 million Euro.
37.3 Revaluation reserve
The revaluation reserve comprises the revaluation of the Group’s investment in Digital Illustrate Inc. which is
irrevocably designated at fair value through OCI and will subsequently not be recycled to profit or loss.
37.4 Hedging reserve
As of December 31, 2021, the hedging reserve comprises the effective portion of the cumulative net change in
fair value of foreign exchange contracts designated as cash flow hedges.
During 2021 and 2020, the Group concluded a number of metal swap agreements with an investment bank.
These swap agreements have been designated as ‘cash flow hedges’; hedging the Group’s exposure to
fluctuations in commodity prices related to highly probable forecasted purchases of commodities. It relates
to commodity contracts that were entered into and continue to be held for the purpose of the receipt of
commodities in accordance with the Group’s expected usage requirements.
The portion of the gain or loss on the swap contracts that is determined to be an effective hedge is recognized
directly in ‘Other comprehensive income’ (December 31, 2021: 0 million Euro, net of tax, December 31,
2020: 4 million Euro).
In the course of 2020, the Group designated foreign exchange contracts as ‘cash flow hedges’ of its foreign
currency exposure in US Dollar and Chinese Renminbi related to highly probable forecasted revenue over the
following 15 months. The portion of the gain on the forward exchange contracts that is determined to be an
effective hedge is recognized directly in ‘Other comprehensive income’ (December 31, 2021: -2 million Euro net
of tax, December 31, 2020: 2 million Euro).
A reconciliation of hedge reserve in tabular format for each type of risk is provided in Note 21.4.
200
37.5 Remeasurement of the net defined benefit liability
Remeasurement of the net defined benefit liability primarily relates to actuarial gains and losses and return
on plan assets, excluding the amounts included in net interest on the net defined benefit liabilities.
The evolution for the year 2021 is as follows:
MILLION EURO
December
Remeasurement of
the net defined
benefit liability
Tax
impact
December
Note Note
Remeasurement of the net defined benefit liability
Related to material countries () () ()
Related to nonmaterial countries () ()
TOTAL () () ()
The movement of the year, net of tax amounts is an increase of 90 million Euro. Deferred taxes related to the
effects of remeasurements are also recognized in other comprehensive income. The tax effect is further
explained in Note 17.4.
37.6 Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the financial
statements of foreign operations, as well as from the translation of financial instruments that hedge the
Company’s net investment in a foreign subsidiary.
Until May 2016, the Group utilized forward exchange contracts to hedge the foreign currency exposure of the
Group’s net investment in one of its subsidiaries in the United States. As from May 2016, the Group has revoked
the designation of the hedge. The gain on the hedging instrument relating to the effective portion of the hedge
that was recognized in ‘Other comprehensive income’ (December 31, 2021: 10 million Euro, December 31, 2020:
10 million Euro) shall be reclassified from equity to profit or loss on the disposal of the foreign operation.
37.7 Dividends
For 2020, no dividend has been paid out based on the decision of the General Assembly of Shareholders of
Agfa-Gevaert NV on May 12, 2020. For 2021, no dividend has been paid out based on the decision of the General
Assembly of Shareholders of Agfa-Gevaert NV on May 11, 2021. For 2022, no dividend has been recommended
by the Board of Directors.
37.8 Non-controlling interests
Non-controlling interests have a material interest in nine subsidiaries of the Group in greater China and the
ASEAN region (December 31, 2021: 52 million Euro; December 31, 2020: 49 million Euro). In Europe, there are
a few subsidiaries in which non-controlling interests have an interest that is of minor importance to the Group
(December 31, 2021: 2 million Euro; December 31, 2020: 1 million Euro).
In greater China and the ASEAN region, the Group and its business partner Shenzhen Brother Gao Deng
Investment Group Co., Ltd. combined as of 2010 their activities aiming at reinforcing the market position in the
greater China and the ASEAN region. Shenzhen Brother Gao Deng Investment Group Co., Ltd. has a 49% stake
in Agfa Graphics Asia Ltd., the holding company of the combined operations of both parties.
201
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The subsidiaries of Agfa Graphics Asia Ltd. at December 31, 2021 are:
· Agfa (Wuxi) Printing Plate Co., Ltd.
· Agfa ASEAN Sdn. Bhd.
· Agfa Imaging (Shenzhen) Co., Ltd.
· Agfa Singapore Pte. Ltd.
· Agfa Taiwan Co., Ltd.
· Agfa Graphics Shanghai Co., Ltd.
· Agfa Pty Ltd.
· OOO Agfa Graphics
· Agfa HuaGuang (Shanghai) Graphics
Based on the current governance structure, the Group has determined that it has control over these
subsidiaries. At December 31, 2021, the accumulated amount of non-controlling interests attributable
to Shenzhen Brother Gao Deng Investment Group Co., Ltd. and Lucky HuaGuang Graphics Co., Ltd. amounts
to 48 million Euro. The profit allocated to non-controlling interests of these business partners amounts
to 4 million Euro.
The following table summarizes the information relating to the companies in which the business partner
Shenzhen Brother Gao Deng Investment Group has a non-controlling interest of 49%, and information relating
to the non-controlling interest in the company Agfa HuaGuang (Shanghai) Graphics. This company was newly
established in 2019 by Agfa Graphics Asia, in which the Group has a stake of 51% and by Lucky HuaGuang
Graphics Co. The latter holds a stake of 49% in this newly established company which brings the share in this
newly established company belonging to minority shareholders to 73.99%.
The information provided is before intercompany eliminations with other companies of the Agfa-Gevaert Group.
202
MILLION EURO
Agfa Graphics
Asia Ltd and
subsidiaries
(%)
Agfa
HuaGuang
Graphics
(%)
Agfa Graphics
Asia Ltd and
subsidiaries
(%)
Agfa
HuaGuang
Graphics
(%)
Current assets
Noncurrent assets
Current liabilities
Noncurrent liabilities
Net assets Agfa Graphics Asia Ltd and its
subsidiaries (consolidated)
Carrying amount of noncontrolling interests in
Agfa Graphics Asia Ltd and its subsidiaries (%)
Carrying amount of noncontrolling interests in
Agfa HuaGuang Graphics (%)
Revenue
Profit for the year
Profit allocated to noncontrolling interests in
Agfa Graphics Asia Ltd and its subsidiaries (%)
Profit allocated to noncontrolling interests in
Agfa HuaGuang Graphics Asia (%)
Other comprehensive income: translation differences ()
Other comprehensive income allocated to
noncontrolling interests in Agfa Graphics
Asia Ltd and its subsidiaries (%)
Total comprehensive income allocated to
noncontrolling interests in Agfa Graphics
Asia Ltd and its subsidiaries (%)
Total comprehensive income allocated to
noncontrolling interests in Agfa HuaGuang
Graphics (%)
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities () ()
Dividends paid to noncontrolling interests
during the year
()
()
(1) Included in cash flows from financing activities.
37.9 Other comprehensive income - net of tax
2020
MILLION EURO
Attributed to owners of the Company
Noncontrolling interests
TOTAL OTHER
COMPREHENSIVE
INCOME
Translation reserve
Hedging reserve
Revaluation reserve
Remeasurement of
the net defined
benefit liability
TOTAL
Exchange differences on translation of foreign operations () () () ()
Effective portion of changes in fair value of
cash flow hedges net of tax
Net changes in fair value of cash flow hedges
reclassified to profit or loss net of tax
() () ()
Net changes in fair value of cash flow hedges transferred to initial
carrying amount of hedged items net of tax
Net change in fair value of equity investments through OCI () () ()
Remeasurement of the net defined benefit liability net of tax () () ()
TOTAL OTHER COMPREHENSIVE INCOME NET OF TAX () () () () () ()
203
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
2021
MILLION EURO
Attributed to owners of the Company
Noncontrolling interests
TOTAL OTHER
COMPREHENSIVE
INCOME
Translation reserve
Hedging reserve
Revaluation reserve
Remeasurement of
the net defined
benefit liability
TOTAL
Exchange differences on translation of foreign operations
Effective portion of changes in fair value of
cash flow hedges net of tax
Net changes in fair value of cash flow hedges
reclassified to profit or loss net of tax
() () ()
Net changes in fair value of cash flow hedges transferred to initial
carrying amount of hedged items net of tax
() () ()
Net change in fair value of equity investments through OCI
Remeasurement of the net defined benefit liability net of tax
TOTAL OTHER COMPREHENSIVE INCOME NET OF TAX ()
38. LOANS AND BORROWINGS
MILLION EURO
Noncurrent liabilities
Revolving credit facility ()
Lease liabilities
Current liabilities
Liabilities to banks
Debentures
Bank overdrafts
Lease liabilities
TOTAL LOANS AND BORROWINGS
38.1 Revolving credit facility
On March 5, 2021, Agfa-Gevaert NV closed a three-year multi-currency revolving credit facility of 230 million
Euro. This new facility is unsecured and will run until March 2024. However, the agreement provides for an
extension of the term of two times one year. The new revolving credit facility will be used for general corporate
purposes. The applicable interest rate is Euribor, Libor or its equivalent replacement benchmark (Reuters) and
a margin. In general, drawdowns under this facility are made for short periods, but the Group has the discretion
to rollover the liability under the existing committed loan facility.
At December 31, 2021, there were no drawdowns under this facility. At December 31, 2020, there were no
drawdowns under the terminated credit facility.
MILLION EURO Notional amount Outstanding amount Currency Interest rate
Maturity date
EUR
EUR
TOTAL
204
38.2 Lease liabilities
The Group mainly leases buildings (such as oce buildings and warehouses), company cars, other transportation
equipment (such as forklifts), and other equipment (such as IT equipment).
Building leases include both annually renewable contracts with options to renew the lease as well as leases
with longer fixed lease terms. The lease liability relating to building leases amounts to 49 million Euro or
approximately 72% of the Group’s lease liability, and has an average estimated remaining lease term of three years.
Company car leases typically run for a period of four to five years and represent approximately 24% of the
Group’s lease liability. Other leases represent less than 4% of the Group’s lease liability and include forklifts,
printers, packaging systems, etc.
Lease liabilities are payable as follows:
MILLION EURO
Maturing Outstanding amount
Incremental
borrowing rate
Outstanding amount
Incremental
borrowing rate
< year % %
Between years % %
> years % %
TOTAL
Lease liabilities do not comprise costs for low value leases, short-term leases and other out of scope costs,
amounting to 9 million Euro in total (2020: 10 million Euro).
38.3 Liabilities to banks
Liabilities to banks comprise at December 31, 2021, short-term facilities mainly in LATAM countries with a
weighted average interest rate of 16.6% (2020: 10%).
38.4 Reconciliation of liabilities arising from financing activities
The table below details changes in the Group’s liabilities arising from financing activities, including both cash and
non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash
flows will be, classified in the Group’s consolidated statement of cash flows as cash flows from financing activities.
MILLION EURO
Balance at
January
Cash flows from
financing activities
Noncash changes
Interests paid
()
Net repayment/
proceeds of
borrowings
New lease
contracts
Effect of changes
in foreign
exchange rate
Revaluation of
lease contracts
Interest expense
on loans and
borrowings
Reclasses between
RighofUse assets
Balance at
December
Revolving credit facility () ()
Liabilities to banks ()
Debentures
Lease liabilities ()
()
()
Bank overdrafts
TOTAL LOANS AND BORROWINGS () () ()
(1) Comprises intrests paid (2 million Euro).
(2) Interests paid in cash flow statement comprises interests paid on net financial debt (3 million Euro) and interests paid and on cash
and cash equivalents (1 million Euro).
205
AgfA-gevAert – AnnuAl report 2021
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
39. PROVISIONS
As of December 31, 2021, provisions amounted to 54 million Euro (2020: 79 million Euro).
MILLION EURO Environmental Traderelated Restructuring Other TOTAL
Provisions at December
Provisions made during the year
Provisions used during the year () () () ()
Business combinations divestment
Provisions reversed during the year () ()
Exchange differences
Transfers
Provisions at December
Provisions for environmental protection relate to future re-landscaping, landfill modernization and the
remediation of land contaminated by past industrial operations.
Provisions for trade-related commitments at closing date and related flows during the year primarily
comprise commissions to agents, warranty provisions and commercial litigations.
Provisions for restructuring mainly comprise employee related costs regarding the announced reorganization
of our activities of our Computed Radiography equipment factories in Peissenberg and Peiting (Germany),
and costs relating to the reorganization of the Company’s ICS department and the announced partnership
with Atos, a global leader in digital transformation.
Additions for this year mainly relate to the ICS reorganization, additional costs relating to the closed production
sites in Leeds (UK) and Pont-à-Marcq (France) and costs relating to the closure of Ipagsa (Spain).
Reversals mainly relate to a reassessment of the reorganization costs for the factories in Peissenberg and Peiting
(both Germany).
Other current provisions comprise a provision for dismantling of the Offset production site in Germany, legal
claims (including lawyer fees) and a legal claim regarding import duties.
40. OTHER PAYABLES
The other payables at December 31, 2021, amounting to 9 million Euro (2020: 8 million Euro) comprise a liability
mandatorily measured at fair value through profit or loss (2021: 2 million Euro, 2020: 3 million Euro) related to a
deposit of 3.4 ton silver placed by a metal recovery and refining company valued at the quoted market price, a
dividend payable to non-controlling interests (2021 and 2020: 1 million Euro), some interest accruals, tantièmes,
accruals for COVID allowance and insurances, finance leases, liabilities against staff resulting from compensa-
tion of travel and other personal related expenses and other various amounts payable.
41. OTHER LIABILITIES
The other liabilities current and non-current at December 31, 2021, are less than 0.5 million Euro (2020: 2 mil-
lion Euro: this comprised the unearned portion of government grants and subsidies and other current liabilities).
206
LIST OF SUBSIDIARIES
42. INVESTMENTS IN SUBSIDIARIES
The ultimate parent of the Group is Agfa-Gevaert NV (BE 0404 021 727), Mortsel (Belgium). The Company is the
parent company for the following significant subsidiaries.
Consolidated companies December
Name of the company Location Effective interest %
Agfa (Pty) Ltd Isando/Rep of South Africa
Agfa (Wuxi) Imaging Co Ltd Wuxi/PR China
Agfa (Wuxi) Printing Plate Co Ltd Wuxi/PR China
Agfa ASEAN Sdn Bhd Kuala Lumpur/Malaysia
Agfa Corporation Elmwood Park/United States of America
Agfa de Mexico SA de CV Mexico DF/Mexico
Agfa Finance Corp Wilmington/United States of America
Agfa Finance Inc Toronto/Canada
Agfa Finance Italy SpA Milan/Italy
Agfa Finance NV Mortsel/Belgium
Agfa Graphics Argentina SA Buenos Aires/Argentina
Agfa Graphics Asia Ltd Hong Kong/PR China
Agfa Graphics Ecuador CIA LTDA Quito/Ecuador
Agfa Graphics Ltd Leeds/United Kingdom
Agfa Middle East FZCO Dubai/United Arab Emirates
Agfa NV Mortsel/Belgium
Agfa Graphics Srl Milano/Italy
Agfa SA (Arg) Buenos Aires/Argentina
Agfa HealthCare Australia Limited Scoresby/Australia
Agfa Do Brasil Ltda Sao Paulo/Brazil
Agfa HealthCare Chile Ltda Santiago de Chile/Chile
Agfa HealthCare Colombia Ltda Bogota/Colombia
Agfa HealthCare Corporation Greenville/United States of America
Agfa HealthCare Denmark A/S Copenhagen/Denmark
Agfa HealthCare Germany GmbH Düsseldorf/Germany
Agfa HealthCare Hong Kong Ltd Hong Kong/PR China
Agfa HealthCare Inc Mississauga/Canada
Agfa HealthCare India Private Ltd Thane/India
Agfa HealthCare Luxembourg SA Bertrange/Luxembourg
Agfa HealthCare Malaysia Sdn Bhd Kuala Lumpur/Malaysia
Agfa HealthCare Mexico SA de CV Mexico DF/Mexico
Agfa HealthCare Norway AS Oslo/Norway
Agfa HealthCare NV Mortsel/Belgium
Agfa HealthCare Saudi Arabia Company Limited LLC Riyadh/Saudi Arabia
Agfa HealthCare (Shanghai) Co Ltd Shanghai/PR China
Agfa HealthCare Singapore Pte Ltd Singapore/Republic of Singapore
Agfa HealthCare South Africa Pty Ltd Gauteng/Rep of South Africa
Agfa HealthCare Spain SAU Barcelona/Spain
Agfa HealthCare Sweden AB Kista/Sweden
Agfa HealthCare UK Limited Brentford/United Kingdom
Agfa Imaging (Shenzhen) Co Ltd Shenzhen/PR China
Agfa Inc Mississauga/Canada
Agfa Industries Korea Ltd Seoul/Korea
Agfa Limited Dublin/Ireland
Agfa Materials Corporation Wilmington/United States of America
Agfa Materials Japan Ltd Tokyo/Japan
Agfa Materials Taiwan Co Ltd Taipei/Taiwan
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Agfa Singapore Pte Ltd Singapore/Republic of Singapore
Agfa Solutions SAS RueilMalmaison/France
Agfa Sp zoo Warsaw/Poland
Agfa Taiwan Co Ltd Taipei/Taiwan
AgfaGevaert MAEBE Athens/Greece
Agfa GmbH Düsseldorf/Germany
AgfaGevaert Argentina SA Buenos Aires/Argentina
AgfaGevaert BV Rijswijk/the Netherlands
AgfaGevaert Colombia Ltda Bogota/Colombia
AgfaGevaert do Brasil Ltda Sao Paulo/Brazil
AgfaGevaert Graphic Systems GmbH Düsseldorf/Germany
AgfaGevaert HealthCare GmbH Düsseldorf/Germany
AgfaGevaert Japan Ltd Tokyo/Japan
AgfaGevaert Limited Scoresby/Australia
AgfaGevaert Limited Brentford/United Kingdom
AgfaGevaert Ltda Santiago De Chile/Chile
AgfaGevaert GmbH Düsseldorf/Germany
AgfaGevaert NZ Ltd Auckland/New Zealand
AgfaGevaert SAS PontàMarcq/France
AgfaGevaert SpA Milan/Italy
Lastra Attrezzature Srl Manerbio/Italy
Litho Supplies (UK) Ltd Derby/United Kingdom
Luithagen NV Mortsel/Belgium
New ProImage America Inc Princeton/United States of America
New ProImage Ltd Netanya/Israel
OOO Agfa Graphics Moscow/Russian Federation
OOO Agfa Moscow/Russian Federation
Agfa HealthCare Kazakhstan LLP Almaty/Republic of Kazakhstan
Agfa HealthCare Ukraine LLC Kyiv/Ukraine
PT GevaertAgfa HealthCare Indonesia Jakarta/Indonesia
Bodoni Systems Watford/United Kingdom
Agfa HealthCare Middle East FZLLC Dubai/United Arab Emirates
Agfa HealthCare IT UK Limited Middlesex/United Kingdom
Agfa South Africa (Pty) Ltd Gauteng/Rep of South Africa
Agfa Australia Pty Ltd Scoresby/Australia
Agfa Canada Inc Mississauga/Canada
Agfa US Corp Greenville/United States of America
Ipagsa Technologies SLU Barcelona/Spain
Agfa Graphics Shanghai Co Ltd Shanghai/PR China
Agfa HealthCare IT (Shanghai) Co Ltd Shanghai/PR China
Agfa Hong Kong Ltd Hong Kong/PR China
Agfa HealthCare Vietnam Co Ltd Ho Chi Minh City/Vietnam
Ipagsa (Shanghai) Printing Materials Co Ltd Shanghai/PR China
Agfa HuaGuang (Shanghai) Graphics Equipment Ltd Shanghai/PR China
Agfa Materials Korea Co Ltd Seoul/Korea
Agfa Ré SA Luxembourg/Luxembourg
Agfa Offset Colombia SAS Bogota/Colombia
Agfa Offset BV Mortsel/Belgium
Agfa AlterssicherungsAG Düsseldorf/Germany
43. EQUITY ACCOUNTED INVESTEES
Associated companies December
Name of the company Location Effective interest %
Penny Black BV Antwerp/Belgium
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OTHER INFORMATION
44. OPERATING LEASES
Within the segment HealthCare IT, the Group offers Software as a Service (‘SaaS’) which are offsite, onsite
or hybrid models under which software, hardware and services are offered to the customer on a pay-per-use
basis or a monthly/annual fee basis. The Group guarantees the management of the system over the contract
period, and provides daily technical operations, maintenance and support to the customer. These contracts can
comprise an operating lease component. The lease income related to this contracts amounts to 12 million Euro
during 2021 (2020: 9 million Euro) and was recognized in revenue based upon use/consumption by the client.
The Group moreover offers ‘bundle deals’ whereby equipment usage is financed by an uplift on consumables
purchased by the customer. An operating lease component can be embedded in these type of contracts.
The operating lease component is recognized in revenue based on the consumables purchase.
The total of assets in operating lease contracts recognized in the statement of financial position at December 31,
2021 amounts to 6 million Euro (December 31, 2020: 5 million Euro) (see Note 28).
45. COMMITMENTS AND CONTINGENCIES
45.1 Contingencies
Contingencies resulted entirely from commitments given to third parties and comprise:
MILLION EURO
Bank guarantees
Other
Corporate guarantees
TOTAL
Corporate guarantees mainly relate to guarantees given by the parent company on behalf of its subsidiaries
towards banks and mainly relate to the revolving credit facility (see Note 38.1) and other negotiated credit lines.
There are no purchase commitments in connection with major capital expenditure projects for which the
respective contracts have already been awarded or orders placed.
45.2 Legal risks/contingencies
The Group is currently not involved in any major litigation apart from those related to the AgfaPhoto insolvency.
AgfaPhoto
In connection with the divestment of the Consumer Imaging business of Agfa-Gevaert AG and certain of its
subsidiaries, the Group entered into various contractual relationships with AgfaPhoto Holding GmbH, AgfaPhoto
GmbH and their subsidiaries in various countries (the ‘AgfaPhoto group’), providing for the transfer of its Consumer
Imaging business, including assets, liabilities, contracts and employees, to AgfaPhoto group companies.
Subsequent to the divestment, insolvency proceedings have been opened with respect to AgfaPhoto GmbH and
a number of its subsidiaries in both Germany and other countries. The Group had been sued through lawsuits or
other actions in various countries in connection with a number of disputes. Those disputes have been resolved,
with the exception of the following dispute.
With respect to that divestment, the insolvency receiver of AgfaPhoto GmbH initiated various arbitration
proceedings before the ICC International Court of Arbitration in Paris. In the last arbitration proceeding
that was still pending, the receiver claimed damages allegedly suffered as a result of, inter alia, the alleged
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
undercapitalization of AgfaPhoto GmbH and the alleged causation of the insolvency of AgfaPhoto GmbH. The ICC
Tribunal issued a final award on May 31, 2018, through which it dismissed all of the insolvency receiver’s claims,
and ordered him to reimburse to Agfa a very substantial part of the costs that Agfa incurred in that arbitration
proceeding. The insolvency receiver filed a request for the annulment of that final award before a German court
(‘Oberlandesgericht Frankfurt/Main’ or ‘OLG’) in October 2018. By judgement of January 16, 2020, the OLG
declared the annulment of the final award of May 31, 2018. The concerned Agfa companies appealed this
judgement before the ‘Bundesgerichtshof’ (BGH). The BHG confirmed the judgement of the OLG by decision of
November 26, 2020 which was communicated to Agfa on January 20, 2021. After further analysis, the concerned
Agfa companies concluded that they would not appeal this decision before the German Federal Constitutional
Court (‘Bundesverfassungsgericht’). Consequently, the final award of May 31, 2018 has been set aside definitively.
After an unsuccessful conciliation attempt the insolvency receiver of AgfaPhoto GmbH initiated a new
arbitration proceeding before the ICC International Court of Arbitration in April 2021. He pursues his claim for
damages allegedly suffered as a result of the alleged undercapitalization of AgfaPhoto GmbH, in addition to the
reimbursement of his costs borne in the first arbitration. An ICC tribunal with 3 arbitrators has been formed in the
course of 2021. In the course of 2022, the insolvency receiver will submit his full Statement of Claim and Agfa will
submit its Statement of Defense. The Group will vigorously defend itself in this new procedure.
Other
Further legal risks for the Group exist with regard to a dispute with a former distributor of the Group’s products
in Bolivia who claims compensation for breach of contract. The Group believes it has meritorious defenses in
this lawsuit and is defending itself vigorously.
46. RELATED PARTY TRANSACTIONS
46.1 Transactions with Directors and members of the Executive Management
(key management personnel)
Key management personnel compensation (excluding employer’s social contribution) included in profit or loss
can be detailed as follows:
MILLION EURO Directors Executive Management Directors Executive Management
Shortterm employee benefits
Termination benefits
Postemployment benefits
Sharebased payment
TOTAL
As of December 31, 2021, there were no loans outstanding neither to members of the Executive Management
nor to members of the Board of Directors.
Pension provisions for members and retired members of the Executive Management, amounting to 15 million
Euro, are reflected in the statement of financial position of the Group at December 31, 2021. Key management
personnel remuneration is also included in the Remuneration Report (see pages 256-261).
46.2 Other related party transactions
Transactions with related companies are mainly trade transactions.
The Group and its business partner Shenzhen Brother Gao Deng Investment Group Co., Ltd. combined as of
2010 their activities aiming at reinforcing both partners’ market position in Greater China and ASEAN region.
210
Shenzhen Brother Gao Deng Investment Group Co., Ltd. has a 49% stake in Agfa Graphics Asia Ltd., the holding
company of the combined operations of both parties. In 2019, the Group transferred two subsidiaries to Agfa
Graphics Asia Ltd. Also in 2019, Agfa Graphics Asia established a new company, Agfa HuaGuang (Shanghai)
Graphics, in which a new business partner Lucky HuaGuang Graphics Co., Ltd. participated for 49%.
This strategic alliance should allow both business partners to realize growth through the optimization of their
respective strengths in the field of manufacturing, technology and distribution of graphics prepress products
and services. See also Note 37.8 ‘Non-controlling interests.’
The following table summarizes the transaction values and the outstanding balances between the Group and its
related parties Shenzhen Brother Gao Deng Investment Group Co., Ltd. and Lucky HuaGuang Graphics Co., Ltd.
In the course of 2021, Shenzhen Brother Gao Deng Investment Group Co., Ltd. received a dividend of 5 million
Euro (49%). In the course of 2020, Lucky HuaGuang Graphics Co., Ltd. was entitled to a dividend of 1 million
Euro, which will be paid in 2022.
MILLION EURO
Transaction value
for the year ended
December
Balance
outstanding at
December
Sales to Shenzhen Brother Gao Deng Investment Group Co Ltd
Sales to Lucky HuaGuang Graphics Co Ltd
Purchases from Shenzhen Brother Gao Deng
Investment Group Co Ltd
Purchases from Lucky HuaGuang Graphics Co Ltd
Dividend
Prepayment
Prepayments with an outstanding balance of 10 million Euro relate to supplier advances against companies
of the Shenzhen Brother Gao Deng Group for whose account the film conversion takes place and from whom
aluminum is bought.
The advance is amortized based upon future film volumes supplied to Agfa Graphics Asia Ltd. The outstanding
amount of 10 million Euro is recognized as ‘Other assets’ (see Note 36).
47. EVENTS SUBSEQUENT TO DECEMBER 31, 2021
Business continuity in Russia
The Agfa Group's business in Russia concerns less than 2% of the Group's turnover, and the majority of that relates to
healthcare. Agfa is not producing in Russia and its goods and services are not affected by the EU restrictive measures,
also because our healthcare products are much needed for taking care of patients everywhere around the world.
Agfa is doing everything it can to help its staff and their families in Ukraine. The company also supports its
employees in Poland who are helping Ukrainian refugees by offering their friendship, a safe place to stay and
food. The company is setting up an international fund raising program among its employees. All donations to this
program will be matched by Agfa.
Share buyback program
On 15 March 2022, the Agfa-Gevaert Group has announced that the 2021 Share Buyback Program announced on
March 10, 2021, would be extended through March 31, 2023 (the ‘Extended Share Buyback Program 2021’). This
was decided at the Board of Directors' meeting held on 8 March this year.
During 2021, an amount of 29 million Euro shares has been purchased.
Under the Extended Share Buyback Program 2021, Agfa-Gevaert may, until March 31, 2023, continue to purchase
treasury shares up to a total amount of 50,000,000 Euro. These share buybacks will take place under the terms
and conditions approved by the Group's Extraordinary General Shareholders' Meeting of May 12, 2020.
From Januari 1, 2022 till March 18, 2022, a total amount of 1,799,155 shares for a value of 6.5 mio Euro,
have been purchased which will be cancelled at the end of the first quarter of 2022.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
48. INFORMATION ON THE AUDITOR’S ASSIGNMENTS
AND RELATED FEES
The following fees for the services of KPMG Bedrijfsrevisoren/Réviseurs d’Entreprises were recognized as
an expense:
EURO
Fees of the independent auditor with respect to the statutory audit mandate for
the Company and the Group (Belgium)
Fees for nonaudit services rendered by the independent auditor to the Company and the Group
Other attestation
Tax
Other nonaudit
SUBTOTAL
Fees of independent auditor’s network with respect to a statutory audit mandate at the level
of the Group (foreign operations)
Fees for nonaudit services rendered by the independent auditor’s network to the Group
(Belgian and foreign operations)
Other attestation
Tax
Other nonaudit
SUBTOTAL
TOTAL
The fees for the auditing of financial statements comprise those for the audits of the consolidated financial
statements of the Agfa-Gevaert Group and the financial statements of its subsidiaries in Belgium and abroad.
Other non-audit fees mainly relate to advice and due diligence assistance.
212
ACCOUNTING POLICIES
49. BASIS OF MEASUREMENT
The consolidated financial statements have been prepared on the historical cost basis except for the following
items in the statement of financial position:
· Derivative financial instruments are measured at fair value;
· Non-derivative financial instruments at fair value through profit or loss (FVTPL) are measured at fair value;
· Debt and equity instruments at FVOCI are measured at fair value;
· Contingent consideration assumed in a business combination is measured at fair value;
· Liabilities for cash-settled shared-based payments arrangements are measured at fair value;
· Plan assets attributable to the Company’s defined benefit retirement plans and other post-employment
benefit plans are measured at fair value; and
· DBO attributable to defined benefit plans are measured using the projected unit credit method.
50. SIGNIFICANT ACCOUNTING POLICIES
50.1 Basis of consolidation
50.1.1 Business combinations
Business combinations are accounted for using the acquisition method as at the acquisition date, which is the
date on which control is transferred to the Group.
Control is the power over the entity, i.e. the right that gives the Company the ability to direct the relevant
activities of related entity, and is exposed to or has rights to variable returns from its involvement with the
entity and has the ability to affect those returns through its power over the entity.
Goodwill is not amortized but tested for impairment on an annual basis and whenever there is an indication
that the cash-generating unit to which goodwill has been allocated may be impaired. The impairment testing
process is described in the appropriate section of these policies. Goodwill is stated at cost less accumulated
impairment losses. With respect to associates, the carrying amount of goodwill is included in the carrying
amount of the investment.
The Group measures goodwill at the acquisition date as:
· the fair value of the consideration transferred; plus
· the recognized amount of any non-controlling interests in the acquiree; and if the business combination is
achieved in stages, the fair value of the existing equity interest in the acquiree; less
· the net fair value of the identifiable assets acquired and liabilities assumed.
When the excess is negative, a bargain purchase gain is recognized immediately in profit or loss. Any contingent
consideration payable is recognized at fair value at the acquisition date. Subsequent changes to the fair value of
the contingent consideration recognized as a liability are recognized in profit or loss.
Costs related to the acquisition are expensed as incurred.
50.1.2. Discontinued operations
A discontinued operation is a component of the Group’s business, the operations and cash flows which can be
clearly distinguished from the rest of the Group and which:
· represents a separate major line of business or geographic area of operations;
· is part of a single co-ordinated plan to dispose of a separate major line of business or geographic area of
operations; or
· is a subsidiary acquired exclusively with a view to resale.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Classification as a discontinued operation occurs at the earlier of disposal or when an operation meets the
criteria to be reclassified as held-for-sale.
When an operation is classified as a discontinued operation, the comparative statement of profit or loss and
OCI is re-presented as if the operation has been discontinued from the start of the comparative year.
50.1.3 Measurement of non-controlling interests
Non-controlling interests are measured at their proportionate share of the acquirees identifiable net assets at
the date of acquisition.
50.1.4 Subsidiaries
A subsidiary is an entity controlled by the Company. Control exists when the Company has the power over the
entity, i.e. the right that gives the Company the ability to direct the relevant activities of related entity, and is
exposed to or has rights to variable returns from its involvement with the entity and has the ability to affect
those returns through its power over the entity.
The financial statements of a subsidiary are included in the consolidated financial statements from the
acquisition date until the date when the parent ceases to control the subsidiary.
Changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control
Changes in a parent’s ownership interest in a subsidiary that do not result in a loss of control are accounted
for as equity transactions (i.e. transactions with owners in their capacity as owners).
In such circumstances, the carrying amounts of the controlling and non-controlling interests shall be adjust-
ed to reflect the changes in their relative interests in the subsidiary. Adjustments to non-controlling interests
arising from transactions that do not involve the loss of control are based on a proportionate amount of the net
assets of the subsidiary. Any difference between the amount by which the non-controlling interests are adjusted
and the fair value of the consideration paid or received, shall be recognized in equity and attributed to the
owners of the parent.
50.1.5 Loss of control
On the loss of control, the Group derecognizes the assets and liabilities of the subsidiary, any non-controlling
interests and the other components of equity related to the subsidiary. Any surplus or deficit arising on the loss
of control is recognized in profit or loss. If the Group retains any interest in the previous subsidiary, then such
interest is measured at fair value at the date that control is lost. Subsequently it is accounted for as an
equity-accounted investee or as a financial asset depending on the level of influence retained.
50.1.6 Investments in associates
An associate is an entity in which the Company has significant influence and that is neither a subsidiary nor an
interest in a joint venture. Significant influence is presumed to exist when the Company holds between 20%
and 50% of the voting power of another entity. An investment in an associate is accounted for using the equity
method from the date on which it becomes an associate and is recognized initially at cost. The cost of the
investment includes transaction costs. On acquisition of the investment, any difference between the cost of the
investment and the Company’s share of the net fair value of the associate’s identifiable assets and liabilities is
accounted for as follows:
· Goodwill relating to an associate is included in the carrying amount of the investment;
· Any excess of the Company’s share of the net fair value of the associate’s identifiable assets and liabilities
over the cost of the investment is included as income in the determination of the Company’s share of the
associate’s profit or loss in the period in which the investment is acquired.
Elimination of unrealized profits and losses on transactions with associates
Profits and losses resulting from upstream and downstream transactions between the Company – included its
consolidated subsidiaries – and an associate must be eliminated to the extent of the Company’s interest in
the associate.
214
Upstream transactions are, for example, sales of assets from an associate to the Company. Downstream
transactions are, for example, sales of assets from the Company to an associate.
When an investment ceases to be an associate
From the date when the Company ceases to have significant influence over an associate, it accounts for related
investment in accordance with IFRS 9 from that date. On the loss of significant influence, the Company
measures at fair value any investment the Company retains in the former associate.
The Company recognizes in profit or loss any difference between:
· the fair value of any retained investment and any proceeds from disposing of the (partial) interest in the
associate; and
· the carrying amount of the investment at the date when significant influence is lost.
Amounts recognized in OCI in relation to the associate or joint venture are accounted for on the same basis as
would be required if the investee had disposed of the related assets and liabilities directly.
50.1.7 Jointly controlled entities and jointly controlled operations
A joint arrangement is an arrangement of which two or more parties have joint control. Joint control is the
contractually agreed sharing of control of an arrangement, which exists only when decisions about the relevant
activities require the unanimous consent of the parties sharing control. Depending upon the rights and obligations
of the parties to the arrangement, the joint arrangement is classified either as a joint operation or a joint venture.
A. Joint operation
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement have
rights to the assets, and obligations for the liabilities, relating to the arrangement. Those parties are called joint
operators.
The consolidated financial statements include the assets that the Group controls and the liabilities that it incurs
in the course of pursuing the joint operation and the expenses that the Group incurs and its share of the income
that it earns from the joint operation.
B. Joint venture
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights
to the net assets of the arrangement. Those parties are called joint venturers.
The Group as joint venturer recognizes its interest in a joint venture as an investment that is accounted for
using the equity method (see Note 50.1.6).
50.1.8 Transactions eliminated on consolidation
Intragroup balances and transactions, including income, expenses and dividends, are eliminated in full.
Unrealized profits and losses resulting from intragroup transactions that are recognized in assets, such as
inventory and fixed assets, are eliminated in full.
Unrealized gains arising from transactions with equity-accounted investees are eliminated against the
investment to the extent of the Group’s interest in the investee. Unrealized losses are eliminated in the same
way as unrealized gains, but only to the extent that there is no evidence of impairment.
50.2 Foreign currency
Items included in the financial statements of each of the Company’s entities are measured using the currency
of the primary economic environment in which the entity operates (‘the functional currency’). The consolidated
financial statements are presented in Euro, which is the Company’s functional and presentation currency.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
50.2.1 Foreign currency transactions
All transactions in currencies other than the functional currency are foreign currency transactions. Foreign
currency transactions are translated into the functional currency using the exchange rates prevailing at the
dates of the transactions. Foreign currency gains and losses resulting from the settlement of such transactions
and from the translation at closing rates of monetary assets and liabilities denominated in foreign currencies
are recognized in profit or loss. However, foreign currency differences arising from the translation of the
following items are recognized in OCI:
· An investment in equity securities designated as at FVOCI (except on impairment, in which case foreign
currency differences that have been recognized in OCI are reclassified to profit or loss);
· Qualifying cash flow hedges to the extent that the hedges are effective.
Non-monetary assets and liabilities measured at historical cost that are denominated in foreign currencies are
translated using the exchange rate at the date of the transaction.
50.2.2 Foreign operations
A foreign operation is an entity that is a subsidiary, associate, joint venture or branch of the Company, of which
the activities are based or conducted in a currency other than the Euro.
The financial statements of foreign operations are translated for the purpose of the consolidation as follows:
· Assets and liabilities are translated at the closing rate;
· Income and expenses are translated at average year-to-date exchange rates; and
· Equity components are translated at historical rates, excluding current year movements, which are translated
at rates approximating the rate at the time of the transaction.
All resulting exchange differences are recognized in other comprehensive income and accumulated in a separate
component of equity being ‘Translation reserve.’ The amount attributable to any non-controlling interests is
allocated to and recognized as part of non-controlling interests.
On the disposal of a foreign operation, the cumulative amount of the exchange differences relating to that
foreign operation, recognized in other comprehensive income and accumulated in the separate component of
equity, is reclassified from equity to profit or loss when the gain or loss on disposal is recognized.
On the partial disposal of a subsidiary that includes a foreign operation, the proportionate share of the cumulative
amount of the exchange differences recognized in other comprehensive income is re-attributed to non-controlling
interests in that foreign operation. Any other partial disposal of a foreign operation – related to an associate,
joint venture or branch of the Company – results in a reclassification to profit or loss of the proportionate share
of the cumulative amount of the exchange differences recognized in other comprehensive income.
A partial disposal of an entity’s interest in a foreign operation is any reduction in an entity’s ownership interest
in a foreign operation, except for those reductions resulting in:
· the loss of control of a subsidiary;
· the loss of significant influence over an associate;
· the loss of joint control over a joint arrangement.
These reductions are accounted for as disposals resulting in a reclassification from other comprehensive in-
come to profit or loss of the cumulative amount of the exchange differences relating to that foreign operation.
50.3 Revenue from contracts with customers
Revenue from contracts with customers is recognized according to the criteria set in IFRS 15 Revenue from
contracts with customers. In recognizing revenue from contracts with customers a five-step approach is to
be applied: first the contract with the customer should be identified; then the distinct performance obligations
in the contract should be identified; as a third step the transaction price should be determined;
216
then the transaction price should be allocated to the distinct performance obligations in the contract; and finally
revenue is recognized when the distinct performance obligation is satisfied. The standard moreover specifies
whether revenue should be recognized at a certain point in time or over a period of time.
Revenue is recorded net of sales taxes, customer discounts and rebates.
The Group’s policy distinguishes revenue from the sale of goods, the rendering of services and multiple-
element arrangements.
Revenue from the sale of goods comprises revenue from the sale of consumables, chemicals, spare parts,
standalone equipment and software licenses. Revenue from the rendering of services includes installation
services, maintenance and post-contract support services. The Group also enters into arrangements
combining multiple deliverables such as software, hardware/equipment and services, including training,
maintenance and post-contract customer support, the ‘multiple-element arrangements.’ Freight charged to
customers is recognized as revenue in the period as incurred.
A. Sale of goods
Revenue from the sale of goods is recognized when the customer obtains control of the goods and when it is
probable that the agreed transaction price will be collected. In evaluating whether collectability is probable, the
entity considers the customer’s ability and intention to pay that amount when it is due. Revenue from the sale
of goods is, under IFRS 15, recognized upon delivery following applicable freight terms, at a point in time.
Revenue from the sale of stand-alone software licenses is recognized at a point in time, at the delivery of the
source key. The license is recognized at a point in time as the Group provides the customer access to and a
right to use the intellectual property as it exists at a point in time.
In case volume discounts incentives are offered to the customer, the expected volume rebates are estimated
based on historical experience. The amount of the variable consideration is made based on the most likely
amount-method. The variable consideration is recognized only to the extent that it is highly probable that a
significant reversal in the amount of cumulative revenue will not occur.
B. Rendering of services
Under the IFRS 15 standard, revenue from maintenance contracts is recognized straight-line over the maintenance
period as the customer simultaneously receives and consumes the benefits from the maintenance over time.
Revenue from installation and implementation services are recognized as rendered. The progress is measured
based on input methods being the labor hours expended to date versus the estimated hours spend.
When in a service contract multiple services are offered, the total consideration is allocated to all services
based on their stand-alone selling price.
C. Multiple-element arrangements
Multiple-element arrangements offer the customer a combination of several deliverables such as software,
licenses, hardware, implementation services and maintenance and post-contract support services.
For arrangements not requiring substantive customization of the software, each of aforementioned deliverable
is assumed to qualify as a separate performance obligation.
The total arrangement fee is allocated to the distinct performance obligations based on the stand-alone selling
prices of the performance obligations.
In case discounts are offered, a proportionate amount is allocated proportionally to each performance
obligation based on their stand-alone selling price.
Within the HealthCare IT and Radiology Solutions business segments, most arrangements do not require
significant customization or modification.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Revenue allocated to the hardware portion of the arrangement is recognized on delivery when it creates value to
the customer on a stand-alone basis. Hardware is considered as a distinct performance obligation as there is no
transformative relationship between the hardware and other components of the contract.
Revenue allocated to the software component is recognized after successful installation and acceptation at the
client’s premises. The software license is a distinct performance obligation as the customer can benefit from
the license with readily available resources. The license is recognized at a point in time as the Group provides
the customer access to and a right to use the intellectual property as it exists at a point in time.
Revenue from installation and implementation services are recognized as rendered. The progress is measured
based on input methods being the labor hours expensed to date versus the estimated hours spend.
Extended warranty whereby the customer purchases additional warranty separately, i.e. warranty that is adding
additional services on top of the legal warranty or for a longer period than legal warranty, is considered as a
distinct performance obligation within multiple-element arrangements.
Revenue recognized for which no billing has yet occurred is recognized in the statement of financial position
as contract assets and advance payments received for which no revenue has been recognized is presented as
contract liabilities.
Within the Offset Solutions and Digital Print & Chemicals divisions, revenue from sale of equipment that require
substantive installation activities is recognized when the installation of the equipment is finalized in accordance
with the contractually agreed specifications. Installation services and equipment are considered highly interre-
lated and are identified as one performance obligation that is recognized at a point in time, i.e. at installation at
the client’s premises.
50.4 Employee benefits
For the accounting treatment of post-employment plans, IFRS distinguishes defined contribution plans and
defined benefit plans. The classification depends on which party – Company or employee – bears the actuarial
and investment risk. In case of a defined contribution plan, the employee bears all the risks and therefore the
Company does not recognize a liability in its statement of financial position except for any unpaid contribution.
In case of a defined benefit plan, the Company bears the actuarial and investment risk and should consequently
recognize a liability in its statement of financial position.
50.4.1 Defined contribution plans
Contributions to defined contribution pension plans are recognized as an expense in profit or loss as incurred.
They are allocated among functional costs: cost of sales, research and development expenses, selling and
administrative expenses, following the functional area of the corresponding profit and cost centers to which
related employees are attributed.
50.4.2 Defined benefit plans
As from December 31, 2016, the accounting treatment for Belgian defined contribution plans with return
guaranteed by law has been aligned with the accounting treatment of defined benefit plans.
A. Liabilities for post-employment benefits
For defined benefit plans, the amount recognized in the statement of financial position is determined as the
present value of the defined benefit obligation less the fair value of any plan assets. Where the calculation
results in a net surplus, the recognized asset does not exceed the present value of any economic benefits
available in the form of refunds from the plan or reductions in future contributions to the plan.
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The present value of the defined benefit obligations (DBO) and the service costs are calculated by a qualified
actuary using the Projected Unit Credit (PUC) method. Under this method projected benefits that are payable
each future year are discounted to the reporting date at the assumed interest rate. The resulting total benefit
obligation is then allocated to past service, presenting the DBO and year-in-service, presenting the service
cost. The assumed interest rate is the discount rate based on yields at reporting date on high-quality corporate
bonds that have maturity dates approximating the terms of the Group’s obligations. In determining the net
present value of the future benefit entitlement for service already rendered (DBO), the Group considers future
compensation and benefit increases. The DBO also comprises the present value from the effects of taxes
payable by the plan on contributions or benefits relating to services already rendered.
More information about the application of the PUC method for Belgian defined contribution plans can be
found hereafter.
B. Defined benefit cost recognized in profit or loss and ‘Other comprehensive income’
The amount charged to profit or loss consists of current service cost, past service cost, gain or loss on settlement,
net interest cost and administrative expenses and taxes. Current service costs as well as administrative expenses
and taxes, which are borne by the employer(s) participating to the plan, are allocated among functional costs: cost
of sales, research and development expenses, selling and general administrative expenses, following the functional
area of the corresponding profit and cost centers to which related employees are attributed. Past service cost and
settlement gains (losses) are recognized immediately in profit or loss under ‘Other operating income’ or ‘Other
operating expense’ when the plan amendment, curtailment or settlement occurs. Administrative expenses which
are related to the management of plan assets and taxes directly linked to the return on plan assets – borne by the
plan itself – are included in the return on plan assets and are recognized in ‘Other comprehensive income, net of
income taxes (OCI).’
Net interest cost is recognized in profit or loss under ‘Other finance expense.’ It is calculated by applying the
discount rate used to measure the defined benefit obligation to the net defined benefit liability. The net interest
cost is broken down into interest income on plan assets and interest cost on the defined benefit obligation.
The difference between the return on plan assets and the interest income on plan assets is included in line
item ‘Post-employment benefits: remeasurement of the net defined benefit liability’ and recognized in ‘Other
comprehensive income, net of income taxes.’ Next to the difference between the actual return and the interest
income on plan assets, the line item ‘Post-employment benefits: remeasurement of the net defined benefit
liability’ also comprises actuarial gains and losses resulting for example from an adjustment of the discount rate.
C. Defined contribution plans with return guaranteed by law
Belgian ‘Defined contribution plans’ are subject to the Occupational Pensions Act of April 2003. According to article
24 of this Act, aliated persons are entitled to a guaranteed minimum return on contributions made by either the
organizer of the plan or the employee. Some conditions in this law, such as the required level of minimum return,
have been amended by the Act of December 18, 2015. Similar to the measurement of all other defined benefit plans,
the net pension liability related to defined contribution plans with return guaranteed by law is calculated as the
difference between the present value of the defined benefit obligation (DBO) and the fair value of the plan assets.
As of December 31, 2016, the present value of the defined benefit obligation (DBO) and the service costs are
calculated by a qualified actuary using the Projected Unit Credit (PUC) method. More information on the general
principles of this method can be found under ‘Liabilities for post-employment benefits.’
Within the Belgian Agfa-Gevaert Group entities, all insured plans guarantee a fixed return up to the retirement
age (so-called Branch 21 insured products). Depending on the nature of the insured contract, the DBO has been
determined with or without future contributions and their related minimum returns up to the retirement age
or exit. For the Top Performance Plan no future contributions were considered, for all other ‘Branch 21’ insured
products recurring contributions are paid and therefore considered in the actuarial calculation.
Similar to the Belgian DC-plans, the Group’s Swiss DC-plans are accounted for as DB-plans under IAS 19.
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In measuring the net liability related to Belgian and Swiss defined contribution plans with return guaranteed by
law, the Group has applied paragraph 115 of IAS 19. Paragraph 115 states “Where plan assets include qualifying
insurance policies that exactly match the amount and timing of some or all of the benefits payable under the
plan, the fair value of those insurance policies is deemed to be the present value of the related obligations” up to
the guaranteed rate of the insurer. The application of this paragraph 115 implies a market valuation of the
retirement age contractual insured benefit, which impacts both the assets to account for and the DBO. In terms
of applying the methodology of paragraph 115, management believes that the DBO calculation should reflect
that the employee is entitled to the higher of the actual accumulated reserves and the minimum reserves.
Therefore, the DBO calculation reflects this plan characteristic for every event, being leaving before retirement
or staying until retirement.
50.4.3 Termination benefits
Termination benefits are recognized as a liability and an expense when a Group company is demonstrably
committed to either:
· terminate the employment of an employee or group of employees before the normal retirement date; or
· provide termination benefits as a result of an offer made in order to encourage voluntary redundancy and to
the extent it is probable that the employees will accept the offer.
Where termination benefits fall due more than twelve months after the reporting date, they are discounted
using a discount rate which is the yield at reporting date on high quality corporate bonds that have maturity
dates approximating the terms of the Group’s obligations.
The interest impact of unwinding and re-measuring long-term termination benefits at adjusted discount rates
at financial reporting date is reflected in profit or loss under ‘Other finance expense’ whereas the impact of
increases and decreases of the Group’s commitments are presented under ‘Other operating expenses’ –
Restructuring expenses.
50.4.4 Other long-term employee benefits
The Group’s net obligation in respect of long-term employee benefits, other than pension plans, post-
employment life insurance and medical care, is the amount of future benefit that employees have earned in
return for their service in current and prior periods. The obligation is calculated using the projected unit credit
method and is discounted to its present value and the fair value of any related assets is deducted. The discount
rate used is the yield at reporting date on high quality corporate bonds that have maturity dates approximating
the terms of the Group’s obligations.
Unlike the accounting treatment of post-employment defined benefit plans, remeasurements of other
long-term employee benefits are not reflected in other comprehensive income. Instead, the impact of
remeasurements is recognized in profit or loss.
50.4.5 Current employee benefits
Current employee benefit obligations are measured on an undiscounted basis and are expensed as the
related service is provided. A liability is recognized for the amount expected to be paid within twelve months
if the Group has a present legal or constructive obligation to pay this amount as a result of past service
provided by the employee, and the obligation can be estimated reliably.
50.4.6 Share-based payment transactions
The Group has cash-settled share-based payment transactions as it has granted a long-term variable c
ompensation embedded in a Phantom Stock Option Plan to its CEO and key personnel members of the Group.
This plan can result in an additional cash bonus.
In the established share-based payment transaction, the eligible person directly participates in changes in value
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of the underlying equity instrument, being the shares of Agfa-Gevaert NV and, accordingly, the cash payment is
based on the price or value of the equity instrument.
Related share appreciation rights do not vest until the eligible persons have completed a specified period of
service. Therefore, the Company recognizes the services received, and a liability to pay for them, as the eligible
person renders service during that period. The liability is measured, initially and at the end of each reporting
period until settled, at the fair value of the share appreciation rights, by applying an option pricing model,
and the extent to which the employees have rendered service to date. Changes in fair value are recognized in
profit or loss. Both the cost recognized at initial measurement as well as the impact of changes in fair value
are considered as employee benefit expenses. Black and Scholes is the applied option pricing model.
50.5 Research and development expenses
For accounting purposes, research expenses are defined as costs incurred for current or planned investigations
undertaken with the prospect of gaining new scientific or technical knowledge and understanding. Development
expenses are defined as costs incurred for the application of research findings or specialist knowledge to plans
or designs for the production, provision or development of new or substantially improved products, services or
processes, respectively, prior to the commencement of commercial production or use.
Research and development expenses are incurred in the Agfa-Gevaert Group for in-house research and devel-
opment activities as well as numerous research and development collaborations and alliances with third parties.
Research and development expenses include, in particular, the running costs of the research and development
departments such as personnel expenses, material costs and depreciation of fixed assets as well as the costs of
laboratories, costs of applications development facilities, engineering departments and other departments car-
rying out research and development tasks, costs of contacts with universities and scientific institutes including
expenses incurred for commissioned research and development work.
Research costs cannot be capitalized. The conditions for capitalization of development costs are closely
defined: an intangible asset must be recognized if, and only if, there is reasonable certainty of receiving
future cash flows that will cover an asset’s carrying amount.
50.6 Net finance costs
Interest income (expense) – net comprises interests receivable/payable in relation to items of the net financial
debt position.
Net financial debt is defined as current and non-current loans and borrowings and lease liabilities less cash and
cash equivalents. Other finance income (expense) – net comprises:
· interest received/paid on other assets and liabilities not part of the net financial debt position such as the net
interest cost of defined benefit plans and the interest component of long-term termination benefits;
· exchange results on non-operating activities;
· changes in the fair value of derivative instruments economically hedging non-operating activities;
· the ineffective portion of cash flow hedges hedging non-operating activities;
· impairment losses recognized on financial assets;
· results on the sale of marketable securities;
· change in contingent consideration from a business combination; and
· other finance income (expense).
Interest income is recognized in profit or loss as it accrues, taking into account the effective yield on the asset.
Dividend income is recognized in profit or loss on the date that the dividend is declared.
All interest and other costs incurred in connection with borrowings are expensed as incurred using the effective
interest rate. The interest expense component of lease payments is recognized in profit or loss using the
effective interest rate method.
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The net interest cost of defined benefit plans is determined by multiplying the net defined benefit liability by
the discount rate that is used to measure the defined benefit obligation, both as determined at the start of the
annual reporting period, taking account of any changes in the net defined benefit liability during the period as a
result of contributions and benefit payments.
The interest component of long-term termination benefits comprises the impact of unwinding the liability as
well as the impact of the changed discount rate.
50.7 Income tax and other tax
Income tax on the profit (loss) for the year comprises taxes paid or accrued and deferred tax expense (income).
Income tax is recognized in profit or loss except to the extent that it relates to items recognized directly in other
comprehensive income, in which case it is recognized in other comprehensive income or if part of a business
combination in which case it is recognized against goodwill.
In determining the amount of taxes paid or accrued and deferred tax expense (income), the Company takes into
account the impact of uncertain tax positions and whether additional taxes and interest may be due.
Other tax receivables and liabilities relate to other tax, such as VAT, property tax and other indirect taxes.
They are carried at cost. Both current and other tax receivables are offset against current tax liabilities,
respectively other tax liabilities when they relate to taxes levied by the same taxation authority and are
intended to be settled on a net basis and there is a legal right to offset.
50.7.1 Income taxes paid or accrued
Taxes paid or accrued are the expected tax payable on the taxable income for the year, using tax rates enacted
or substantially enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Additional income taxes that arise from the distribution of dividends are recognized at the same time as the
liability to pay the related dividend.
Current income tax for current and prior periods are, to the extent unpaid, recognized as a liability. If the
amount already paid in respect of current and prior periods exceeds the amount due for those periods, the
excess is recognized as an asset.
50.7.2 Deferred tax
Deferred tax is calculated using the balance sheet method, providing for temporary differences between
the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for
taxation purposes.
The following temporary differences are not provided for:
· taxable temporary differences on the initial recognition of goodwill;
· the initial recognition of an asset or liability in a transaction which is not a business combination and at the
time of the transaction, affects neither accounting profit nor taxable profit (tax loss); and
· differences relating to investments in subsidiaries to the extent that they will probably not reverse in the
foreseeable future.
The amount of deferred tax provided is based on the expected manner of realization or settlement of the
carrying amount of assets and liabilities, using tax rates enacted or substantially enacted at the reporting date.
A deferred tax asset is recognized only to the extent that it is probable that future taxable profits will be available
against which the deductible temporary differences, unused tax losses and credits can be utilized. Deferred tax
assets are reduced to the extent that it is no longer probable that the related tax benefit will be realized.
Deferred tax assets and deferred tax liabilities are offset in the statement of financial position if the entity has
a legal right to settle current tax amounts on a net basis and the deferred tax amounts are levied by the same
taxing authority on the same entity that intend to realize the asset and settle the liability at the same time.
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50.8 Goodwill and intangible assets with indefinite useful lives
Goodwill is measured at cost less accumulated impairment losses. In respect of equity-accounted investees,
the carrying amount of goodwill is included in the carrying amount of the investment, and any impairment loss
is allocated to the carrying amount of the equity-accounted investee as a whole.
Intangible assets with indefinite useful lives, such as trademarks, are stated at cost less accumulated
impairment losses.
Intangible assets with indefinite useful lives are not amortized. Instead, they are tested for impairment annually
and whenever there is an indication that the intangible asset may be impaired.
50.9 Intangible assets with finite useful lives
50.9.1 Recognition and measurement
Intangible assets with finite useful lives are stated at cost less accumulated amortization and impairment losses.
Research and development costs are expensed as they are incurred, except for certain development costs,
which are capitalized when it is probable that a development project will be a success, and certain criteria,
including technological and commercial feasibility, have been met. Capitalized development costs are amortized
on a systematic basis over their expected useful lives.
In accordance with IFRS 3 Business combinations, if an intangible asset is acquired in a business combination,
the cost of that intangible asset is its fair value at the acquisition date. The fair value of an intangible asset
reflects market expectations about the probability that the future economic benefits embodied in the asset will
flow to the entity.
50.9.2 Subsequent expenditure
Subsequent expenditure is capitalized only when it increases the future economic benefits embodied in the
specific asset to which it relates. All other expenditure is recognized in profit or loss as incurred.
50.9.3 Amortization
Intangible assets with finite useful lives, such as acquired technology and customer relationships are amortized
on a straight-line basis over their estimated useful lives, generally for periods ranging from five to 15 years.
Amortization methods, useful lives and residual values are reviewed at each reporting date and adjusted if
appropriate.
50.10 Property, plant and equipment
50.10.1 Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and
impairment losses.
The cost of an item of property, plant and equipment comprises:
· its purchase price, including import duties and non-refundable purchase taxes;
· any costs directly attributable to bringing the asset to the location and condition necessary for it to be
capable of operating in the manner intended by management;
· the initial estimate of the costs of dismantling and removing the item and restoring the site on which it is
located, the obligation for which the Company incurs either when the item is acquired or as a consequence
of having used the item during a particular period for purposes other than to produce inventories during
that period;
· capitalized borrowing costs.
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For self-constructed assets, directly attributable costs are direct cost of materials, direct manufacturing
expenses, appropriate allocations of material and manufacturing overheads, and an appropriate share of the
depreciation of assets used in construction. It includes the share of expenses for company pension plans and
discretionary employee benefits that are attributable to construction and capitalized borrowing costs.
50.10.2 Subsequent expenditure
Expenses for the repair and maintenance of property, plant and equipment are usually expensed as incurred.
They are, however, capitalized when they increase the future economic benefits embodied in the item of
property, plant and equipment.
50.10.3 Depreciation
Property, plant and equipment is depreciated on a straight-line basis over the estimated useful life of the item.
For leased assets, the depreciation period is the estimated useful life of the asset, or the lease term if shorter.
The estimated useful lives of the respective asset categories are as follows:
Buildings to years
Outdoor infrastructure to years
Plant installations to years
Machinery and equipment to years
Laboratory and research facilities to years
Vehicles to years
Computer equipment to years
Furniture and fixtures to years
Depreciation methods, useful lives and residual values are reviewed at each reporting date and adjusted
if appropriate.
50.11 Non-current assets held for sale
The Group classifies an asset (or disposal group) as held for sale if its carrying amount will be recovered prin-
cipally through a sale transaction rather than through continuing use. Immediately before classification as held
for sale, the Group measures the carrying amount of the asset (or all the assets and liabilities in the disposal
group) in accordance with applicable IFRS. Then, on initial classification as held for sale, assets and disposal
groups are recognized at the lower of their carrying amounts and fair value less costs to sell. Impairment losses
are recognized for any initial or subsequent write-down of the asset (or disposal group) to fair value less costs to
sell. Assets classified as held for sale are no longer amortized or depreciated.
50.12 Financial instruments
50.12.1 Financial assets
Financial assets comprise equity and debt instruments in another entity, cash and cash equivalents, loans
receivable, trade receivables, receivables under finance leases and other receivables as well as derivative
financial instruments.
The Group initially recognizes loans and receivables on the date that they are originated. All other non-
derivative financial assets are recognized on the trade date when the Group becomes a party to the
contractual provisions of the instrument.
A trade receivable without significant financing is initially measured at its fair value plus any transaction costs
that are directly attributable to the acquisition of the financial assets. Transaction costs related to financial
assets and liability carried at fair value through profit and loss are recognized in the income statement.
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The Group derecognizes a financial asset when the contractual rights to the cash flows from the asset expire, or
when it transfers the rights to receive the contractual cash flows on a financial asset in a transaction in which
substantially all the risks and rewards of ownership of the financial asset are transferred. In a transaction where
an entity neither transfers nor retains substantially all of the risks and rewards of ownership of a financial asset,
the related asset is derecognized in case the entity lost control of the asset. Financial assets and liabilities are
offset and the net amount presented in the statement of financial position when, and only when, the Group has
a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and settle
the liability simultaneously.
The Group has the following categories of non-derivative financial assets: financial assets at amortized cost and
financial assets at fair value through other comprehensive income. Its classification reflects the business model
in which the assets are managed and their cash flow characteristics.
A. Financial assets at amortized cost
A financial asset is subsequently measured at amortized cost if it is held within a business model whose
objective is to hold financial assets in order to collect contractual cash flows and the contractual terms of the
financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the
principal amount outstanding.
All the Group’s receivables – trade receivables, receivables under finance leases as well as other receivables – and
cash and cash equivalents fit into aforementioned definition and are consequently measured at amortized cost.
B. Financial assets at fair value through other comprehensive income (FVOCI)
A debt instrument is measured at fair value through other comprehensive income if it is held within a business
model whose objective is achieved by both collecting contractual cash flows and selling financial assets and
the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding. Interest income calculated using the effective
interest method, foreign exchange gains and losses and impairment are recognized in profit or loss. Other net
gains and losses are recognized in OCI. On de-recognition, gains and losses accumulated in OCI are reclassified
to profit or loss.
The Group has made an irrevocable election for the investment in Digital Illustrate Inc. to classify it as FVOCI.
The impact of subsequent measurement of this investment in equity securities is reflected in OCI under ‘Other
reserves.’ This item in OCI will not be reclassified subsequently to profit or loss.
50.12.2 Financial liabilities
Financial liabilities comprise debentures, uncommitted bank facilities, revolving and other credit facilities,
trade and other payables as well as derivative financial instruments.
Financial liabilities are recognized initially at fair value on the trade date at which the Group becomes a party
to the contractual provisions of the instrument.
At initial recognition, the Group measures its financial liabilities at its fair value less any transaction costs that
are directly attributable to the issuance of the financial liability.
Non-derivative financial liabilities are subsequently measured at amortized cost except for financial liabilities
that arise when a transfer of a financial asset does not qualify for de-recognition or when the continuing
involvement approach applies.
Interest-bearing loans and borrowings are stated at amortized cost with any difference between the initial
amount and the maturity amount being recognized in profit or loss over the expected life of the instrument on
an effective interest rate basis.
If a transfer of a financial asset does not result in de-recognition because the entity has retained substantially all
the risks and rewards of ownership of the transferred asset, the Group continues to recognize the transferred
asset in its entirety and recognizes a financial liability for the consideration received. In subsequent periods, the
Group recognized any income on the transferred asset and any expense incurred on the financial liability.
If the Group neither transfers nor retains substantially all the risks and rewards of ownership of a transferred
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
asset, and retains control of the transferred asset, the entity continues to recognize the transferred asset to
the extent of its continuing involvement and recognizes an associated liability. The extent of the Group’s
continuing involvement in the transferred asset is the extent to which it is exposed to changes in the value of
the transferred asset.
The transferred asset and the associated liability are measured on a basis that reflects the rights and
obligations that the entity has retained. The associated liability is measured in such a way that the net carrying
amount of the transferred asset and the associated liability is the amortized cost of the rights and obligations
retained by the Group assuming the transferred asset is measured at amortized cost.
The Group de-recognizes a financial liability when its contractual obligations are discharged, cancelled or
expired. The Group also de-recognizes a financial liability when the terms are modified and the cash flows of the
modified liability are substantially different, in which case a new financial liability based on modified terms is
recognized at fair value. On de-recognition of the financial liability, the difference between the carrying amount
extinguished and the consideration paid is recognized in profit or loss.
50.12.3 Derivative financial instruments and hedge accounting
The Group uses derivative financial instruments primarily to manage its exposure to foreign currency risks and
price changes in commodities arising from operational, financing and investment activities.
The Group uses following types of derivative financial instruments: forward exchange contracts used for
hedging, swap contracts used for hedging and other forward exchange contracts and swap contracts.
The Group uses forward exchange contracts to hedge the variability in cash flows arising from changes in foreign
exchange rates relating to future sales. The Group also uses metal swap agreements hedging the Group’s
exposure to fluctuations in commodity prices related to highly probable forecasted purchases of aluminum.
The contracts are designated as cash flow hedges and are held for the purpose of the receipt of commodities in
accordance with the Group’s expected usage of aluminum.
Derivative financial instruments that are not designated as cash flow hedges are measured at fair value through
profit or loss. In accordance with its treasury policy, the Group does not currently hold or issue derivatives for
trading purposes.
Derivative financial instruments are initially recognized at fair value on the date at which a derivative contract
is entered into (trade date) and are subsequently re-measured at their fair value. In case cash flow hedge or
net investment hedge accounting is applied, the effective portion of any gain or loss is recognized in OCI, the
non-effective portion in profit or loss. Transaction costs related to financial assets and liability carried at fair
value through profit and loss are recognized in the income statement.
The Group has the following categories of derivative financial instruments: derivatives not formally designated
as hedging instruments and cash flow hedging instruments.
A. Hedging instruments
The Group’s forward exchange contracts and swap contracts, that are formally designated as cash flow hedging
instruments, are subsequently re-measured at their fair value.
Cash flow hedge accounting is applied to all hedges that qualify for hedge accounting when required
documentation of the hedging relationship is in place and when the hedge is determined to be effective. When
hedge accounting is applied, the effective portion of any gain or loss is recognized in OCI, the non-effective
portion in profit or loss.
With regard to hedge accounting, the Group applies the requirements of IFRS 9. This standard requires the
Group to ensure that hedge accounting relationships are aligned with the Group’s risk management objectives
and strategy and to apply a more qualitative and forward looking approach to assessing hedge effectiveness.
The Group uses forward exchange contracts to hedge the variability in cash flows arising from changes in
226
foreign exchange rates relating to future sales. The Group currently designates only the change of the spot
element of the forward exchange contract as the hedging instrument in cash flow hedging relationships. Under
IFRS 9, the change in the fair value of the forward element (‘forward points’) is accounted for as fair value
through profit or loss and reflected in ‘Net finance costs.’
The Group also uses metal swap agreements hedging the Group’s exposure to fluctuations in commodity prices
related to highly probable forecasted purchases of aluminum.
The contracts are designated as cash flow hedges and are held for the purpose of the receipt of commodities in
accordance with the Group’s expected usage of aluminum. Under IFRS 9 as well as under IAS 39, the amounts
accumulated in the cash flow hedge reserve are removed from OCI and included in the initial carrying amount of
the inventory purchased.
The types of hedge accounting transactions that the Group currently designates meet the requirements of
IFRS 9 and are aligned with the Group’s risk management strategy and objectives.
If the hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold, expires, is
terminated or exercised, then hedge accounting is discontinued prospectively. When hedge accounting for
cash flow hedges is discontinued, the amount that has been accumulated in hedge reserve remains in other
comprehensive income until, for a hedge of a transaction resulting in the recognition of a non-financial item,
it is included in the non-financial item’s initial cost or for other cash flow hedges, it is reclassified to profit or
loss in the same period or periods as the hedged expected future cash flows affect profit or loss.
If the hedged future cash flows are no longer expected to occur, then the amounts that have been accumulated
in the hedge reserve are immediately reclassified to profit or loss.
B. Mandatory at FVTPL
Derivative financial instruments that are economic hedges but that do not meet the hedge accounting criteria
of IFRS 9 are categorized as Mandatory at FVTPL and are accounted for as financial assets or liabilities at fair
value through profit or loss. The impact in profit or loss is reflected in either ‘Other operating income/expense’
or ‘Net finance costs’ depending on the nature of the item economically hedged.
50.13 Impairment
50.13.1 Impairment testing of goodwill, intangible assets and property, plant and equipment
Goodwill and intangible assets with indefinite useful lives are tested for impairment at least annually and upon
the occurrence of an indication of impairment.
The impairment tests are performed annually at the same time each year and at the cash-generating unit level.
The Group defines its cash-generating units based on the way that it monitors its goodwill and will derive
economic benefit from the acquired goodwill and intangibles.
The impairment tests are performed by comparing the carrying value of the assets of these cash-generating
units with their recoverable amount, based on their future projected cash flows discounted at an appropriate
pre-tax rate of return.
The discount rate used in calculating the present value of the estimated future cash flows is based on a weighted
average cost of equity and debt capital (WACC), using a debt-equity ratio of an average market participant.
An additional risk premium was added to the cost of equity. The cost of debt is based on conditions on which
comparable companies can obtain long-term financing.
The forecasting risk related to silver and aluminum is reflected in the cash flow projections.
An impairment loss is recognized whenever the carrying amount of the cash-generating unit exceeds its
recoverable amount. Impairment losses are recognized in profit or loss.
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Consideration is given at each reporting date to determine whether there is any indication of impairment of the
carrying amounts of the Group’s property, plant and equipment and intangible assets with finite useful lives.
If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss is recognized
whenever the carrying amount of an asset exceeds its recoverable amount. Impairment losses are recognized in
profit or loss and the carrying amount of related asset is reduced through use of an allowance account.
The recoverable amount of the Group’s property, plant and equipment and intangible assets with finite useful
lives is the greater of the fair value less costs to sell and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a pre-tax discount rate that reflects current
market assessments of the time value of money and the risks specific to the asset.
An impairment loss recognized in prior periods for an asset other than goodwill shall be reversed if, and only
if, there has been a change in the estimates used to determine the asset’s recoverable amount since the last
impairment loss was recognized.
50.13.2 Impairment testing for right-of-use assets
At each reporting date, the Group reviews the carrying amounts of its right-of-use assets to determine whether
there is any indication of impairment. Indication of impairment exists when a lease concluded as a lessee
becomes onerous in which case an impairment loss is recognized, measured at the present value of the lower of
the expected cost of terminating the contract and the expected net cost of continuing with the contract.
An impairment loss is reversed only to the extent that the asset’s carrying amount does not exceed the carrying
amount that would have been determined, net of depreciation, if no impairment loss had been recognized.
50.13.3 Impairment of financial assets and contract assets
The IFRS 9 standard replaces the ‘Incurred loss’ model with a forward-looking ‘Expected credit loss’ (ECL)
model. This requires considerable judgement about how changes in economic factors affect expected credit
losses. With regard to impairment of trade receivables, lease receivables and contract assets, the Group applies
the simplified approach for the impairment evaluation, which implies that credit losses for these categories of
assets are always measured at an amount equal to lifetime expected credit losses. Credit losses are measured
as the present value of all cash shortfalls – i.e. the difference between the cash flows to which the entity is
entitled to and what the entity expects to receive. A financial asset is credit impaired when one or more events
that have a detrimental impact on the estimated future cash flows of the financial asset have occurred.
The inputs and assumptions to the expected credit loss model are the following: significant financial diculty
of the counterparty, a default of more than 90 days past due, a possible bankruptcy of the counterparty, …
The evaluation of possible impairment takes into account forward-looking elements. For the major portion of
the accounts receivable balances, debtors are scored and rated based on quantitative and qualitative informa-
tion on an ongoing basis through Credit Risk Application in place. All customers are classified into different risk
categories which are reassessed on a yearly basis based on relevant forward-looking information such as data
from external credit bureaus, age of business, country risk and the credit manager’s assessment. To mitigate
the credit risk, credit insurance and other risk mitigation tools such as letter of credit, bank guarantees,
mortgage are used within the Group.
This methodology of individually reviewing outstanding receivable amounts taking into account forward-looking
information to assess impairment risks hasn’t been changed due to the application of IFRS 9.
Loss allowances for financial assets measured at amortized cost are charged to profit or loss and deducted from
the gross carrying amount of the assets to obtain a net presentation in the consolidated financial statements.
For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognized in OCI.
228
The gross carrying amount of a financial asset is written off when the Group has no reasonable expectations of
recovering a financial asset in its entirety or a portion thereof. The Group individually makes an assessment for
each type of financial asset based on whether there is a reasonable expectation of recovery. Financial assets
that are written off are still subject to enforcement activities of the Group for recovery of amounts due.
50.14 Leases
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or
contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in
exchange for consideration. To assess whether a contract conveys the right to control the use of an identified
asset, the Group uses the definition of a lease in IFRS 16.
A. As a lessee
At commencement or on modification of a contract that contains a lease component, the Group allocates the
consideration in the contract to each lease component on the basis of its relative stand-alone prices. The Group
has elected not to separate non-lease components and account for the lease and non-lease components as a
single lease component.
The Group recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-
of-use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for
any lease payments made at or before the commencement date, plus any initial direct costs incurred and an
estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on
which it is located, less any lease incentives received. The right-of-use asset is subsequently depreciated using
the straight-line method from the commencement date to the end of the lease term, unless the lease transfers
ownership of the underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset
reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be depreciated
over the useful life of the underlying asset, which is determined on the same basis as those of property and
equipment. In addition, the right-of-use asset is periodically reduced by impairment losses, if any, and adjusted
for certain remeasurements of the lease liability. The lease liability is initially measured at the present value of
the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in
the lease or, if that rate cannot be readily determined, the Group’s incremental borrowing rate. Generally, the
Group uses its incremental borrowing rate as the discount rate. The Group determines its incremental borrow-
ing rate (IBR) twice a year based on the government bond yields per country and per maturity bucket obtained
from Reuters and adds a risk premium reflecting the Group’s risk profile. The latter risk premium differs from
the country risk classified according to the Organization of Economic Cooperation and Development (OECD).
Depending on the low, medium or high risk of the country a different spread is added. As such a IBR-matrix is
obtained reflecting six maturity buckets and 50 countries.
Lease payments included in the measurement of the lease liability comprise the following:
· fixed payments, including in-substance fixed payments;
· variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the
commencement date; and
· the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in
an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for
early termination of a lease unless the Group is reasonably certain not to terminate early.
There are no leases for which it is expected that the Group would need to pay a residual value guarantee.
The lease liability is measured at amortized cost using the effective interest method. It is re-measured when
there is a change in future lease payments arising from a change in an index or rate if the Group changes its
assessment of whether it will exercise a purchase, extension or termination option or if there is a revised
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
in-substance fixed lease payment. When the lease liability is re-measured in this way, a corresponding adjust-
ment is made to the carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying
amount of the right-of-use asset has been reduced to zero.
The Group has elected not to recognize right-of-use assets and lease liabilities for leases of low-value assets
(mainly related to IT equipment) and short-term leases. Short-term leases are leases with a lease term of
twelve months or less. The Group recognizes the lease payments associated with these leases as an expense
on a straight-line basis over the lease term.
On the statement of financial position right-of-use assets are presented separately whereas lease liabilities are
comprised in ‘Loans and borrowings.’ All lease payments that are due within 12 months after the balance sheet
date are classified as current liabilities. All lease payments that are due later than 12 months after the balance
sheet date are classified as non-current liabilities.
B. As a lessor
When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an
operating lease. To classify each lease, the Group makes an overall assessment of whether the lease transfers
substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then
the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers
certain indicators such as whether the lease is for the major part of the economic life of the asset.
The majority of the Group’s finance lease arrangements are concluded by Agfa Finance, i.e. Agfa Finance NV or
its subsidiaries Agfa Finance Corp. and Agfa Finance Inc.
On manufacturing leases, the Group recognizes revenue and related profit margin at the moment a Group’s
manufacturing organization or any related company invoices Agfa Finance at commencement of the lease with
the external customer.
A commercial contract whereby a certain piece of equipment is financed by means of a medium or long-term
agreement under which the customer commits to purchase a certain level of consumables at a mark-up price is
called a ‘bundle deal.’ At each sale of consumables, the Group allocates the consideration received from this sale
to a reduction of the outstanding lease receivable and revenue from sale of goods on the basis of their stand-
alone selling prices.
Receivables under finance leases are measured at an amount equal to the discounted future minimum lease pay-
ments. Finance lease income – presented as part of ‘Other operating income’ – is subsequently recognized based
on a pattern reflecting constant periodic rate of return on the net investment using the effective interest method.
On the statement of financial position receivables under finance leases are presented separately. All lease
receivables that are due within 12 months after the balance sheet date are classified as current assets. All lease
receivables that are due later than 12 months after the balance sheet date are classified as non-current assets.
The Group applies the de-recognition and impairment requirements in IFRS 9 to the net investment in the lease.
The Group recognizes lease payments received under operating leases as Revenue, on a straight line basis over
the lease term.
50.15 Other assets
Other assets comprise deferred charges and other non-financial assets. Deferred charges relate to payments
made by the Company before the balance sheet date in respect of the expenses of future periods (prepay-
ments). Examples of deferred charges are payments of rent, interests and insurance premiums that were
made before the balance sheet date but relate to a specific period after the balance sheet date.
230
Non-financial assets are carried at cost. Deferred charges are recognized in profit or loss by the straight-line
method or according to performance of the services received.
50.16 Inventories
Raw materials, supplies and goods purchased for resale are valued at purchase cost.
Work in progress and finished goods are valued at the cost of production. The cost of production comprises the
direct cost of materials, direct manufacturing expenses, appropriate allocations of material and manufacturing
overheads, and an appropriate share of the depreciation of assets used for production. It includes the share of
expenses for company pension plans and discretionary employee benefits that are attributable to production.
Administrative costs are included where they are attributable to production. Inventories are valued using the
weighted-average cost method.
If the purchase or production cost is higher than the net realizable value, inventories are written down to
net realizable value. Net realizable value is the estimated selling price in the ordinary course of business,
less the estimated costs necessary to make the sale. The cost of inventories may not be recoverable in
following situations:
· obsolete inventory: this is determined based on a list of non-moving or slow-moving inventory-items,
including items approximating the expiry date;
· damaged or expired inventory items or products showing quality problems;
· declining selling prices.
Within the Group, write-downs of inventories mainly result from obsolescence.
50.17 Cash and cash equivalents
Cash and cash equivalents comprise cash, checks received, and balances with banks and companies. Cash
equivalents are highly liquid short-term financial investments that are subject to an insignificant risk of changes
in value, are easily convertible into a known amount of cash and have a maturity of three months or less from
the date of acquisition or investment.
50.18 Share capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares,
net of any tax effects, are recognized as a deduction from retained earnings.
When share capital recognized as equity is repurchased, the amount of the consideration paid, including directly
attributable costs, net of any tax effects, is recognized as a deduction from equity. Repurchased shares are
classified as treasury shares and presented as a deduction from total equity under the caption ‘Reserve for own
shares.’ Repurchased shares are accounted for using settlement date accounting. Cancelled treasury shares are
transferred from ‘Reserve for own shares’ to ‘Retained earnings.’ When treasury shares are sold, the amount
received is recognized as an increase in equity and the resulting surplus or deficit on the transaction is presented
within share premium.
50.19 Provisions
Provisions are recognized in the statement of financial position when a Group company has a present obligation
(legal or constructive) as a result of a past event and when it is probable that an outflow of resources em-
bodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the
amount of the obligation.
The amount recognized as a provision is the best estimate of the expenditure required to settle the present
obligation at the reporting date.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
If the effect is material, provisions are determined by discounting the expected future cash flows at a pre-tax
rate that reflects current market assessments of the time value of money and, where appropriate, the risks
specific to the liability.
50.19.1 Restructuring
A provision for restructuring is recognized when the Group has approved a detailed and formal restructuring
plan, and the restructuring has either commenced or has been announced to those affected by it. Future
operating costs are not provided for.
50.19.2 Environmental protection
In accordance with the Group’s published environmental policy and applicable legal requirements, a provision
for site restoration in respect of contaminated land is recognized when the land is contaminated.
50.19.3 Trade-related
Trade-related provisions mainly comprise provisions for sales commissions and warranty and commercial
litigations. A provision for product warranty is made at the time of revenue recognition and reflects the
estimated costs of replacement that will be incurred by the Group.
50.19.4 Onerous contracts
A provision for onerous contracts is recognized when the expected benefits to be derived by the Group from a
contract are lower than the unavoidable cost of meeting its obligations under the contract. Provisions are
established for impending losses on purchase or sales contracts at the amount of the anticipated losses.
50.20 Contract liabilities
The Group applies IFRS 15 Revenue from contracts with customers, that introduced the concept of contract
assets and contract liabilities.
Contract liabilities comprise deferred revenue and advance payments received from customers as well as
accruals for bonuses and rebates related to goods and services purchased by customers during the period.
50.21 Other liabilities
Other liabilities primarily relate to unearned other operating income. Government grants are a typical example
of unearned other operating income. They are recognized in profit or loss when there is a reasonable assurance
that the conditions attached to the grants will be or are complied with and the grants will be received. Grants
that compensate the Group for expenses incurred are recognized in profit or loss under the same functional
reporting line item as the corresponding expenses. They are recognized as income over the periods necessary
to match them on a systematic basis to the costs that are intended to be compensated. Grants awarded for the
purchase or production of assets (Intangible assets or Property, plant and equipment) are recognized initially as
other liability and then recognized in profit or loss as other income on a systematic basis over the useful life of
the asset. Government grants for future expenses are recorded as ‘Other liabilities’.
232
51. NEW STANDARDS AND INTERPRETATIONS ISSUED BUT
NOT YET EFFECTIVE
A number of new IFRS standards, amendments to IFRS standards and interpretations issued, were not yet
effective for the year ended on December 31, 2021 and have not been applied in preparing the consolidated
financial statements.
The Group shall adopt these standards after endorsement by the European Union. It relates to:
· Amendments to IAS 1 Presentation of Financial Statements: Classification of liabilities as current or non-current
In January 2020, the IASB issued amendments to IAS 1 related to the classification of liabilities. The amendments
are effective for annual reporting periods beginning on or after January 1, 2022 and are to be applied retrospectively.
The amendments in Classification of liabilities as current or non-current (Amendments to IAS 1) affect only the
presentation of liabilities in the statement of financial position – not the amount or timing of recognition of any
asset, liability income or expenses, or the information that entities disclose about those items.
A company classifies a liability as non-current if it has a right to defer settlement for at least twelve months
after the reporting period. The amendments clarify that the classification of liabilities as current or non-
current should be based on rights that are in existence at the end of the reporting period should affect the
classification of a liability. They clarify that classification is unaffected by expectations about whether an
entity will exercise its right to defer settlement of a liability.
On July 15, 2020, the IASB issued Classification of Liabilities as Current or Non-current - Deferral of Effective
Date (Amendment to IAS 1) deferring the effective date of the January 2020 amendments to IAS 1 by one
year to annual reporting periods beginning on or after January 1, 2023. The amendments have not yet been
endorsed by the European Union. The Group will apply this amendment after endorsement by the European
Union. The application of this amendment will not have a material impact to the consolidated financial
statements of the Group.
· Amendments to IFRS 3 Business Combinations; IAS 16 Property, Plant and Equipment; IAS 37 Provisions,
Contingent Liabilities and Contingent Assets as well as Annual improvements
In May 2020, the IASB issued several narrow-scope amendments which are changes that clarify the wording
or correct minor consequences, oversights or conflicts between requirements in the Standards:
Amendments to IFRS 3 Business Combinations update a reference in IFRS 3 to the Conceptual Frame-
work for Financial Reporting without changing the accounting requirements for business combinations.
Amendments to IAS 16 Property, Plant and Equipment prohibit a company from deducting from the cost of
property, plant and equipment amounts received from selling items produced while the company is prepar-
ing the asset for its intended use. Instead, a company will recognize such sales proceeds and related cost
in profit or loss. The amendments also clarify that testing whether an item of PPE is functioning properly
means assessing its technical and physical performance rather than assessing its financial performance.
Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets specify which costs a
company includes when assessing whether a contract will be loss-making. The amendments clarify that the
‘costs of fulfilling a contract’ comprise both: the incremental costs; and an allocation of other direct costs.
Annual Improvements to IFRS Standards 2018–2020 make minor amendments to IFRS 1 First-time
Adoption of International Financial Reporting Standards, IFRS 9 Financial Instruments, IAS 41 Agriculture
and the Illustrative Examples accompanying IFRS 16 Leases.
The amendments are effective for annual periods beginning on or after January 1, 2022. These amendments
have been endorsed by the European Union. These amendments will not have a material impact to the
consolidated financial statements of the Group.
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
· Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of
Accounting policies, issued on 12 February 2021.
These amendments include narrow-scope amendments to improve accounting policy disclosures so that
they provide more useful information to investors and other primary users of the financial statements.
The amendments to IAS 1 require companies to disclose their material accounting policy information rather
than their significant accounting policies. The amendments to IFRS Practice Statement 2 provide guidance
on how to apply the concept of materiality to accounting policy disclosures.
The amendments are effective for annual periods beginning on or after 1 January 2023 with early application
permitted. These amendments have been endorsed by the European Union.
· Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition
of Accounting Estimates
In February 2021, the IASB issued amendments to IAS 8 that clarify how companies should distinguish changes
in accounting policies from changes in accounting estimates. The distinction is important because changes in
accounting estimates are applied prospectively only to future transactions and other future events, but changes
in accounting policies are generally also applied retrospectively to past transactions and other past events.
The amendments are effective for annual periods beginning on or after January 1, 2023 with early application
permitted. These amendments have been endorsed by the European Union.
· Amendments to IAS 12 Income Taxes: Deferred Tax related to Assets and Liabilities arising from a
Single Transaction
In May 2021, the IASB issued amendments to IAS 12 that clarifiy how companies should account for deferred
tax on transactions such as leases and decommissioning obligations. IAS 12Income Taxesspecifies how a
company accounts for income tax, including deferred tax, which represents tax payable or recoverable in the
future. In specified circumstances, companies are exempt from recognizing deferred tax when they recog-
nize assets or liabilities for the first time. Previously, there had been some uncertainty about whether the
exemption applied to transactions such as leases and decommissioning obligations—transactions for which
companies recognize both an asset and a liability.The amendments clarify that the exemption does not apply
and that companies are required to recognize deferred tax on such transactions. The aim of the amendments
is to reduce diversity in the reporting of deferred tax on leases and decommissioning obligations.
The amendments are effective for annual periods beginning on or after January 1, 2023 with early application
permitted. These amendments have been endorsed by the European Union.
Following changes have not been elaborated on as these are considered not relevant to the Group. It relates to :
· IFRS 17 Insurance Contracts (issued on May 18, 2017); including Amendments to IFRS 17 (issued on June 25,
2020) - endorsed effective for annual periods beginning on or after January 1, 2023
· Amendments to IFRS 4 Insurance Contracts – deferral of IFRS 9 (issued on June 25, 2020)
· Amendments to IFRS 10 and IAS 28: Sale or Contribution of Assets between an Investor and its Associate or
Joint Venture (issued on September 11, 2014); including Effective Date of Amendments to IFRS 10 and IAS 28
(published in December 2015) - deferred indefinitely by removing the original effective date of January 1, 2016
and indicating that a new effective date would be determined at future date when the IASB finalizes
the revisions.
234
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Statutory auditor’s report to the general meeting of Agfa-Gevaert NV
on the consolidated financial statements as of and for the year ended
December 31, 2021
In the context of the statutory audit of the consolidated financial statements of Agfa-Gevaert NV (‘the Company’)
and its subsidiaries (jointly ‘the Group’), we provide you with our statutory auditor’s report. This includes our
report on the consolidated financial statements for the year ended December 31, 2021, as well as other legal and
regulatory requirements. Our report is one and indivisible.
We were appointed as statutory auditor by the general meeting of May 14, 2019, in accordance with the proposal
of the board of directors issued on the recommendation of the audit committee and as presented by the work-
ers’ council. Our mandate will expire on the date of the general meeting deliberating on the annual accounts for
the year ended December 31, 2021. We have not been able to identify the exact date of our initial appointment.
However, we can confirm that we have performed the statutory audit of the consolidated financial statements of
Agfa-Gevaert NV for at least 44 consecutive financial years.
Report on the consolidated financial statements
Unqualified opinion
We have audited the consolidated financial statements of the Group as of and for the year ended December
31, 2021, prepared in accordance with International Financial Reporting Standards as adopted by the European
Union, and with the legal and regulatory requirements applicable in Belgium. These consolidated financial state-
ments comprise the consolidated statement of financial position as at December 31, 2021, the consolidated
statements of profit or loss, the consolidated statement of comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended and notes, compris-
ing a summary of significant accounting policies and other explanatory information. The total of the consoli-
dated statement of financial position amounts to 2,095 million Euro and the consolidated statement of profit or
loss shows a loss for the year of 14 million Euro.
In our opinion, the consolidated financial statements give a true and fair view of the Group’s equity and financial
position as at 31 December 2021 and of its consolidated financial performance and its consolidated cash flows
for the year then ended in accordance with International Financial Reporting Standards as adopted by the Euro-
pean Union, and with the legal and regulatory requirements applicable in Belgium.
Basis for our unqualified opinion
We conducted our audit in accordance with International Standards on Auditing (‘ISAs’) as adopted in
Belgium. In addition, we have applied the ISAs as issued by the IAASB and applicable for the current accounting
year while these have not been adopted in Belgium yet. Our responsibilities under those standards are
further described in the ‘Statutory auditors’ responsibility for the audit of the consolidated financial statements’
section of our report. We have complied with the ethical requirements that are relevant to our audit of the
consolidated financial statements in Belgium, including the independence requirements.
We have obtained from the board of directors and the Company’s ocials the explanations and information
necessary for performing our audit.
We believe that the audit evidence we have obtained is sucient and appropriate to provide a basis for
our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit
of the consolidated financial statements of the current period. These matters were addressed in the context of
our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
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Impairment of goodwill and indefinite-life intangible assets
We refer to note 27 ‘Goodwill and Intangible assets’ and note 50.13 ‘Impairment’ of the consolidated financial
statements.
• Description
The Group operates in business sectors where financial performance is impacted by competitive pressures,
decline in demand and volatile commodity prices (silver and aluminum).
Goodwill and indefinite-life intangible assets are assessed for impairment annually in accordance with IAS 36.
Management prepares a recoverable amount assessment by discounting future cash flow projections to deter-
mine whether these assets are impaired at the reporting date as well as the level of impairment charge to be
recognized. This assessment is performed at cash-generating unit level.
Impairment of goodwill and indefinite-life intangible assets is a Key audit matter due to:
· The size of the balance (being 13% of total assets); and
· The level of judgement required by management in its assessment of impairment, which principally relates to
the inputs used in both forecasting and discounting future cash flows to determine the recoverable amount.
• Our audit procedures
Our audit procedures included:
· We evaluated the process by which managements’ cash flow forecasts were prepared, including testing the
underlying calculations and reconciling them to the latest Board of Directors approved financial targets.
· We analyzed the Group’s previous ability to forecast cash flows accurately and challenged the reasonableness
of current forecasts by comparing key assumptions to historical results, economic and industry forecasts and
internal planning data.
· We assessed the appropriateness of the Group’s valuation methodology and its determination of discount
rates by including valuation specialists in our team.
· Furthermore we performed sensitivity analyses around the key assumptions used for the determination and
discounting of the cash flow forecasts, in particular discount rates, growth rates and commodity prices. We
assessed how management incorporated the specific risk factors faced by the businesses and the Group
in their cash flow forecasts and discount. Having ascertained the extent of change in the assumptions that
either individually or collectively would be required for the goodwill and indefinite-life intangible assets to be
potentially impaired, we assessed the likelihood of such a movement in those key assumptions.
· Furthermore, we assessed the appropriateness of the Group’s disclosures in respect of impairment, which are
included in note 27 to the consolidated financial statements.
Recoverability of deferred tax assets
We refer to note 17 ‘Income taxes’ and note 50.7.2 ‘Deferred tax’ of the consolidated financial statements.
• Description
from past business performance for which a deferred tax asset of 124 million Euro has been recognized.
There is an inherent uncertainty involved in assessing the availability of future taxable profits, which determines
the extent to which deferred tax assets are or are not recognized.
Due to the significance of the balance as well as the judgment involved in the estimations described above, the
recoverability of deferred tax assets is a key audit matter for our audit.
• Our audit procedures
Our audit procedures included:
· We assessed the appropriateness of the Group’s assumptions and estimates in determining the level of tax
losses and deductible temporary differences to recognize.
· We assessed the Group’s view of the likelihood of generating sucient taxable profits to support the recogni-
tion of deferred tax assets, which includes an assessment of the long-term business plans, the historical and
projected taxable profit forecasts at legal entity level, a consideration of tax planning strategies and sensitivi-
ties to changes in assumptions.
236
· Furthermore, we assessed the appropriateness of the Group’s disclosures in respect of income taxes, which
are included in note 17 to the consolidated financial statements.
Measurement of post-employment benefits
We refer to note 13 ‘Post-Employment benefit plans’ and note 50.4 ‘Employee benefits’ of the consolidated
financial statements.
• Description
The Group provides retirement benefits in most countries in which it operates. Retirement benefits are
organized through defined contribution plans as well as defined benefit plans. The Group funds its obligations in
relation to those plans via insurance plans and segregated assets in Pension Funds.
The net defined benefit liability for Belgium, Germany, UK and US together represents 98% of the total net
defined benefit liability.
Post-employment benefits is a Key Audit Matter due to:
· The size of the balance (728 million Euro which represents 35% of total equity and liabilities); and
· The significant estimates made in valuing the Group’s post-employment benefit obligations and underlying
assets. Small changes in assumptions and estimates used to value the Group’s net post-employment benefit
liabilities would have a significant effect on the Group’s financial position.
• Our audit procedures
Our audit procedures included:
· We updated our understanding of the Group’s valuation process.
· We assessed the competence, objectivity and capabilities of the external actuarial experts engaged
by management.
· We challenged the key assumptions, being the discount rates, inflation rates and mortality expectations
underlying the valuation of the Group’s post-employment benefit obligations with the support of our actuarial
specialists. This included a comparison of key assumptions used against externally derived data.
· We verified the accuracy of the census data underlying the actuarial valuation and reconciled the fair value of
the plan assets with external confirmations.
· We assessed the overall reasonableness of the valuation outcome.
· Furthermore, we assessed the appropriateness of the Group’s disclosures in respect of employee benefits,
which are included in note 13 to the consolidated financial statements.
Revenue recognition
We refer to note 8 ‘Revenue’ and note 50.3 ‘Revenue from contracts with customers’ of the consolidated finan-
cial statements.
• Description
For the year ended December 31, 2021, the Group recorded revenue amounting to 1,760 million Euro.
We identified the recognition of revenue as a key audit matter because revenue is one of the key performance
indicators of the Group (including bonus arrangements) and is, therefore, subject to an inherent risk of
manipulation by management to meet targets or expectations and because errors in the recognition of revenue
could have a material impact on the Group’s profit for the year.
• Our audit procedures
Our audit procedures included:
· Evaluating the design, implementation and operating effectiveness of key controls (including IT environment)
over the existence, accuracy and timing of revenue recognition.
· Challenging the revenue recognition policies adopted by the Group by making inquiries of management and
inspecting a sample of sales contracts to understand the contractual components, the delivery terms and
to assess the Group’s timing of revenue recognition with reference to the requirements of the prevailing
accounting standards.
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· Assessing whether revenue had been recognized in the appropriate accounting period by comparing a sample
of sales transactions around the year-end with relevant underlying documents (e.g. delivery documentation).
· Inspecting manual adjustments to revenue, enquiring of management as to the reason for such adjustments
and comparing the details of the adjustments with relevant underlying documentation.
· Testing a sample of contract assets and contract liabilities ending balances and comparing these to
supporting evidence.
Board of directors’ responsibilities for the preparation of the consolidated
financial statements
The board of directors is responsible for the preparation of these consolidated financial statements that give a
true and fair view in accordance with International Financial Reporting Standards as adopted by the European
Union, and with the legal and regulatory requirements applicable in Belgium, and for such internal control as the
board of directors determines, is necessary to enable the preparation of consolidated financial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the board of directors is responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless the board of directors either intends to liquidate the Group
or to cease operations, or has no realistic alternative but to do so.
Statutory auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance as to whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could rea-
sonably be expected to influence the economic decisions of the users taken on the basis of these consolidated
financial statements.
When performing our audit we comply with the legal, regulatory and professional requirements applicable to
audits of the consolidated financial statements in Belgium. The scope of the statutory audit of the consolidated
financial statements does not extend to providing assurance on the future viability of the Group nor on the
eciency or effectivity of how the board of directors has conducted or will conduct the business of the Group.
Our responsibilities regarding the going concern basis of accounting applied by the board of directors are
described below.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional
skepticism throughout the audit. We also perform the following procedures:
· Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to
fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is
sucient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intention-
al omissions, misrepresentations, or the override of internal control;
· Obtain an understanding of internal controls relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control;
· Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by board of directors;
· Conclude on the appropriateness of board of directors’ use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditors’ report to the related disclosures in the
consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions
238
are based on the audit evidence obtained up to the date of our auditors’ report. However, future events or condi-
tions may cause the Group to cease to continue as a going concern;
· Evaluate the overall presentation, structure and content of the consolidated financial statements, including
the disclosures, and whether the consolidated financial statements represent the underlying transactions and
events in a manner that achieves fair presentation;
· Obtain sucient appropriate audit evidence regarding the financial information of the entities or business activ-
ities within the Group to express an opinion on the consolidated financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the audit committee regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that we identify
during our audit.
We also provide the audit committee with a statement that we have complied with relevant ethical require-
ments regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
For the matters communicated with the audit committee, we determine those matters that were of most signif-
icance in the audit of the consolidated financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter.
Other legal and regulatory requirements
Responsibilities of the Board of directors
The board of directors is responsible for the preparation and the content of the board of directors’ annual report
on the consolidated financial statements, and the other information included in the annual report.
Statutory auditor’s responsibilities
In the context of our engagement and in accordance with the Belgian standard which is complementary to
the International Standards on Auditing as applicable in Belgium, our responsibility is to verify, in all material
respects, the board of directors’ annual report on the consolidated financial statements, and the other informa-
tion included in the annual report, and to report on these matters.
Aspects concerning the board of directors’ annual report on the consolidated financial statements and other
information included in the annual report
Based on specific work performed on the board of directors’ annual report on the consolidated financial state-
ments, we are of the opinion that this report is consistent with the consolidated financial statements for the
same period and has been prepared in accordance with article 3:32 of the Companies’ and Associations’ Code.
In the context of our audit of the consolidated financial statements, we are also responsible for considering, in
particular based on the knowledge gained throughout the audit, whether the board of directors’ annual report
on the consolidated financial statements and other information included in the annual report:
· Letter to the Shareholders
· Key Figures 2021
contain material misstatements, or information that is incorrectly stated or misleading. In the context of the
procedures carried out, we did not identify any material misstatements that we have to report to you.
The non-financial information required by article 3:32 §2 of the Companies’ and Associations’ Code has been in-
cluded in the board of directors’ annual report on the consolidated financial statements, which is part of section
Non-Financial Report of the annual report. The Company has prepared this non-financial information based on
Global Reporting Initiative (GRI) standards. In accordance with art 3:80 §1, 1st paragraph, 5° of the Companies’
and Associations’ Code, we do not comment on whether this non-financial information has been prepared in
accordance with the mentioned GRI standards.
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AgfA-gevAert – AnnuAl report 2021
’
Information about the independence
· Our audit firm and our network have not performed any engagement which is incompatible with the statutory
audit of the consolidated accounts and our audit firm remained independent of the Group during the term of
our mandate.
· The fees for the additional engagements which are compatible with the statutory audit referred to in article
3:65 of the Companies’ and Associations’ Code were correctly stated and disclosed in the notes to the consol-
idated financial statements.
European Single Electronic Format (ESEF)
In accordance with the draft standard on the audit of compliance of the Financial Statements with the European
Single Electronic Format (hereafter ‘ESEF’), we have audited as well whether the ESEF-format is in accordance
with the regulatory technical standards as laid down in the EU Delegated Regulation nr. 2019/815 of 17 December
2018 (hereafter ‘Delegated Regulation’).
The Board of Directors is responsible for the preparation, in accordance with the ESEF requirements, of the
consolidated financial statements in the form of an electronic file in ESEF format (hereafter ‘digital consolidated
financial statements’) included in the annual financial report.
It is our responsibility to obtain sucient and appropriate information to conclude whether the format and the
tagging of the digital consolidated financial statements comply, in all material respects, with the ESEF require-
ments under the Delegated Regulation.
In our opinion, based on our work performed, the format of and the tagging of information in the English version
of the digital consolidated financial statements as per December 31, 2021, included in the annual financial report
of Agfa-Gevaert NV, are, in all material respects, prepared in compliance with the ESEF requirements under the
Delegated Regulation.
Other aspect
This report is consistent with our additional report to the audit committee on the basis of Article 11 of
Regulation (EU) No 537/2014.
Antwerp, April 8, 2022
KPMG Bedrijfsrevisoren - Réviseurs d’Entreprises
Statutory Auditor
represented by
H. Van Donink
Bedrijfsrevisor / Réviseur d’Entreprises
240
Statutory accounts
The following pages are extracts of the statutory annual accounts of Agfa-Gevaert NV prepared under Belgian
accounting policies. The management report of the Board of Directors to the Annual General Meeting of Share-
holders and the annual accounts of Agfa-Gevaert NV as well as the Auditor’s Report, will be filed with the National
Bank of Belgium within the statutory stipulated periods. These documents are available on request from Agfa’s
Investor Relations department and at www.agfa.com/investorrelations.
Only the Consolidated Annual Financial Statements as set forth in the preceding pages present a true and fair
view of the financial position and performance of the Agfa-Gevaert Group. The Statutory Auditor’s Report is
unqualified and certifies that the non-consolidated financial statements of Agfa-Gevaert NV for the year ending
December 31, 2021 give a true and fair view of the financial position and results of the Company in accordance
with all legal and regulatory dispositions.
241
-
INCOME STATEMENTS
MILLION EURO
I Operating income
A Turnover
B Stocks of finished goods work and contracts in progress (increase +decrease ) ()
C Own work capitalised
D Other operating income
E Nonrecurring operating income
Total operating income
II Operating charges
A Raw materials consumables
Purchases
Stocks (increase decrease +) ()
B Services and other goods
C Remuneration social security costs and pensions
D
Depreciation of and other amounts written off formation expenses
intangible and tangible fixed assets
E
Amounts written off stocks contracts in progress and trade debtors
(appropriations + writebacks )
() ()
F
Provisions for liabilities and charges
(appropriations + uses and writebacks )
()
G Other operating charges
H Nonrecurring operating charges
Total operating charges
III Operating profit/Loss () ()
IV Financial income
V Financial charges () ()
VI Gain/ Loss for the period before taxes () ()
VII Transfer from deferred taxes
VIII Income taxes
IX Gain/Loss of the period () ()
X Transfer from untaxed reserves
XI Gain/Loss of the period available for appropriation () ()
Appropriation account
A Profit to be appropriated () ()
Gain (loss) of the period available for appropriation () ()
Accumulated profits (losses) () ()
B Withdrawals from capital and reserves
C Transfer to capital and reserves
D Accumulated profits (losses) () ()
F Profit to be distributed
242
FINANCIAL POSITION
MILLION EURO December December
Assets
I Formation expenses
II Intangible fixed assets
III Tangible fixed assets
IV Financial fixed assets
V Amounts receivable after more than year
VI Stocks and contracts in progress
VII Amounts receivable within one year
VIII Current investments
IX Cash at bank and in hand
X Deferred charges and accrued income
Liabilities
I Capital
II Share premium account
IV Reserves
V Accumulated profits () ()
VI Investment grants
VII Provisions and deferred taxes
VIII Amounts payable after more than one year
IX Amounts payable within one year
X Accrued charges and deferred income
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AgfA-gevAert – AnnuAl report 2021
Corporate Governance
Statement
The Company applies the Belgian Corporate Governance Code 2020 as reference code.
This Code can be consulted on the website www.corporategovernancecommittee.be.
In 2020, the Articles of Association of the Company have been conformed to the new
Code of Companies and Associations (Law of March 23, 2019).
In 2020, the Board of Directors revised the Corporate Governance Charter of the Compa-
ny in order to adapt this Charter to the provisions of the Belgian Corporate Governance
Code 2020. Within the scope of this revision also the option for a monistic governance
structure has been evaluated and confirmed. The complete Corporate Governance
Charter of the Company is published on the website: www.agfa.com/investorrelations.
Unless otherwise stated in the relevant sections of this Statement, the Company
is completely in line with the Belgian Corporate Governance Code 2020 for the
financial year 2021.
The governance structure of the Company is built up round the Board of Directors, the
Chief Executive Ocer (CEO) and the Executive Committee (Exco). The Board of Directors
is assisted by a Nomination and Remuneration Committee and an Audit Committee.
244
Corporate Governance
Statement
Board of Directors
As the ultimate management body of the Company, the Board of Directors is empowered to carry out any
necessary or useful actions for the achievement of the corporate purpose, the exception being the powers
reserved by law for the General Meeting of Shareholders (such as amendments to the articles of association,
capital increases other than through the authorized capital, capital decreases). The powers and operation of the
Board of Directors are described extensively in the Corporate Governance Charter. The articles of association
determine that the Board of Directors meets whenever the interest of the Company so requires or following a
request by two directors.
In 2021, eight effective meetings took place, as well as a couple of short discussions per conference call.
In the course of 2021, the Board of Directors discussed and decided upon, inter alia: defining the corporate
strategy and key policies, the transformation process of the Agfa-Gevaert Group, the share buyback program,
the perspectives for 2022 and the action plans for the years to come, ESG-related topics, recommendations
from the various Committees to the Board of Directors, risk management, the approval of budgets, cost control
scenarios, the evolution of important litigations and the approval of the annual accounts.
Directors likely to have conflicting interests with regard to any item on the agenda must disclose the conflict
before any deliberation and must abstain from deliberating and voting on that item. More particularly,
the directors must not put themselves in conflict situations as described in the Corporate Governance Charter
of the Company. Should such an event occur against their will, they must disclose it before any deliberation
relating to the conflicting item and must abstain from deliberating and voting on that item.
Composition of the Board of Directors
The articles of association of the Company provide that the Board of Directors has at least six members, who do
not need to be shareholders and who are appointed for a renewable maximum term of four years. The majority
of the members are to be non-executive directors, including a minimum of three independent directors.
No mandates as a director, other than that of Mr. Christian Reinaudo, expired immediately following the General
Meeting of Shareholders of May 11, 2021. It had been proposed to the shareholders to reappoint Mr. Christian
Reinaudo as non-executive director of the Company for a four-year term.
The Board therefore consists today of the following seven members:
· Vantage Consulting BV
(1)
, with permanent representative Frank Aranzana, Chairman, member since 2019,
Director of companies;
· PJY Management BV, with permanent representative Pascal Juéry, CEO, member since 2020,
Director of companies;
· Klaus Röhrig, member since 2018, Director of companies;
· MRP Consulting BV
(1)
, with permanent representative Mark Pensaert, member since 2018, Director of companies;
· Hilde Laga
(1)
, member since 2015, Director of companies;
· Helen Routh
(1)
, member since 2019, Director of companies;
· Christian Reinaudo, member since 2010, Director of companies.
(1) Independent director in accordance with article 7:87.§ 1. of the Code of Companies and Associations.
The mandate as a director of MRP Consulting BV, permanently represented by Mr. Mark Pensaert, will expire
immediately following the General Meeting of Shareholders of May 10, 2022. Mrs. Hilde Laga has informed the
Board of Directors that she will resign as director immediately following that General Meeting of Shareholders.
At the General Meeting, it therefore will be proposed to the shareholders to reappoint MRP Consulting, perma-
nently represented by Mr. Mark Pensaert, as independent director for a four-year term and to appoint
Albert House BV, with permanent representative Mrs. Line De Decker as independent director to replace
Mrs. Hilde Laga, also for a period of four (4) years. The Board is convinced that Mrs. De Decker has the right
competences and qualities to become a valuable member of the Board, as it appears from the below CV.
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AgfA-gevAert – AnnuAl report 2021
(°1974 - Belgian) holds a Law degree from KU Leuven University of Leuven
and Barcelona, as well as a Master in Tax Management from Solvay Business School. She is
to become the Chief Human Resources & Sustainability Ocer and will be a member of the
Executive Committee of Aliaxis, a world leader enabling access to water and energy through
inventive fluid management solutions, on April 11, 2022. Prior to joining Aliaxis, she was
Senior Vice President and Head Transformation Oce at GSK, where she led the Future
Ready initiative, a global program aimed at setting up two growth companies. During her
14 years at GSK, she held multiple senior HR roles in Belgium and the UK in the Vaccines,
Pharma and Consumer business. Prior to GSK, Mrs. De Decker worked at DuPont, where
she was involved in setting up their global business services. She started her career at
PriceWaterhouseCoopers and UCB , as a tax and reward specialist.
Mrs. De Decker is a senior executive with over 25 years’ extensive experience operating at
management board level in large, complex regulated organizations. She combines her excel-
lent communication, influencing and change management skills, with an exceptional track
record of leading businesses through critical transformational change programs.
Mrs. De Decker is a Non-Executive Director on the Board of the London Ambulance Service,
NHS Trust.
CV’s of the members of the Board of Directors
(°1958 - French) holds a Bachelor’s degree in Economics and Political
Sciences from IEP Paris, a Bachelor in Law from Nice University and later obtained a Mas-
ter in Management from ESSEC Paris. He started his career in 1986 with Dow Chemical,
where he worked in sales, marketing and business management. In 1996, he joined DuPont
Dow Elastomers as Business Director. In 1999, he joined UCB as a Director of the Radcure
business unit and subsequently Specialty Chemicals, which were sold to Cytec Industries
in 2005. He became Vice President of Cytec Surface Specialties and in 2008 President of
Cytec Specialty Chemicals, member of Cytec’s Executive Leadership team and an Ocer
of Cytec Industries Inc. In 2013, he was appointed CEO of Allnex, the leading producer of
coating resins acquired by Advent International Private Equity and until 2020, he was an
Advent Operating partner, sitting on Allnex’s Advisory Committee.
Frank Aranzana joined the Board of Directors in May 2019 and as from August 2020,
he became Chairman.
Current mandates:
· Board member Anqore
(°1965 - French) is a graduate from ESCP Business School in Paris, France.
He provides more than 30 years of experience in the chemical and advanced material
industries. Pascal Juéry started his career in finance and soon demonstrated his ability to
lead various global businesses as well as hold key functional responsibilities. For the past
10 years, he was a member of the Executive Committee of Rhodia and then Solvay,
where he took an active part in the group portfolio and business transformation.
Pascal Juéry joined the Agfa-Gevaert Board of Directors in 2020. As from February 1, 2020
he became CEO of Agfa-Gevaert.
Current mandates:
· Board member Blue Industry & Science
· Board member Desmet-Ballestra
246
(°1956 - Belgian) is recognized as a Belgian authority in the corporate law
advisory field. Until 2014 she combined client work as a lawyer with an esteemed academic
career. After obtaining a PhD in Law at the University of Leuven, she founded the law firm
Laga (now Deloitte Legal - Lawyers), which she led as managing partner and as head of the
corporate M&A practice until 2013. As a professor at the University of Leuven, Hilde Laga
lectured corporate law, a subject on which she has written numerous national and internati-
onal publications. Currently, she is connected as visiting professor. Hilde Laga is a member
of the Belgian Corporate Governance Committee and served several years as a member of
the Supervisory Board of the Belgian Financial Services and Markets Authority.
Hilde Laga joined the Agfa-Gevaert Board of Directors in 2015.
Current mandates
· Chairman of the Board of Directors of GIMV NV
· Director of Barco NV, Greenyard Foods NV, K.U. Leuven and its university hospital
(°1964 - Belgian) holds a Master of Law from the State University of Ghent
(Belgium) and later obtained a Master of Law from the Cambridge University St. Catharine’s
College. He started his career in 1988 in London with Lazard Brothers & Co, one of the
leading independent global investment banks with principal oces in New York, Paris and
London. Between 1992 and 1996, he was finance director of Interbuild NV and Rombouts
NV. In 1996, he became CFO of Carestel NV (currently part of the Autogrill Group).
Between 2000 and 2004 he returned to the international M&A business by rejoining Lazard
Frères in Paris to help establish and set up the M&A platform for Lazard in the Benelux.
In 2004, he became a Partner and started the Amsterdam oce covering the Benelux. In
2008, he joined, as CEO, Leonardo & Co, a spin-off from Lazard, to build out their network
in Continental Europe and from September 2015 until July 2018, he served as Chairman of
the investment banking division of Alantra Partners, a global investment banking and asset
management group quoted on the Madrid Stock Exchange.
Mark Pensaert joined the Agfa-Gevaert Board of Directors in 2018.
Current mandates
· Member Supervisory Board of Rabobank
(°1954 - French) is a graduate from the ‘Ecole de Physique et de Chi-
mie Industrielles de Paris” and holds a doctorate from the University of Paris (France).
He started his career with Alcatel. During his Alcatel period, he managed several multibil-
lion Euro global businesses and international sales and services organizations, including
the Cable Group of Alcatel (now Nexans), the Submarine Networks Division and the whole
Optics Group. He enters the Executive Committee of Alcatel in early 2000 as Executive
Vice-President. After managing the AsiaPacific Region, he managed the integration and the
transition process associated with the merger of Alcatel and Lucent Technologies. In 2007,
he was appointed President Northern and Eastern Europe of Alcatel-Lucent and he joined
the Board of Directors of Alcatel-Lucent (Belgium). Early 2008, Christian Reinaudo joined
Agfa-Gevaert to be President of Agfa HealthCare.
Christian Reinaudo joined the Agfa-Gevaert Board of Directors in 2010. As from May 1, 2010 till
February 1, 2020, he was CEO of Agfa-Gevaert.
Current mandates
· Director of Domo Chemicals Holding NV (since October 18, 2016)
· Chairman Biocartis Group NV (since May 11, 2018)
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(°1977 - Austrian) holds a Master of Economics and Business Administration
from Vienna University of Economics and Business Administration. In 2000, Klaus Röhrig
started his career at Credit Suisse First Boston in London, focusing on corporate finance
and M&A for technology companies. In 2006, he joined Elliott Associates where he was
responsible for the funds’ investments in the German speaking countries as well as selected
debt, equity and sovereign investments. In 2015, Klaus Röhrig founded Active Ownership
S.à r.l. (AOC). Throughout his career, he focused on identifying investment opportunities,
structuring of investments and process-driven value creation.
Klaus Röhrig joined the Agfa-Gevaert Board of Directors in November 2018. From May 2019
until August 2020, he was Chairman of the Board of Directors.
Current mandates
· Member of the Supervisory Board of Formycon AG
· Member of the Supervisory Board of Francotyp-Postalia Holding AG
(°1962 - British/American) is a global healthcare executive with a record of
solving complex problems at the intersection of innovation and business. She has a PhD
in Physics, specializing in medical ultrasound from University College Cardiff (UK). Until
2017, she held diverse business and functional roles in healthcare at Philips, working across
products, software and services. She was the General Manager of Philips Research in North
America and General Manager of Philips’ global Clinical Informatics businesses.
As Senior VP of Strategy and Innovation, she led the development of Innovation Strategy
across Royal Philips and was head of the Integrated Solutions team.
She is an invited keynote speaker and panelist on both technical and business topics, and
serves as an advisor to small and large companies and academic and clinical organizations
in both the US and Europe.
Helen Routh joined the Board of Directors in May 2019.
Current mandates
· Chairman of the Board of Ultromics
· Non-Executive Director of Health Innovation Manchester
· Member of the Medical Advisory Board of Buoy Health
Committees established by the Board of Directors
Audit Committee (AC)
The Audit Committee completes the tasks as described in article 7:99.§4 of the Code of Companies and
Associations and assists the Board of Directors in achieving its mission of control in the broadest sense. Its
powers and the way it functions are described extensively in chapter 5.1 of the Corporate Governance Charter.
As from May 14, 2019, the Audit Committee consists of the following three non-executive Directors:
Mr. M. Pensaert, Chairman, Mr. K. Röhrig and Ms. H. Routh. Two of them are independent directors. They all
meet the requirements described in article 7:99.§2 of the Code of Companies and Associations, with respect
to the expertise in the field of accounting and audit.
The Committee held five meetings in 2021. Amongst other items the following topics were discussed: the veri-
fication of the annual accounts 2020, the quarterly results of 2021, the reappointment of the Statutory Auditor,
the reports of the internal audit department, the follow-up of important legal issues such as the AgfaPhoto file,
QARA (Quality Assurance & Regulatory Affairs) and the evaluation of risk management in the Group.
248
Nomination and Remuneration Committee (NRC)
The Nomination and Remuneration Committee has been entrusted by the Board of Directors with responsi-
bilities concerning the nomination for appointment, reappointment or dismissal of Directors and members of
the Executive Management, the remuneration policies and the individual remuneration of the Directors and the
members of the Executive Management. Operation and functions of the NRC are described extensively in chap-
ter 5.2 of the Corporate Governance Charter. The Nomination and Remuneration Committee consists exclusive-
ly of non-executive directors.
Since May 12, 2020, the Nomination and Remuneration Committee consists of the following three non-exe-
cutive directors: Mr. C. Reinaudo, Chairman, Mrs. H. Laga and Mr. F. Aranzana. Two of them are independent
directors. The NRC had four meetings in 2021 and the following agenda items, among others, were discussed:
the composition of the Board of Directors and its Committees, identification of critical roles and their succes-
sion planning, the remuneration policy, the performance and remuneration of the Executive Management and
Senior Executives and the preparation of the Remuneration Report.
Presence at the meetings of the Board of Directors and the Committees
Board AC NRC
Mr. Frank Aranzana 8/8 4/4
Mr. Christian Reinaudo 8/8 4/4
Ms. Helen Routh 8/8 5/5
Mr. Pascal Juéry 5/5
Mrs. Hilde Laga 7/8 3/4
Mr. Mark Pensaert 8/8 5/5
Mr. Klaus Röhrig 8/8 5/5
Management of the Company
CEO and Executive Committee (Exco)
The Executive Management is at present entrusted to a Managing Director/CEO assisted by an Exco. Together
they represent the Executive Management.
The CEO is responsible for the implementation of the Company’s policy and strategy laid down by the Board of
Directors. Consequently, he has the most extensive powers regarding day-to-day management as well as a num-
ber of specific special powers. These powers are described extensively in the Corporate Governance Charter.
In order to allow the Board of Directors to exercise its control, the CEO regularly reports about his activities and
about the development of the subsidiaries and aliated companies.
Since September 2021, date on which Gunther Koch joined the Exco, the Exco is composed as follows:
· Mr. Dirk De Man, Chief Financial Ocer;
· Mr. Luc Delagaye, President Agfa Offset Solutions;
· Mr. Vincent Wille, President Agfa Digital Print & Chemicals;
· Mr. Gunther Koch, Chief Human Resources Ocer.
Gunther Koch (°1971, Belgian) is a commercial engineer who graduated from the Solvay Business School. He
began his career at PWC as a financial auditor, then joined Proximus as a project consultant before moving to
Sabena in order to work on the transition to Brussels Airlines. For the past 18 years, Gunther has held various
HR responsibilities for GlaxoSmithKline where he was senior VP HR for the GSK global vaccines division for
the last 10 years. In September 2021, Gunther Koch joined the Agfa-Gevaert Group as Chief Human Resources
Ocer and member of the Executive Committee.
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Internal control and risk management systems
in relation to financial reporting
Agfa’s Executive Management is responsible for the Group’s internal control and risk system including those
regarding financial reporting as approved by the Board of Directors. Internal control over financial reporting
includes the assessment of the relevant risks, the identification and monitoring of key controls and actions
taken to correct deficiencies as identified. The Audit Committee reviews the effectiveness of the internal
control and risk management systems.
Control environment
Agfa’s control environment comprized in 2021 of central finance functions such as consolidation and reporting,
tax, treasury, investor relations on the one hand and finance functions at the level of the four business divisions
on the other hand.
All finance functions report directly to the Chief Financial Ocer. All Group entities follow uniform
central accounting policies and reporting requirements which are described in Agfa’s Group Consolidation
Accounting Manual.
Risk management
Based on review meetings with the central functions and business group management, the Executive Manage-
ment had, in 2021, a process in place to identify, assess and follow-up on risks including those with regard to
the financial reporting process on a regular basis and reports on those risks to the Audit Committee. These risks
are being reviewed by the Audit Committee who might define further actions to the Executive Management.
Control activities
In 2021, each business group was responsible for the monitoring of the financial performance and forecasting
and reports to the Executive Management. The consolidation process, based on a more extensive reporting,
was performed on a quarterly basis and reviewed by the Executive Management and the Audit Committee who
might define actions to the business groups and the central functions.
Information and communication
All entities use uniform central reporting tools and report in accordance with the instructions and reporting
guidelines set out by the central reporting department. Financial information (including key performance
indicators) was prepared on a consistent basis for each business group and at consolidated level and reviewed
by the appropriate responsible. The Executive Management reports to the Audit Committee on all key risk
factors on a regular basis.
Monitoring
One of the responsibilities of the financial department is to improve the procedures used to prepare and process
financial information.
Regular reviews are conducted on the key control procedures in the preparation of financial information in the
subsidiaries and at Group level in order to ensure proper application of instructions and guidelines with regards
to financial reporting.
Internal Audit performs reviews on the monitoring of internal policies, guidelines and controls both relating to
financial reporting and operational matters such as sales, production and R&D. Internal Audit reports to the
Audit Committee which monitors the effectiveness.
The Company Secretary has been appointed as Compliance Ocer to monitor the Directors’ and other designa-
ted persons’ compliance with the Group’s policy with regard to inside information and market manipulation.
250
Risk factors description
Market, technology and competition risks
As with any company, Agfa is continuously confronted with market and competition risks. In all its businesses
Agfa is faced with rapid changes in technology. The Offset business also has been characterized by challenging
market conditions and price erosion. Agfa is introducing many new technologies, e.g. industrial inkjet, direct
radiography as well as IT systems for the healthcare market. The marketplace for healthcare IT systems is
highly competitive and subject to rapid change. These risks are particularly relevant to maintain our leading
market position and hence secure the long term success of the Group. To address these challenges and to
ensure a competitive offer to our customers, Agfa keeps upgrading its technological offer, investing in Research
and Development for continuous innovation and in market analysis for a relevant view of its competitors' offer.
Decisions regarding these aspects are normally made at divisional level, since each division management team
is the best placed to assess the evolution of competition landscape and trends development.
Cost of raw materials
Agfa relies on other companies to supply certain key raw materials. The most important of these, in terms of
volume and price fluctuation, are aluminum and silver. Fluctuating raw material prices and any failure to obtain
the needed raw materials on a timely basis could adversely affect Agfa’s business, operational result and finan-
cial status. Furthermore, Agfa may choose to hedge a portion or the totality of its raw materials exposure, as
it deems appropriate. 2021 has been a particularly challenging year in this regard as raw material cost inflation
was particularly steep. To address these challenges Agfa has announced a series of price increases throughout
the fiscal year 2021.
Product liability
The activities of the Group may expose Agfa to product liability claims as it needs to comply with regulatory
systems in many different countries and in a broad range of market segments, each with its own regulatory requi-
rements. To mitigate product liability risks, Agfa has implemented a strict product stewardship and quality policy,
which is complemented by continuous monitoring legislation development and structured controls. The Group has
concluded a combined liability insurance policy covering all activities of Agfa. Agfa has never suffered significant
losses with respect to product liability, but there can be no assurance that this will not occur in the future.
Environmental matters
Agfa is subject to many environmental requirements in the various countries in which it operates, including air
and waste water emissions, hazardous materials and spill prevention and clean up. Significant operating and
capital expenditures are invested to comply with applicable standards. Provision is also made for current and
reasonably foreseeable compliance and remediation costs.
Agfa has developed strict policies at each site to prevent the likelihood of these risks to materialize and the
risk assessment with regard to the environmental aspects must be updated at least annually by the
responsible departments.
In addition to our efforts to limit our operations impacts on the planet, as previously discussed in the
dedicated section of this report, Agfa has assessed and is monitoring possible adverse effect of climate change
to its operations in order to be able to initiate adequate response in case of a major event impacting Agfa’s ope-
rations and its customers. Among other long(er) term impacts, climate change causes extreme natural events
that could impact the continuity of operations for our sites or in our supply chain. Firstly, our global distribution
and diverse site locations reduce our exposure to physical risks. In 2021 Agfa carried out an assessment of its
potential exposure to natural disaster, i.e. earthquake, volcanoes eruption, cyclones, tornado, flood, lightning,
tropical storm, tsunami and thermal anomalies. The assessment interested 322 locations (own manufacturing
sites, owned or rented warehouse and stocks at customer locations) distributed across 37 countries and six
continents. From this analysis it resulted that the exposure for our direct operations is relatively low.
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Social and personnel issues
Among social and personnel related risks, the failure to attract the relevant talents and the potential to lose key
management and personnel are key to enable Agfa to fulfill its strategic ambition, build further expertise and,
above all, manage the other risks faced as an organization. In 2021, the continued COVID-19 crisis severely affec-
ted our people and society at large. We continued taking precautionary measures to ensure safety of our teams.
In any case where the pandemic had an impact on retaining personnel, decisions have been made liaising with
unions representatives and in full transparency with the relevant stakeholders. We also work to ensure we
can offer a remuneration package in line with the market and the possibility to grow and develop within the
organization as way to retain talents as long as possible. More details on the concrete policies in place are
listed in the ‘People’ chapter of the annual report.
Intellectual property
Agfa owns, has applications pending for and is licensed under many patents relating to a variety of products as
well as software. The Company relies on a combination of patent, copyright, trademark and trade secret legisla-
tion, trade secrets, confidentiality procedures, contractual provisions and license arrangements to establish and
to protect its proprietary rights.
On the other hand, the Group has a policy of strictly respecting third parties intellectual property rights. Agfa is
not aware that any of its products are infringing upon the intellectual property rights of others. However, there
can be no assurance that third parties will not claim such infringements in the future.
Litigation
Agfa is currently not involved in any major litigation apart from those related to the AgfaPhoto insolvency, which
is commented in detail under Note 45.2 on p. 209 of the financial statements.
Miscellanea
In addition to the risks listed above, there are a series of other risks that are to be taken into account as they
could have a negative impact on the Company and its activities. Examples are risks concerning:
· continuity of production;
· cybersecurity risks;
· extraordinary impairment of assets;
· corruption and bribery;
· pension obligations;
· changes in currency exchange rates and acquisitions.
In addition to the risks described in this chapter, failure to fulfill our obligations towards authorities and stake-
holders for any of the points described could result in a reputational damage that could hinder the future of
the Group. While it is dicult to estimate the impact of such damage, as it would widely depend on the type
of issue occurred, we make all possible efforts to prevent this by setting in place clear end effective governance
to run all our operations.
Evaluation of the Board of Directors and its Committees
The major features of the evaluation process for the Board of Directors and its Committees include assessing how
the Board of Directors and its Committees operate, checking that the important issues are suitably prepared and
discussed, evaluating the actual contribution of each Director’s work and their involvement in discussions and
decision-making. The complete evaluation process is extensively dealt with in the chapters 3, 4 and 5 of the
aforementioned Corporate Governance Charter.
The last formal evaluation occurred in 2021, in which an internal evaluation process has taken place on the initi-
ative of the Chairman of the Board and in collaboration with the Chairman of the Nomination and Remuneration
252
Committee, involving contacts with the members of the Board of Directors and of the Executive Management in
order to evaluate the functioning of the Board and the Executive Management (on individual level as well as on a
corporate body level) on the one hand and the cooperation and relation between both bodies on the other hand.
The criteria taken into consideration for the evaluation concerned the size, composition and performance of the
Board of Directors and the Committees as well as the quality of the interaction between the Board of Directors
and the Executive Management. The results were based on answers given to a questionnaire (containing about
seventy questions divided into ten chapters) on the one hand and the feedback provided during individual inter-
views on the other hand.
In the years where no formal evaluation is scheduled, the Chairman of the Board will informally inquire the
Members of the Board and of the Executive Management at regular intervals regarding the functioning of the
various corporate bodies.
Diversity & inclusion
See p. 63 through p. 66.
Policy regarding the appropriation of the result
The Board of Directors’ proposals to the General Meeting of Shareholders with regard to the allocation and
distribution of the result take into consideration several factors, such as the Company’s financial situation, the
operating results, the current and expected cash flows and the plans for expansion.
Policy regarding the dealing in shares of the Company
Consistent with its principles and values, Agfa-Gevaert formulated a Code of Dealing immediately after the IPO
in 1999. The Code contains rules with which Directors and members of senior management have to comply in
case they wish to deal in financial instruments of the Company. The Code forbids these persons, inter alia, to
deal during well-defined periods preceding the announcement of its financial results and the announcement of
other price sensitive information.
Taking into account the Market Abuse Regulation, which became effective on July 3, 2016, Agfa-Gevaert has
changed this Code to make it compliant with the current legal regulations. The Code of Dealing was last mo-
dified on May 11, 2021. The adapted version of the Code is available on the Company’s website as part of the
Corporate Governance Charter.
Information related to major events subsequent to December 31, 2021
and information on circumstances that could significantly impact the
development of the Group
See Note 47 p. 211.
Information on the R&D activities
See p. 6-7 and p. 86-88.
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AgfA-gevAert – AnnuAl report 2021
Information related to the existence of branches of the Company
Agfa-Gevaert NV has a branch oce in the United Kingdom (Agfa Materials UK).
Information related to the use of derivative financial instruments
In order to minimize the risk of fluctuations in exchange rates and interest rates, the appropriate hedge
contracts were implemented.
These mainly include short-term transactions in foreign currencies, option contracts and interest swaps.
Their implementation occurs according to uniform guidelines, is subject to internal audits, and is limited to
cover for the operational activities, and related money investments and financial transactions.
Further detail hereon is provided in the ‘Notes to the Consolidated Financial Statements’.
Non-financial information
See p. 16 through p. 89.
Auditor
Agfa-Gevaert NV’s Statutory Auditor is KPMG Bedrijfsrevisoren, represented by Mr. Harry Van Donink.
The Statutory Auditor was reappointed at the General Meeting of Shareholders of May 14, 2019, for another
three-year term. Hence, the mandate will expire immediately following the General Meeting of Shareholders
of May 10, 2022. It will be proposed to the shareholders to reappoint KPMG Bedrijfsrevisoren, represented
by Mr. Frederic Poesen, as Statutory Auditor for a three-year term.
Information with regard to important participations
See p. 271.
Information related to the implementation of the
EU takeover directive
The Board of Directors hereby states that the Annual Report has been drafted in accordance with article 34 of
the Royal Decree of November 14, 2007. In this respect the Board of Directors explains that:
· A complete overview of the capital structure dated March 22, 2022, is included in the Annual Financial Report;
· There are no statutory restrictions with respect to the transfer of securities of the Company or to the exercise
of voting rights;
· There are no special rights attached to the issued shares of the Company;
· The Company has entered into certain financial agreements which would either become effective, be amended
and/or terminated due to any change of control over the Company as a result of a public takeover bid;
· The Company is not aware of the existence of shareholder agreements resulting in restrictions on the transfer
of securities and/or on the voting rights;
· The procedure for the appointment and replacement of Members of the Board and the amendment of the
254
Articles of Association of the Company are extensively described in the Articles of Association and the
Corporate Governance Charter of the Company, both of which can be consulted on the Investor Relations
page of the website www.agfa.com;
· The powers of the Board of Directors regarding issuing and purchasing stock are extensively described in
article 12 of the Articles of Association of the Company (version December 28, 2021);
· All important agreements entered into as from the date of the Royal Decree mentioned above, to which the
Company is a party and which contain a ‘change of control’ clause, have been submitted for approval to the
respective annual meetings;
· The agreements with the members of the Executive Management no longer contain a ‘change of control’
clause, following which they would receive compensation if their agreement with the Company would
terminate as a result of a change of the control over the Company.
General information about the Company
Agfa-Gevaert NV (Company number 0404.021.727, Register of Legal Entities Antwerp) is a listed company
under Belgian law, incorporated on June 10, 1964.
The registered oce of the Company is located at Septestraat 27, in 2640 Mortsel, Belgium.
The full and annotated financial data and statements are available via the website of the Company,
www.agfa.com, or at the registered oce of the Company itself. Information with respect to environmental
matters can be found in the Sustainability Report of the Company which is integrated in this Annual Report.
Availability of information
The Company’s Articles of Association are available at the clerk’s oce of the commercial court of Antwerp
(Belgium) and at the registered oce of the Company. They can also be found on the website of the Company,
www.agfa.com.
The Corporate Governance Charter and the Code of Dealing can be found on the Investor Relations page of the
website, www.agfa.com.
The annual accounts are filed with the National Bank of Belgium.
The annual accounts, together with the related reports, are communicated every year to the holders of
registered shares and upon request to any interested party.
The Annual Report, the remuneration report, the statutory and consolidated annual accounts and including the
report of the auditor, as well as the remuneration policy, can be found on the website www.agfa.com and at
the registered oce.
The convocation to the General Meeting of Shareholders is published in the financial press and can also be
found on the website. As regards financial information, the financial results and the other required information
are published on the website of the Company, in compliance with the guidelines of the Financial Services and
Markets Authority (FSMA).
The decisions with respect to the nomination and dismissal of Members of the Board of Directors are published
in the Annexes to the Belgian State Gazette.
Any interested party can register free of charge on www.agfa.com to receive the press releases and required
financial information by e-mail.
The Annual Report is available on the website www.agfa.com, in Dutch and English.
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AgfA-gevAert – AnnuAl report 2021
The Nomination and Remuneration Committee (NRC) meets at least three times a
year to, among other things, develop proposals to the Board on the remuneration
policy and level for the Directors and the members of the Executive Management.
The NRC had four meetings in 2021 and the following agenda items, among others,
were discussed: the composition of the Board of Directors and its Committees,
identification of critical roles and their succession planning, the remuneration policy,
the performance and remuneration of the Executive Management and Senior
Executives and the preparation of the Remuneration Report.
The NRC would like to refer to the Annual Financial Report of the Group for a detailed
description of the operating results that have affected the results of the different
divisions of the Group, and consequently the remuneration of the Executive Management.
There have been several changes in the Executive Management team in 2021.
Messrs. Vincent Wille (President Agfa Digital Print & Chemicals) and Gunther Koch
(Chief Human Resources Ocer) acceded the Executive Committee, respectively on
May 1 and September 1.
Remuneration Report
256
Remuneration Report
Remuneration results for the year 2021
Remuneration policy
The new remuneration policy, approved by the shareholders at the Annual Meeting held on May 11, 2021, is
available on the Company's website: www.agfa.com/investor-relations. This remuneration policy is aligned with
the Shareholders' Rights Directive II, the Companies and Associations Code and the Corporate Governance
Code 2020.
Remuneration of Directors and members of the Committees
The current remuneration policy for Directors and members of the Committees was established at the Annual
Meeting held in 2021 and varies according to the number of meetings attended. The remuneration of the Chair-
man of the Board is an all-inclusive fee.
Further details on the remuneration for fiscal year 2021 are provided later in this remuneration report.
Remuneration of the members of the Executive Management
The remuneration package of the members of the Executive Management consists of (i) a base salary, (ii) ben-
efits, (iii) short and long-term variable remuneration and (iv) pension-related benefits. These various compo-
nents are described in more detail in the Company's remuneration policy.
The impact of the Global Bonus Plan on the remuneration of the Executive Committee in the year 2021 is further
specified in this Remuneration Report.
Dialogue with Shareholders
The Annual Meeting held on May 11, 2021, approved the previous remuneration report with 57.4% of the votes.
When drafting and revising its remuneration policy, Agfa-Gevaert takes into account the votes and suggestions
of its shareholders. In 2021, for example, no special compensation was awarded to members of the Executive
Management because of the realization of exceptional projects. There was only a final payment in the context of
commitments made in previous years. Agfa-Gevaert invites its shareholders to an open and transparent com-
munication on its remuneration policy and other Corporate Governance aspects.
Remuneration policy 2021 in summary
Board of Directors
As stipulated in the current policy, non-executive Directors receive a fixed fee and possibly an attendance fee.
The non-executive Directors do not receive any performance-related remuneration directly related to the Com-
pany's results. The non-executive Directors also did not receive any part of their remuneration in the form of
shares of the Company for the fiscal year 2021. In accordance with the policy, non-executive board members do
not receive equity-related remuneration as referred to under provision 7.6 of the 2020 Corporate Governance
Code. Agfa adheres to Principle 6 of the Code and considers that remunerating the non-executive directors
entirely in cash serves better the avoidance of any conflicts of interests and guarantees their complete indepen-
dence of mind. Expenses (e.g. for intercontinental or international travel) are reimbursed separately. The CEO
only receives compensation as a member of the Executive Management. He does not receive a separate fee for
his role as Executive Director.
Executive Management
The remuneration policy was revised when Mr. Juéry joined the Company as CEO. The new remuneration policy
submitted for approval to the Annual Meeting held in 2021 builds on the approach taken in the contractual
arrangements with Mr. Juéry. This new policy was further rolled out as new members joined the Executive Com-
mittee or whenever the current members of the Executive Committee wish to adapt their existing contractual
arrangements to such new policy. The NRC regularly reviews the appropriateness of remuneration for executive
management and, where necessary, makes proposals to the Board of Directors for changes.
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AgfA-gevAert – AnnuAl report 2021
The remuneration of the CEO consists of a fixed remuneration, a short-term variable remuneration and a long-
term variable remuneration. The allocation and amount of short-term variable compensation depends on the
Group results and on the achievement of personal objectives set by the Board of Directors. The long-term variable
compensation was embedded in a Stock Appreciation Rights Plan and may lead to an additional cash bonus.
The main elements of this Stock Appreciation Rights Plan are:
· Mr. Juéry will be granted 200,000 Stock Appreciation Rights annually for a period of five years, commencing
on February 1, 2020.
· The strike price for these Stock Appreciation Rights has been set for the year 2020 at 4.75 Euro (to be adjust-
ed downwards for any dividend distribution). Since 2021, the strike price is depending on the average closing
price of the Agfa-Gevaert share during the 30 days preceding the grant date.
· The Stock Appreciation Rights vest at the end of each calendar year for a period of three years at a rate of
one-third of each grant.
· The Stock Appreciation Rights can be exercised at the earliest three years after grant.
In addition, Mr. Juéry is entitled to reimbursement of reasonable international travel expenses and representa-
tion expenses.
The remuneration of the current members of the Executive Committee consists of a fixed remuneration and a
variable remuneration. For 2021, all new members who joined the Executive Committee had a short term cash
component of 50% of their base salary based on achieving targets of no more than one year and a long term
component through SARs. The other members of the Executive Committee had a short term cash component of
50% of their base salary of which 50% is paid on the basis of achieving targets of no more than one year and 50%
is deferred in year two and three on the basis of multi-year targets. The variable compensation may be partially
converted into a pension contribution. In addition, the members of the Executive Committee are entitled to certain
benefits in kind, such as a company car, a representation allowance, meal vouchers and various insurances.
Acquired compensation for the year 2021
Board of Directors
Table 1 - Compensation of the Directors for the reported fiscal year
The Directors do not receive any compensation from other companies of the Agfa-Gevaert Group.
EURO
Fixed remuneration
Variable
remuneration
Extraodinary items
Pension
Total remuneration
Proportion of fixed and
remuneration
Board Fee
Committee Fee
Other benefits
Oneyearvariable
Multiyearvariable
Frank Aranzana
()
Pascal Juéry
()
Mark Pensaert
()
Christian Reinaudo
()
Klaus Röhrig
()
Helen Routh
()
Hilde Laga
()
TOTAL Variable: %
(1) Chairman of the Board and member of the NRC. Permanent representative of Vantage Consulting SRL.
(2) Executive director (CEO). Permanent representative of PJY Management BV.
(3) Non-executive director and member of the Audit Committee. Permanent representative of MRP Consulting BV.
(4) Non-executive director and chairman of the NRC. Permanent representative of CRBA Management BV until the end of January 2021.
As natural person as of February 2021.
(5) Non-executive director and member of the Audit Committee.
(6) Non-executive director and member of the Audit Committee.
(7) Non-executive director and member of the NRC.
258
CEO
Table 2 - CEO compensation
EURO
Fixed remuneration
Variable
remuneration
Extraodinary items
Pension
Total remuneration
Proportion of fixed
and variable
remuneration
(*)
Base
remuneration
Fees
Other
benefits
Oneyear
variable
Multiyear
variable
Pascal Juéry
()
CEO Fixed: %
TOTAL Variable: %
(1) Executive director (CEO as from February 1st, 2020). Permanent representative of PJY Management BV.
Executive Comittee
Table 3 - Aggregated remuneration of the members of the Executive Committee in 2021
EURO
Fixed remuneration
Variable
remuneration
Extraodinary items
Pension
Total remuneration
Proportion of fixed
and variable
remuneration
(*)
Base
remuneration
Fees
Other
benefits
Oneyear
variable
Multiyear
variable
Executive
Committee Fixed: %
TOTAL Variable: %
(*) Extraordinary items were not taken into account for the calculation of the proportion of fixed and variable remuneration.
Further explanation of the allocated remuneration to the Executive Management
(tables 2 and 3):
In the column ‘Extraordinary items’ the final tranche of the exceptional bonus to members of the Executive
Management related to the sale of part of the Agfa HealthCare business to Dedalus was paid out.
This exceptional item has not been taken into account for the calculation of the proportion of fixed and
variable remuneration.
Share-based compensation
Next to Mr. Pascal Juéry, all new members who joined the Executive Committee in 2021 are entitled to receive
stock-based compensation as long-term variable compensation.
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AgfA-gevAert – AnnuAl report 2021
Table 4 - Remuneration in share related plans
EURO
Specification
of the plan
Main conditions of the share option plan
Information regarding the
reported financial year
Award
date
Vesting
date
End of
retention
period
Exercise
period
Strike
price
Share options held at
beginning of the year
a) # Options
vested
Share options awarded
and unvested
b) Value
underlying
Shares @
vesting date
a) # Options
awarded
b) Value
underlying
Shares @
offer date
c) Value @
strike price
d) Gain @
vesting date
Pascal Juéry
()
SAR // // // // a) a)
SAR // unlimited b) b)
SAR // c)
SAR // // //
//
// a) a)
SAR //
//
// b) b)
SAR //
//
// c)
d)
Executive
Committee
SAR // // //
//
// a) a)
SAR //
//
// b) b)
SAR //
//
// c)
d)
TOTAL
(1) Executive director (CEO). Permanent representative of PJY Management BV.
Severance payments
No severance payments were made to members of the Executive Management in 2021.
Comparative information
Table 5 provides comparative information regarding the annual change in remuneration and performance,
as well as the ratio between the highest remuneration of members of the Executive Management and the
lowest remuneration (in full-time equivalent) of employees.
Only active board members have been taken into account.
The evolution in remuneration for the CEO is a combination of company performance related remuneration and
the change of CEO in 2020. No extraordinary items have been taken into account for the ease of comparison.
The evolution in aggregated remuneration for the Executive Committee members is a combination of company
performance related remuneration and some changes in the Executive Management over the year.
No extraordinary items have been taken into account, nor severance packages, for the ease of comparison.
We are reporting the average remuneration of the employees on a full-time equivalent base.
For the average remuneration of the employees of the company only employees in Belgium have been consid-
ered. The average remuneration of the employees of the Group takes into account all employees worldwide.
260
Table 5 - Comparative table on the remuneration and Company performance over the last five reported financial
years (RFY)
RFY vs
RFY
RFY vs
RFY
RFY vs
RFY
RFY vs
RFY
RFY vs RFY
Information
regarding
the RFY
/ / / / /
Remuneration of Directors and Executive Committee
Frank Aranzana
()
% %
Pascal Juéry
()
Mark Pensaert
()
% % %
Christian Reinaudo
()
% % % % %
Klaus Röhrig
()
% %
Helen Routh
()
% %
Hilde Laga
()
% % % % %
CEO
(excl. Agfa-Gevaert NV director fee) % % % % %
Executive Committee % % % % %
Company Performance
Financial metric A: revenue % % % % %
Financial metric B: EBITDA % % % % %
Financial metric C: Net profit % % % % %
Nonfinancial metric C
Average Remuneration of employees on a fulltime equivalent base
Employees of the Company Euro Euro
Employees of the Group Euro Euro
Ratio highest/lowest remuneration
(1) Chairman of the Board and member of the NRC. Permanent representative of Vantage Consulting SRL.
(2) Executive director (CEO). Permanent representative of PJY Management BV.
(3) Non-executive director and member of the Audit Committee. Permanent representative of MRP Consulting BV.
(4) Non-executive director and chairman of the NRC. Permanent representative of CRBA Management BV until the end of January 2021.
As natural person as of February 2021.
(5) Non-executive director and member of the Audit Committee.
(6) Non-executive director and member of the Audit Committee.
(7) Non-executive director and member of the NRC.
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Disclosure GRI Description Cross-Reference
Organizational
profile
Name of the organization
Annual report p. 255
Corporate Governance Charter 1.1
on www.agfa.com
Activities, brands, products, and services
Annual report p. 10-11
Annual report p. 96-129
Location of headquarters Annual report p. 12-13
Location of operations Annual report p. 10-13
Ownership and legal form
Annual report p. 255
Annual report p. 271
Markets served
Annual report p. 10-13
Annual report p. 96-130
Scale of the organization
Annual report p. 9
Annual report p. 207-208
Information on employees and other workers Annual report p. 52-75
Supply chain
Agfa Supplier Code of
Conduct on www.agfa.com
Significant changes to the organization and its
supply chain
n.a.
Precautionary Principle or approach Annual report p. 23, 79-85
External initiatives REACH, ISO
Membership of associations Annual report p. 25
Strategy Statement from senior decision-maker Annual report p. 4-8
Ethics and
integrity
Values, principles, standards, and norms of behavior
Annual report p. 88-89
Code of Conduct on www.agfa.com
Governance
Governance structure
Annual report p. 244-255
Corporate Governance Charter
on www.agfa.com
Highest governance body’s role in sustainability reporting Annual report p. 21
Stakeholder
engagement
List of stakeholder groups Annual report p. 23
Collective bargaining agreements Annual report p. 75
Identifying and selecting stakeholders Annual report p. 23
Approach to stakeholder engagement Annual report p. 24
Key topics and concerns raised Annual report p. 23-26
Reporting
practice
Entities included in the consolidated financial statements Annual report p. 207-208
Defining report content and topic Annual report p. 17-27
List of material topics Annual report p. 20
Restatements of information n.a.
Changes in reporting Annual report p. 139
Reporting period January 1, 2021 - December 31, 2021
Date of most recent report April 2021
Reporting cycle Yearly
Contact point for questions regarding the report Investor Relations see Annual Report p. 271
Claims of reporting in accordance with the GRI Standards Annual Report p. 27
GRI content index Annual report p. 262
External assurance Annual report p. 235-240
GRI index table
(*)
not applicable
262
GRI 300 Management systems
GRI 301-2 Recycled input materials used
GRI 302-1 Energy consumption within the organization
GRI 302-3 Energy intensity
GRI 302-4 Reduction of energy consumption
GRI 303-5 Water consumption
GRI 305-1 Direct (Scope 1) GHG emissions
GRI 305-2 Energy indirect (Scope 2) GHG emissions
GRI 305-3 Other indirect (Scope 3) GHG emissions
GRI 305-4 GHG emissions intensity
GRI 305-5 Reduction of GHG emissions
GRI 305-6 Emissions of ozone-depleting substances (ODS)
GRI 305-7 Nitrogen oxides (NO
X
), sulfur oxides (SO
X
), and other significant air emissions
GRI 306-3 Waste generated
GRI 306-4 Waste diverted from disposal
GRI 306-5 Waste directed to disposal
EU Taxonomy
The Regulation (EU) 2020/852, i.e. the EU Taxonomy Regulation, entered into force in July 2020. It sets
out a disclosure obligation for entities in scope. The Agfa Group falls in scope of the Regulation as a
'non-financial undertakings' and it is subject to the reporting requirements as they apply to this category.
As of 2023 non-financial undertakings should disclose the proportion of their turnover derived from
products or services associated with Taxonomy-aligned economic activities and the proportion of their
capital expenditure and operating expenditure related to assets or processes associated with Taxonomy-
aligned economic activities. These disclosures should be related to the same fiscal year that is considered for
the rest of the report. In 2022, first reporting year of application of the Regulation, non-financial undertakings
should disclose only the above mentioned financial KPIs for Taxonomy-eligible activities, i.e. without the full
assessment of the alignment of eligible activities versus the Technical Screening Criteria.
In 2021, we started implementing the Regulation by performing a first screening of our operations to identify
taxonomy eligible activities. The screening has been done both by using the NACE codes listed in the
Regulation and also on the basis of the activities descriptions.
As a result of this screening, we identified the following turnover generating activities as taxonomy eligible:
· Manufacture of plastics in primary forms;
· Secondary aluminum recycling;
· Data processing, hosting and related activities (IT services and Technology Information).
We also identified a list of activities potentially classified as 'enabling', e.g. the construction of our solar park or
the production of heat/cool using waste heat (Warmtenet project).
We could not finalize the analysis of the associated financial KPIs due to the diculty of linking our transaction to
NACE codes rather than to the Group divisions. These values are, hence, not reported. We are assessing how to
best address this barrier in order to provide the requested figures as of the next reporting year.
Regarding the compliance with minimum safeguards, we consider this already part of our DNA and way of opera-
ting. This report addresses in different sections our core values and the processes implemented to roll them out.
For further details we refer to our Group Code of Conduct and to the chapters throughout this report.
GRI Environmental indicators
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AgfA-gevAert – AnnuAl report 2021
Glossary
AOX
Sum of organic halogen compounds in water that can
be adsorbed by activated carbon under standardized
conditions.
capacitive sensor
A capacitive sensor detects anything that is con-
ductive or has a dielectric different from that of air.
Capacitive sensors replace mechanical buttons.
chemistry-free (printing plate)
A printing plate that does not require chemical pro-
cessing after imaging.
CO
2
Carbon dioxide, generated by combustion of fuel.
COD
Chemical oxygen demand, the amount of oxygen
needed for chemical oxidation of constituents of water.
computed radiography (CR)
The technology of making X-ray images with con-
ventional X-ray equipment but whereby the images
are captured on reusable image plates, instead of
X-ray film. The information on the plates is read by a
digitizer and provides a digital image. Dedicated im-
age processing software (such as Agfa HealthCare’s
MUSICA) can be used to automatically maximize the
quality of the images for diagnostic purposes. The
digital images can also be completed with manual in-
puts (annotations, measurements, etc.) and are ready
for archiving on a Picture Archiving and Communica-
tion System.
see also direct radiography
computer-to-plate (CtP)
A process whereby the pages or artwork of printed
matter – e.g. the pages of newspapers or magazines –
are digitally imaged onto printing plates directly from
computer files without the intermediate step of film.
conductive materials/polymers
Conductive inks are typically used for printed elec-
tronics applications such as: printed busbars and
conductors in membrane keyboards and switches,
RFID antennas, touch screen panels,…
Agfa’s ORGACON nano-silver inks feature very high
conductivity with a low silver deposition and
support high-resolution patterning.
ORGACON advantages are: patterning of micro-grid
electrodes by screen-printing, high-conductive traces
at low thickness and width, formability
and flexibility.
CT (computed tomography)
A CT scanner uses a series of X-rays to create image
‘slices’ of the body. Agfa’s product portfolio does not
include CT scanners, but its Picture Archiving and
Communication Systems (PACS) are used for the
management and the (3D) visualization of the digital
images. Agfa’s hardcopy printers are used to produce
high quality prints of the images.
CtP
see computer-to-plate
digital radiography
A form of X-ray imaging, where digital technology
is used instead of traditional photographic X-ray
film. The most commonly used digital radiography
technologies are computed radiography and direct
radiography.
direct radiography (DR)
Radiographic technology that converts X-ray energy
into digital data without the use of intermediate image
capturing plates or films. These digital data generate
a diagnostic image on a PC. As the data are digital,
a wide range of possibilities is available for image
optimization or completion as well as for archiving
the images on Picture Archiving and Communication
Systems. DR systems are mostly used in centralized
radiology environments.
see also computed radiography
Electronic Health Record
An Electronic Health Record is created when a per-
son’s Electronic Patient Record is linked to his/her
non-medical electronic files from organizations such
as governments and insurance companies.
Enterprise Imaging
Agfa HealthCare’s Enterprise Imaging platform unites
departmental PACS, RIS, advanced 3D functionalities,
voice recognition, vendor-neutral archiving, viewer
and mobile functionalities. The solution enhances and
speeds up image acquisition and retrieval, optimizes
system eciency and performance, enhances patient
care, and allows true collaboration across depart-
ments, hospitals or regions.
flexo(graphic) printing
Method of printing using flexible, rubber or
synthetic printing plates attached to rollers.
The inked image is transferred from the plate
directly to the paper, or other substrate.
264
hardcopy
A hardcopy is the printed version of a digital image.
Agfa HealthCare’s hardcopy printers are used for print-
ing medical images from various sources: CT scans,
MRI scans, computed radiography (CR), direct radio-
graphy (DR), etc. Agfa produces both the so-called ‘wet’
and ‘dry’ printers. Wet laser technology implies the use
of aqueous chemical solutions to develop the image.
The environmentally friendly dry technology prints the
image directly from the computer onto a special film
by thermal effect.
image processing software
These software applications analyze medical digital
images and automatically apply image enhancement
techniques to better visualize all details.
They improve the workflow in the radiography de-
partment and allow the radiologist to work faster and
more accurately. Agfa HealthCare’s MUSICA software
is generally accepted as a standard in the market.
inkjet (system)
Any printer that transfers extremely small droplets of
ink onto paper to create an image, from small models for
oce use over medium models – e.g. for poster printing
– to larger equipment for industrial applications.
membrane
Thin, flexible layer or material designed to separate
components of a solution.
membrane switch
A membrane switch is an electrical switch for turning
a circuit on and off. Membrane switches are user-
equipment interface utilities which can be as simple
as a tactile switch for controlling lightning, or as
complex as membrane keyboards and switch panels
for computers.
modalities
In this report this term is used for the various
imaging systems, including radiography equipment,
MRI scanners and CT scanners. These systems can all
be connected to an Agfa HealthCare Picture Archiving
and Communication System (PACS).
MRI (Magnetic Resonance Imaging)
The MRI scanner uses very strong magnetic fields and
creates images by pulsing radio waves that are directed
at the parts of the body to be examined. Agfa’s prod-
uct portfolio does not include MRI scanners but its
Picture Archiving and Communication Systems (PACS)
are used for the management and visualization of the
digital images. Agfa’s hardcopy printers are used to
produce high quality prints of the images.
N
Nitrogen.
non-destructive testing
To check the structure and tolerance of materials
without damaging or deforming them.
NO
X
Nitrogen oxide, generated for example as a result of
combustion with air.
offset printing
Printing technique where thin aluminum printing
plates are wrapped and fixed round a cylinder on
a (litho) printing press. While rotating, the printing
plates obtain ink and water. The ink adheres to the
image whilst the water prevents ink adhering to the
non-printing areas. The inked image is transferred
onto a rubber blanket attached to a second cylinder
and then transferred from the blanket to the paper or
another medium.
OHSAS 18001
International standard for health and safety manage-
ment systems (OHSAS stands for Occupational Health
and Safety Assessment System).
P
Phosphor.
PACS
see Picture Archiving and Communication System
PET (polyethylene terephthalate or polyester)
Polyethylene terephthalate or polyester is a chemical
prepared with a base of ethylene glycol and terephtalic
acid. It is the basic raw material for the substrate of
photographic film; it is coated with different types of
purpose specific chemical layers, such as for medical
and graphic purposes.
Picture Archiving and Communication System
(PACS)
PACS was originally developed to eciently
manage the distribution and archiving of diagnostic
images produced by radiology departments. Due to
specific software developments, Agfa HealthCare’s
systems are also suitable for use by other depart-
ments in the hospital, such as cardiology, orthope-
dics and women’s care. Extensive PACS systems are
also used to connect all hospital departments that
intensively use clinical images on one network. Agfa’s
MUSICA software is used to process and optimize the
images on the PACS system.
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AgfA-gevAert – AnnuAl report 2021
platesetter
A platesetter digitally images the pages or artwork
of printed matter from the computer onto printing
plates, which are then processed and mounted on a
printing press.
polymer
A polymer is a large molecule composed of many
smaller units (monomers) joined together.
Polymers can be natural (e.g. proteins and rubber) or
manmade (e.g. plastics and nylon). Conductive poly-
mers conduct electricity. ORGACON is the trade name
for Agfa Digital Print & Chemicals’ conductive polymer
product line.
prepress
The preparation and processing of content and docu-
ment files for final output to printing plates, including
high-resolution scanning of images, color separation,
different types of proofs, etc.
printed circuit board (PCB)
A thin plate on which chips and other electronic com-
ponents are placed. Computers consist, principally, of
one or more boards.
printing plate (for computer-to-plate)
Printing plates consist of a high-quality grained and
anodized aluminum substrate and a (silver or pho-
topolymer) coating. The lasers used to expose these
plates typically operate on thermal energy or visible
light. The coatings respond to the laser energy creat-
ing chemical/physical changes to the plate surface.
CtP plates are chemically processed to create a press-
ready plate, though some CtP plate technologies are
process-free.
RFID antenna
RFID stands for radio-frequency identification. It is
the use of radio signals to transfer data from a tag at-
tached to an object or embedded in an ID card, for the
purposes of automatic identification. The system does
not require physical contact between the tag and the
identification device as the data are transmitted via an
antenna, which is also embedded in e.g. the ID card.
UV LED ink
UV LED (curable) inks consist mainly of acrylic mono-
mers. After printing, the ink is transformed into a hard
polymerized film by a high dose of UV LED light. UV
LED stands for UltraViolet Light Emitting Diode.
The advantage of UV LED curable inks is that they
dry instantly, can print on a wide range of uncoated
substrates and make a very robust image. The ink
does not contain hazardous components such as
Volatile Organic Compounds (VOC) or solvents and
does not evaporate.
VIC
Volatile inorganic compounds.
VOC
Volatile organic compounds.
wide-format (printer)
A wide-format printer – sometimes also referred
to as a large format printer – is a digital printer
that prints on sheets or rolls 24-inches/60 cm wide
or more.
workflow software
Software that allows operators to control the prepress
process with a software interface. It also streamlines
the flow of work by automating individual steps in the
process – thus saving time and reducing costs.
266
267
AgfA-gevAert – AnnuAl report 2021
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 comprehen-
sive 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.
The Group has initially applied IFRS 16 at January 1, 2019, using the modified retrospective approach. Under this approach, comparative information is not restated. There
has been no impact to retained earnings of initially applying IFRS 16 at the date of initial application.
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 FY 2019.
2017-2021
MILLION
EUR
Represented
Revenue
Cost of sales () () () () ()
Gross profit
Selling expenses () () () () ()
Administrative expenses () () () () ()
Research and development expenses () () () () ()
Net impairment loss on trade and
other
receivables including contract assets
() () () () ()
Other operating income
Other operating expenses () () () () ()
Results from operating activities () ()
Interest income (expense) net () () () () ()
Other finance income (expense) net () () () () ()
Net finance costs () () () () ()
Share of profit of associates
net of tax
() ()
Profit (loss) before income taxes () ()
Income tax expense () () () () ()
Profit (loss) from
continuing operations
() () () ()
Profit (loss) from discontinued
operations net of tax
()
Profit (loss) for the period () () ()
Profit (loss) attributable to:
Owners of the Company () () ()
Noncontrolling interests
Earnings per share (Euro)
Basic earnings per share (Euro) () () ()
Diluted earnings per share (Euro) () () ()
This footnote refers to the table Consolidated Statement of Financial Position 2017-2021 on p. 269.
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 January 1, 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.
268
2017-2021
MILLION EURO Dec Dec Dec Dec Dec
ASSETS
Noncurrent assets
Intangible assets and goodwill
Property plant and equipment
Rightofuse assets
Investments in associates
Other financial assets
Assets related to postemployment benefits
Trade receivables
Receivables under finance lease
Other assets
Deferred tax assets
Current assets
Inventories
Trade receivables
Contract assets
Current income tax assets
Other tax receivables
Other financial assets
Receivables under finance lease
Other receivables
Other current assets
Derivative financial instruments
Cash and cash equivalents
Noncurrent assets held for sale
TOTAL ASSETS
EQUITY AND LIABILITIES
Total equity
Equity attributable to owners of the Company
Share capital
Share premium
Retained earnings
Other reserves () () () () ()
Translation reserve () () () () ()
Postemployment benefits: remeasurement
of the net defined benfit liability
() () () () ()
Noncontrolling interests
Noncurrent liabilities
Liabilities for postemployment and longterm
termination benefit plans
Other employee benefits
Loans and borrowings
Provisions
Deferred tax liabilities
Trade payables
Contract liabilities
Other noncurrent liabilities
Current liabilities
Loans and borrowings
Provisions
Trade payables
Contract liabilities
Deferred revenue and advance payments
Current income tax liabilities
Other tax liabilities
Other payables
Employee benefits
Other current liabilities
Derivative financial instruments
TOTAL EQUITY AND LIABILITIES
269
AgfA-gevAert – AnnuAl report 2021
2018-2021
MILLION EURO
Profit (loss) for the period () () ()
Income taxes
Share of (profits)/loss of associates net of tax
Net finance costs
Operating result
Depreciation amortization and impairment losses
Other noncash expenses ()
Change in inventories () ()
Change in trade receivables ()
Change in contract assets () ()
Change in trade working capital assets
()
() ()
Change in trade payables ()
Change in deferred revenue and advance payments
Change in contract liabilities ()
Changes in trade working capital liabilities
()
Changes in trade working capital () ()
Cash out for employee benefits () () () ()
Cash out for provisions () () () ()
Changes in lease portfolio () () () ()
Changes in other working capital ()
Cash settled operating deriviatives () ()
Cash generated from operating activities () () ()
Income taxes paid () () () ()
Net cash from / (used in) operating activities () () ()
Capital expenditure () () () ()
Proceeds from sale of intangible assets and PP&E
Acquisition of associates and subsidiaries
net of cash acquired
() () () ()
Disposal of discontinued operations
Proceeds from sale of other investments and
noncurrent assets held for sale
Interests received
Net cash from / (used in) investing activities () () ()
Interests paid () () () ()
Dividends paid to noncontrolling interests () ()
Purchase of treasury shares ()
Proceeds from borrowings
Repayment of borrowings () () () ()
Payment of finance leases () () () ()
Proceeds/(payment) of derivatives () () ()
Other financing income/(costs) received/paid ()
Net cash from (used in) financing activities () () ()
Net increase / (decrease) in cash & cash equivalents () ()
Cash & cash equivalents at the start of the period
()
Net increase/(decrease) in cash & cash equivalents () ()
Gain/losses (in marketable securities) () ()
Effect of exchange rate fluctuations on cash held () () () ()
Cash & cash equivalents at the end of the period
()
(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 IFRS 15, the cash flows 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 / December 31, 2018: 5 million Euro).
270
Shareholder structure (March 23, 2022)
According to the information available to the Company by virtue of the transparency declarations
received in accordance with the relevant legal and statutory stipulations, the main shareholders
on date of this Annual Report are the following:
Active Ownership Capital S.à r.l. with between 15% and 20% of the outstanding stock as from November 17, 2020;
Axxion S.A. with between 5% and 10% of the outstanding stock as from July 2, 2021;
Norges Bank with between 3% and 5% of the outstanding stock (voting rights and voting rights on loan)
as from September 21, 2021;
LLB Fund Services AG with between 3% and 5% of the outstanding stock as from July 1, 2020.
FINANCIAL CALENDAR
Annual General Meeting May
First quarter results May
Second quarter results August
Third quarter results November
Euro
Earnings per share () () ()
Net operating cash flow per share () () ()
Gross dividend
Year end price
Year’s high
Year’s low
Average volume of shares traded/day
Weighted average number of ordinary shares
Shareholder queries
Investor Relations Department
Phone +32-(0)3-444 7124
Fax +32-(0)3-444 4485
viviane.dictus@agfa.com
www.agfa.com/investorrelations
Listing BRUSSELS STOCK EXCHANGE
Reuters Ticker AGFAt.BR
Bloomberg Ticker AGFB: BB/AGE GR
Datastream B:AGF
SHARE INFORMATION
First day of listing June 1, 1999
Number of shares issued on December 31, 2021
160
,506,706
Own shares on December 31, 2021 68,053
Number of outstanding ordinary shares with voting
rights on December 31, 2021
160,438,653
Market capitalization on December 31, 2021 608 million Euro
271
AgfA-gevAert – AnnuAl report 2021
Published by Agfa-Gevaert NV
Corporate Communication
Septestraat 27
B-2640 Mortsel (Belgium)
T +32 3 444 71 24
www.agfa.com
Agfa, the Agfa Rhombus and other mentioned Agfa productsand
services are trademarks of the Agfa Group. They may be registered
in certain jurisdictions in the name of Agfa-Gevaert NV, Belgium,
or one of its aliates. All other trademarks, product names and
company names or logos cited herein, are the property of their
respective owners.
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