Quarterly Report II

2 Quarterly Report 02 | Ratios

		Jan–Jun/2012	Jan–Jun/2011	Change

Sales	Million EUR	57.9	55.8	4%

Return on revenue before tax	%	16%	20%	−23%

EBITDA	Million EUR	13.8	15.4	−11%

EBIT	Million EUR	10.0	11.9	−16%

EBT	Million EUR	9.0	11.2	−20%

Net income before other shareholder´s interests	Million EUR	5.9	7.1	−17%

Profit	Million EUR	5.4	6.6	−17%

Earnings per share (basic)	EUR	1.03	1.26	−18%

Operational cash flow	Million EUR	8.7	5.3	63%

Depreciation and amortization on non-current assets	Million EUR	3.8	3.5	8%

Staff as end of period	Persons	593	562	6%

New treatment planning system

Eckert & Ziegler BEBIG releases a new version of the PSID software (version 5.0) at the ESTRO Congress (European Society for Radiotherapy & Oncology) in Barcelona. (1)

Dividend

A dividend in the amount of EUR 0.60 is decided at the Annual General Meeting on May 24, 2012. (2)

Manufacturing authorization for ⁶⁸Ge/⁶⁸Ga generators

Eckert & Ziegler Radiopharma GmbH has been given the manufacturing authorization for its pharmaceutical ⁶⁸Ge/⁶⁸Ga generators at the newlybuilt, GMP-compliant manufacturing facilities in Berlin. (3)

Afterloader in Spain

Eckert & Ziegler BEBIG has installed the first MultiSource® afterloader in Spain. The Hospital Ramón y Cajal in Madrid where the device has been installed will moreover become a reference site for brachytherapy specialists from all over the world. (4)

Subsidiary in Brazil

Eckert & Ziegler BEBIG has opened a new subsidiary in Fortaleza, Brazil, the Eckert & Ziegler BEBIG Ltda., representing its first subsidiary in South America. (5)

Cyclotron in Warsaw

Eckert & Ziegler has begun the construction of a new production facility for cyclotron-based PET radiopharmaceuticals in Poland's capital, Warsaw. The company plans to invest approximately 7 million EUR to start up a cyclotron for commercial production of FDG and also to construct GMP laboratories for research and development of new radio diagnostic agents at the 6,000 m2 site.

Business Development of the Eckert & Ziegler Group

Solid revenues and earnings

The second quarter of 2012 continued to be successful for the Eckert & Ziegler Group. Compared to the previous year, revenues were increased by EUR 1.1 million (+4%) to EUR 28.6 million. With approximately EUR 3.0 million or EUR 0.56 per share, earnings after taxes and minority interests reached the value of the previous year.

Together with the good performance of the first quarter of 2012, the first six months of 2012 allow for the following statements compared to the corresponding period of the previous year:

Revenue growth amounted to EUR 2.1 million (+4%). This growth does, however, have its root cause in the more favorable exchange rate of the US dollar and in the acquisition of the Bioscan equipment line in the third quarter of 2011. Without these effects, the organic, currency-adjusted revenues are practically constant. With respect to earnings, the arrears from the first quarter, which were the result of the atypical strong period from January to March 2011, could not be made up yet. EBIT resulted in EUR 10.0 million. That represents EUR 1.9 million or 16% less than the first six months of 2011. Earnings after taxes and minority interests amount to EUR 5.4 million or EUR 1.03 million per share. As such, the difference to the previous year amounts to EUR -1.1 million (-17%) or EUR -0.23 million per share (-18%).

The largest share of overall earnings is made up by the Isotope Products segment. In this segment, revenues with external customers increased slightly by 2% to EUR 28.2 million. The favorable exchange rate development described above shows the strongest effect in this segment, so that constant revenues can be assumed for reasons of simplification. Costs also remained constant. This resulted in an EBIT of EUR 9.1 million, thereby exceeding the previous year by EUR 0.3 million or 4%.

Also encouraging is the revenue growth of 7% to EUR 14.0 million in the Radiation Therapy segment. In this segment, the new MultiSource® cancer radiation system was responsible for a boost in revenues. Compared to the same period of the previous year, expenditures for research and development have more than doubled in the segment. As a result, EBIT decreased by 35% to EUR 0.9 million. Comprehensive statements about the Radiation Therapy segment can be found in the quarterly report of Eckert & Ziegler BEBIG s.a. (www.bebig.eu) which is released at the same time.

In the Radiopharma segment, growth experienced a slowdown. Thanks to the acquisition of Bioscan in the middle of 2011, the segment achieved a revenue growth of 2% to EUR 12.7 million. Compared to the same period last year, expenditures in the production and sales areas increased. As a result, EBIT decreased by 37% to EUR 1.4 million. However, if the second quarter of 2012 is viewed in isolation, it reveals a positive trend: Compared to the same period of the previous year, EBIT increased during the last three months by 22% to EUR 0.9 million.

The strongest growth was in the Environmental Services segment. Revenues with external customers increased by 19% to EUR 3.1 million. However, the first six months of 2012 contain cost restructuring. For this reason, EBIT shows a loss of EUR 0.6 million. In the next few quarters, the segment is not yet expected to make a positive contribution to earnings.

The loss in the Miscellaneous segment, which contains the holding company's expenses and income from cost allocations, was reduced slightly to EUR 0.8 million.

Liquidity

The cash flow statement shows a gross cash flow of EUR 9.6 million for the 6-month period of 2012 (cash inflow from operating activities before change in short-term assets and liabilities). Hence, the gross cash flow is 16% below the value of the previous year of EUR 11.4 million. The decline is based on the 17% reduction in period results compared to the previous year.

The buildup of receivables and inventories was significantly reduced. Net current assets remained almost constant compared to the beginning of the year. As a result, the majority of the gross cash flow enters into the operative cash flow, which reached EUR 8.7 million, thereby exceeding the previous year by 63%.

Compared to the same period of the previous year, investments were reduced by 44% to EUR 3.1 million, since fewer expenses were incurred for introducing the group-wide uniform ERP system and were omitted for the new building projects.

In May 2012, similar to the previous year, a dividend of EUR 0.60 per share was distributed. This resulted in an unchanged outflow of funds of EUR 3.2 million. The repayments of loans decreased by EUR 0.5 million. Dividends paid to minority shareholders were granted in the same amount. Overall, the cash outflow from financing activities remains unchanged at EUR 6.1 million compared to the previous year.

In conjunction with an exchange rate-based revaluation of liquid funds by EUR 0.3 million, liquidity was reduced slightly in the first six months of 2012 by EUR 0.3 million to EUR 32.3 million. On the other hand, net liquidity, i.e., cash holdings minus debts, rose by EUR 2.2 million to EUR 16.6 million.

Balance sheet

28,2 27,7

Compared to December 31, 2011, the balance sheet changed only marginally in the first six months of 2012. Total assets dropped minimally from EUR 154.0 million to EUR 153.4 million. A shift took place on the liabilities side. Liabilities were reduced by EUR 3.6 million, particularly through loan repayments, while equity capital increased by EUR 2.9 million from earnings minus dividend payments. Therefore, equity capital ratio increased from 53% to 55%.

External sales (in Mio. EUR)

Employees

As of June 30, 2012, the Eckert & Ziegler Group had 402 employees in Germany and 593 worldwide. Compared to the end of 2011, the number of employees increased by 3% (December 31, 2011: 576). The increase was mainly attributable to hiring employees in various locations for the Isotope Products segment.

Outlook

The Group expects revenues of approximately EUR 117 million and results after taxes and minority interests of approximately EUR 10 million for financial year 2012.

Profit after taxes (in Mio. EUR)

	Quarterly Report QII/2012 04–06/2012	Quarterly Report QII/2011 04–06/2011	6-monthly Report 01–06/2012	6-monthly Report 01–06/2011
Group Statement of Income	TEUR	TEUR	TEUR	TEUR

Revenues	28,645	27,530	57,888	55,774
Cost of sales	−13,622	−11,941	−26,549	−23,823
Gross profit on sales	15,023	15,589	31,339	31,951
Selling expenses	−5,020	−4,843	−10,069	−9,439
General and administrative expenses	−5,188	−4,989	−10,391	−9,717
Research and non-capitalized development expenses	−602	−712	−1,525	−1,179
Other operating income	2,254	586	3,412	815
Other operating expenses	−1,732	−43	−2,836	−122
Profit from operations	4,735	5,588	9,930	12,309
Other financial results	371	−68	98	−383
Earnings before interest and taxes (EBIT)	5,106	5,520	10,028	11,926

Interest received	27	20	65	34
Interest paid	−570	−363	−1,092	−750
Profit before tax	4,563	5,177	9,001	11,210
Income tax expense	−1,360	−1,950	−3,141	−4,156
Net income	3,203	3,227	5,860	7,054

Profit/loss attributable to minority interests	−252	−280	−415	−484
Dividend to shareholders of Eckert & Ziegler AG	2,951	2,947	5,445	6,570

Earnings per share
Basic	0,56	0,56	1,03	1,26
Diluted	0,56	0,56	1,03	1,26
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 QII/2012	Quarterly Report QII/2011	6-monthly Report	6-monthly Report
	04–06/2012	04–06/2011	01–06/2012	01–06/2011
Group Statement of Comprehensive Income	TEUR	TEUR	TEUR	TEUR

Profit for the period	3,203	3,227	5,860	7,054
Of which attributable to other shareholders	252	280	415	484
Of which attributable to shareholders of Eckert & Ziegler AG	2,951	2,947	5,445	6,570

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	1,280	−761	754	−761
Amount reposted to income statement	0	0	0	0
Adjustment of amount recorded in
shareholders' equity
(Currency translation)	1,280	−761	754	−761

Total of value adjustments recorded in shareholders' equity	1,280	−761	754	−761
Of which attributable to other shareholders	0	13	9	13
Of which attributable to shareholders of Eckert & Ziegler AG	1,280	−774	745	−774

Total from net income and value adjust ments recorded in shareholders' equity	4,483	2,466	6,614	6,293
Of which attributable to
other shareholders	252	293	424	497
Of which attributable to shareholders of Eckert & Ziegler AG	4,231	2,173	6,190	5,796

Group Statement of Cash Flows	6-monthly Report 01.01.2012–30.06.2012	6-monthly Report 01.01.2011–30.06.2011
	TEUR	TEUR
Cash flows from operating activities:
Profit for the period	5,860	7,052
Adjustments for:
Depreciation and value impairments	3,779	3,513
Non-cash release of deferred income from grants	−110	−167
Change in the non-current provisions, other non-current liabilities	−1,456	−660
Gains (-)/losses on the disposal of non-current assets	2	7
Miscellaneous	1,490	1,608
Changes in current assets and liabilities:
Receivables	−97	−3,478
Inventories	−396	−1,041
Accruals, other current assets	85	93
Change in the current liabilities and provisions	−470	−1,585
Cash inflows generated from operating activities	8,687	5,342
Cash flows from investing activities:
Purchase (-)/sale of non-current assets	−3,116	−5,609
Cash outflows from investment activity	−3,116	−5,609
Cash flows from financing activities:
Paid dividends	−3,173	−3,173
Distribution of shares of third parties	−529	–
Change in long-term borrowing	−2,092	−2,613
Change in short-term borrowing	−329	−305
Cash outflows from financing activities	−6,123	−6,091
Effect of exchange rates on cash and cash equivalents	257	−469

Increase/reduction in cash and cash equivalents	−295	−6,827
Cash and cash equivalents at beginning of period	32,304	29,216
Cash and cash equivalents at end of period	32,009	22,389

Group Balance Sheets	30.6.2012	31.12.2011
	TEUR	TEUR
ASSETS
Non current assets
Goodwill	31,589	31,252
Other intangible assets	13,833	13,761
Property, plant and equipment	28,415	28,889
Deferred tax	9,268	9,503
Other non-current assets	1,292	1,330
Total non-current assets	84,397	84,735
Current assets
Cash and cash equivalents	32,009	32,304
Securities	22	22
Trade accounts receivable	18,846	18,093
Inventories	14,750	14,214
Other current assets	3,376	4,674
Total current assets	69,003	69,307
Total assets	153,400	154,042
EQUITY AND LIABILITIES
Capital and reserves
Subscribed capital	5,293	5,293
Capital reserves	53,500	53,500
Retained earnings	21,070	18,798
Other reserves	−939	−1,684
Own shares	−27	−27
Portion of equity attributable to the shareholders of Eckert & Ziegler AG	78,897	75,880
Minority interests	5,584	5,689
Total shareholders' equity	84,481	81,569
Non-current liabilities
Long-term borrowings and finance lease obligations	10,865	12,890
Deferred income from grants and other deferred income	889	999
Deferred tax	1,532	1,813
Retirement benefit obligations	6,956	6,816
Other provisions	19,903	19,643
Other non-current liabilities	1,705	1,490
Total non current liabilities	41,850	43,651
Current liabilities
Short-term borrowings and finance lease obligations	4,714	5,099
Trade accounts payable	4,517	5,308
Advance payments received	1,753	1,324
Deferred income from grants and other deferred income	182	229
Current tax payable	2,617	2,429
Other current liabilities	13,286	14,433
Total current liabilities	27,069	28,822
Total equity and liabilities	153,400	154,042

						Cumulative other equity items
		Subscribed capital				Unrealized profit	Foreign		Equity attributable		Group
					Unrealized	pension	currency		to share		share
Statements of		Nominal	Capital	Retained	profit	commit	exchange		holders'	Minority	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) Reversal of unrealized gains/ losses at previous balance					2				2		2
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							745		745	9	754
Unrealized gains/losses by perfomance oriented pensions on balance sheet date
(after tax of TEUR -181) Unrealized gains/losses on						−417			−417		−417
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	745	0	745	9	754
Net profit for the year				5,445					5,445	415	5,860
Total income for the period	0	0	0	5,445	0	0	745	0	6,190	424	6,614
Dividends paid				−3,173					−3,173	−529	−3,702
As of June 30, 2012	5,292,983	5,293	53,500	21,070	2	−417	−524	−27	78,897	5,584	84,481

11 Quarterly Report 02 | Segmental Report

Segmental Report		Isotope Products		Radiation Therapy		Radio pharma		Environmental Services		Others		Elimination		Total
in TEUR	01-06 2012	01-06 2011	01-06 2012	01-06 2011	01-06 2012	01-06 2011	01-06 2012	01-06 2011	01-06 2012	01-06 2011	01-06 2012	01-06 2011	01-06 2012	01-06 2011
Sales to external customers	28,165	27,748	13,952	12,986	12,678	12,441	3,087	2,599	6	0	0	0	57,888	55,774
Sales to other segments	2,043	912	11	99	52	129	510	275	1,344	566	−3,960	−1,981	0	0
Total segment sales	30,208	28,660	13,963	13,085	12,730	12,570	3,597	2,874	1,350	566	−3,960	−1,981	57,888	55,774

Segment earnings before interest and income tax (EBIT)	9,149	8,839	896	1,374	1,434	2,289	−627	361	−824	−937	0	0	10,028	11,926
Interest expenses and revenues	−148	−199	−330	−256	−526	−477	4	−2	−27	218	0	0	−1,027	−716
Income tax expense	−2,872	−2,823	−297	−613	−212	−553	−2	−167	242	0	0	0	−3,141	−4,156
Profit before minority interests	6,129	5,817	269	505	696	1,259	−625	192	−609	−719	0	0	5,860	7,054

Segmental		Isotope		Radiation		Radio		Environmental
Report		Products		Therapy		pharma		Services		Others		Total
in TEUR	01-06 2012	01-06 2011	01-06 2012	01-06 2011	01-06 2012	01-06 2011	01-06 2012	01-06 2011	01-06 2012	01-06 2011	01-06 2012	01-06 2011
Segmental assets	99,701	67,698	46,649	49,990	25,466	22,394	−*	−*	97,000	96,844	268,816	236,926
Elimination of inter-segmental shares, equity investments
and receivables											−115,416	−96,179
Consolidated total assets											153,400	140,747

Segmental liabilities	−55,347	−31,568	−18,032	−21,502	−23,176	−20,164	−*	−*	−15,410	−17,234	−111,965	−90,468
Elimination of intersegmental liabilities											43,046	25,826
Consolidated liabilities											−68,919	−64,642

Investments (without acquisitions)	736	1,876	518	1,334	1,331	540	−*	−*	531	1,698	3,116	5,448

Depreciation	−1,181	−1,100	−1,286	−1,304	−1,011	−877	−172	−163	−129	−69	−3,779	−3,513

Non-cash
income/expenses	101	158	487	−283	−138	−230	−*	−*	−376	−433	74	−788

* 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 June 2012	January till June 2011
	Mio. EUR	%	Mio. EUR	%
Europe	32.6	56	32.5	58
North America	17.0	30	16.5	30
Asia/Pacific	5.7	10	4.9	9
Others	2.6	4	1.9	3
Total	57.9	100	55.8	100

Explanations of the Interim Financial Statements

1. General information

The present unaudited interim consolidated financial statements as of June 30, 2012, comprise the financial statements of Eckert & Ziegler Strahlen- und Medizintechnik AG and its subsidiaries (henceforth 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 June 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 illustrated 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 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 the accounting for and valuation of accruals.

This interim report contains all the necessary information and adjustments required to present a fair and accurate view of the assets, financial and earnings situation 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 financial 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 financial statements with the previous year

Bioscan, Inc., the radiopharmaceutical device segment headquartered in Washington, D.C., was taken over as of July 1, 2011. Compared to the first six months of 2011, this has had a significant effect on the assets and earnings situation 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 of the European Monetary Union was based on the functional currency concept. The following exchange rates were used for currency translation:

Country	Currency	Period-end exchange rate on Jun 30, 2012	Period-end exchange rate on 31 Dec 2011	Average exchange rate Jan 1–Jun 31, 2012	Average exchange rate Jan 1–Jun 30, 2011

USA	USD	1.2577	1.2939	1.2974	1.4067
Czech Republic	CZK	25.6381	25.7870	25.1477	24.2907
Great Britain	GBP	0.8055	0.8553	0.8291	0.8536
Sweden	SEK	8.7658	8.9120	8.8831	8.9403
Poland	PLN	4.2570	4.4772	4.2439	–
Brazil	BRL	2.4349	–	2.4349	–

6. Number of treasury shares

Eckert & Ziegler AG held 4,818 treasury shares as of June 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.

8. Responsibility statement

To the best of our knowledge, and in accordance with the applicable reporting principles for proper Group interim financial reporting, the interim consolidated financial statements give a true and fair view of the Group's assets, financial and earnings situation, 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, and the principal opportunities and risks associated with the expected development of the Group for the remaining months of the financial year are described.

Berlin, August 14, 2012

Dr. Andreas Eckert Chairperson of the Board

Dr. Edgar Löffler Member of the Executive Board

Dr. André Heß Member of the Executive Board

Financial calendar

November 6, 2012 Quarterly Report III/2012

November 13, 2012 German Equity Forum in Frankfurt

March 28, 2013 Financial Report 2012

March 28, 2013 Balance Sheet Press Conference in Berlin

May 2013 Entry and Standard Conference Frankfurt

May 03, 2013 Quarterly Report I/2013

May 17, 2013 Annual General Meeting

August 15, 2013 Quarterly Report II/2013

November 08, 2013 Quarterly Report III/2013

November 2013 German Equity Forum in Frankfurt

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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