3rd Quarter 2005Results

November 17, 2005

1

Sales (in Mio Euro)

749 868

849

797

953

1,006

9m'05 9m'04

-15.6%

-13.7%

Q2

Q1

2,395

2,827-15.3%

Organic growth*

682 702

789 784

722 741

9m'05 9m'04

2,227

-2.8% Q1

Q3

-1.5%

+0.6%

2,193

Total sales

* at constant exchange rates

-16.4%

-2.6%

Q2

Q3

2

Profit and Loss: Key Figures (in Mio Euro)

Q1 '05 Q2 '05 Q3 '05 9m '05 9m '04 % change

Sales 749 849 797 2,395 2,827 -15.3%

Gross Profit 284 316 273 873 1,155 -24.4%

Gross Profit Margin 37.9% 37.2% 34.3% 36.5% 40.9%

Comparison with previous year difficult because of many changes inportfolio: divestitures of Consumer Imaging and Monotype, acquisitionsof Lastra, SOL, GWI and Heartlab

Gross Profit Margin affected by high raw material costs and price erosion

3

Raw Materials

SILVER (USD/troyounce) ALUMINUM (USD/ton)

Q3 ‘04 Q3 ‘05 Q3 ‘04 Q3 ‘05

1,300

1,350

1,400

1,450

1,500

1,550

1,600

1,650

1,700

1,750

1,800

1,850

1,900

1,950

2,000

2,050

Jan-03

Feb-03

Mar-03

Apr-0

3May-

03Jun

-03 Jul-03Aug

-03Sep

-03Oc

t-03Nov-

03De

c-03Jan

-04Feb

-04Mar-0

4Ap

r-04May-

04Jun

-04Jul-04

Aug-0

4Sep

-04Oct-

04No

v-04De

c-04Jan

-05Feb

-05Mar-0

5Apr-

05

May-05

Jun-05 Jul-

05Aug

-05Sep

-05Oc

t-05No

v-05

3.00

3.50

4.00

4.50

5.00

5.50

6.00

6.50

7.00

7.50

8.00

8.50

Jan-03

Feb-03

Mar-03Ap

r-03May-

03Jun

-03 Jul-03Aug

-03Sep

-03Oct

-03No

v-03Dec-

03Jan

-04Feb

-04Mar-

04Ap

r-04May-

04Jun

-04Jul-04

Aug-04

Sep-04

Oct-04

Nov-04

Dec-04Jan

-05Feb

-05Mar-

05Ap

r-05May-

05Jun

-05Jul-05Aug

-05Sep

-05Oct

-05Nov-

05

Q3 affected by 12.5 Mio Euro increase in raw material costs, 10 Mio Euro of whichare due to Silver and Aluminum

4

Impact of AgfaPhoto Insolvency

l The AgfaPhoto operating entity filed for insolvency on May26th, 2005

l In October 2005, the receiver of AgfaPhoto decided to liquidatethe whole Group, after sale of assets

l Agfa decided to book a provision of 55 mio Euro in Q3 to coverl environmental clean-up costs

l other claims and possible losses

l Agfa also decided to reverse 54 mio Euro of the deferred taxassets related to the CI divestiture

l due to the liquidation of AgfaPhoto, tax losses can only be usedlater than anticipated

l No cash impact

5

Q1 '05 Q2 '05 Q3 '05 9m '05 9m '04 % change

Gross profit 284 316 273 873 1,155 -24.4%

R&D -47 -48 -48 -143 -148 -3.4%

SG&A -197 -211 -193 -601 -738 -18.6%

Other operating items* 1 -3 6 4 -56

EBIT** 41 54 38 133 213 -37.6%

Restructuring charges 1 -6 -19 -24 -53 -54.7%

AgfaPhoto provision - - -55 -55 -430 -87.2%

Operating result 42 48 -36 54 -270 120.0%

Profit and Loss: Key Figures (in Mio Euro)

Quarter sequentially, SG&A expenses decrease by 18 Mio Euro

* 2004 other operating items include goodwill amortizations** before restructuring charges and non recurrent items

6

Profit & Loss: Key Figures (in Mio Euro)

Income taxes affected by 54 Mio Euro reversal of deferred tax assetsresulting from the CI divestiture. No cash impact

Q1 '05 Q2 '05 Q3 '05 9m '05 9m '04 % change

Operating result 42 48 -36 54 -270 120.0%

Non-operating result 20 -14 -16 -10 -41 75.6%

Profit before taxes 62 34 -52 44 -331 114.1%

Taxes -33 -12 -56 -101 99 -202.0%

Net result 29 22 -108 -57 -212 73.1%

7

Graphic Systems Sales (in Mio Euro)

Continued strong organic growth in Q3

400 386

422406

446 413

9m'05 9m'04

+8.0%

+3.6%

Q3

Q1

1,2681,205

+5.2%

368 375

419 399

391 379

9m'05 9m'04

1,153

-1.9% Q1

Q2

+2.2%

+5.0%

1,178

* at constant exchange rates

Organic growth*Total sales

Q2

+3.2%+3.9%

Q3

8

Graphic Systems: Key Figures (in Mio Euro)

* before restructuring and non-recurring items

Q3 '05 Q3 '04 % change 9m '05 9m '04 % change

Sales 422 406 3.9% 1,268 1,205 5.2%

EBITDA* 33.4 40.7 -17.9% 106.0 126.7 -16.3% % of sales 7.9% 10.0% 8.4% 10.5%

EBIT* 13.4 23.7 -43.5% 47.0 78.7 -40.3% % of sales 3.2% 5.8% 3.7% 6.5%

Operating result 7.3 22.8 -68.0% 36.6 63.5 -42.4% % of sales 1.7% 5.6% 2.9% 5.3%

Raw material costs 10 Mio Euro higher than in Q3 ‘04Volume growth and cost savings more than compensate the effect ofprice erosion, resulting in a more limited (7 Mio Euro) decrease in EBITDA

9

Graphic Systems Highlights

l Product Launchl :Avalon, new line of thermal platesetters

l New Contractsl Commercial printing:

l Webprint Concepts (Ireland), Buxton Press (UK),Professional Graphic Communications (USA), BDF Printing(China)

l Packaging printing:l New Island Printing Holdings (China)

l Newspaper printing:l Kansas City Star (USA), Guardian (UK), West Ferry (UK)

10

Graphic Systems Highlights

l New Contractsl New York Times Company:

l Agfa becomes The NYT Company’s preferredprepress supplier in 5-year strategic alliance

l workflow solutions (:Arkitex)

l violet CtP equipment (:Advantages)

l Expansion of 3-year alliance onconsumables

l Covers all the NYT Company’s newspaperproperties (18), including The New YorkTimes, International Herald Tribune, TheBoston Globe, and The Regional MediaGroup

11

Graphic Systems Highlights

l Milestonesl Sales expectations Print 05 Chicago

largely exceeded

l Over 1,000 customers around the worldare using Agfa's advanced :Sublima XMscreening solution

l 300 printers worldwide turn to Agfa forchemistry-free prepress plate system

12

HealthCare Sales (in Mio Euro)

Sales affected by weak trading environment and higher than expectedprice erosion

305 292

334 331

359 356

9m'05 9m'04

+0.8%

+4.5%

Q2

Q1

998 979+1.9%

277 292

332 356

294331

9m'05 9m'04

979

-5.1% Q1

Q2

-7.8%

-6.7%

903

* at constant exchange rates

Organic growth*Total sales

Q3 Q3

+0.9%-11.2%

13

HealthCare: Key Figures (in Mio Euro)

Results affected by price erosion, higher raw material costs and weakertrading environment in film and printOperating expenses lower

* before restructuring and non-recurring items

Q3 '05 Q3 '04 % change 9m '05 9m '04 % change

Sales 334 331 0.9% 998 979 1.9%

EBITDA* 39.2 72.9 -46.2% 136.7 208.1 -34.3% % of sales 11.7% 22.0% 13.7% 21.3%

EBIT* 22.2 51.9 -57.2% 80.7 149.1 -45.9% % of sales 6.6% 15.7% 8.1% 15.2%

Operating result 12.2 46.8 -73.9% 72.4 136.9 -47.1% % of sales 3.7% 14.1% 7.3% 14.0%

14

Service Revenues as % of HealthCare Sales

10.9% 11.7%14.0%

16.8%

23.3%

30.0%

2001 2002 2003 2004 9m '05 Target

Service revenues represent an increasing share of sales

15

HealthCare Highlights

l Product Launchesl Introduction new cardiology portfolio

in Europe, including the Agfa HeartlabCardiovascular Information System

l DX-S: revolutionary CR digitizer,combining:

l flexibility and cost effectiveness ofCR

l image quality comparable to DR

l high productivity

16

l New Contractsl NHS: as a subcontractor to Accenture,

Agfa will provide PACS and CR to theNorth East and East clusters in England(largest ever PACS deal)

l NORTH Network: IMPAX selected byCanada’s busiest video conference-basedtelemedicine network

l National Taiwan University Hospital:installation of RIS/PACS in Taiwan’s mostrenowned medical center

l Major contracts for ORBIS/IMPAX IT suitein the German-speaking region

HealthCare Highlights

17

l New Contractl Thales Security Systems: Agfa will

provide a complete sub-systemconsisting of equipment, consumablesand materials for the production ofabout 20 million e-ID cards for theMoroccan government

l Also addresses the market of companysecurity systems, including the use ofAgfa’s inkjet technology

Specialty Products

18

Balance Sheet: Key Figures (in Mio Euro)

Total assets increased by more than 600 million Euro, due toconsolidation of GWI and Heartlab

313 310

2,128 2,035

1,569

1,011

981 1,082

3,0292,274

Non-currentassets

Currentassets

Otherassets

Liabilities

Equity

Sept. ‘05

4,0104,010

3,356

Dec. ‘04 Dec. ‘04

LIABILITIESASSETS

Sept. ‘05

3,356

19

576660

231 223

0

200

400

600

800

1000

1200

1400

Sept. '03 Sept. '04 Dec. '04 Sept. '05

131119

107116

369 3684850

0

200

400

600

800

1000

1200

1400

Sept. '03 Sept. '04 Dec. '04 Sept. '05

435 1

68 64

744813225 204

0

200

400

600

800

1000

1200

1400

Sept. '03 Sept. '04 Dec. '04 Sept. '05

8 2 83 8 292

Working Capital: Key Figures (in Mio Euro/days)

INVENTORIESTarget: 100 days

TRADE RECEIVABLESTarget: 70 days

TRADE PAYABLESTarget: 55 days

CI inventories

919

CI receivables CI payables

872 890 874

330277

Compared to Sept. 2004, modest improvement of days of inventories

Days of sales outstanding increased to 92 days

Target for days of trade payables largely exceeded

20

66.5%

41.4%

17.8%

56.0%

17.0%

75.9%74.0%

Dec.'01

Dec.'02

Dec.'03

Dec.'04

March'05

June'05

Sept.'05

Balance Sheet: Key FiguresGEARING RATIO (%)

745

193

Sept. '05 Dec. '04

NET FINANCIAL DEBT (in Mio Euro)

Net financial debt increased mainly due to acquisition of GWI and Heartlab,the dividend payment, the phase out of the securitization of receivables,and the seasonality of working capital

21

Cash Flow: Key Figures (in Mio Euro)

-114

-6

31

-89

Q1 '05 Q2 '05 Q3 '05 9m '05

FREE CASH FLOWNET OPERATING CASH FLOW

Net operating cash flow affected by phase out of securitization ofreceivables (60 Mio Euro) in Q1 and by seasonal build-up of workingcapital

-91

-18

Q1 '05 Q2' 05 9m '05

18

Q3 '05

55

22

Outlook

l Firm indications for a strong year-end

l Strong focus on cost reduction and price erosionremains

l Continue to develop the new businesses of IndustrialInkjet and HealthCare IT

Questions &Answers