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Agfa HealthCare - First Quarter 2012

Agfa HealthCareAgfa HealthCare's first quarter revenue decreased by 3.1 percent versus last year. In the Imaging segment, the market-driven decline for traditional X-ray film products continued, while the digital radiography business (consisting of Computed Radiography and Direct Radiography) was influenced by product mix effects. The Imaging IT segment's revenue remained stable versus the first quarter of 2011. Mainly driven by a strong performance in the German speaking countries of Europe, the Enterprise IT segment grew significantly versus the first quarter of 2011.

In the South of Europe, the digital and IT activities continued to suffer from the recession. This was counterbalanced by the strong performance in the Nordic region and the UK. Furthermore, strong revenue growth was recorded in the growth markets. In North America, the addressable market was soft.

The gross profit margin reached 36.0 percent of revenue (37.3 percent in the first quarter of 2011), which is a clear improvement versus the previous quarters (32.2 percent in Q3 2011 and 34.8 percent in Q4 2011). The year-on-year decrease was due to the high silver prices on the one hand and product mix and volume changes on the other hand. Film price increases partially offset these adverse elements. Recurring EBITDA amounted to 25.3 million Euro (or 9.1 percent of revenue). Recurring EBIT amounted to 14.7 million Euro, or 5.3 percent of revenue.

In the first quarter, Agfa HealthCare completed its digital imaging offering with the table-top CR 10-X computed radiography solution. With this affordable system, lower-volume hospitals and private practices can benefit from the workflow advantages of digital radiography, without compromising on image quality. Also new is the CR 30-Xm, an affordable CR digitizer that can handle mammography exams, as well as a very broad range of general radiography and dental exams. In January, Agfa HealthCare announced that it received FDA (Food and Drug Administration) clearance to market its DX-M CR digitizer for mammography and general radiology in the USA. The DX-M now is the only CR system for digital mammography today with both FDA clearance and EUREF (European Reference Organization for Quality Assured Breast Screening and Diagnostic Services) certification. Also in Imaging, Agfa HealthCare signed a new three-year CR contract with Novation, a leading healthcare supply contracting company in the USA. Through the contract, Agfa HealthCare is able to offer its CR systems to over 65,000 healthcare organizations in the USA.

In the field of Imaging IT, Agfa HealthCare released a new version of its Cardiovascular Information System, IMPAX CV12. The innovative modular design allows users to take advantage of new product developments as they are released. Furthermore, Agfa HealthCare introduced its Imaging Clinical Information System (ICIS), based on its IMPAX Data Center platform. The ICIS allows clinicians to capture, store, exchange and access imaging information securely and independent of location, on a variety of web-enabled devices.

In the first quarter, Agfa HealthCare was able to sign a number of major contracts with reputed healthcare organizations. Two of the most notable contracts were concluded in the UK. With South Tees Hospitals NHS Foundation Trust, a contract was signed for the upgrade of the existing Agfa HealthCare PACS and CR solutions. Agfa HealthCare will also install a business intelligence solution and Cardiovascular Information System. In Wales, Agfa HealthCare signed a four year contract extension with Cardiff and Vale University Health Board (UHB). The contract includes a complete technical refresh, as well as an upgrade of the Agfa HealthCare IMPAX PACS system. In the USA, the Massachusetts General Hospital in Boston contacted Agfa HealthCare for the installation of its IMPAX Data Center solutions.

In the field of Enterprise IT, a number of important contracts confirmed Agfa HealthCare's leading position in the German speaking countries of Europe. The German Carl-Thiem-Klinikum Cottbus - for instance - decided to replace its existing Hospital Information System (HIS) by Agfa HealthCare's leading ORBIS solution. The organization will also install the digital document management system HYDMedia. In Austria, the St. Vinzenz hospital in Zams installed the ORBIS HIS and Radiology Information System (RIS).

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About Agfa
The Agfa-Gevaert Group is one of the world's leading companies in imaging and information technology. Agfa develops manufactures and markets analogue and digital systems for the printing industry (Agfa Graphics), for the healthcare sector (Agfa HealthCare), and for specific industrial applications (Agfa Materials). Agfa is headquartered in Mortsel, Belgium. The company is present in 40 countries and has agents in another 100 countries around the globe. The Agfa-Gevaert Group achieved a turnover of 2,948 million euro in 2010.

About Agfa HealthCare
Agfa HealthCare, a member of the Agfa-Gevaert Group, is a leading global provider of diagnostic imaging and healthcare IT solutions. The company has nearly a century of healthcare experience and has been a pioneer on the healthcare IT market since the early 1990's. Today Agfa HealthCare designs, develops and delivers state-of-the-art systems for capturing, managing and processing diagnostic images and clinical/administrative information for hospitals and healthcare facilities, as well as contrast media solutions to enable effective medical imaging results. The company has sales offices and agents in over 100 markets worldwide. Sales for Agfa HealthCare in 2010 were 1,180 million euro.