Eckert & Ziegler Strahlen- und Medizintechnik AG

Interim / Quarterly Report • Aug 13, 2020

HALF-YEAR FINANCIAL REPORT

1 January to 30 June 2020

KEY DATA

		1–6/2020	1–6/2019	Change
Revenue	€ million	83.6	89.0	–6%
Return on sales before tax	%	22	21	+1%
EBITDA	€ million	24.2	24.9	–3%
EBIT	€ million	18.7	19.2	–3%
EBT	€ million	18.3	18.8	–3%
Net income before minority interests	€ million	12.9	13.4	–4%
Result attributable to shareholders of
Eckert & Ziegler AG	€ million	12.7	13.1	–3%
Earnings per share (undiluted)	€	2.47	2.55	–3%
Operating cash flow	€ million	0.6	14.2	–96%
Depreciation on fixed assets	€ million	5.5	5.7	–4%
No, of employees at the end of the period	Persons	828	791	+5%

MILESTONES Q2 2020

US HEALTH AUTHORITIES TO PROVIDE USD 6 MILLION

MYELO Therapeutics, an affiliated company of Eckert & Ziegler Strahlen- und Medizintechnik AG, will receive USD 6 million from the National Institutes of Health (NIH) over the next three years for the further development of its radiation protection pill MYELO001. The company is one of the few European applicants to successfully compete for funds from the relatively generous US catastrophe prevention program. The money will be used to finance further tests and proof of concept and to investigate the functional mechanism of the new orally applicable drug.

ADMISSION TO THE TECDAX

Eckert & Ziegler has entered the TecDAX effective as of 8 May 2020. This index, which is measured in terms of market capitalization of the free float and trading volume in the shares, comprises the 30 largest technology stocks in Germany.

DIVIDEND

A dividend payment of €1.70 (previous year: €1.20) was approved by the Annual General Meeting on 10 June 2020.

SHARE SPLIT

The Annual General Meeting on 10 June 2020 resolved to increase the share capital from company funds by €15,878,949.00 from €5,292,983.00 to € 1,171,932.00 by issuing new shares by way of converting free reserves into share capital of the company. In doing so, the shareholders of the Company shall receive three (3) new shares for each one (1) existing share. The objective is to make trading in the share more liquid and to make the share more attractive for investors.

A. GROUP INTERIM MANAGEMENT REPORT

The coronavirus pandemic that has hit the world at the end of the first quarter of 2020, in particular, has had and continues to have a massive impact on the global economy. The Eckert & Ziegler Group has weathered the crisis well so far, in particular, as it has managed to keep its facilities and supply chains running at close to normal levels.

All the same, the pandemic has had an adverse effect on volumes, earnings and cash flows, in particular, due to reduced demand in the Isotope Products segment as a result of the fall in oil prices and shifts in demand due to surgeries being postponed in the Medical segment. Similarly, existing travel restrictions meant that customer locations were only accessible to a limited extent, which in turn meant that the scope of services provided was also limited.

The negative effects of COVID-19 on the macroeconomic environment are expected to last through the second half of 2020. At the same time, the negative effects of the pandemic are not expected to be long-lasting.

A.1 EARNINGS PERFORMANCE

With earnings per share of € 2.47, the Eckert & Ziegler Group has once again delivered an outstanding result in the first half of 2020. Compared to the first half of 2019, however, consolidated earnings per share decreased slightly by € 0.08 per share or 3%. The decrease is mainly attributable to weaker performance in the Isotope Products segment. At the same time, the Medical segment, which was newly formed on January 1, 2020 (mainly comprising the old Radiation Therapy and Radiopharma segments), recorded significant growth.

Revenue

Overall, consolidated revenue amounted to € 83.6 million at the end of the first half of 2020, and was therefore, € 5.4 million, or 6%, below the prior year's level of € 89.0 million. As the above figure contains approximately € 1.7 million in revenue for services rendered in prior periods, the actual decline in revenues is closer to 10%.

The breakdown by segment shows that the drop in revenue is solely attributable to the Isotope Products segment. Due to the effects of the coronavirus pandemic, the revenue generated by the segment decreased by € 8.3 million, or 15%, compared to the first half of 2019, to € 47.1 million. The sharpest drops in revenue were recorded for the lucrative components for industrial metrology, the Brazilian business and waste disposal services. Slight increases were only recorded in medical devices components and raw materials trading.

The fastest-growing segment was the Medical segment, mainly driven by strong revenue generated by pharmaceutical radioisotopes. Its sales increased by € 2.8 million, or 8%, to reach € 38.4 million. At the main product group level, however, the picture was mixed. While laboratory equipment and brachytherapy sources, including iodine implants, suffered considerably from reduced orders from hospitals due to the coronavirus crisis, half-year sales of pharmaceutical radioisotopes increased by more than € 4 million, or almost 30%, to just under € 20 million.

Earnings (net profit for the period)

The € 8 million decrease in revenue in the half-year financial results of the Isotope Products segment, combined with largely constant overheads in the statement of profit or loss, resulted in a decline in earnings of € 5 million, which, after taking taxes into account, resulted in a net profit for the first six months of only € 3.6 million, or € 0.70 per share. Compared to the previous year with earnings of € 7.5 million, or € 1.46 per share, the net result of the Isotope Products segment halved due to the drop in revenue.

In the Medical segment, in contrast, the increase in revenue from € 2.8 million to € 38.3 million contributed to the half-year record result of € 9.7 million, or € 1.89 per share; in particular, other income of € 3.3 million, or € 0.64 per share, from the reversal of provisions for disposals led to a 50% increase in the segment's net result. Adjusted for one-off effects, the net result remained only at the prior year's level. While the company did record stronger than anticipated sales of high-margin items in the first half of the year, on the face of it, this appears to confirm the high-growth expectations for the segment. For an objective assessment of the facts, however, it must be taken into account that the gloss of radiopharmaceuticals in the first half of 2020 was taken off due to a net deterioration in earnings of € 1.2 million, or € 0.23 per share, for laboratory equipment and brachytherapy sources negatively affected by the coronavirus crisis. Taken in isolation, earnings growth remained healthy for the segment's promising products.

A.2 FINANCIAL POSITION

Balance sheet

The balance sheet total at the end of June 2020 decreased slightly compared to the end of 2019 and now amounts to € 268 million (previous year: € 274 million).

On the assets side, other non-current assets increased from € 1.5 million to € 4.7 million, mainly due to the acquisition of an option to purchase shares in Pentixapharm GmbH for € 3.0 million. Due to the acquisition of shares in Myelo Therapeutics GmbH, Berlin, the shares in investments valued at equity increased increased from € 3.6 million to € 4.8 million.

Trade receivables increased by € 5.2 million and inventories by € 1.8 million.

The changes on the liabilities side mainly relate to other non-current provisions, which fell from € 51.4 million to € 48.5 million, and other current liabilities, which were reduced by € 5.2 million to € 10.6 million.

Equity increased by € 3.1 million to € 142.5 million as at June 30, 2020. The increase resulted from net profit for the period of € 12.9 million, while the dividend payments to shareholders of Eckert & Ziegler AG and to a minority shareholder totaling € 9.1 million and the currency differences of €–0.8 million recognized in equity had an opposite effect. The equity ratio increased slightly from 51% to 53%.

Liquidity

At € 0.6 million, the operating cash flow was significantly lower than in the first half of 2019, mainly due to changes in receivables and non-cash transactions included in the net profit for the period. Receivables increased by € 5.3 million in the first half of 2020, compared to a € 2.1 million reduction over the same period of the previous year. Non-cash items increased from € 0.3 million to € 3.0 million.

A similar trend can be observed in changes in other current and non-current assets, which increased by a total of € 2.3 million, compared to a decrease of € 0.9 million in the first half of 2019. The operating cash flow in relation to tax on earnings amounted to €–1.6 million in the first half of 2020, compared to € 0.2 million in the first half of the previous year.

As regards cash flow from investment activities, € 3.2 million was used for the acquisition of fixed assets, representing a year-on-year increase of € 0.3 million. In addition, in the first half of 2020, € 1.2 million was paid for the acquisition of shares in associates, € 3.0 million for the acquisition of an option to purchase shares and € 0.2 million for the participation in a joint venture. There were no corresponding payments in the first 6 months of 2019.

With respect to cash flow from financing activities, € 8.8 million (2019: € 6.2 million) was used to pay dividends to shareholders of Eckert Ziegler AG and € 0.3 million (2019: € 0.5 million) was used to pay dividends to minority shareholders. As a result of applying the new lease accounting standard IFRS 16, the Group is required from 2019 to report payments arising in connection with such leases under cash flow from financing activities. In the first half of 2020, unchanged from the same period of the previous year, financial resources of € 1.7 million, including interest payments, were used for this purpose.

In total, cash and cash equivalents decreased by € 18.1 to € 60.8 million as at June 30, 2020 compared to the end of 2019.

A.3 OUTLOOK

With the figures for the first half of the year, the Eckert & Ziegler Group has largely met, and in the case of net profit for the period, even exceeded the budget targets for the current financial year, as revised due to the coronavirus crisis.

Based on the current situation and our expectations regarding the further development of the coronavirus pandemic and its effects on economic growth, the Executive Board expects consolidated earnings to exceed the forecasts for the 2020 financial year published at the beginning of the year. In a press release dated July 24, 2020, the Executive Board thus increased its earnings per share forecast from the previous € 3.50 per share (€ 0.88 after the stock split) to € 4.00 per share (€ 1.00 per share after the stock split). The Executive Board has left the revenue forecast unchanged at € 170 million.

A.4 RISKS AND OPPORTUNITIES

In our 2019 annual report, we described risks that could have a significant adverse impact on our financial position, performance, cash flows and reputation. We also discussed the most important opportunities and the structure of our risk management system.

In the first half of the year, we identified the COVID-19 pandemic as additional significant risk. The extent and duration of the COVID-19 pandemic going forward are extremely difficult to predict, as is its potential impact on Eckert & Ziegler's business activities. If, for example, measures to contain the virus are introduced at short notice or last a very long time, this could impact our business in ways that go well beyond our current expectations.

Additional risks and opportunities that we are not aware of or that we currently consider immaterial could also affect our business activities. At present, no risks have been identified which, either individually or in combination with other risks, could threaten our viability as a going concern.

A.5 ADDITIONAL INFORMATION

Employees

The Eckert & Ziegler Group had a total of 828 employees worldwide as at June 30, 2020. Compared to the previous year (December 31, 2019), the number of employees thus increased by 3.

Miscellaneous

In March 2020, the World Bank informed Eckert & Ziegler BEBIG that it considers the agreements reached in the context of a settlement agreement (in particular, the introduction of an effective compliance system at Eckert & Ziegler BEBIG) to have been fulfilled and that all sanctions imposed by the World Bank on Eckert & Ziegler BEBIG will therefore be lifted with effect from March 27, 2020.

B. CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS

B.1 CONSOLIDATED INCOME STATEMENT OF PROFIT OR LOSS

€ thousand	6-month report 1–6/2020	6-month report 1–6/2019
Revenue	83,621	89,048
Cost of sales	–42,705	–43,336
Gross profit on sales	40,916	45,712
Selling expenses	–10,438	–11,470
General administrative expenses	–13,684	–13,666
Other operating income	4,401	966
Other operating expenses	–2,228	–2,604
Operating result	18,967	18,938
Profit from associated companies	223	–
Other financial income	–500	298
Earnings before interest and income taxes (EBIT)	18,690	19,236
Interest income	54	92
Interest expense	–478	–559
Earnings before tax (EBT)	18,266	18,769
Income taxes	–5,415	–5,380
Consolidated result	12,851	13,389
Profit (+) / loss (–) attributable to non-controlling interests	–158	–307
Result attributable to shareholders of Eckert & Ziegler AG	12,693	13,082
Earnings per share
Undiluted (€ per share)	2.47	2.55
Diluted (€ per share)	2.47	2.55
Average shares in circulation (undiluted – in thousand units)	5,147	5,137
Average shares in circulation (diluted – in thousand units)	5,147	5,137

B.2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

€ thousand	6-month report 1–6/2020	6-month report 1–6/2019
Consolidated earnings	12,851	13,389
of which profit/loss attributable to non-controlling interests	158	307
of which attributable to shareholders of Eckert & Ziegler AG	12,693	13,082
Items that may be reclassified to the profit and loss statement in the future if certain conditions are met
Exchange rate differences on translation of foreign operations	–792	44
Exchange rate differences on translation of foreign operations	–792	44
Other comprehensive income after taxes	–792	44
of which attributable to non-controlling interests	–59	11
of which attributable to shareholders of Eckert & Ziegler AG	–733	33
Consolidated comprehensive income	12,059	13,433
of which attributable to non-controlling interests	99	318
of which attributable to shareholders of Eckert & Ziegler AG	11,960	13,115

B.3 CONSOLIDATED BALANCE SHEET

€ thousand	June 30, 2020	Dec 31, 2019
Assets
Non-current assets
Goodwill	41,956	42,059
Other intangible assets	8,952	9,840
Property, plant and equipment	39,969	40,005
Right-of-use assets (IFRS 16)	19,115	19,564
Investments in enterprises accounted for using the equity method	4,840	3,644
Deferred tax assets	10,475	10,920
Other non-current assets	4,684	1,544
Total non-current assets	129,991	127,576
Current assets
Cash and cash equivalents	60,833	78,922
Securities	1,093	–
Trade receivables	34,669	29,484
Inventory	33,024	31,220
Income tax receivables	4,340	2,691
Other current assets	4,267	4,343
Total current assets	138,226	146,660
Balance sheet total	268,217	274,236
Liabilities
Capital and reserves
Subscribed capital	5,293	5,293
Capital reserves	53,832	53,763
Retained earnings	89,410	85,468
Other reserves	–1,543	–810
Treasury shares	–5,519	–5,519
Equity attributable to shareholders of Eckert & Ziegler AG	141,473	138,195
Non-controlling interests	1,008	1,246
Total capital and reserves	142,481	139,441
Non-current liabilities
Non-current loans	4	19
Non-current lease liabilities (IFRS 16)	16,705	17,157
Deferred income from grants and other deferred income (non-current)	4,087	4,128
Deferred tax liabilities	2,780	2,836
Provisions for pensions	13,486	13,487
Other non-current provisions	48,477	51,440
Other non-current liabilities	2,111	2,110
Total non-current liabilities	87,650	91,177
Current liabilities
Current loans and current portion of long-term loans	12	16
Current lease liabilities (IFRS 16)	2,771	2,694
Trade payables	3,159	4,487
Advance payments received	12,170	11,952
Deferred income from grants and other deferred income (current)	995	45
Income tax liabilities	5,394	5,671
Current provisions	2,991	3,002
Other current liabilities	10,594	15,751
Total current liabilities	38,086	43,618
Balance sheet total	268,217	274,236

B.4 CONSOLIDATED CASH-FLOW STATEMENT

€ thousand	6-month report 01/01/2020 – 06/30/2020	6-month report 1/1/2019 – 06/30/2019
Cash flow from operating activities
Net profit/loss for the period	12,851	13,389
Adjustments for:
Depreciation, amortization and impairments	5,460	5,665
Net interest income [interest expense (+)/income (–)]	424	468
Income tax expense	5,415	5,380
Income tax payments	–7,050	–5,195
Non-cash revenue from the writing back of deferred grants	–41	–64
Profit/loss from the disposal of non-current assets	–11	67
Change in non-current provisions, other current liabilities	1,080	210
Change in other non-current assets and receivables	–778	356
Other non-cash recognitions	–3,001	–276
Changes in current assets and liabilities:
Receivables	–5,257	2,062
Inventory	–2,212	–2,334
Change in other current assets	–1,566	576
Change in current liabilities and provisions	–4,742	–5,785
Cash flow from operating activities	572	14,519
Cash flow from investment activities:
Outflows for intangible assets and property, plant and equipment	–3,194	–2,932
Income from the sale of intangible assets and property, plant and equipment	–	34
Outflows for the acquisition of shares in associates	–1,200
Outflows for the acquisition of investments and options on investments	–3,181	–
Cash outflow from investing activities	–7,575	–2,898
Cash flow from financing activities
Dividends paid	–8,751	–6,177
Distribution of shares of third parties	–337	–466
Outflows for the repayment of loans and lease liabilities	–1,341	–1,381
Outflows for the acquisition of non-controlling interests	–	–600
Interest received	54	92
Interest paid	–401	–381
Cash flow from financing activities	–10,776	–8,913
Changes in cash and cash equivalents resulting from exchange rates	–310	196
Increase/decrease in cash and cash equivalents	–18,089	2,904
Cash and cash equivalents at beginning of period	78,922	54,186
Cash and cash equivalents at the end of the period	60,833	57,090

B.5 CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY

		Ordinary shares				Cumulative other comprehensive income
					Unrealized result	Foreign		Share
		Nominal	Capital	Profit	pension commit	currency translation	Treasury	holder attributable	Non controlling	Consoli dated
	Number	value	reserves	reserves	ments	differences	shares	equity	shares	equity
	Units	€ thousand	€ thousand	€ thousand	€ thousand	€ thousand	€ thousand	€ thousand	€ thousand	€ thousand
Balance as at January 1, 2019	5,292,983	5,293	53,625	69,626	–2,561	2,175	–5,519	122,639	1,238	123,877
Total income and expenses recognized directly in equity	0	0	0	0	–1,369	945	0	–424	16	–408
Consolidated earnings				22,019				22,019	459	22,478
Consolidated comprehensive income	0	0	0	22,019	–1,369	945	0	21,595	475	22,070
Resolution or payment of dividends				–6,177				–6,177	–467	–6,644
Share-based compensation			138	0			0	138	0	138
Balance as at December 31, 2019	5,292,983	5,293	53,763	85,468	–3,930	3,120	–5,519	138,195	1,246	139,441
Balance as at January 1, 2020	5,292,983	5,293	53,763	85,468	–3,930	3,120	–5,519	138,195	1,246	139,441
Total income and expenses recognized directly in equity	0	0	0	0	0	–733	0	–733	–59	–792
Consolidated earnings				12,693				12,693	158	12,851
Consolidated comprehensive income	0	0	0	12,693	0	–733	0	11,960	99	12,059
Resolution or payment of dividends				–8,751				–8,751	–337	–9,088
Share-based compensation			69	0			0	69	0	69
Balance as at June 30, 2020	5,292,983	5,293	53,832	89,410	–3,930	2,387	–5,519	141,473	1,008	142,481

B.6 NOTES TO THE CONSOLIDATED HALF-YEAR FINANCIAL STATEMENTS

General information

These unaudited consolidated half-year financial statements as at June 30, 2020 consist of the financial statements of Eckert & Ziegler Strahlen- und Medizintechnik AG and its subsidiaries (hereinafter also referred to as "Eckert & Ziegler AG").

Accounting policies

The consolidated financial statements of Eckert & Ziegler AG for the half year ended June 30, 2020 were prepared in accordance with International Financial Reporting Standards (IFRS) applicable to interim financial reporting. The statements comply with all standards of the International Accounting Standards Board (IASB), London, as adopted by the EU on the reporting date, the relevant interpretations of the International Financial Interpretations Committee (IFRIC) and the Standing Interpretations Committee (SIC). The interim financial statements should be read in conjunction with the consolidated financial statements of Eckert & Ziegler AG for the year ended December 31, 2019. The accounting policies detailed in the notes to the 2019 consolidated financial statements have been applied without any changes.

When preparing the consolidated financial statements in accordance with IFRS, it is necessary to make estimates and assumptions that affect the amount and disclosure of recognized assets and liabilities, revenues and expenses. The actual results may differ from those estimates. Key assumptions and estimates are made for useful life, recoverable amounts of intangible assets and property, plant, and equipment, recoverability of receivables and the recognition and measurement of provisions. Due to rounding, individual figures may not add up precisely to the totals provided.

This interim report contains all the necessary information and adjustments required to give a true and fair view of the financial position, performance and cash flows of Eckert & Ziegler AG as at the date of the interim report. The results recorded during the current financial year are not necessarily indicative of future results.

Scope of consolidated financial statements

The consolidated financial statements of Eckert & Ziegler AG include all companies in which Eckert & Ziegler AG is able to influence the financial and business policies (control concept), whether directly or indirectly.

As part of an organizational change process, the Radiation Therapy and the Radiopharma segments were combined as at January 1, 2020 to form the new Medical segment. At the same time, a group subsidiary previously belonging to the Industry segment and operating mainly in the field of plant engineering was integrated into the new Medical segment. The comparative figures in segment reporting for the previous year have been adjusted accordingly.

Acquisitions and disposals of companies

In the first half of 2020, Eckert & Ziegler Radiopharma GmbH acquired an option to purchase 37.5% of the shares in Pentixapharm GmbH, Würzburg (acquisition cost € 3.0 million). The option is reported in the consolidated balance sheet as at June 30, 2020 under other non-current assets.

At the end of June 2020, the group also increased its stake in Myelo Therapeutics GmbH, Berlin, to approximately 15%. The investment is shown in the balance sheet under investments in associates, as the group has a significant influence over the associated company.

Country	Currency	Exchange rate on 6/30/2020	Exchange rate on 12/31/2019	Average exchange rate 01/01 – 6/30/2020	Average exchange rate 01/01 – 6/30/2019
USA	USD	1.1198	1.1234	1.1020	1.1299
Czech Republic	CZK	26.7400	25.4080	26.3220	25.6837
UK	GBP	0.9124	0.8508	0.8743	0.8734
Brazil	BRL	6.1118	4.5157	5.3994	4.3406
India	INR	–	80.1870	–	79.1386
Switzerland	CHF	1.0651	1.0854	1.0641	1.1105

Currency translation

The financial statements of companies outside the European Economic and Monetary Union are translated based on the functional currency concept. The following exchange rates were used for currency translation:

Equity and treasury stock

The annual general meeting of Eckert & Ziegler Strahlen- und Medizintechnik AG resolved on June 10, 2020 to increase the share capital by € 15,878,949 from € 5,292,983 to € 21,171,932 from the company's reserves. The capital was increased by converting a partial amount of € 15,878,949 from other revenue reserves reported under revenue reserves in the company's balance sheet as at December 31, 2019 into share capital in return for the issue of 15,878,949 new no-par value bearer shares ("bonus shares"). The bonus shares are entitled to dividends from January 1, 2020. The company's shareholders are entitled to the bonus shares on the basis of their shareholdings at a ratio of 1:3, meaning that every shareholder will receive additional three (3) bonus shares for one (1) existing share. The capital increase was entered into the commercial register on July 20, 2020.

As at June 30, 2020, Eckert & Ziegler AG held 145,489 treasury shares, representing 2.7% of the Group's share capital.

Segment information

		Isotope Products		Medical		Holding	Elimination		Total
€ thousand	Q2/2020	Q2/2019	Q2/2020	Q2/2019	Q2/2020	Q2/2019	Q2/2020	Q2/2019	Q2/2020	Q2/2019
Revenue from external customers	45,328	53,475	38,289	35,563	4	11	0	0	83,621	89,049
Revenue from other segments	1,772	1,934	86	20	3,646	3,129	–5,504	–5,083	0	0
Total segment revenue	47,100	55,409	38,375	35,583	3,650	3,140	–5,504	–5,083	83,621	89,049
Segment profit/ loss before interest and income taxes (EBIT)	5,542	10,530	13,535	9,130	–386	–424	0	0	18,690	19,236
Interest expenses and income	–270	–267	–105	–121	–49	–80	0	0	–424	–468
Income taxes	–1,655	–2,693	–3,713	–2,666	–47	–22	0	0	–5,415	–5,381
Result before minority interests	3,617	7,494	9,717	6,421	–482	–526	0	0	12,851	13,389

SEGMENT REPORT – Income statement

SEGMENT REPORT – Balance sheet

		Isotope Products		Medical	Holding		Total
€ thousand	Q2/2020	Q2/2019	Q2/2020	Q2/2019	Q2/2020	Q2/2019	Q2/2020	Q2/2019
Segment assets	170,721	162,544	96,137	83,984	111,466	105,055	378,324	351,583
Elimination of inter-segmental shares, equity investments and receivables							–110,107 –101,993
Consolidated total assets							268,217	249,590
Segment liabilities	–91,279	–91,214	–42,280	–30,893	–2,967		–2,967 –136,525 –125,074
Elimination of inter-segmental liabilities							10,790	6,152
Consolidated liabilities							–125,735 –118,922
Investments in associates	3,982	2,845	858	676	0	0	4,840	3,521
Investments (excluding acquisitions)	1,198	1,754	1,516	1,088	480	56	3,194	2,898
Depreciation and amortization	–2,688	–2,958	–2,440	–2,566	–332	–141	–5,460	–5,665
Other material non-cash income (+) / expenses (–)	–1,056	279	4,395	–487	32	–544	3,371	–752

Material transactions with related parties

With regard to material transactions with related parties, we refer to the disclosures in the consolidated financial statements for the year ended December 31, 2019.

C. ADDITIONAL INFORMATION

C.1 RESPONSIBILITY STATEMENT BY THE STATUTORY REPRESENTATIVES (BALANCE SHEET OATH)

To the best of our knowledge, and in accordance with the applicable reporting principles for interim reporting, we hereby certify that the consolidated interim financial statements give a true and fair view of the financial position, performance and cash flows of the Group, and the group interim management report includes a fair review of the development and performance of the business and the position of the Group, together with a description of the principal opportunities and risks associated with the expected development of the Group.

Berlin, August 13, 2020

Dr. Andreas Eckert Dr. Harald Hasselmann Dr. Lutz Helmke Chairman of the Executive Board Member of the Executive Board Member of the Executive Board

C.2 REVIEW CERTIFICATE

To Eckert & Ziegler Strahlen- und Medizintechnik AG

We have reviewed the half-year consolidated financial statements – comprising the consolidated balance sheet, the consolidated income statement, the consolidated statement of comprehensive income, the consolidated statement of changes in equity and the consolidated statement of cash flows as well as the condensed notes – together with the interim group management report of Eckert & Ziegler Strahlen- und Medizintechnik AG, Berlin, for the period from 1 January 2020 to 30 June 2020 that are part of the half-year financial report according to section 115 WpHG ["Wertpapierhandelsgesetz"/ "German Securities Trading Act"]. The preparation of the half-year consolidated financial statements in accordance with the IFRS for the Interim Financial Reporting as adopted by the EU, and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management reports, is the responsibility of the Company's management. Our responsibility is to issue a report on the half-year consolidated financial statements and on the interim group management report based on our review.

We performed our review of the half-year consolidated financial statements and the interim group management report in accordance with the German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the review so that we can preclude, through critical evaluation, with a certain level of assurance, that the half-year consolidated financial statements have not been prepared, in all material respects, in accordance with the IFRS for the Interim Financial Reporting as adopted by the EU and that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot issue an auditor's report.

Based on our review, no matters have come to our attention that cause us to presume that the half-year consolidated financial statements have not been prepared, in material respects, in accordance with the IFRS for the Interim Financial Reporting as adopted by the EU, or that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.

Berlin, August 13, 2020

BDO AG | Wirtschaftsprüfungsgesellschaft gez. Weisner (Wirtschaftsprüferin) gez. Nekhin (Wirtschaftsprüfer) (German Public Auditor) (German Public Auditor)

FINANCIAL CALENDAR

August 13, 2020	Half-Year Financial Report 2020
November 10, 2020	Quarterly Report iii/2020
November 17, 2020	German Equity Forum

Subject to changes

CONTACT

Eckert & Ziegler Strahlen- und Medizintechnik AG Robert-Rössle-Straße 10 | 13125 Berlin | Germany www.ezag.com

Karolin Riehle Investor Relations

Phone + 49 30 94 10 84 – 0 Fax + 49 30 94 10 84 – 112 info@ezag.de

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PUBLISHER

Eckert & Ziegler Strahlen- und Medizintechnik AG

LAYOUT Ligaturas – Reportdesign

PHOTO Peter Himsel Bernhard Ludewig