Eckert & Ziegler Strahlen- und Medizintechnik AG

Quarterly Report • Nov 8, 2013

2013

Quarterly Report III

Key data Eckert & Ziegler

		01–09/2013	01–09/2012	Change
Sales	€ million	86.1	87.7	–2%
Return on revenue before tax	%	12%	14%	–14%
EBITDA	€ million	16.5	19.7	–16%
EBIT	€ million	11.4	14.0	–19%
EBT	€ million	10.6	12.5	–15%
Net income before other shareholder's interest	€ million	7.0	7.8	–10%
Profit	€ million	6.2	7.1	–12%
Earnings per share (basic)	€	1.18	1.34	–12%
Operational cash flow	€ million	7.0	14.1	–50%
Depreciation and amortization on non-current assets	€ million	5.1	5.7	–11%
Staff as end of period	Persons	637	610	4%

Milestones

Chinese-German Pharma Development Joint Venture

Eckert & Ziegler Radiopharma GmbH acquires a minority interest in OctreoPharm Sciences GmbH, a company specialized in radiopharmaceuticals for nuclear medicine, developing medicinal products for the diagnosis of neuroendocrine tumors.

Certificate of recognition for "good corporate citizen"

The American subsidiary Eckert & Ziegler Isotope Products Inc. receives a certificate of recognition as "good corporate citizen" for the year 20012 from the Sanitation Districts of Los Angeles County for complying consistently with all their industrial wastewater discharge requirements.

Acquiring an American cancer specialist

Eckert & Ziegler BEBIG acquires the prostate cancer implants business of the American company Biocompatibles Inc., the fourth largest provider of such products in the United States. The North American market is the largest single market for medical technology and offers excellent growth opportunities.

Market Entrance in Brazil

Eckert & Ziegler BEBIG has entered the Brazilian medical device market with its state-of-the-art MultiSource® system for the treatment of cancer. Brachytherapy in Brazil is mainly used for gynaecological treatments.

Business development of the Eckert & Ziegler Group

BACK ON GROWTH COURSE

The positive trend set in the summer continued in the third quarter. Sales rose by 7% against the second quarter of 2013 and by 3% against the third quarter of 2012. EBIT was also up by 1% and 13% respectively.

This therefore further reduced the sales and earnings gap that arose from the unusually weak first quarter of 2013. At € 86.1 million, sales for the first nine months of the year are down only 2% year on year. Adjusted for sales increases and decreases from acquisitions and divestments as well as exchange rate effects, the Group saw an organic sales decrease of 3%.

The steepest drop in sales was reported by the Radiation Therapy segment. This was primarily the result of the partial cessation of the low-margin business with accessories in France. The prostate implant product category saw sales stabilize and the number of patient doses sold increase following price drops in the second half of 2012. Sales of tumor irradiation equipment are still down year on year, despite a considerable rise in the number sold since March. A large number of deliveries are expected in the fourth quarter, which will eliminate the backlog. Sales in the largest segment, Isotope Products are only down minimally year on year; however, the number of low-margin products sold rose, while sales of relatively high-margin radiation sources fell. The Radiopharma and Environmental Services segments both reported sales growth following acquisitions made in mid-2013.

At € 11.4 million, EBIT in the first nine months of 2013 is down € 2.6 million, or 19%, year on year. The Isotope Products segment's EBIT declined by € 0.4 million due to the above-mentioned changes in the product mix. EBIT for the Radiation Therapy segment rose by € 0.1 million; however, this also includes extraordinary income from an outof-court settlement with Core Oncology. The Radiopharma segment saw EBIT fall by € 1.0 million. The additional income from the most recent acquisition in Austria was not enough to offset declines in the device business resulting from the difficult market environment. Segment management's hopes are now pinned on a series of new product launches explained in the Research & development section. In the Environmental Services segment, governmental price increases for a key disposal channel resulted in an adjustment in provisions for environmental restoration in the first quarter, the result being that EBIT has now fallen by € 0.9 million.

Profits after taxes and minority interests in the first nine months of 2013 amounted to € 6.2 million, or € 1.18 per share, down 12% year on year. However, this drop is less than the fall in EBIT due to lower interest payments and a decline in the tax rate.

LIQUIDITY

Liquidity increased by € 6.3 million in the third quarter of 2013 to € 27.9 million; this was due to net working capital remaining constant while profit for the period was high, as well as to a loan taken out to purchase the brachytherapy business of Biocompatibles Inc.

At € 15.5 million, gross cash flow – calculated from profit for the period adjusted for non-cash effects – was up 9% year on year. Net working capital rose by a total of € 8.5 million due to the decrease in liabilities and the increase in inventories; during the third quarter of 2012, net working capital only climbed by € 0.2 million. Overall, cash flow from operating activities fell by 50% to € 7.0 million.

Investments soared from € 5.1 million to € 8.7 million due to the construction of a contrast medium factory in Poland as well as acquisitions in the Isotope Products and Radiopharma segments, including the acquisition of shares reported in the cash flow statement under financing activities.

Loan liabilities financing increased in net terms by € 2.4 million. The loans taken out for investments in Poland as well as for the purchase price for Biocompatibles – that had not yet been paid as of the reporting date – more than offset repayments on other loans.

BALANCE

The balance sheet at the end of September 2013 changed as follows as against that of the annual financial statements for 2012: Two material effects from the cash flow statement resulted in a slight rise in total assets. On the asset side, the increase was most evident in inventories, which were augmented by € 2.9 million in anticipation of rising sales in the fourth quarter. On the liabilities side, short- and long-term loans increased by a total of € 2.5 million. Equity only rose by a slight € 0.3 million; this resulted in the equity ratio slipping from 53% to 52%.

RESEARCH & DEVELOPMENT

The Radiopharma segment's newly developed "Modular Lab eazy" is a cost-effective synthesis device. It was unveiled at the Annual Congress of the European Association of Nuclear Medicine (EANM) in Lyon, where it was met with avid interest. The system enables fully-automated synthesis with 68Gallium, both in routine production and in research, and also works with our newly developed, easy-to-use cassettes.

In the Radiation Therapy segment, an applicator for the MultiSource® cancer irradiation equipment secured CE approval. Applicators connect the cancer irradiation equipment to the patient. The new universal applicator was developed for gynecological applications and enables the radioactive source to be placed with much more precision.

EMPLOYEES

The Eckert & Ziegler Group had a total of 637 employees worldwide as of September 30, 2013, 413 of whom worked in Germany. The number of employees was therefore up 26 against the end of 2012, primarily due to acquisitions in the Radiopharma and Environmental Services segments.

OUTLOOK

Sales are expected to amount to approx. € 125 million in fiscal year 2013. The Isotope Products segments is forecasted to continue to post stable earnings, while the Radiation Therapy and Radiopharma segments are likely to generate higher profits due to increases in device sales. Combined with the balanced income from the Environmental Services segment and the Holding segment, the annual profit for 2013 will remain on par with 2012 at € 10.3 million or € 1.95 per share.

The recently concluded budget planning for 2014 and 2015 provides for sales to increase to € 140 million and € 150 million respectively and for earnings after taxes and minority interests to rise to € 2.20 and € 2.50 per share respectively. These amounts had previously been expected for 2013 and 2014. This budget therefore defers earnings expectations by one year. The decline in earnings in 2013 is primarily due to start-up losses from the takeover of Biocompatibles, rising disposal costs, and lower sales from high-margin radiation sources. Expectations from the most recent planning for subsequent years have been revised accordingly.

in € thousand	Quarterly Report III 07–09/2013	Quarterly Report III 07–09/2012	9-monthly Report 01–09/2013	9-monthly Report 01–09/2012
Revenues	30,822	29,852	86,129	87,740
Cost of sales	– 14,535	– 14,373	– 42,293	– 40,922
Gross profit on sales	16,287	15,479	43,836	46,818
Selling expenses	– 5,248	– 5,061	– 15,138	– 15,130
General and administrative expenses	– 5,859	– 5,596	– 16,976	– 15,987
Research and non-capitalized development expenses	– 877	– 796	– 2,837	– 2,321
Other operating income	442	2,804	3,123	6,216
Other operating expenses	– 104	– 2,730	– 386	– 5,566
Profit from operations	4,641	4,100	11,622	14,030
Other financial results	– 101	– 99	– 190	– 1
Earnings before interest and taxes (EBIT)	4,540	4,001	11,432	14,029
Interest received	77	68	252	133
Interest paid	– 494	– 561	– 1,080	– 1,653
Profit before tax	4,123	3,508	10,604	12,509
Income tax expense	– 1,604	– 1,562	– 3,616	– 4,703
Net income	2,519	1,946	6,988	7,806
Profit/loss attributable to minority interests	– 259	– 300	– 749	– 715
Dividend to shareholders of Eckert & Ziegler AG	2,260	1,646	6,239	7,091
Earnings per share
Basic (EUR per share)	0.43	0.31	1.18	1.34
Diluted (EUR per share)	0.43	0.31	1.18	1.34
Average number of shares in circulation (basic) (in thousand items)	5,288	5,288	5,288	5,288
Average number of shares in circulation (diluted) (in thousand items)	5,288	5,288	5,288	5,288

GROUP STATEMENT OF INCOME

GROUP STATEMENT OF COMPREHENSIVE INCOME
in € thousand	Quarterly Report III 07–09/2013	Quarterly Report III 07–09/2012	9-monthly Report 01–09/2013	9-monthly Report 01–09/2012
Profit for the period	2,519	1,946	6,988	7,806
Of which attributable to other
shareholders	259	300	749	715
Of which attributable to shareholders of Eckert & Ziegler AG	2,260	1,646	6,239	7,091
Adjustment to fair value of available
for-sale financial assets	0	0	0	0
Amount reposted to income statement	0	0	0	0
Profit tax	0	0	0	0
Adjustment of amount recorded in shareholders' equity (Financial assets available-for-sale)	0	0	0	0
Change in the actuarial profits (+)/ losses (–) from performance-oriented
pension commitments Income taxes	0 0	0 0	0 0	0 0
Change in the amount entered in the shareholders' equity
(actuarial profits (+)/losses (–))	0	0	0	0
Adjustment of balancing item from the currency translation of foreign
subsidiaries	– 443	– 348	– 812	406
Amount reposted to income statement	0	0	0	0
Adjustment of amount recorded in shareholders' equity (Currency translation)	– 443	– 348	– 812	406
Total of value adjustments recorded in shareholders' equity	– 443	– 348	– 812	406
Of which attributable to other shareholders	– 33	12	– 13	21
Of which attributable to shareholders of Eckert & Ziegler	– 410	– 360	– 799	385
Total from net income and value adjustments recorded in shareholders'
equity Of which attributable to other	2,076	1,598	6,176	8,212
shareholders	226	312	736	736
Of which attributable to shareholders of Eckert & Ziegler AG	1,850	1,286	5,440	7,476

GROUP STATEMENT OF CASH FLOW
	Quarterly Report III 01.01.2013	Quarterly Report III 01.01.2012
in € thousand	– 30.09.2013	– 30.09.2012
Cash flows from operating activities:
Profit for the period	6,987	7,807
Adjustments for:
Depreciation and value impairments	5,087	5,707
Non-cash release of deferred income from grants	– 40	– 96
Change in the non-current provisions, other non-current liabilities	1,235	– 989
Gains (–)/losses on the disposal of non-current assets	41	– 7
Change in other non-current assets and receivables	781	–
Miscellaneous	1,420	1,839
Changes in current assets and liabilities:
Receivables	– 707	– 2,065
Inventories	– 3,016	– 1,004
Accruals, other current assets	272	– 42
Change in the current liabilities and provisions	– 5,077	2,913
Cash outflows /inflows generated from operating activities	6,983	14,063
Cash flows from investing activities:
Purchase (–)/sale of non-current assets	– 6,041	– 5,126
Acquisitions of consolidated enterprises	– 1,808	– 19
Cash outflows from investing activities	– 7,849	– 5,145
Cash flows from financing activities:
Paid dividends	– 3,173	– 3,173
Distribution of shares of third parties	– 218	– 585
Change in long-term borrowing	– 1,721	– 2,595
Change in short-term borrowing	4,099	– 1,476
Aquisition of shares of consolidated companies	– 850	–
Cash outflows from financing activities	– 1,863	– 7,829
Effect of exchange rates on cash and cash equivalents	– 197	115
Increase/reduction in cash and cash equivalents	– 2,926	1,204
Cash and cash equivalents at beginning of period	30,842	32,304
Cash and cash equivalents at end of period	27,916	33,508

GROUP BALANCE SHEET
	September 30,	December 31,
in € thousand	2013	2012
Assets
Non-current assets
Goodwill	30,897	31,122
Other intangible assets	16,177	14,697
Property, plant and equipment	31,552	31,158
Trade accounts receivable	1,105	1,886
Deferred tax	8,809	9,104
Other non-current assets	3,340	4,027
Total non-current assets	91,880	91,994
Current assets
Cash and cash equivalents	27,916	30,842
Securities	22	22
Trade accounts receivable	20,874	20,115
Inventories	18,360	15,466
Other current assets	7,333	6,005
Total current assets	74,505	72,450
Total assets	166,385	164,444
Equity and liabilities
Capital and reserves
Subscribed capital	5,293	5,293
Capital reserves	53,500	53,500
Retained earnings	26,006	25,257
Other reserves	– 4,095	– 3,296
Own shares	– 27	– 27
Portion of equity attributable to the shareholders of Eckert & Ziegler AG Minority interests	80,677 6,594	80,727 6,243
Total shareholders' equity	87,271	86,970
Non-current liabilities
Long-term borrowings and finance lease obligations	8,409	9,773
Deferred income from grants and other deferred income	913	954
Deferred tax	1,315	1,521
Retirement benefit obligations	8,992	8,863
Other provisions	22,670	20,627
Other non-current liabilities	2,369	1,345
Total non-current liabilities	44,668	43,083
Current liabilities
Short-term borrowings and finance lease obligations	9,503	5,673
Trade accounts payable	5,324	7,454
Advance payments received	761	2,344
Deferred income from grants and other deferred income	92	92
Current tax payable	4,581	2,075
Other current liabilities	14,185	16,753
Total current liabilities	34,446	34,391
Total equity and liabilities	166,385	164,444

STATEMENTS OF SHAREHOLDERS' EQUITY

	bsc be Su i r	d c l ita ap			lat Cu mu	he ive ot r e q u	ity ite ms
	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 to s re ho l de ' rs ity eq u	M ino ity r ha s 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 20 12 1, o nu ary	29 2, 9 8 3 5,	29 3 5,	3, 0 0 5 5	18 12 5 ,	2	– 4 17	26 9 – 1 ,	– 2 7	20 75 7 ,	6 8 9 5,	8 0, 8 9 6
Fo ig lat ion tra re n c urr en cy ns f fe d i ren ce s							– 3 8 9		– 3 8 9	20	– 3 9 6
Un l ize d g ins / los by rea a ses fom ien d p ion te p er an ce or en s s ba lan he da et te on ce s fte f € (a ho d ) – 7 55 r ta t x o usa n						– 1 64 0 ,			– 1 64 0 ,		– 1 64 0 ,
Un l ize d g ins / los rea a ses on it ies ba lan he da at et te sec ur ce s (a fte f € ho d ) – 1 r ta t x o usa n					2				2		2
l o f u l d Re ize ve rsa nre a / los ba lan ins iou at g a ses p rev s ce he da et te s					– 2	41 7			41 5		41 5
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	– 1 22 3 ,	– 3 8 9	0	– 1 61 2 ,	20	– 1 5 9 2 ,
f it for he Ne t p t ro ea r y				10 29 3 ,					10 29 3 ,	1, 47 2	11 76 5 ,
l for he d To inc io ta t om e p er	0	0	0	10 29 3 ,	0	– 1 22 3 ,	– 3 8 9	0	8, 6 81	1, 49 2	10 17 3 ,
de ds d D iv i i n p a				– 3 3 17 ,					– 3 3 17 ,	13 – 7	– 3 8 8 6 ,
ha le o f m Pu ino ity rc se or sa r int sts ere				12					12	– 2 25	– 2 13
f As De be r 3 1, 20 12 o ce m	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

STATEMENTS OF SHAREHOLDERS' EQUITY

	bsc be d c l Su i ita r ap				lat he Cu ive ity ite ot mu r e q u ms
	Nu be m r P iec e	No ina l m lue va hs d. € t	Ca ita l p res erv e hs d. € t	Re ine d ta res erv es hs d. € t	Un l ize d rea f it p ro it ies sec ur hs d. € t	l d Un ize rea f it p ro ion p en s it co mm nts me hs d. € t	Fo ig re n cu rre nc y ha ex c ng e f fe d i ren ce s hs d. € t	Ow n ha s res hs d. € t	Eq ity u i bu b le att ta r ha to s re ho l de ' rs ity eq u hs d. € t	M ino ity r ha s res hs d. € t	Gr ou p ha s re ho l de ' rs ity eq u hs d. € t
As f Ja 1, 20 13 o nu ary	5, 29 2, 9 8 3	5, 2 9 3	5 3, 5 0 0	2 5, 2 5 7	2	1, 6 4 0 –	1, 6 5 8 –	2 7 –	8 0, 7 2 7	6, 2 4 3	8 6, 9 7 0
Fo ig lat ion tra re n c urr en cy ns f fe d i ren ce s							7 9 9 –		7 9 9 –	1 3 –	8 1 2 –
Un l ize d g ins / los by rea a ses fom ien d p ion te p er an ce or en s s ba lan he da et te on ce s (a fte f € ho d ) –7 55 r ta t x o usa n						1, 6 4 0 –			1, 6 4 0 –		1, 6 4 0 –
l d g / los Un ize ins rea a ses on ba lan he da it ies at et te sec ur ce s (a fte f € ho d ) – 1 r ta t x o usa n					2				2		2
l o f u l d g Re ize ins / ve rsa nre a a los ba lan he da iou at et te ses p rev s ce s					2 –	6 0 1, 4			6 3 8 1,		6 3 8 1,
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	9 9 7 –	0	9 9 7 –	3 1 –	8 2 1 –
f it for he Ne t p t ro ea r y				6, 2 3 9					6, 2 3 9	9 7 4	6, 9 8 8
l for he d To inc io ta t om e p er	0	0	0	6, 2 3 9	0	0	7 9 9 –	0	5, 4 4 0	7 3 6	6, 1 7 6
de ds d D iv i i n p a				3, 1 7 3 –					3, 1 7 3 –	2 1 8 –	3, 3 9 1 –
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
k o Sto ion t c p ex p en se s									0		0
ha le o f n l l Pu ing ntr rc se or sa on -co o int sts ere				2, 3 1 7 –					2, 3 1 7 –	6 1 7 –	2, 8 4 4 –
f be As Se r 3 0, 20 13 tem o p	5, 2 9 2, 9 8 3	5, 2 9 3	5 3, 5 0 0	2 6, 0 0 6	2	1, 6 4 0 –	2, 4 5 7 –	2 7 –	8 0, 6 7 7	6, 5 9 4	8 7, 2 7 1

SEGMENTAL REPORT

	Iso top e	Pro du Ra d iat ion T he cts rap y				En iro l ta v nm en Ra d iop ha Se ice rm a rv s			Ot he rs		E l im	ina ion t	To l ta
	/ 01 –0 9	/ 01 –0 9	/ 01 –0 9	/ 01 –0 9	/ 01 –0 9	/ 01 –0 9	/ 01 –0 9	/ 01 –0 9	/ 01 –0 9	/ 01 –0 9	/ 01 –0 9	/ 01 –0 9	/ 01 –0 9	/ 01 –0 9
in ho d € t usa n	20 13	20 12	20 13	20 12	20 13	20 12	20 13	20 12	20 13	20 12	20 13	20 12	20 13	20 12
Sa les l cu to ter sto ex na me rs	41 3 0 8 ,	41 45 9 ,	18 97 8 ,	21 81 4 ,	21 12 4 ,	19 9 0 2 ,	4, 71 0	4, 55 7	9	8	0	0	8 6, 12 9	87 74 0 ,
Sa les he to ot nts r se g me	2, 77 3	3, 41 1	45	11	9 2	6 9	51 6	54 3	2, 3 85	2, 21 7	– 5 81 2 ,	– 6 25 1 ,	0	0
l se les To ta nt g me sa	44 0 81 ,	44 87 0 ,	19 0 23 ,	21 8 25 ,	21 21 6 ,	19 97 1 ,	5, 22 6	5, 10 0	2, 3 94	2, 22 5	– 5 81 2 ,	– 6 25 1 ,	8 6, 12 9	87 74 0 ,
f it be for Se nt g me p ro e
d p f it ( ) int E B I T st a tax ere n ro es	12 20 1 ,	12 5 8 6 ,	1, 97 5	1, 9 0 0	1, 19 1	2, 23 1	– 2 22 0 ,	– 1 3 04 ,	1, 71 5 –	– 1 3 84 ,	0	0	11 43 2 ,	14 0 29 ,
d d r Int itu st e ere xp en res an ev en ue s	– 1 0 2	– 2 14	– 3 9 0	– 4 44	– 8 8 0	– 7 6 2	– 4 2	7	5 8 6	– 1 07	0	0	– 8 28	– 1 5 20 ,
Inc e t om ax ex p en se	– 3 81 2 ,	– 3 8 6 8 ,	– 7 35	– 7 29	– 2 3 6	– 4 45	70 5	– 2	46 2	34 1	0	0	– 3 61 6 ,	– 4 70 3 ,
f it be for Pro ino ity int sts e m r ere	8, 28 7	8, 04 5	85 0	72 7	75	0 24 1,	– 1 55 7 ,	29 9 – 1 ,	– 6 67	0 – 1 15 ,	0	0	6, 9 8 8	8 0 6 7,

SEGMENTAL REPORT

							l En iro ta v nm en
	Iso top e	du Pro cts	d Ra iat ion	he T rap y	d Ra	ha iop Se rm a rv		ice Ot s		he To rs		l ta
in ho d € t usa n	/ 01 –0 9 20 13	/ 01 –0 9 20 12	/ 01 –0 9 20 13	/ 01 –0 9 20 12	/ 01 –0 9 20 13	/ 01 –0 9 20 12	/ 01 –0 9 20 13	/ 01 –0 9 20 12	/ 01 –0 9 20 13	/ 01 –0 9 20 12	/ 01 –0 9 20 13	/ 01 –0 9 20 12
Se l as nta set g me s	95 21 2 ,	9 9, 94 8	5 3, 0 28	46 87 1 ,	29 0 6 3 ,	26 12 6 ,	–*	–*	9 3, 5 3 8	97 8 95 ,	27 0, 84 1	27 0, 84 0
E l im ina ion f int l s ha t nta o er- seg me res , ity inv d r iva b les est nts eq u me an ec e											– 1 04 45 6 ,	– 1 12 8 9 2 ,
Co l da d t l as i te ota set nso s											16 6, 3 85	15 7, 94 8
Se l l b l ia i it ies nta g me	– 4 1, 13 2	– 5 5, 78 6	– 2 0, 3 3 6	– 1 7, 77 8	– 2 8, 9 8 0	– 2 3, 37 0	–*	–*	– 9 84 8 ,	– 1 5, 5 6 9	– 1 0 0, 29 6	– 1 12 5 0 3 ,
l f l E im ina ion int t nta o ers eg me l b l ia i it ies											21 18 2 ,	40 57 8 ,
l da d l b l Co i ia i it ies te nso											– 7 9, 11 4	– 7 1, 9 25
ho Inv (w it is it ion ) est nts ut me acq s u	1, 18 0	1, 12 3	1, 49 0	8 67	3, 15 7	1, 95 3	–*	–*	21 4	1, 18 3	6, 04 1	5, 12 6
De iat ion p rec	3 6 – 1 5 ,	3 – 1 77 ,	8 24 – 1 ,	94 – 1 1 ,	– 9 8 3	25 – 1 5 ,	– 3 9 8	– 2 57	– 3 46	– 2 11	0 87 – 5 ,	70 – 5 7 ,
No h inc /e n-c as om e xp en ses	– 2 22 1 ,	– 9 2	35 9 1, –	40	– 2	– 3 70	–*	–*	14 5	– 3 25	– 3 43 7 ,	– 7 47

* In internal reporting, the asset and liability items of the Environmental Services segment are still shown in the Isotope Products segment.

For this reason, the numbers are shown in the same way in the segment reporting.

SALES BY REGIONS
	01–09/2013		01–09/2012
	€ million	%	€ million	%
Europe	50.8	59	50.0	57
North America	25.2	29	24.7	28
Asia /Pacific	7.6	9	9.5	11
Others	2.5	3	3.5	4
Total	86.1	100	87.7	100

Notes to the interim financial statements

1. GENERAL INFORMATION

These unaudited interim financial statements as of September 30, 2013 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 2012, the consolidated financial statements (interim financial statements) of Eckert & Ziegler AG as of September 30, 2013 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 2012 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

Shares in the bioanalytical contract research institute Vitalea Science, Inc. in Davis (CA, USA) were acquired on September 10, 2012. Düsseldorf-based Chemotrade GmbH was acquired on February 15, 2013. Additional shares in a Radiopharma-segment Group company were acquired from a minority shareholder in the first quarter of 2013. EnergySolutions' disposal business in Great Britain was acquired effective June 1, 2013. Eckert & Ziegler purchased all shares in BSM Diagnostica Gesellschaft m.b.H., based in Austria, effective July 1, 2013. In July, Eckert & Ziegler acquired a minority interest in OctreoPharm Sciences GmbH.

These had a material impact on the Group's net assets and results of operations as against the first nine months of 2012, 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 Sep 30, 2013	Exchange rate on Dec 31, 2012	Average rate Jan 1 – Sep 30, 2013	Average rate Jan 1 – Sep 30, 2012
USA	USD	1.3505	1.3194	1.3149	1.2841
Czech Republic	CZK	25.7300	25.1510	25.7838	25.1315
Great Britain	GBP	0.8376	0.81610	0.8221	0.8187
Poland	PLN	4.2228	4.0740	4.2097	4.1282
Brazil	BRL	3.0214	2.7093	2.6641	2.5209

6. OWN SHARES

Eckert & Ziegler AG held 4,818 own shares as of September 30, 2013. This equates to a 0.1 % share of the Company's subscribed capital.

7. MATERIAL TRANSACTIONS WITH RELATED PARTIES

Please refer to the consolidated financial statements as of December 31, 2012 for details on material transactions with related parties.

Berlin, November 8, 2013

Dr. Andreas Eckert Dr. Edgar Löffler Dr. André Heß

Chairman of the Executive Board Member of the Executive Board Member of the Executive Board

Financial calendar

November 12, 2013	German Equity Forum in Frankfurt
March 27, 2014	Annual Report 2013
May 6, 2014	Quarterly Report I/2014
May 2014	Spring Conference Deutsche Börse in Frankfurt
May 22, 2014	Annual Shareholder Meeting in Berlin
August 14, 2014	Quarterly Report II/2014
November 6, 2014	Quarterly Report III/2014
November 2014	German Equity Forum in Frankfurt

Contact

Eckert & Ziegler Strahlen- und Medizintechnik AG

Robert-Rössle-Straße 10 13125 Berlin, Germany www.ezag.de

Karolin Riehle Investor Relations

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

Imprint

PUBLISHER Eckert & Ziegler Strahlen- und Medizintechnik AG

LAYOUT DianaDesign, Berlin

PHOTO

Eckert & Ziegler, thinkstock.com