Quarterly Report III

2 Quarterly Report 03 | Ratios

		Jan–Sep/2012	Jan–Sep/2011	Change

Sales	Million EUR	87.7	83.6	5%

Return on revenue before tax	%	14%	18%	-22%

EBITDA	Million EUR	19.7	21.7	-9%

EBIT	Million EUR	14.0	16.5	-15%

EBT	Million EUR	12.5	15.3	-18%

Net income before other shareholder´s interests	Million EUR	7.8	9.5	-18%

Profit	Million EUR	7.1	8.8	-19%

Earnings per share (basic)	EUR	1.34	1.68	-20%

Operational cash flow	Million EUR	14.1	11.1	27%

Depreciation and amortization on non-current assets	Million EUR	5.7	5.2	10%

Staff as end of period	Persons	610	575	6%

Eckert & Ziegler purchases pharmaceutical services provider, Vitalea Science Inc.

Eckert & Ziegler (EZIP) has entered into a definite agreement with Vitalea Science, Inc. for the purchase of all of its stock and assets through its California subsidiary, Eckert & Ziegler Isotope Products, Inc. Vitalea Science is a pioneering bioanalytical contract research organization that provides drug development services to researchers and clinicians with the support of validated Accelerator Mass Spectrometry (AMS) technology. (1), (2)

Company celebrates its 20th anniversary

Eckert & Ziegler is celebrating its 20th anniversary. In 1992, Dr. Andreas Eckert and Jürgen Ziegler founded BEBIG Isotopentechnik und Umweltdiagnostik GmbH in Berlin, which later became the nucleus for today's international Eckert & Ziegler Group. (4)

Opening of the Group's new headquarters

Eckert & Ziegler AG's new group headquarters in Berlin-Buch was inaugurated – with Berlin Economic Affairs Senator Cornelia Yzer in attendance. With 5,000 m2 of usable space, the laboratory and office building can accommodate 200 work stations. (3)

Record demand for cancer radiation equipment

The MultiSource® cancer radiation device has generated the highest level of sales since its launch. The state-of-the-art tumor radiation device was developed for all HDR brachytherapy applications, including esophageal, bronchial, skin, breast, uterus and prostate cancer. It is the only system of its kind in the world that can be used with both an Iridium-192 and a Cobalt-60 source. (5), (6)

Business development in the Eckert & Ziegler Group

Rising sales revenues and constant operating profits

Eckert & Ziegler Group experienced continued success in the third quarter of 2012. Sales revenues increased by EUR 2.0 million (+7%) to EUR 29.9 million as compared to the previous year. Profits after taxes and minority interests were EUR 1.6 million or EUR 0.31 per share, which was about EUR 0.5 million below the previous year's value. The main cause for this are the extraordinary expenses for the acquisition and incorporation of Eckert Ziegler Vitalea Inc., as well as the cost of aborting a very far advanced acquisition project, which was rejected after extensive examination.

The following can be said with respect to the nine-month period just ended, including the successful first half year, as compared to the corresponding period of the previous year:

Sales revenues grew by EUR 4.1 million (+5%). This growth is partially attributable to the more favorable exchange rate vis-à-vis the US dollar and the acquisition of the Bioscan instrument line in the third quarter of 2011. Without these effects, the organic growth in sales revenues, adjusted for the exchange rate, was EUR 0.5 million (+1%). The shortfall in profits increased as compared to the previous year. The aforementioned extraordinary expenditure had a negative effect on EBIT, which declined by EUR 2.5 million or 15% to EUR 14.0 million. Profits after taxes and minority interests were EUR 7.1 million or EUR 1.34 per share. Thus, the difference year-on-year is EUR -1.7 million (-19%) or EUR -0.34 per share (-20%).

The Isotope Products segment made the largest contribution to the overall result. Here sales revenues with external customers rose slightly by 1% to EUR 41.5 million. The aforementioned advantageous change in the exchange rate was the strongest in this segment, so that sales revenues remained constant – to somewhat simplify. Production and sales costs developed in proportion to sales revenues. However, administrative costs increased slightly, so that EBIT for the segment declined by EUR 0.4 million or 3% to EUR 12.6 million.

The Radiation Therapy segment posted exceptionally high sales figures for the new MultiSource® cancer radiation device in the third quarter. During the nine-month period, sales revenues rose by 12% to EUR 21.8 million. However, production costs increased more sharply than sales revenues, due to changes in the product mix. Sales & marketing expenses declined slightly after the successful market launch. Overall, EBIT remained constant at EUR 1.9 million compared to the

same period the previous year. Extensive information on the Radiation Therapy segment can also be found in Eckert & Ziegler BEBIG s.a.'s quarterly report, which is being published simultaneously (www.bebig.eu).

The Radiopharma segment has continued to grow at a moderate rate. Sales revenues increased by 4% to EUR 19.9, which is mainly due to the basis effect from the Bioscan acquisition in mid-2011. As compared to the same period of the previous year, expenditures for production and sales increased. Therefore, EBIT declined by 31% to EUR 2.2 million.

The strongest growth was posted by the Environmental Services segment. Sales revenues from external customers rose by 13% to EUR 4.6 million. As in the second quarter, provisions for the removal of old waste were also adjusted in the third quarter. This resulted in extraordinary expenditures, such that EBIT now shows a loss of EUR -1.3 million.

There was a positive effect in the Miscellaneous segment, which contains the holding company's expenses and the income from cost allocations. Losses here were significantly reduced from EUR -2.0 to EUR -1.4 million.

Liquidity

The cash flow statement shows a gross cash flow of EUR 14.3 million for the nine-month period in 2012 (cash inflow from operating activities before the change in current assets and liabilities). Thus the gross cash flow is 14% below the previous year's value of EUR 16.6 million. The decline resulted from the 18% drop in results for the period as compared to the previous year.

The increase in receivables and inventories was lower compared to the previous year. Net current assets remained nearly constant as compared to the start of the year. Thus the majority of the gross cash flow entered into operating cash flow, which reached EUR 14.1 million, which was 27% higher than the previous year.

Investments fell by 41% to EUR 5.1 million as compared to the previous year's period, since expenditures for the introduction of the uniform, group-wide ERP system declined and new construction projects were cancelled.

A dividend of EUR 0.60 per share was distributed in May 2012, as in the previous year. This resulted in an unchanged cash outflow of EUR 3.2 million. Loan repayments rose by EUR 1.7 million to EUR 4.1 million.

Together with a EUR 0.1 million upward revaluation of cash and cash equivalents due to the improved exchange rate,

liquidity increased by EUR 1.2 million to EUR 33.5 million in the period from January to September 2012. Net liquidity, i.e., cash holdings minus debts, rose by EUR 4.4 million to EUR 18.7 million.

Balance sheet

The following changes were made to balance sheet as of September 30, 2012 as compared to December 31, 2011. The balance sheet total increased from EUR 154.0 million to EUR 157.9 million. Current assets, in particular, increased on the asset side, i.e., cash, receivables, and inventories. On the other side of the balance sheet, shareholders' equity increased significantly due to profits for the period while liabilities decreased due to loan repayments. The equity ratio increased from 53% to 54%.

External sales (in Mio. EUR)

Employees

As of September 30, 2012, the Eckert & Ziegler Group had 610 employees worldwide, of which 409 were in Germany. Compared to the end of 2011, the number of employees increased by 6% (December 31, 2011: 576). The greatest increase in the number of employees was in the Isotope Products segment due to hiring at various locations and the acquisition of Vitalea Science, Inc.

Outlook

The Group anticipates sales revenues of about EUR 117 million and results of about EUR 10 million after taxes and minority interests in fiscal year 2012. For 2013, the budget plan, which has already been completed, projects a significant increase in sales revenues to EUR 125 million and an even higher increase in results after taxes and minority interests to EUR 12 million, provided that the average annual Euro/US dollar exchange rate does not rise above the current level of about 1.30.

Profit after taxes (in Mio. EUR)

Group Statement of Income	Quarterly Report QIII/2012 07–09/2012	Quarterly Report QIII/2011 07–09/2011	9-monthly Report 01–09/2012	9-monthly Report 01–09/2011
	TEUR	TEUR	TEUR	TEUR

Revenues	29,852	27,834	87,740	83,608
Cost of sales	-14,373	-11,736	-40,922	-35,559
Gross profit on sales	15,479	16,098	46,818	48,049
Selling expenses	-5,061	-4,606	-15,130	-14,045
General and administrative expenses	-5,596	-5,479	-15,987	-15,196
Research and non-capitalized
development expenses	-796	-816	-2,321	-1,995
Other operating income	2,804	-85	6,216	730
Other operating expenses	-2,730	-111	-5,566	-233
Profit from operations	4,100	5,001	14,030	17,310
Other financial results	-99	-439	-1	-822
Earnings before interest and taxes (EBIT)	4,001	4,562	14,029	16,488
Interest received	68	31	133	65
Interest paid	-561	-478	-1,653	-1,228
Profit before tax	3,508	4,115	12,509	15,325
Income tax expense	-1,562	-1,620	-4,703	-5,776
Net income	1,946	2,495	7,806	9,549

Profit/loss attributable to minority interests	-300	-313	-715	-797
Dividend to shareholders of
Eckert & Ziegler AG	1,646	2,182	7,091	8,752
Earnings per share
Basic	0,31	0,42	1,34	1,68
Diluted	0,31	0,42	1,34	1,68

Average number of shares in circulation (basic)	5,288	5,221	5,288	5,221
Average number of shares in circulation (diluted)	5,288	5,221	5,288	5,221

	Quarterly Report QIII/2012 07–09/2012	Quarterly Report QIII/2011 07–09/2011	9-monthly Report 01–09/2012	9-monthly Report 01–09/2011
Group Statement of
Comprehensive Income	TEUR	TEUR	TEUR	TEUR

Profit for the period	1,946	2,495	7,806	9,549
Of which attributable to other shareholders	300	313	715	797
Of which attributable to shareholders of Eckert & Ziegler AG	1,646	2,182	7,091	8,752

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
Adjustment of balancing item from the currency translation of foreign subsidiaries	-348	1,104	406	-277
Amount reposted to income statement	0	0	0	0
Adjustment of amount recorded in shareholders' equity
(Currency translation)	-348	1,104	406	-277
Total of value adjustments recorded in shareholders' equity	-348	1,104	406	-277
Of which attributable to other shareholders	12	-5	21	13
Of which attributable to
shareholders of Eckert & Ziegler AG	-360	1,109	385	-290
Total from net income and value adjust
ments recorded in shareholders' equity	1,598	3,599	8,212	9,272
Of which attributable to other shareholders	312	308	736	810
Of which attributable to shareholders of Eckert & Ziegler AG	1,286	3,291	7,476	8,462

Group Statement of Cash Flows	9-monthly Report 01.01.2012 – 30.09.2012	9-monthly Report 01.01.2011 – 30.09.2011
	TEUR	TEUR
Cash flows from operating activities:
Profit for the period	7,807	9,549
Adjustments for:
Depreciation and value impairments	5,707	5,175
Non-cash release of deferred income from grants	-96	150
Change in the non-current provisions, other non-current liabilities	-989	86
Gains (-)/losses on the disposal of non-current assets	-7	13
Miscellaneous	1,839	1,651
Changes in current assets and liabilities:
Receivables	-2,065	-2,940
Inventories	-1,004	-1,439
Accruals, other current assets	-42	-62
Change in the current liabilities and provisions	2,913	-1,107
Cash inflows generated from operating activities	14,063	11,076
Cash flows from investing activities:
Acquisition and sale of fixed assets	-5,126	-8,987
Acquisition of consolidated companies	-19	-
Sales of securities	-	201
Cash outflows from investment activity	-5,145	-8,786
Cash flows from financing activities:
Paid dividends	-3,173	-3,173
Distribution of shares of third parties	-585	-398
Change in long-term borrowing	-2,595	-2,006
Change in short-term borrowing	-1,476	-401
Cash outflows from financing activities	-7,829	-5,978
Effect of exchange rates on cash and cash equivalents	115	-106
Increase/reduction in cash and cash equivalents	1,204	-3,794
Cash and cash equivalents at beginning of period	32,304	29,216
Cash and cash equivalents at end of period	33,508	25,422

Group Balance Sheets	30.09.2012	31.12.2011
	TEUR	TEUR
ASSETS
Non current assets
Goodwill	31,393	31,252
Other intangible assets	14,431	13,761
Property, plant and equipment	28,947	28,889
Deferred tax	8,980	9,503
Other non-current assets	1,185	1,330
Total non-current assets	84,936	84,735
Current assets
Cash and cash equivalents	33,508	32,304
Securities	22	22
Trade accounts receivable	20,868	18,093
Inventories	15,282	14,214
Other current assets	3,332	4,674
Total current assets	73,012	69,307
Total assets	157,948	154,042
EQUITY AND LIABILITIES
Capital and reserves
Subscribed capital	5,293	5,293
Capital reserves	53,500	53,500
Retained earnings	22,716	18,798
Other reserves	-1,299	-1,684
Own shares	-27	-27
Portion of equity attributable to the shareholders of Eckert & Ziegler AG	80,183	75,880
Minority interests	5,840	5,689
Total shareholders' equity	86,023	81,569
Non-current liabilities
Long-term borrowings and finance lease obligations	10,403	12,890
Deferred income from grants and other deferred income	903	999
Deferred tax	1,539	1,813
Retirement benefit obligations	7,031	6,816
Other provisions	19,770	19,643
Other non-current liabilities	1,853	1,490
Total non current liabilities	41,499	43,651
Current liabilities
Short-term borrowings and finance lease obligations	4,401	5,099
Trade accounts payable	6,192	5,308
Advance payments received	1,776	1,324
Deferred income from grants and other deferred income	205	229
Current tax payable	2,880	2,429
Other current liabilities	14,972	14,433
Total current liabilities	30,426	28,822
Total equity and liabilities	157,948	154,042

						Cumulative other equity items
		Subscribed capital
Statements of		Nominal	Capital	Retained	Unrealized profit	Unrealized profit pension commit	Foreign currency exchange		Equity attributable to share holders'	Minority	Group share holders'
Shareholders´ Equity	Number	value	reserve	reserves	securities	ments	differences	Own shares	equity	shares	equity
		TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR	TEUR
As of January 1, 2011	5,292,983	5,293	53,874	11,729	3	1	-2,187	-401	68,312	5,293	73,605

Foreign currency translation differences							918		918	-32	886
Unrealized gains/losses by perfomance oriented pensions on balance sheet date (after tax of TEUR -181)						-417			-417		-417
Unrealized gains/losses on securities at balance sheet date (after tax of TEUR -1)					2				2		2
Reversal of unrealized gains/losses at previous balance sheet date					-3	-1			-4		-4
Total of expenditures and income directly entered in equity	0	0	0	0	-1	-418	918	0	499	-32	467
Net profit for the year				10,418					10.418	997	11,415
Total income for the period	0	0	0	10,418	-1	-418	918	0	10,917	965	11,882
Dividends paid				-3,173					-3,173	-489	-3.662
Use of own shares for exercising the option regarding SMI			-374					374	0	0	0
Purchase or sale of minority interests				-176					-176	-80	-256
As of December 31, 2011	5,292,983	5,293	53,500	18,798	2	-417	-1,269	-27	75,880	5,689	81,569
As of January 1, 2012	5,292,983	5,293	53,500	18,798	2	-417	-1,269	-27	75,880	5,689	81,569
Foreign currency translation
differences							385		385	21	406
Unrealized gains/losses by perfomance oriented pensions on balance sheet date
(after tax of TEUR -181)						-417			-417		-417
Unrealized gains/losses on securities at balance sheet date (after tax of TEUR -1)					2				2		2
Reversal of unrealized gains/
losses at previous balance sheet date					-2	417			415		415
Total of expenditures and income
directly entered in equity	0	0	0	0	0	0	385	0	385	21	406
Net profit for the year Total income for the period	0	0	0	7,091 7,091	0	0	385	0	7,091 7,476	715 736	7,806 8,212
Dividends paid				-3,173					-3,173	-585	-3,758
As of September 30, 2012	5,292,983	5,293	53,500	22,716	2	-417	-884	-27	80,183	5,840	86,023

11 Quarterly Report 03 | Segmental Report

Segmental		Isotope		Radiation		Radio		Environmental
Report		Products		Therapy		pharma		Services		Others		Elimination		Total
in TEUR	01–09 2012	01–09 2011	01–09 2012	01–09 2011	01–09 2012	01–09 2011	01–09 2012	01–09 2011	01–09 2012	01–09 2011	01–09 2012	01–09 2011	01–09 2012	01–09 2011
Sales to external customers	41,459	40,950	21,814	19,477	19,902	19,144	4,557	4,034	8	3	0	0	87,740	83,608
Sales to other segments	3,411	1,388	11	148	69	185	543	408	2,217	942	-6,251	-3,071	0	0
Total segment sales	44,870	42,338	21,825	19,625	19,971	19,329	5,100	4,442	2,225	945	-6,251	-3,071	87,740	83,608

Segment earnings before interest and income tax (EBIT)	12,586	12,995	1,900	1,942	2,231	3,234	-1,304	304	-1,384	-1,987	0	0	14,029	16,488
Interest expenses and revenues	-214	-281	-444	-430	-762	-740	7	-	-107	288	0	0	-1,520	-1,163
Income tax expense	-3,868	-4,089	-729	-753	-445	-736	-2	-198	341	0	0	0	-4,703	-5,776
Profit before minority interests	8,504	8,625	727	759	1,024	1,758	-1,299	106	-1,150	-1,699	0	0	7,806	9,549

Segmental		Isotope		Radiation		Radio		Environmental
Report		Products		Therapy		pharma		Services		Others		Total
in TEUR	01–09 2012	01–09 2011	01–09 2012	01–09 2011	01–09 2012	01–09 2011	01–09 2012	01–09 2011	01–09 2012	01–09 2011	01–09 2012	01–09 2011
Segmental assets	99,948	70,576	46,871	49,753	26,126	25,778	-*	-*	97,895	97,712	270,840	243,819
Elimination of inter-segmental shares, equity investments and receivables											-112,892	-95,849

Consolidated total assets											157,948	147,970

Segmental liabilities	-55,786	-32,587	-17,778	-21,038	-23,370	-23,292	-*	-*	-15,569	-17,081	-112,503	-93,998
Elimination of intersegmental liabilities											40,578	25,334
Consolidated liabilities											-71,925	-68,664

Investments (without acquisitions)	1,123	2,721	867	1,674	1,953	2,049	-*	-*	1,183	2,543	5,126	8,987
Depreciation	-1,773	-1,570	-1,941	-1,923	-1,525	-1,315	-257	-254	-211	-113	-5,707	-5,175

Non-cash income/expenses	-92	248	40	-693	-370	-591	-*	-*	-325	-864	-747	-1,900

* 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 segmental reporting.

Sales by regions		January till September 2012	January till September 2011
	Million EUR	%	Million EUR	%
Europe	50.0	57	49.5	59
North America	24.7	28	23.4	28
Asia/Pacific	9.5	11	7.9	10
Others	3.5	4	2.8	3
Total	87.7	100	83.6	100

Explanations of the interim financial statements

1. General information

These unaudited consolidated interim financial statements as of September 30, 2012 comprise the financial statements of Eckert & Ziegler Strahlen- und Medizintechnik AG and its subsidiaries (hereinafter also referred to as "Eckert & Ziegler AG").

2. Accounting and valuation methods

The consolidated financial statements (interim financial statements) of Eckert & Ziegler AG as of September 30, 2012 were prepared in accordance with International Financial Reporting Standards (IFRS) as were the 2011 annual financial statements. All the standards issued by the International Accounting Standards Board (IASB), London, and the relevant Interpretations of the International Financial Interpretations Committee (IFRIC) and the Standing Interpretations Committee (SIC) applicable in the EU on the reporting date have been taken into account. The accounting and valuation methods explained in the explanations to the 2011 annual financial statements were applied unchanged.

To prepare consolidated annual financial statements in accordance with the IFRS, it is necessary to make estimates and assumptions that affect the identification and the amount of reported assets, liabilities, income, and expenses. The actual values can diverge from the estimates. Important assumptions and estimates are made with respect to useful lives, the income that can be generated by non-current assets, the ability to recover receivables, and reporting and valuing provisions.

This interim report contains all the necessary information and adjustments needed to present a fair and accurate view of the net worth, financial position, and results of operations of Eckert & Ziegler AG for the interim report. Conclusions with respect to the development of future results cannot necessarily be drawn from the interim results for the current fiscal year.

3. Scope of consolidation

The consolidated financial statements of Eckert & Ziegler AG include all companies for which Eckert & Ziegler AG has the direct or indirect ability to determine financial and business policies (control concept).

Corporate acquisitions and sales

For corporate acquisitions and sales, please see the explanations in Section 4.

4. Limited comparability of the consolidated annual financial statements with the previous year

The radiopharmaceutical device segment of Bioscan, Inc., headquartered in Washington, D.C., was taken over as of July 1, 2011. On September 10, 2012, the shares of the bioanalytical contract research organization, Vitalea Science, Inc., headquartered in Davis, CA, were acquired.

Compared to the first nine months of 2011, this has had a significant effect on the net worth and results of operations of the Group, which has impaired the comparability of this consolidated report with that for the previous year.

5. Currency translation

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

Land	Währung	Period-end exchange rate on Sep 30, 2012	Period-end exchange rate on Dec 31, 2011	Av. exchange rate Jan 1-Sep 30, 2012	Av. exchange rate Jan 1-Sep 30, 2011

USA	USD	1.2858	1.2939	1.2841	1.4101
Czech Republic	CZK	25.1320	25.7870	25.1315	24.3257
Great Britain	GBP	0.7957	0.8553	0.8187	0.8649
Sweden	SEK	8.7658	8.9120	8.8831	9.0096
Poland	PLN	4.1161	4.4772	4.1282	-
Brazil	BRL	2.6001	-	2.5209	-

6. Portfolio of treasury shares

Eckert & Ziegler AG held 4,818 treasury shares as of September 30, 2012. This corresponds to 0.1% of the Company's capital stock.

7. Significant transactions with closely related parties

For information on significant transactions with closely related parties, please see the disclosures in the consolidated annual financial statements as of December 31, 2011.

Berlin, November 6, 2012

Dr. Andreas Eckert Vorstandsvorsitzender

Dr. Edgar Löffler Mitglied des Vorstandes

Dr. André Heß Mitglied des Vorstandes

Financial calendar

November 13, 2012 German Equity Forum in Frankfurt

March 28, 2013 2012 Annual report

March 28, 2013 Balance Sheet Press Conference in Berlin

May 2013 Entry and General Standard Conference in Frankfurt

May 3, 2013 I/2013 Quarterly report

May 17, 2013 Annual General Meeting

August 15, 2013 II/2013 Quarterly report

November 8, 2013 III/2013 Quarterly report

Contact

Eckert & Ziegler Strahlen- und Medizintechnik AG

Karolin Riehle Investor Relations

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

Telefon +49 (0) 30 94 10 84 - 0 Telefax +49 (0) 30 94 10 84 - 112 E-Mail [email protected]

ISIN DE0005659700 WKN 565970

Imprint

Publisher Eckert & Ziegler AG

Layout Salzkommunikation Berlin GmbH

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