Eckert & Ziegler Strahlen- und Medizintechnik AG

Quarterly Report • Aug 22, 2019

2014

Quarterly Report II

Key data Eckert & Ziegler

		01–06/2014	01–06/2013	Change
Sales	€ million	61.9	55.3	12%
Return on revenue before tax	%	9%	12%	– 26%
EBITDA	€ million	9.7	10.2	– 5%
EBIT	€ million	6.2	6.9	– 10%
EBT	€ million	5.4	6.5	– 17%
Net income before other shareholder's interest	€ million	3.3	4.5	– 27%
Net income	€ million	3.3	4.0	– 18%
Earnings per share (basic)	€	0.62	0.75	– 18%
Operational cash flow	€ million	0.1	0.9	– 89%
Depreciation and amortization on non-current assets	€ million	3.5	3.3	5%
Staff as end of period	Persons	681	613	11%

Milestones

DIVIDEND

A dividend in the amount of € 0.60 is decided at the Annual General Meeting on 22 May 2014.

AWARD

Eckert & Ziegler is awarded sixth place among the 50 most innovative SMEs in Germany by the Munich Strategy Group. The survey conducted in cooperation with business magazine Wirtschaftswoche is based on around 3,000 German companies with sales of between € 10 million and around € 1 billion.

VISIT BY DELEGATION

The President of the Association of German Chambers of Industry and Commerce Eric Schweitzer, Berlin's Senator of Finance Ulrich Nußbaum, and the SPD parliamentary leader in Berlin Raed Saleh visit Eckert & Ziegler at the Company headquarters in Berlin-Buch to learn more about the work of the medical technology specialists.

GALLIUM GENERATOR

Eckert & Ziegler Radiopharma GmbH has received a recommendation from the European Medicines Agency for approval of its pharmaceutical 68Ge/68Ga generator. This achievement marks the conclusion of a comprehensive decentralized evaluation procedure and the first time a gallium generator has been approved for the clinical development of highly specific diagnostic agents. Approval for sale in the respective countries is expected within the next one to two months.

Business development of the Eckert & Ziegler Group

GOOD SALES GROWTH BUT NO GROWTH IN EARNINGS SO FAR

In the second quarter of 2014, the Group generated sales of € 31.2 million, which corresponds to an increase of 2 % compared to the first quarter of 2014 and an 8 % rise year on year. The sales mark of € 30 million has been exceeded for the fourth time in succession. Based on our assessment, therefore, sales are growing at a sustainable rate.

The Group generated total sales of € 61.9 million during the first half year of 2014, which represents an increase of € 6.6 million, or 12%, year on year. Of this amount, € 2.1 million was attributable to organic sales growth. Companies that have been acquired since the middle of 2013 contributed € 5.7 million in sales. The fall in the US dollar exchange rate, however, had a negative impact of € 1.1 million.

Despite the increase in sales, EBIT fell by € 0.7 million to € 6.2 million. The effects are explained in the section on the individual segments. The decline in EBIT led to a decrease of the same amount in earnings after taxes and minority interests, which dropped to € 3.3 million, or € 0.62 per share.

The Radiopharma segment registered an increase in sales of 27%, or € 3.3 million, to € 15.8 million, which was mainly due to the acquisition of Austrian company BSM. The equipment division recorded organic growth in the doubledigit percentage range. Thanks to the increase in sales and restructuring measures in the equipment division in the prior year, EBIT rose disproportionately by € 1.4 million.

The Isotope Products segment presented stable figures, posting an increase in sales for the first half of the year of 4% to € 28.8 million, despite considerable adverse currency effects. The prior year had included extraordinary income from a successful lawsuit. Accordingly, EBIT fell by € 1.2 million, or 15%, to € 7.2 million.

Sales in the Radiation Therapy segment increased by € 1.9 million, or 16%, to € 13.9 million thanks to the recent acquisitions in the US. Having reported EBIT of € – 0.9 million in the first quarter of 2014 due to integration expenses, the situation improved considerably in the second quarter, with the segment recording a profit for the first time this year in the month of June. However, the shortfall in EBIT of € 2.4 million compared to the prior year is still substantial, partly due to extraordinary income from a lawsuit in the first half of 2013.

The new Others segment contains Environmental Services and Holding, which were previously reported separately. The EBIT losses in this segment narrowed significantly from € – 3.1 million to € – 1.4 million, which was mainly due to the absence of extraordinary expenses from the same period in 2013 when a price increase in an important disposal channel negatively impacted earnings.

LIQUIDITY

Due to the 27% decline in profit for the period, gross cash flow also decreased in the same proportion. Gross cash flow, calculated from profit for the period adjusted for non-cash effects, amounted to € 7.3 million for the first half year of 2014. As net working capital rose by € 7.2 million due to changes in prepayments and inventories, cash flow from operating activities was low at just € 0.1 million.

Taking into account the "Acquisition of shares of consolidated companies" item in investments, cash flow from investing activities, at € 5.3 million, was more or less on par with the prior year (€ 5.4 million). Whereas the prior year included the acquisition of Chemotrade GmbH and the investment in OctreoPharm Sciences GmbH, in 2014 the Group invested in a joint venture to secure raw materials. Both periods included cash payments for the construction of the new cyclotron facility in Poland.

The constant dividend of € 0.60 per share resulted in an unchanged cash outflow of € 3.2 million. The Group reduced the amount of loans taken out compared to the prior year so that the scheduled repayments clearly outweighed new lending. The amount of loans decreased by € 2.1 million in the first half year of 2014 compared with € 1.4 million in the prior year.

Financial holdings decreased overall to € 18.8 million as of June 30, 2014.

BALANCE SHEET

The balance sheet total as of the end of June fell by € 5.5 million compared to the annual financial statements for 2013. This was mainly due to the decrease in cash and cash equivalents. On the liabilities side, the amount of loans and liabilities was correspondingly lower. Although the dividend was paid out, the equity ratio rose from 51% to 52% due to the reduction in external financing.

EMPLOYEES

The Eckert & Ziegler Group had a total of 681 employees worldwide as of June 30, 2014, 412 of whom worked in Germany. The number of employees was therefore down by five compared to the end of 2013, mainly due to personnel adjustments that had to be made at the new site in the USA.

OUTLOOK

Sales and earnings are expected to improve by at least 10% in fiscal year 2014 compared to 2013. In concrete terms, sales are expected to grow to € 134 million and net profit to € 10.5 million, or € 2.00 per share. This will require a disproportionate increase in profit in the second half of the year, which is most likely to materialize in the Radiation Therapy segment as the restructuring losses in this segment have been overcome and sales are anticipated to grow substantially.

in € thousand	Quarterly Report II 04–06/2014	Quarterly Report II 04–06/2013	6-monthly Report 01–06/2014	6-monthly Report 01–06/2013
Revenues	31,223	28,803	61,925	55,307
Cost of sales	– 15,695	– 13,428	– 31,062	– 27,758
Gross profit on sales	15,528	15,375	30,863	27,549
Selling expenses	– 5,317	– 5,162	– 10,509	– 9,890
General and administrative expenses	– 6,027	– 5,540	– 12,301	– 11,117
Research and non-capitalized development expenses	– 1,124	– 1,051	– 2,116	– 1,960
Other operating income	405	1,029	655	2,681
Other operating expenses	– 103	– 34	– 119	– 282
Profit from operations	3,362	4,617	6,473	6,981
Results from shares measured at equity	– 60	–	– 138	–
Results of financial investments measured at fair value	– 26		– 65	–
Other financial results	– 106	– 138	– 75	– 89
Earnings before interest and taxes (EBIT)	3,170	4,479	6,195	6,892
Interest received	45	76	68	175
Interest paid	– 438	– 363	– 883	– 586
Profit before tax	2,777	4,192	5,380	6,481
Income tax expense	– 1,065	– 1,210	– 2,126	– 2,012
Net income	1,712	2,982	3,254	4,469
Profit/loss attributable to minority interests	– 43	– 217	14	– 490
Dividend to shareholders of Eckert & Ziegler AG	1,669	2,765	3,268	3,979
Earnings per share
Basic (EUR per share)	0.32	0.52	0.62	0.75
Diluted (EUR per share)	0.32	0.52	0.62	0.75
Average number of shares in circulation (basic)	5,288	5,288	5,288	5,288
Average number of shares in circulation (diluted)	5,288	5,288	5,288	5,288

GROUP STATEMENT OF INCOME

in € thousand	Quarterly Report II 04–06/2014	Quarterly Report II 04–06/2013	6-monthly Report 01–06/2014	6-monthly Report 01–06/2013
Profit for the period	1,712	2,982	3,254	4,469
Of which attributable to other shareholders	43	217	– 14	490
Of which attributable to shareholders of Eckert & Ziegler AG	1,669	2,765	3,268	3,979
Items that could subsequently be reclassified into the income statement if certain conditions are met
Adjustment of balancing item from the currency translation of foreign subsidiaries	214	782	296	413
Amount reposted to income statement	0	0	0	0
Adjustment of amount recorded in shareholders' equity (Currency translation)	214	782	296	413
Total of value adjustments recorded in shareholders' equity	214	782	296	413
Of which attributable to other shareholders	0	– 42	– 1	– 22
Of which attributable to shareholders of Eckert & Ziegler AG	214	824	297	435
Total from net income and value adjustments recorded in shareholders' equity	1,926	3,764	3,550	4,882
Of which attributable to other shareholders	43	175	– 15	468
Of which attributable to shareholders of Eckert & Ziegler AG	1,883	3,589	3,565	4,414

GROUP STATEMENT OF COMPREHENSIVE INCOME

GROUP STATEMENT OF CASH FLOW
in € thousand	Quarterly Report II 01.01.2014 – 30.06.2014	Quarterly Report II 01.01.2013 – 30.06.2013
Cash flows from operating activities:
Profit for the period	3,253	4,470
Adjustments for:
Depreciation and value impairments	3,504	3,333
Non-cash release of deferred income from grants	– 35	– 32
Gains (–)/losses on the disposal of non-current assets	– 4	15
Change in the non-current provisions, other non-current liabilities	513	1,400
Gains (–)/losses on the disposal of non-current assets	5	– 55
Miscellaneous	73	878
Changes in current assets and liabilities:
Receivables	61	– 974
Inventories	– 1,986	– 895
Accruals, other current assets	149	241
Change in the current liabilities and provisions	– 5,438	– 7,492
Cash inflows generated from operating activities	95	889
Cash flows from investing activities:
Purchase (–)/sale of non-current assets	– 5,301	– 3,950
Acquisitions of consolidated enterprises	–	– 612
Cash outflows from investment activity	– 5,301	– 4,562
Cash flows from financing activities:
Paid dividends	– 3,173	– 3,173
Distribution of shares of third parties	– 202	– 192
Change in long-term borrowing	– 2,581	– 947
Change in short-term borrowing	501	– 475
Aquisition of shares of consolidated companies	– 20	– 850
Cash outflows from financing activities	– 5,475	– 5,637
Effect of exchange rates on cash and cash equivalents	86	42
Increase/reduction in cash and cash equivalents	– 10,595	– 9,268
Cash and cash equivalents at beginning of period	29,414	30,842
Cash and cash equivalents at end of period	18,819	21,574

GROUP BALANCE SHEET
in € thousand	June 30, 2014	June 30, 2013
Assets
Non current assets
Goodwill	35,050	34,906
Other intangible assets	17,346	17,744
Property, plant and equipment	34,370	33,542
Investments valuated according to the equity method	355	493
Trade receivables	2,853	2,853
Deferred tax	10,419	9,937
Other non-current assets	8,026	6,785
Total non-current assets	108,419	106,260
Current assets
Cash and cash equivalents	18,819	29,414
Securities	22	22
Trade accounts receivable	20,085	20,277
Inventories	19,815	17,778
Other current assets	6,262	5,159
Total current assets	65,003	72,650
Total assets	173,422	178,910
Equity and liabilities
Capital and reserves
Subscribed capital	5,293	5,293
Capital reserves	53,500	53,500
Retained earnings	28,683	28,588
Other reserves	– 3,511	– 3,808
Own shares	– 27	– 27
Portion of equity attributable to the shareholders of Eckert & Ziegler AG	83,938	83,546
Minority interests	6,865	7,082
Total shareholders' equity	90,803	90,628
Non-current liabilities
Long-term borrowings and finance lease obligations	15,007	17,572
Deferred income from grants and other deferred income	687	715
Deferred tax	2,468	2,381
Retirement benefit obligations	7,728	7,560
Other provisions	24,399	23,991
Other non-current liabilities	4,234	4,220
Total non current liabilities	54,523	56,439
Current liabilities
Short-term borrowings and finance lease obligations	5,558	5,055
Trade accounts payable	4,925	7,779
Advance payments received	1,674	2,241
Deferred income from grants and other deferred income	97	104
Current tax payable	1,730	915
Provisions for pensions (current)	403	403
Current tax payable	3,774	4,014
Other current liabilities	9,935	11,332
Total current liabilities	28,096	31,843
Total equity and liabilities	173,422	178,910

STATEMENTS OF SHAREHOLDERS´EQUIT Y

	Su bsc i be r	d c ita l ap			Cu lat ive he ity ite ot mu r e q u ms
	be Nu m r	l No ina m lue va	Ca l ita p res erv e	Re d ine ta res erv es	l ize d Un rea f it p ro it ies sec ur	Un l ize d rea f it p ro ion p en s it co mm nts me	Fo ig re n cu rre nc y ha ex c ng e d f fe i ren ce s	Ow n ha s res	Eq ity u i bu b le att ta r ha ho l to s re de ' eq ity rs u	M ino ity s r ha res	Gr ou p ha s re ho l de ' rs ity eq u
	P iec e	hs d. € t	hs d. € t	hs d. € t	hs d. € t	hs d. € t	hs d. € t	hs d. € t	hs d. € t	hs d. € t	hs d. € t
f As Ja 1, 20 13 o nu ary	5, 29 2, 9 8 3	5, 29 3	5 3, 5 0 0	25 25 7 ,	2	– 1 64 0 ,	– 1 65 8 ,	– 2 7	8 0, 72 7	6, 24 3	8 6, 97 0
lat d f fe Fo ig ion i tra re n c urr en cy ns ren ce s							– 1 31 9 ,		– 1 31 9 ,	– 7 2	– 1 3 91 ,
l d g los by fom Un ize ins / rea a ses p er an ce d p ba lan he da ien ion te et te or en s s o n ce s fte f (a T E U R – 40 8 ) r ta x o						– 8 3 3			– 8 3 3		– 8 3 3
l d g los Un ize ins / rea a ses ba lan he it ies at et on se cu r ce s da fte f (a T E U R – ) 1 te r ta x o					2				2		2
f u Re l o l ize d g ins / ve rsa nre a a los iou ba lan at ses p rev s ce he da et te s					– 2	1, 64 0			1, 6 3 8		1, 6 3 8
f e To l o d itu d inc ta xp en res an om e d ire ly d in ity ct ter en e eq u	0	0	0	0	0	8 07	– 1 31 9 ,	0	– 5 12	– 7 2	– 5 84
Ne f it for he t p t ro y ea r				9, 0 8 9					9, 0 8 9	1, 41 2	10 5 01 ,
l for he d To inc io ta t om e p er	0	0	0	9, 0 8 9	0	8 07	– 1 31 9 ,	0	8, 57 7	1, 34 0	9, 91 7
de ds d D iv i i n p a				– 3 17 3 ,					– 3 17 3 ,	– 2 43	– 3 41 6 ,
f o ha for ha Us e o wn s res p urc se f m ino ity int sts o r ere			0					0	0	0	0
fw d kt lan Au A ien ion t an op sp									0
ha le f n l l Pu ing int ntr sts rc se or sa o on -co o ere				– 2 5 85 ,					– 2 5 85 ,	– 2 5 8	– 2 84 3 ,
f be As De r 3 1, 20 13 o ce m	5, 29 2, 9 8 3	5, 29 3	5 3, 5 0 0	28 5 8 8 ,	2	– 8 3 3	– 2 97 7 ,	– 2 7	8 3, 54 6	7, 0 8 2	9 0, 6 28

STATEMENTS OF SHAREHOLDERS´EQUIT Y

	bsc be d c Su i r			he ive ot r e q	ity ite ms u
	be Nu m r	l No ina m lue va	l Ca ita p res erv e	d Re ine ta res erv es	l d Un ize rea f it p ro it ies sec ur	l d Un ize rea f it p ro ion p en s it co mm nts me	Fo ig re n cu rre nc y ha ex c ng e d f fe i ren ce s	Ow n ha s res	Eq ity u bu b le i att ta r ha ho l to s re de ' eq ity rs u	M ino ity s r ha res	Gr ou p ha s re ho l de ' rs ity eq u
	P iec e	€ t hs d.	€ t hs d.	€ t hs d.	€ t hs d.	€ t hs d.	€ t hs d.	€ t hs d.	€ t hs d.	€ t hs d.	€ t hs d.
f As Ja 1, 20 14 o nu ary	5, 29 2, 9 8 3	5, 29 3	5 3, 5 0 0	28 5 8 8 ,	2	– 8 3 3	– 2 97 7 ,	– 2 7	8 3, 54 6	7, 0 8 2	9 0, 6 28
Fo ig lat ion d i f fe tra re n c urr en cy ns ren ce s							29 7		29 7	– 1	29 6
l ize d g ins / los by fom Un rea a ses p er an ce d p ba lan he da ien ion te et te or en s s o n ce s (a fte f R – ) T E U 40 8 r ta x o						– 8 3 3			– 8 3 3		– 8 3 3
l d g / los Un ize ins it ies at rea a ses on se cu r ba lan he da (a fte f ) T E U R – 1 et te r ta ce s x o					2				2		2
l o f u l d g los Re ize ins / at ve rsa nre a a ses ba lan he da iou et te p rev s ce s					– 2	8 3 3			8 31		8 31
l o f e d d To itu inc ta xp en res an om e d ly d ire in ity ct ter en e eq u	0	0	0	0	0	0	29 7	0	29 7	– 1	29 6
f it for he Ne t p t ro ea r y				3, 26 8					3, 26 8	– 1 4	3, 25 4
l for he d To inc io ta t om e p er	0	0	0	3, 26 8	0	0	29 7	0	3, 5 65	– 1 5	3, 55 0
de ds d D iv i i n p a				– 3 17 3 ,					– 3 17 3 ,	– 2 0 2	– 3 37 5 ,
f As Ju ine 3 0, 20 14 o	29 2, 9 8 3 5,	29 3 5,	3, 0 0 5 5	28 6 8 3 ,	2	– 8 3 3	– 2 6 8 0 ,	– 2 7	8 3, 9 3 8	6, 8 65	9 0, 8 0 3

SEGMENTAL REPORT

	Iso top e	du Pro cts	d Ra iat ion	he T rap y	d Ra iop	ha rm a	Ot	he * rs	l E im	ina ion t	To	l ta
ho d in € t usa n	/ 01 –0 6 20 14	/ 01– 06 20 13	/ 01 –0 6 20 14	/ 01– 06 20 13	/ 01 –0 6 20 14	/ 01– 06 20 13	/ 01 –0 6 20 14	/ 01– 06 20 13	/ 01 –0 6 20 14	/ 01– 06 20 13	/ 01 –0 6 20 14	/ 01– 06 20 13
les l cu Sa to ter sto ex na me rs	28 8 07 ,	27 8 0 8 ,	13 9 0 3 ,	12 01 2 ,	15 84 5 ,	12 5 20 ,	3, 37 0	2, 9 67	0	0	61 9 25 ,	55 3 07 ,
les he Sa to ot nts r se g me	9 6 8	1, 8 3 8	10 1	18	40	54	2, 84 0	1, 87 1	– 3 94 8 ,	– 3 78 1 ,	0	0
l se les To ta nt g me sa	29 77 5 ,	29 64 6 ,	14 0 04 ,	12 0 3 0 ,	15 8 85 ,	12 57 4 ,	6, 21 0	4, 8 3 8	– 3 94 8 ,	– 3 78 1 ,	61 9 25 ,	55 3 07 ,
f it be for Se int nt st g me p ro e ere d p f it ( E B I T ) tax an ro es	18 0 7,	8, 42 2	16 6 – 1	26 9 1,	65 1, 4	28 0	3 – 1 47	– 3 07 9	0	0	6, 19 5	6, 8 9 2
			,				,	,
Int d e st ere rev en ue s a n xp en se	– 4 5	– 5 7	– 2 9 3	9 3 – 1	– 6 28	6 3 – 5	15 1	40 2	0	0	– 8 15	– 4 11
Inc e t om ax ex p en se	– 2 20 3 ,	– 2 28 3 ,	3 3 6	– 5 35	– 3 9 3	– 4 5	13 4	85 1	0	0	– 2 12 6 ,	– 2 01 2 ,
Pro f it be for ino ity int sts e m r ere	4, 9 3 2	6, 0 8 2	-1, 12 3	54 1	6 3 3	– 3 28	– 1 18 8 ,	– 1 8 26 ,	0	0	3, 25 4	4, 46 9

SEGMENTAL REPORT

	du Iso Pro top cts e		d he Ra iat ion T rap y		d ha Ra iop rm a		he Ot * rs		l To ta
ho d in € t usa n	/ 01 –0 6 20 14	/ 01– 06 20 13	/ 01 –0 6 20 14	/ 01– 06 20 13	/ 01 –0 6 20 14	/ 01– 06 20 13	/ 01 –0 6 20 14	/ 01– 06 20 13	/ 01 –0 6 20 14	/ 01– 06 20 13
l as Se nta set g me s	95 35 5 ,	94 0 8 9 ,	6, 3 3 5 5	61 47 1 ,	35 76 6 ,	27 34 5 ,	94 26 7 ,	94 9 55 ,	28 2, 10 1	26 3, 6 04
f E l im ina ion int l s ha ity inv t nta est nts o er- seg me res , e q u me d r iva b les an ec e									– 1 0 8, 67 9	– 1 04 6 21 ,
Co l i da d t l as te ota set nso s									17 3, 42 2	15 8, 9 8 3
Se l l ia b i l it ies nta g me	– 4 2, 6 07	– 4 0, 8 6 2	– 2 2, 6 87	– 1 5, 25 7	– 3 4, 61 1	– 2 7, 8 23	– 6 6 87 ,	– 1 0, 71 0	– 1 0 6, 5 9 2	– 9 4, 65 2
l f l l b l E im ina ion int ia i it ies t nta o ers eg me									23 97 3 ,	21 67 2 ,
Co l da d l b l i ia i it ies te nso									– 8 2, 61 9	– 7 2, 9 8 0
(w ho ) Inv it is it ion est nts ut me acq u s	2, 15 3	40 5	9 3 2	8 8 2	1, 3 84	2, 5 37	8 3 2	12 6	5, 3 01	3, 95 0
De iat ion p rec	– 1 18 7 ,	– 1 0 3 9 ,	– 1 05 4 ,	– 1 23 3 ,	– 8 0 3	– 6 8 2	– 4 6 0	– 3 79	– 3 5 04 ,	– 3 3 3 3 ,
h No inc /ex n-c as om e p en ses	5 04	– 1 49 5 ,	6 9 0	– 6 75	– 9 48	– 4 7	– 7 9 8	11	– 5 5 2	– 2 20 6 ,

*The new Others segment contains Environmental Services and Holding, which were previously reported separately.

	01–06/2014		01–06/2013
	€ million	%	€ million	%
Europe	34.2	55	32.5	59
North America	19.8	32	16.9	31
Asia/Pacific	5.8	9	4.6	8
Others	2.1	4	1.3	2
Total	61.9	100	55.3	100

SALES BY REGIONS

Notes to the interim financial statements

1. GENERAL INFORMATION

These unaudited interim financial statements as of June 30, 2014 contain the financial statements of Eckert & Ziegler Strahlen- und Medizintechnik AG and its subsidiaries (hereinafter referred to as "Eckert & Ziegler AG").

2. ACCOUNTING AND VALUATION METHODS

As with the annual financial statements for 2013, the consolidated financial statements (interim financial statements) of Eckert & Ziegler AG as of June 30, 2014 have been prepared in accordance with International Financial Reporting Standards (IFRS). All standards of the International Accounting Standards Board (IASB), London, applicable in the EU at the reporting date, as well as the relevant interpretations of the International Financial Reporting Interpretations Committee (IFRIC) and the Standing Interpretations Committee (SIC) have been taken into account. The accounting and valuation methods explained in the notes to the annual financial statements for 2013 have been applied unchanged.

When preparing the consolidated financial statements in accordance with IFRS, it is necessary to make estimates and assumptions that impact the amount and disclosure of recognized assets and liabilities, revenues and expenses. Actual amounts may differ from the estimates. Significant assumptions and estimates are made concerning useful lives, income achievable from property, plant and equipment, recoverability of receivables and the accounting and measurement of provisions.

This interim report includes all information and adjustments required to provide a true and fair view of the net assets, financial position and results of operations of Eckert & Ziegler AG as of the reporting date. The interim results for the current fiscal year do not necessarily allow conclusions to be drawn about the development of future earnings.

3. SCOPE OF CONSOLIDATION

The consolidated financial statements of Eckert & Ziegler AG include all companies where Eckert & Ziegler AG is able, either indirectly or directly, to determine the company's financial and business policies (control concept).

Acquisitions and sales of companies

Please refer to the explanations given in section 4 for details on the acquisitions and sales of companies.

4. LIMITED COMPARABILITY OF THE CONSOLIDATED FINANCIAL STATEMENTS WITH THE PRIOR YEAR

Düsseldorf-based Chemotrade GmbH was acquired on February 15, 2013. Additional shares in a Group company in the Radiopharma segment were acquired from a minority shareholder in the first quarter of 2013. The disposal business of EnergySolutions in Great Britain was acquired effective June 1, 2013. The shares of Austrian company BSM Diagnostica Gesellschaft were acquired as of July 1, 2013. Eckert & Ziegler acquired a substantial minority interest in OctreoPharm Sciences GmbH in July 2013. In September 2013, Eckert & Ziegler acquired the prostate implants business of American company Biocompatibles, Inc. followed by 100% of the shares of Mick Radio Nuclear Instruments, Inc. in November 2013.

Compared with the first six months of 2013, these had a material impact on the Group's net assets and results of operations, impairing the comparability of the consolidated report with the prior year.

5. CURRENCY TRANSLATION

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

Country	Currency	Exchange rate on June 30, 2014	Exchange rate on Dec. 31, 2013	Average rate Jan. 1 –June 30, 2014	Average rate Jan. 1 –June 30, 2013
USA	USD	1.3658	1.3791	1.3716	1.3078
Czech Republic	CZK	27.453	27.427	27.4362	25.7311
Great Britain	GBP	0.8015	0.8337	0.8228	0.8221
Poland	PLN	4.1568	4.1543	4.1672	4.1848
Russia	RUB	46.0279	44.8968	47.9472	–
Brazil	BRL	3.0002	3.2504	3.1418	2.6641

6. OWN SHARES

Eckert & Ziegler AG held 4,818 own shares as of June 30, 2014. This e quates t o a 0.1 % s hare o f t he C ompany's subscribed capital.

7. MATERIAL TRANSACTIONS WITH RELATED PARTIES

Please refer to the consolidated financial statements as of December 31,2 013 for details on material transactions with related parties.

8. INSURANCE OF LEGAL REPRESENTATIVES (BALANCE-SHEET OATH)

We assure to the best of our knowledge that in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements provide a true and fair view of the net assets, financial position, and results of operations of the Group, and that the interim Group management report includes a fair review of the development and performance of the business, the business results, and the position of the Group, together with a description of the material opportunities and risks associated with the expected development of the Group for the remaining months of the fscal year.

Berlin, August 5, 2014

Dr. Andreas Eckert Chairman of the Executive Board

Dr. Edgar Löffler Member of the Executive Board

Dr. André Heß Member of the Executive Board

Financial calendar

August 5, 2014	Quarterly Report ii/ 2014
November 6, 2014	Quarterly Report iii/ 2014
November 25–26, 2014	German Equity Forum in Frankfurt
March 26, 2015	Annual Report 2014
May 5, 2015	Quarterly Report i/ 2015
June 3, 2015	Annual Shareholder Meeting in Berlin
August 4, 2015	Quarterly Report ii/ 2015
November 5, 2015	Quarterly Report iii/ 2015
November 2015	German Equity Forum in Frankfurt

(subject to change)

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 E-Mail info@ezag.de

Imprint

PUBLISHER

Eckert & Ziegler Strahlen- und Medizintechnik AG

LAYOUT

DianaDesign, Berlin, Germany www.dianadesign.de

FOTOS

Thinkstock (Cover) Eckert & Ziegler (Page 3)

On 22 August 2019 this report has been completed by the paragraph insurance of legal representatives (balance-sheet oath).