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STRATEC SE

Interim / Quarterly Report Jul 23, 2014

416_10-q_2014-07-23_df71f2e5-1277-4d3e-9842-d1329232545f.pdf

Interim / Quarterly Report

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INTERIM REPORT 06.30.2014

ProfilE

STRATEC DEVELOPS AND MANUFACTURES FULLY AUTOMATED ANALYZER SYSTEMS BASED ON ITS OWN PATENTED TECHNOLOGIES FOR ITS PARTNERS IN THE FIELDS OF CLINICAL DIAGNOSTICS AND BIOTECHNOLOGY. STRATEC'S PARTNERS ARE MOSTLY GLOBAL PLAYERS OPERATING IN THE IN-VITRO DIAGNOSTICS INDUSTRY. THESE COMPANIES MARKET STRATEC'S SYSTEMS UNDER THEIR OWN NAMES, IN GENERAL TOGETHER WITH THEIR OWN REAGENTS, AS SYSTEM SOLUTIONS TO LABORATORIES, BLOOD BANKS, AND RESEARCH INSTITUTES AROUND THE WORLD.

content

HIGHLIGHTS
/
KEY GROUP
FIGURES AT A GLANCE
03
LETTER FROM
THE BOARD OF
MANAGEMENT
04
INTERIM GROUP
MANAGEMENT REPO
RT
06
CON
SOLIDATED BALANCE SHEET
E 30, 2014
AS OF
JUN
11
CON
SOLIDATED STATEMENT OF
COMP
REHENSIVE INCOM
E
iod from April 1 to June 30, 2014
for
the
Per
13
CON
SOLIDATED STATEMENT OF
COMP
REHENSIVE INCOM
E
1 to June 30, 2014
for
the
Per
iod from Ja
nuary
14
CON
SOLIDATED STATEMENT OF
CHANGES IN EQUITY
for
the
Per
iod from Ja
nuary
1 to June 30, 2014
15
CON
SOLIDATED CASH FLOW STATEMENT
for
the
Per
iod from Ja
nuary
1 to June 30, 2014
17
NO
TES TO THE GROUP
INTERIM REPO
RT
for
the
Per
iod from Ja
nuary
1 to June 30, 2014
18
ADDITION
AL INFO
RMATION
23

STRATEC interim report as of june 30, 2014 02

HIGHLIGHTS

Sales of 1 69.1 million in 6M/2014 (+14.9%; 6M/2013: 1 60.1 million)

EBIT margin of 16.3%2 in 6M/2014 (+260 basis points; 6M/2013: 13.7%)

EBIT of 1 11.2 million 2 in 6M/2014 (+36.0%; 6M/2013: 1 8.3 million)

Consolidated net income of 1 9.6 million 2 in 6M/2014 (+47.3%; 6M/2013: 1 6.5 million)

Earnings per share of 1 0.822 in 6M/2014 (+46.4%; 6M/2013: 1 0.56)

KEY GROUP FIGURES AT A GLANCE

in v thousands 01.01.-
06.30.2014
01.01.-
06.30.2013
1
Change
Sales 69,050 60,071 +14.9 %
EBIT 11,232 2 8,257 +36.0 %
EBIT margin (%) 16.3 2 13.7 +260 BPS
Consolidated net income 9,635 2 6,543 +47.3 %
Earnings per share (1) 0.82 2 0.56 +46.4 %
No. of employees (06.30.) 546 543 +0.6 %
in v thousands 06.30.2014 12.31.20131 Change
Shareholders' equity 100,170 97,179 +3.1 %
Total assets 124,992 117,788 +6.1 %
Equity ratio ( %) 80.1 82.5 -240 BPS

1 The accounting methods used in the consolidated financial statements were amended in line with IAS 8 in the 2013 financial year. Reference is made in this respect to the information in the 2013 Annual Report in Section A of the notes to the consolidated financial statements.

2 2014 figure adjusted to exclude a one-off item resulting from recognition in the first quarter of expenses for the remaining years of the term of a management board contract for a retired member of the Board of Management. Unadjusted EBIT amounts to 1 10.3 million, the corresponding EBIT margin amounts to 14.9%, consolidated net income to 1 8.9 million and earnings per share to 1 0.76. The effective amount of the liability due may differ at the time of payment.

LETTER FROM THE BOARD OF MANAGEMENT

Dear Shareholders,

We can look back on a solid first half of 2014 in which we generated substantial sales growth while at the same time significantly raising our EBIT margin.

We boosted our sales for the first six months by 14.9 % to 1 69.1 million. The adjusted EBIT margin rose to 16.3 %, up from 13.7 % in the equivalent period in the prior year. Adjusted earnings per share increased by 46.4 % to 10.82.

Even though we view this development as a normalization in our margin performance and although we expect the company to post healthy developments in the second half of the year, we are not yet in a position to announce the end of the temporary weakness seen in capacity utilization levels in terms of customer test volumes. Given stocking and order processes, we are still witnessing fluctuations within quarters. Extreme fluctuations, such as those at the end of 2012, have not reoccurred since and the strong second quarter gives us reason to expect a further normalization in the service parts business. Based on information currently available, we expect to see positive developments in terms of our sales and earnings performance in the second half of the year as well.

Although there was little to report in terms of significant newsflow during the quarter, the company's operating performance was nevertheless consistently positive. Major development projects are running on schedule and further market launches by our customers are pending. These will gradually contribute to our expected sales growth in the coming quarters. Furthermore, an increase in the dividend to a new record level was approved at the Annual General Meeting.

In 2015 we will be further expanding our existing development and production capacities, most recently extended in 2010. Planning work for these measures has begun and we will keep you informed. Specifically, we are currently planning the construction of a proprietary development building in Romania. Driven not least by the successful conclusion of further development orders currently in negotiation and our planned capacity expansion measures, we intend to uphold our growth both throughout and beyond the forecast period.

Birkenfeld, July 2014

The Board of Management of STRATEC Biomedical AG

Marcus Wolfinger Dr. Robert Siegle Dr. Claus Vielsack

INTERIM GROUP MANAGEMENT REPORT

REPORT ON THE EARNINGS, FINANCIAL AND NET ASSET POSITION

Sales grew by 14.9 % to 169.1 million in the first six months of the 2014 financial year (previous year: 160.1 million). The gross profit (gross profit on sales) increased to 122.6 million (32.7 % of sales), up 13.1 million on the previous year's figure of 119.5 million (32.5 % of sales). This was due to significant growth in the volume of established analyzer systems and the ongoing slightly positive development in turnover with service parts.

Gross development expenses rose by 1 0.7 million to 1 10.6 million, of which 17.7 million were capitalized. Sales-related expenses could be further significantly reduced from 14.3 million to 13.0 million. Administration expenses increased by 11.1 million to 15.8 million. This was chiefly due to the recognition of expenses for the remaining years covered by the residual term of the management board contract for a retired member of the Board of Management.

Due to a higher volume of earnings-neutral development sales, depreciation and amortization rose from 12.9 million to 13.6 million. At 110.3 million, EBIT improved by 24.4 % and significantly exceeded the previous year's figure, and that despite the one-off charge due to the expenses incurred for changes in the Board of Management. The figures include a small positive financial effect, one set also to continue over the remaining quarters of the current financial year, resulting from the termination of a development and supply agreement announced in July 2013. Based on current planning, this monetary item will increase the EBIT margin for the 2014 financial year as a whole by around 30 basis points. The EBIT margin thus amounted to 14.9 % (adjusted: 16.3 %; previous year: 13.7 %). As in the previous year, net financial expenses were marginally negative. The tax result amounted to 11.3 million. STRATEC can therefore report a 36.4 % increase in consolidated net income to 1 8.9 million for the period under report (previous year: 16.5 million). Earnings per share amounted to 10.76 (previous year: 10.56).

Despite ongoing strong demand for analyzer systems and a full development pipeline, inventories only rose slightly from 118.1 million to 118.9 million. Due to the significant reduction in trade receivables, total receivables could be reduced by 10.6 million.

The equity ratio amounted to 80.1 %. The Group has reduced its noncurrent financial liabilities by 1 1.0 million to 15.6 million. The increase in trade payables was driven by higher procurement volumes for raw materials and supplies. Other current liabilities also include the liability for the remaining years covered by the residual term of the management board contract for a retired member of the Board of Management.

The cash flow from operating activities rose significantly from 113.5 million in the previous year to 117.1 million. At 13.9 million, investments fell short of the previous year's figure. Despite the dividend payment, cash and cash equivalents thus increased from 120.7 million to 127.1 million.

CHANGES IN THE BUSINESS ENVIRONMENT AND IMPLICATIONS FOR STRATEC

The Ukraine crisis has overshadowed the growth forecast issued by the International Monetary Fund (IMF) for the global economy. In its global economic outlook issued in April, the IMF forecast robust growth in economic output, but warned at the same time of "new geopolitical risks" due to the conflict between Kiev and Moscow. The IMF saw the industrialized economies, above all the USA, as anchors of global growth. The economies of core euro area states were also recovering. The upturn in crisishit countries such as Spain, Portugal, and Greece nevertheless remained fragile. According to the IMF, emerging economies still accounted for more than two thirds of global economic growth, but recent developments here had tended to be disappointing. The Chinese economy had cooled slightly compared with 2013. The IMF nevertheless expected the world's secondlargest economy to post strong growth of 7.5 % this year.

Global economic growth had strengthened in the second half of 2013 and was set to improve further in 2014 and 2015. Following growth of 3 % in the past year, the IMF had forecast an increase of 3.6 % in global economic output in 2014. This should be followed by global economic growth of 3.9 % in 2015.

Having said this, the monetary fund has cut back its growth expectations for the global economy by 0.1 percentage points compared with its previous outlook in January. Alongside flagging developments in emerging economies, IMF experts have also factored the potential implications of the Ukraine crisis into their current global economic outlook. Given the threat of western sanctions, they have cut this year's growth forecast for the Russian economy from 1.9 % to 1.3 %. Any further escalation "could have substantially negative effects for the region through both financial and trading channels".

The company has not yet witnessed any implications from current events in connection with the Ukraine crisis and sanctions against Russia. Our partners, who generally market our systems with their own reagents, have currently reported only a very low level of impact.

Irrespective of the aforementioned developments, global demographic developments represent one of the most serious challenges facing the world. The dynamic growth in the world's population, together with an unprecedented increase in the elderly share of the population and the sharp rise in the number of people with access to medical care, represent key factors which will shape the 21st century. This situation is accompanied by scientific and technological progress, which is opening up ever new possibilities in the fields of medicine, research, diagnostics and life science.

These developments will lead not only to an increase in the numbers of clinical diagnostics tests to be performed, but will also result in new, unique business opportunities for which STRATEC is optimally positioned with its automation solutions and on which it will continue to focus its strategy and operations.

In view of the factors outlined above, global economic risks only have a very limited impact on STRATEC's business performance and business model. Moreover, long-term supply agreements with our customers minimize the potential implications for STRATEC.

REPORT ON FORECASTS AND OTHER STATEMENTS CONCERNING THE COMPANY'S EXPECTED DEVELOPMENT

In the current year, STRATEC is focusing on achieving further major development milestones, additional market launches, and finalizing negotiations for new development and production contracts. Furthermore, the expansion in the company's production and development capacities is set to play a key role in 2014. One example here is planned construction work at the Romanian location where, depending on the relevant permits being issued, construction work should begin before the end of the current financial year.

For 2014, STRATEC continues to expect substantial sales growth compared with the 2013 financial year accompanied by a slight increase in the EBIT margin. The medium-term financial forecast for the years through to 2017 provides for average annual sales growth of 8 % to 12 % based on the volume of sales generated in the 2013 financial year.

Due to the immense debt accumulated by some countries and economic regions and the resultant potential implications (debt crisis), the level of budgeting reliability remains low for all industries, and for the global economy as a whole. This situation continues to harbor risks for STRATEC's customers and suppliers, as a result of which STRATEC also faces economic risks. The ongoing difficult economic climate also means that STRATEC continues to face increased market risk.

Apart from this, since the assessment of the company's situation provided on April 15, 2014 upon the compilation of the Annual Report for the 2013 financial year, no new information has arisen which could lead to any change in our assessment of the company's expected development.

OPPORTUNITY AND RISK REPORT

We analyze and evaluate the risks facing the company and its business environment within the framework of our risk management system, which has been established as an early warning risk identification system. Furthermore, this system also includes a compliance system to ensure compliance with the relevant legal and industry-specific requirements.

STRATEC's business activities basically focus on sustainability and responsible behavior. In future, the company will document this in a sustainability report.

Apart from the factors outlined in the "Report on forecasts and other statements concerning the company's expected development", we do not see any changes compared with the risks and opportunities identified in the Group Management Report for the 2013 financial year dated April 15, 2014. Details of our risk management system and our company's specific opportunity and risk profile can be found in the "Opportunity and Risk Report" section of our 2013 Group Management Report. Information about our use of financial instruments can be found in Section F of the 2013 Group Management Report.

CONSOLIDATED BALANCE SHEET

as of June 30, 2014 of STRATEC Biomedical AG

ASSETS
in v thousands
06.30.2014 12.31.2013 01.01.20131
NON-CURRENT ASSETS
Goodwill 4,481 4,427 4,547
Other intangible assets 26,563 25,761 22,280
Property, plant and equipment 16,609 17,013 17,108
Interests in associates 404 392 363
Deferred tax assets 828 867 2,135
48,885 48,460 46,433
CURRENT ASSETS
Raw materials and supplies 10,355 8,391 8,857
Unfinished products, unfinished services 6,092 7,758 7,846
Finished products and goods 2,485 1,942 807
Trade receivables 19,516 23,372 25,627
Future receivables from construction contracts 1,286 1,312 1,011
Receivables from associates 69 65 96
Income tax receivables 6,001 3,523 2,016
Other receivables and other assets 2,433 1,585 2,182
Other financial assets 723 646 366
Cash and cash equivalents 27,147 20,734 13,209
76,107 69,328 62,017
TOTAL ASSETS 124,992 117,788 108,450
SHAREHOLDERS' EQUITY AND DEBT
in v thousands
06.30.2014 12.31.2013 01.01.2013
1
SHAREHOLDERS' EQUITY
Share capital 11,791 11,770 11,738
Capital reserve 17,919 17,219 16,247
Revenue reserves 69,635 67,766 58,768
Other equity 825 424 789
100,170 97,179 87,542
DEBT
Non
-current
debt
Non-current financial liabilities 5,603 6,643 7,459
Pension provisions 14 14 28
Deferred taxes 1,659 1,389 1,604
7,276 8,046 9,091
Current
debt
Current financial liabilities 2,209 1,895 1,183
Trade payables 6,275 4,402 4,288
Liabilities to associates 205 211 282
Other current liabilities 6,634 4,520 5,218
Current provisions 684 679 608
Income tax liabilities 1,539 857 238
17,546 12,563 11,817
TOTAL SHAREHOLDERS' EQUITY AND DEBT 124,992 117,788 108,450

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the Period from April 1 to June 30, 2014 of STRATEC Biomedical AG

in v thousands 04.01.-06.30.2014 04.01.-06.30.2013
1
Sales 34,680 29,786
Cost of sales -23,327 -20,746
Gross profit 11,353 9,040
Research and development expenses -1,545 -738
Information only: Total research and development expenses -4,889 -5,076
Information only: Capitalized research and development
expenses
3,344 4,338
Sales-related expenses -1,322 -2,086
General administrative expenses -2,302 -2,329
Other operating expenses -278 -41
EBIT 5,906 3,846
Net financial expenses 2 -97
Earnings before taxes (EBT) 5,908 3,749
Current tax expenses -513 -254
Deferred tax expenses -132 -570
Consolidated net income 5,263 2,925
Items that may be subsequently
reclassified to profit or loss
Currency translation differences from translation
of foreign operations
247 -381
Comprehensi
ve income
5,510 2,544
Earnings per share in 3 0.45 0.25
No. of shares used as basis 11,759,486 11,727,142
Earnings per share, diluted, in 3 0.45 0.25
No. of shares used as basis, diluted 11,812,079 11,767,479

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

for the Period from January 1 to June 30, 2014 of STRATEC Biomedical AG

in v thousands 01.01.-06.30.2014 01.01.-06.30.20131
Sales 69,050 60,071
Cost of sales -46,466 -40,574
Gross profit 22,584 19,497
Research and development expenses -2,947 -2,010
Information only: Total research and development expenses -10,627 -9,945
Information only: Capitalized research and development
expenses
7,680 7,935
Sales-related expenses -2,997 -4,270
General administrative expenses -5,810 -4,672
Other operating expenses -556 -288
EBIT 10,274 8,257
Net financial expenses -79 -169
Earnings before taxes (EBT) 10,195 8,088
Current tax expenses -969 -479
Deferred tax expenses -302 -1,066
Consolidated net income 8,924 6,543
Items that may be subsequently
reclassified to profit or loss
Currency translation differences from translation
of foreign operations
401 -407
Comprehensi
ve income
9,325 6,136
Earnings per share in 3 0.76 0.56
No. of shares used as basis 11,758,754 11,726,332
Earnings per share, diluted, in 3 0.76 0.56
No. of shares used as basis, diluted 11,803,859 11,771,823

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the Period from January 1 to June 30, 2013 of STRATEC Biomedical AG

Share
capital
Capital
reserve
11,738 16,247
10 184
88
4
11,748 16,523

1 Previous year's figures adjusted in line with the information provided in the notes to the consolidated financial statements in the 2013 Annual Report (A. General disclosures).

for the Period from January 1 to June 30, 2014 of STRATEC Biomedical AG

in v thousands Share
capital
Capital
reserve
Balance at 01.01.2014 11,770 17,219
Equity transactions with owners
Dividend payment
Issue of subscription shares from stock option programs,
less costs of capital issue after taxes
21 544
Allocations due to stock option plans 156
Total comprehensive income
Balance at 06.30.2014 11,791 17,919
Other equity Revenue reserves
Group
equity
Currency
translation
Pension
plans
Treasury
stock
Free
revenue
reserves
Accumulated
net income
87,542 1,033 -32 -212 19,392 39,376
-6,567 -6,567
194
88
6,136 -407 6,543
90 86
87,483 626 -32 -212 19,392 39,438
Other equity Revenue reserves
Group
equity
Currency
translation
Pension
plans
Treasury
stock
Free
revenue
reserves
Accumulated
net income
97,179 654 -18 -212 19,392 48,374
-7,055 -7,055
565
156
9,325 401 8,924
100,170 1,055 -18 -212 19,392 50,243

CONSOLIDATED CASH FLOW STATEMENT

for the Period from January 1 to June 30, 2014 of STRATEC Biomedical AG

in v thousands 01.01.-06.30.2014 01.01.-06.30.20131
Consolidated net income (after taxes) 8,924 6,543
Depreciation and amortization 3,588 2,909
Current income tax expenses 969 479
Income taxes paid less income taxes received -2,774 -2,370
Financial income -61 -69
Financial expenses 100 238
Interest paid -97 -231
Interest received 61 42
Other non-cash expenses 218 251
Other non-cash income -584 -293
Cash flow 10,344 7,499
Change in deferred taxes through profit or loss 302 1,066
Profit on disposals of non-current assets -1 -6
Decrease in inventories, trade receivables and other assets 2,339 4,219
Increase in trade payables and other liabilities 4,077 728
Inflow of funds from operating activities 17,061 13,506
Incoming payments from disposals of non-current assets
Property, plant and equipment 1 6
Outgoing payments for investments in non-current assets
Intangible assets -3,048 -4,378
Property, plant and equipment -858 -1,249
Outgoing payments for acquisitions of consolidated companies 0 -127
Outflow of funds for investing activities -3,905 -5,748
Outgoing payments for repayment of financial liabilities -747 -288
Incoming payments for issues of shares
for employee stock option programs
565 194
Dividend payment -7,055 -6,567
Outflow of funds for financing activities -7,237 -6,661
Cash-effective change in cash and cash equivalents 5,919 1,097
Cash and cash equivalents at start of period 20,734 13,209
Change in scope of consolidation 0 84
Impact of exchange rate movements 494 -258
Cash and cash equivalents at end of period 27,147 14,132

NOTES TO THE GROUP INTERIM REPORT

for the period from January 1 to June 30, 2014 of STRATEC Biomedical AG

Summary of principal accounting and valuation methods

The consolidated financial statements of STRATEC Biomedical AG as of December 31, 2013 were prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU valid at the balance sheet date. In the interim report as of June 30, 2014, which has been prepared on the basis of International Accounting Standard (IAS) 34 "Interim Financial Reporting", application has been made of the same accounting methods as in the consolidated financial statements for the 2013 financial year.

Application has also been made of all interpretations of the International Financial Reporting Interpretations Committee (IFRIC) with binding effect as of June 30, 2014.

There were no indications of any potential impairment in goodwill at the balance sheet date.

The company's interim reports are neither audited, nor subject to an audit review, by the group auditor, WirtschaftsTreuhand GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft, Stuttgart.

Reference is made to the consolidated financial statements of STRATEC Biomedical AG as of December 31, 2013 with regard to further information concerning the individual accounting and valuation methods applied.

The Group's currency is the euro. Unless otherwise indicated, all amounts have been stated in thousand euros (1thousand).

Adjustment to previous year's figures pursuant to IAS 8

At the end of the 2013 financial year, the accounting methods used to recognize projects were voluntarily adjusted in order to implement recommendations made by the German Financial Reporting Enforcement Panel (DPR). Moreover, the presentation of shareholders' equity and of the statement of changes in equity were also voluntarily amended and errors were corrected. Further details and a presentation of the overall implications can be found on Pages 48 to 53 of our consolidated financial statements as of December 31, 2013. To ensure comparability, the figures reported for January 1, 2013 and for the period from January 1, 2013 to June 30, 2013 have been adjusted accordingly.

Segment disclosures

There have been no changes in segmentation compared with the consolidated financial statements as of December 31, 2013.

Segment data by operating segment for the period from January 1 to June 30, 2014

in v thousands Instrumen
tation
All other
segments
Recon
ciliation
Total
Sales 71,258 3,537 -5,745 69,050
EBIT 10,289 43 -58 10,274
Assets 135,357 6,678 -17,043 124,992

Segment data by operating segment for the period from January 1 to June 30, 2013

in v thousands Instrumen
tation
All other
segments
Recon
ciliation
Total
Sales 62,167 2,071 -4,167 60,071
EBIT 8,978 -453 -437 8,088
Assets 126,441 4,345 -21,860 108,926

The breakdown of sales by geographical region represents the distribution of the STRATEC Group's products. As the customers of the STRATEC Group generally supply their country outlets and customers from their own central distribution centers, however, this breakdown of sales does not represent the geographical distribution of the final operating locations of the STRATEC Group's analyzer systems.

in v thousands Germany EU Other Total
January – June 2014 8,361 29,187 31,502 69,050
12.1 % 45.6 % 42.3 % 100.0 %
in v thousands Germany EU Other Total
January – June 2013 10,203 26,376 23,492 60,071
17.0 % 43.9 % 39.1 % 100.0 %

Sales can be broken down by geographical regions (customer locations) as follows:

Research and development expenses

Research and development expenses not fulfilling the capitalization criteria set out in IAS 38 (Intangible Assets) amounted to 12.9 million in the first six months of the 2014 financial year (previous year: 12.0 million) and mainly involve personnel and material expenses. The STRATEC Group invested a total of 110.6 million in research and development in the first six months of the 2014 financial year (previous year: 19.9 million).

Shareholders' equity

The development in shareholders' equity at the STRATEC Group has been presented in the consolidated statement of changes in equity on Pages 15 and 16.

The number of ordinary shares with a nominal value of 11.00 each issued by STRATEC AG as of June 30, 2014, amounts to 11,790,945. These are all bearer shares.

Disclosures on the volume of treasury stock and on subscription rights held by members of the company's executive and supervisory bodies and its employees pursuant to § 160 (1) Nos. 2 and 5 of the German Stock Corporation Act (AktG)

STRATEC AG owned a total of 12,223 treasury stock at the interim balance sheet date. This corresponds to a prorated amount of 112,223.00 of the company's share capital and to a 0.10 % share of its equity.

Stock option programs

Members of the Board of Management / Managing Directors and employees held the following numbers of subscription rights (share option rights) at the interim balance sheet date:

Board of
Management
/
Managing Directors
Employees Total
Outstanding on 01.01.2014 148,500 92,100 240,600
Issued 40,000 9,050 49,050
Exercised 15,000 5,700 20,700
Lapsed 0 0 0
Forfeited 0 0 0
Outstanding on 06.30.2014 173,500 95,450 268,950

Of the stock options granted in the first six months, 40,000 (previous year: 0) were granted to members of the Board of Management (previous year: 0), as in the previous year 0 to managing directors of subsidiaries, and 9,050 (previous year: 23,550) to employees.

Furthermore, members of the Board of Management exercised 15,000 stock option rights in the first six months (previous year: 0). As in the previous year, managing directors of subsidiaries did not exercise any stock option rights in this period. Employees exercised 5,700 stock option rights (previous year: 10,000). To service the stock option rights exercised, a total of 20,700 shares were created from conditional capital (previous year: 10,000).

As in the previous year, no stock option rights lapsed in the period under report.

Furthermore, no stock options rights were forfeited for managing directors or employees (previous year: 2,000 for each category).

Employees

Including temporary employees the STRATEC Group had a total workforce of 546 employees as of June 30, 2014 (previous year: 543).

Major events after the interim reporting date

No events of particular significance with material implications for the business performance of our Group have occurred since the interim balance sheet date.

Responsibility statement

To the best of our knowledge, and in accordance with the applicable reporting principles for interim financial reporting, the interim consolidated financial statements give a true and fair view of the assets, liabilities, financial position and profit or loss of the Group, and the interim management report of the Group 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 in the remainder of the financial year.

ADDITIONAL INFORMATION

FINANCIAL CALENDAR

July 23, 2014 Interim Report as of June 30, 2014
October 22, 2014 Interim Report as of September 30, 2014
German Equity Forum, Frankfurt / Main, Germany
November 2014 – Analysts' conference –

Furthermore, based on current planning, STRATEC will be taking part in the following capital market conferences in 2014:

September 2014 11th Annual Goldman Sachs European Medtech and
Healthcare Services Conference, London, UK
Berenberg Bank & Goldman Sachs
German Corporate Conference, Munich, Germany
November 2014 HSBC Healthcare Day 2014, Frankfurt /Main, Germany
Jefferies 2014 Global Healthcare Conference, London, UK
December 2014 Berenberg Bank European Conference, Pennyhill Park, UK

Partially incomplete/subject to amendment

ABOUT STRATEC

STRATEC Biomedical AG designs and manufactures fully automated analyzer systems for its partners in the fields of clinical diagnostics and biotechnology. These partners market such systems, in general together with their own reagents, as system solutions to laboratories, blood banks and research institutes around the world. The company develops its products on the basis of its own patented technologies.

Shares in the company (ISIN: DE0007289001) are traded in the Prime Standard segment of the Frankfurt Stock Exchange and are listed in the TecDAX select index of the German Stock Exchange.

Further information about STRATEC is available on the internet at www.stratec.com.

IMPRINT

Published by

STRATEC Biomedical AG Gewerbestr. 37 75217 Birkenfeld Germany

Investor Relations

Andreas Künzel Phone: +49 7082 7916-185 Fax: +49 7082 7916-999 [email protected]

Phone: +49 7082 7916-0 Fax: +49 7082 7916-999 [email protected] www.stratec.com

Corporate Communications

Andre Loy Phone: +49 7082 7916-190 Fax: +49 7082 7916-999 [email protected]

NOTICE

Forward-looking statements involve risks: This interim report contains various statements concerning the future performance of STRATEC. These statements are based on both assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, we can provide no guarantee of this. This is because our assumptions involve risks and uncertainties which could result in a substantial divergence between actual results and those expected. It is not planned to update these forward-looking statements.

This interim report contains various disclosures of an economic nature that do not form part of the relevant accounting requirements. These disclosures are to be viewed as a supplement to, rather than as a substitute for the disclosures made in accordance with IFRS.

Discrepancies may arise throughout this interim report on account of mathematical rounding up or down in the course of addition.

This interim report is also available in German.

STRATEC Biomedical AG

Gewerbestr. 37 75217 Birkenfeld Germany

Phone: +49 7082 7916-0 Fax: +49 7082 7916-999

[email protected] www.stratec.com

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