Emmanuel Bernoux, CPO at Agfa spoke at the CPO Event March 2014

1. CPO-CFO Alliance
@ Agfa
Emmanuel Bernoux
Chief Purchasing Officer
March 20-21, 2014

2. 2
Executive Summary
 At Agfa, the CPO-CFO partnership emcompasses a
increasing range of strategic and tactical areas, ranging
 from financial planning,
 to profitability and value support
 including risk management.
 This takes place in a fundamental change of internal and
external factors.
 With one common objective : long term business
sustainibility.

3. 3
Contents
1. Agfa Introduction
2. CPO-CFO Goal Congruence
• The example of the Agfa Graphics Business Group.
3. Financial Management
1. Planning & Budget
2. Cost
3. Cash
4. Risk Management
1. Materials and supplier markets in the short-mid term
2. Suppliers and supplier markets in the long term
5. Make it work :
1. Commonly defined objectives
2. Necessary Governance and working together in teams

4. Agfa
An Introduction
Emmanuel Bernoux
Chief Purchasing Officer
March 20-21, 2014

5. 5
Introduction
 What you have in mind

6. 6
Introduction
 What it is

7. 7
FY'12 FY'13 Δ %
(excl. X-rate)
Sales 3.091 2.865 -7.3%(-4.8%)
Gross Profit* 870 833 -4,3%
as a % of sales 28,1% 29,1%
SG&A* -573 -538 -6,1%
SG&A as % of sales 18,5% 18,8%
R&D* -163 -146 -10,4%
Other operating items* 6 -5
Recurring EBITDA* 225 224 -0,4%
as a % of sales 7,3% 7,8%
Recurring EBIT* 139 144 3,6%
as a % of sales 4,5% 5,0%
Profit & Loss: Key Figures (in million Euro)
* Before restructuring charges and non-recurring items

8. 8
Agfa Group: Sales
Specialty Products
8%
Graphics
52%
HealthCare
40%
Split per Business Group (YTD) By Region (YTD)
Europe
40%
NAFTA
25%
Latin America
9%
Asia and
ROW
26%
Two strong business groups and a smaller niche business
Small half of sales in Europe; strong presence in North America and Asia (excl. Japan)

9. 9
Flexo plates
Pages
Images
Proofing
Offset press
Film setter Film
Analog plates
Computer-to-Film
Plate setter Digital plates
Thermal, Polymer & SilverComputer-to-Plate
Digital Inkjet Print
Ink
Flexo CTP
Screen press
Screen exposure frame Screen
Industrial Inkjet Printing
Flexo
Printing
Flexo press
PC
Agfa Graphics: Product Portfolio
Screen Printing

10. 10
Administration
Resource Management
Logistics
Catering
Accounting
Billing
Planning
Examining
Diagnosing
Treating
Reporting
The HealthCare Community
Referring Physicians
Assisted Living
Home Care
Pharmacists
Payors
Electronic Patient
Record
Intensive
Care
Emergency
Room
Nursing
Surgery
Laboratory
Cardiology
Intensive
Care
Radiology
HealthCare: IT Solution Portfolio

11. 11
Conventional
Radiography
Radiology - Product Portfolio
Conventional X-ray Film
X-ray Film
Processor
Hardcopy
Softcopy
DR
Scanners
CT
MRI
US
NM
PET
X-ray Table
DR-GenRad
CR
PACS
Dry Film
Reusable
Phosphor plate
CR Digitizer NX workstation
Dry Imager

12. 12
Specialty Products: Product Portfolio
Classic Film
Functional Foils
Advanced Coatings and Chemicals

13. 13
Supplier Financial Content @ Agfa
2,900 MEUR
1,900 KEUR1,800 MEUR 62%
1,900 KEUR1,150 MEUR 64%
650
MEUR
36%
Revenue
Total Spend
Non Metals
Metals

14. 14
Supplier Content by Spend Categories

15. 15
Agfa Purchasing as Global Shared Service
Organization
Internal
Customers
Supplier
Spend
K€
Revenue K
€
Agfa Graphics 832 1,491
Agfa HealthCare 416 1,160
Agfa Materials 536 214
TOTAL 1,784 2,865
Strategic Metals has global responsibility
for the purchase of the strategic metals,
Silver and Aluminum
Global Category Management is responsible
for the Quality Cost Delivery performance of
the supplier base for all Agfa entities
globally.
Regional Purchasing
- the deployment of global category
strategies
- and for the Quality Cost Delivery
performance of the supplier base
regionally.
They support the globalization of Agfa
and of its supplier base.
- The organization covers all categories,
Business Groups and GSS Purchasing
needs in the region.
- There are 4 regions : Europe, North
America, LATAM and ASPAC.
Advanced Purchasing is responsible for the
Quality Cost Delivery performance of
suppliers in Solutions Development (New
Product Development) cycles
Purchasing Process Office is focused on
defining, building and implementing the
necessary standards, business processes,
business tools of the end-to-end Purchasing
process.
Legal and Controlling both support Agfa
Purchasing in legal and financial
monitoring fields.

16. CPO-CFO Goal Congruence
The example with the Agfa Graphics
Business Group.
Emmanuel Bernoux
Chief Purchasing Officer
March 20-21, 2014

17. 17
CPO-CFO Goal Congruence
The example with the Agfa Graphics Business Group.
Agfa Graphics
• EBIT
• COGS
• Price Management & Structural Erosion
• SG&A
• Working Capital
• Predictiblity
• Business Continuity
• Manufacturing footprint financial
efficiency
• Distribution Channels Performance
• Value Chain Optimization
• Revenue Life Cycle and new Businesses
Agfa Purchasing
• Spend Efficiency
• Payables
• Financial Risk
Management
• Strategic Category
Management
• Key Supplier Relationship
Management
• Advanced Purchasing
 Financial
Management
 Risk
Management
 Make it work

18. Financial Management
Planning & Budget
Cost
Cash

19. 19
Planning, Budget and Cost
Increase
performance via
partnership,
transparency and
focus.

20. 20
Cash
Long term improvement stratgy supported by short term hands on approach

21. Risk Management
Materials and supplier markets in the short-
mid term
Suppliers and supplier markets in the long
term

22. 22
Short Term
 Financial Risk
 Raw Materials
 Price erosion distorsion
 Suppliers Financial Health
 Supply Continuity
 Manufacturing Efficiency

23. 23
Mid & Long Term
 Supplier Organic Risk
 KSRM
 Supplier Market Risk
 Supplier markets’ expertise
 Technology
 Consolidation in mature
markets
 Versatility of Commodities
 Metals
 Petrochemicals
 Micro and Macro Financial
risk
 Metals’ markets
financiarization

24. Make it work
Commonly defined objectives
Necessary Governance and working together
in teams

25. 25
Objectives & Governance
• Objectives and Targets are
algined with Business cycles
• Along annual budget and 5
year plan
• Governance is aligned along
purchasing categories and
steered in common
• Teamwork is instrumental to
succes

26. 26
Questions
Thank You