KEY DATA

		1–6/2022	1–6/2022 Restated	1–6/2023	Change
Sales	€ million	106.8	107.4	118.0	+ 10%
Return on revenue before tax	%	22	21	15
EBITDA	€ million	29.3	28.3	25.6	– 10%
EBIT	€ million	24.4	23.4	19.5	– 17%
EBT	€ million	23.9	22.9	17.9	– 22%
Net income before other shareholder's interests	€ million	15.7	14.7	11.0	– 25%
Profit	€ million	15.4	14.5	10.9	– 25%
Earnings per share (basic)	€	0.74	0.70	0.52	– 26%
Operational cash flow	€ million	5.3	5.3	15.0	+ 184%
Depreciation and amortization on non-current assets	€ million	4.9	4. 9	6.1	+ 25%
Staff as end of period	Persons	957	957	1,036	+ 8%

The official version of the Eckert & Ziegler half-year financial report is in German. The English translation is provided as a convenience to our shareholders. While we strive to provide an accurate and readable version of our half-year financial report in English, the technical nature of an half-year financial report often yields awkward phrases and sentences. We understand this can cause confusion. So, please always refer to the German half-year financial report for the authoritative version.

MILESTONES

ACTINIUM-225 FOR POINT BIOPHARMA

Eckert & Ziegler and a subsidiary of POINT Biopharma Global Inc. have signed an agreement on the supply of Actinium-225 (non-carrieradded Ac-225). Eckert & Ziegler will provide predetermined amounts of GMP grade Ac-225 to POINT for use in the development of POINT's pipeline of next generation Ac-225-based radioligands.

PENTIXAPHARM RECEIVES BFARM-CLEARANCE

PentixaPharm receives the approval from the German Federal Institute for Drugs and Medical Devices (BfArM) to start its open-label dose escalation study to evaluate PentixaTher. The Yttrium-90 labelled CXCR4-compound PentixaTher will be tested as a radiotherapeutic against recurrent and/or refractory lymphoma of the central nervous system.

ENVIRONMENTAL APPROVAL FOR PRODUCTION SITE JINTAN (CHINA)

Eckert & Ziegler's fully owned subsidiary Qi Kang Medical Technology Ltd. (QKM) has received the authorization for its Environmental Impact Assessment (EIA) from the Department of Ecology and Environment of Jiangsu Province in China. The responsible authorities approved QKM's planned construction of a radioisotope production facility.

REORGANIZATION IN THE EXECUTIVE AND SUPERVISORY BOARD

As of the end of the Annual General Meeting on June 7, 2023, the founder and CEO Dr Andreas Eckert has moved to the Supervisory Board. The new Chairman of the Executive Board is the former Chief Sales Officer of the Medical segment, Dr Harald Hasselmann. Newly appointed to the Executive Board and responsible for the Isotope Products segment will be Frank Yeager, the longtime head of this California based business unit.

Dr Harald Hasselmann Chairman of the Executive Board Segment Medical

Jutta Ludwig Member of the Executive Board Asia Business

Dr Hakim Bouterfa Member of the Executive Board Head of Clinical Development

Frank Yeager Member of the Executive Board Segment Isotope Products

MANUFACTURING AUTHORIZATION FOR LUTETIUM-177

For the radioisotope Lutetium-177 (non-carrier-added Lu-177) in GMP grade, the German authority has granted the manufacturing authorization. The approval is the basis for the marketing authorization of Lutetium-177 as a drug, but also for use of this radioisotope as a starting material for the manufacture of radiopharmaceuticals.

CLINICAL TRIAL OF PENTIXAPHARM'S PRIMARY ALDOSTERONISM LEAD CANDIDATE

Following clinical investigations of hypertension specialists in the Netherlands, France, the United States, and China, the Monash Medical Center (Monash Health) and Hudson Institute in Melbourne, Australia, has commenced an investigator initiated clinical study with PentixaPharm's novel lead compound for the imaging of aldosterone-producing adrenal adenomas.

A. GROUP INTERIM MANAGEMENT REPORT

A.1 EARNINGS PERFORMANCE

In the following text, changes compared to the previous year refer to the restated half-year figures for 2022. In Note B.6, we refer to changes in reporting and the restatement of the half-year financial statements for 2022.

In the first half of 2023, the Eckert & Ziegler Group achieved a net profit of €10.9 million. Compared to the same period of the previous year, the Group's net profit thus decreased by €3.5 million.

Revenue

From an overall perspective, the Group recorded sales growth of 10% and, at €118.0 million at the end of June 2023, is significantly up €10.6 million on the previous year's level of €107.4 million.

The individual segments showed the following developments:

External sales in the Medical segment amounted to €52.6 million in the first six months of the year, around €11.1 million or 27% above the level of the previous year. The main growth driver continues to be the business with pharmaceutical radioisotopes, and sales of laboratory equipment also continued to grow. There were slight declines in the Radiation Therapy segment, largely attributable to the sale of Wolf-Medizintechnik GmbH and the HDR business.

The Isotope Products segment generated external sales of €65.3 million, €0.6 million lower than in the first six months of 2022. Almost all main product groups remained stable, however, high-margin sales of radiation sources for use in the energy sector recorded a significantly weaker first half than in the previous year.

Earnings (net profit for the period)

At €10.9 million, or €0.52 per share, the Group's six-month earnings were €3.5 million, or 25%, lower than in the prioryear period.

In the Medical segment, net income was €6.9 million, down €0.7 million on the prior-year period. A disproportionate increase in the cost of sales had a negative impact on the segment's gross margin. The year-on-year decline in earnings was also due to negative currency effects amounting to €1.7 million. In addition, interest expenses increased by €0.4 million.

In the Isotope Products segment, earnings (before minorities) declined by around €2.2 million or 27% to €5.9 million. Despite stable sales, a weaker product mix led to a slightly weaker gross margin. Inflation adjustments in the hyperinflationary country of Argentina impacted earnings by a further €1.1 million (previous year: €1.1 million). Currency effects depressed earnings by an additional €0.2 million compared with the previous year. Interest increased by €0.5 million compared with the previous year.

The Other segment, which in addition to the holding company includes Pentixapharm GmbH and Myelo Therapeutics GmbH, closed the first half of the year with a result (before minority interests) of €–1.9 million (previous year: €–1.1 million). Myelo Therapeutics GmbH was not yet included in the comparative period.

A.2 FINANCIAL POSITION

Balance

Total assets at the end of June 2023 increased slightly compared with the annual financial statements for 2022 and now amount to €433 million (previous year: €417 million).

On the assets side, non-current assets increased by €5.9 million. This is mainly the result of investments in property, plant and equipment. There were no acquisitions or disposals in the first half of 2023.

Trade receivables increased by €18.3 million and inventories decreased by €6.5 million. This is mainly due to the reclassification of open orders (€15.7 million) valued at the percentage of completion (POC) in the plant engineering business (Medical segment) from the "Inventories" item to the "Trade receivables" item.

The changes on the liabilities side mainly relate to non-current and current loans payable, which increased by a total of €6.9 million to €29.3 million. As of June 30, 2023, €23.8 million was reported as non-current loan liabilities and €5.5 million as current loan liabilities.

Equity increased by €0.2 million to €213.8 million as of June 30, 2023. The increase was mainly due to the profit for the period of €10.9 million, less the dividend payment of the parent company of €10.4 million. The equity ratio amounts to 49%.

Other current liabilities have remained almost unchanged compared to the annual financial statements for 2022, however, two significant effects should be mentioned here: Myelo Therapeutics GmbH has received a down payment on a grant from the European Defence Fund (EDF) in the amount of €5.7 million, which has been recognized as liquidity on the assets side. This liability will be utilized in future periods to neutralize the development costs associated with the EDF grant. In the opposite direction, liabilities to former shareholders were reduced. In January 2023, €3.2 million was paid to the former shareholder of Tecnonuclear SA, Argentina, which was acquired in January 2022.

Liquidity

The operating cash flow of €15.0 million was higher than in the prior-year period (€5.3 million) despite the reduction in net income, with €5.7 million coming from the advance payment of the EDF subsidy.

At €14.9 million, less cash and cash equivalents were used for investments than in the prior-year period (€19.2 million). In the first half of 2023, investments were made only in intangible assets and property, plant and equipment, and a residual payment of €3.2 million was made for the acquisition of Technonuclear SA, Argentina. There were no acquisitions or disposals in the reporting period. In the prior-year period, there were expenses in connection with the acquisition of Technonuclear SA, Argentina, and Atom Mines LLC, USA, totaling €7.5 million, as well as offsetting non-recurring income from the sale of securities and investments totaling €1.3 million.

The cash flow from financing activities includes €7.1 million in new proceeds from loans taken out. The funds drawn down in the first half of 2023 will be used to finance the construction of a production facility at the Dresden-Rossendorf site (Isotope Products segment) and other projects in the Medical segment. Including the interest payments incurred, funds in the amount of €1.5 million (previous year: €10.7 million) were used for the repayment of loan and lease liabilities.

In total, cash and cash equivalents as of June 30, 2023 decreased by €5.6 million compared with the end of 2022 to €77.1 million.

A.3 OUTLOOK

The forecast for the financial year 2023 published on March 30, 2023 remains unchanged. The Executive Board continues to expect sales of just under €230 million and net income of around €25 million.

A.4 RISIKS AND OPPORTUNITIES

In the Annual Report 2022 we described risks that could have a significant adverse impact on our business, net assets, financial position and results of operations, as well as our reputation. The most significant opportunities and the structure of our risk management system were also described.

Additional risks and opportunities of which we are not aware or which we currently consider immaterial could also affect our business activities. At present, no risks have been identified which individually or in combination with other risks could jeopardize our continued existence.

A.5 ADDITIONAL INFORMATION

Employees

As of June 30, 2023, the Eckert & Ziegler Group employed 1,036 people worldwide. Compared to the previous year (December 31, 2022: 976), the number of employees has thus increased slightly.

B. INTERIM CONSOLIDATED FINANCIAL STATEMENTS

B.1 CONSOLIDATED INCOME STATEMENT OF PROFIT OR LOSS

		Restated
	6-month	6-month	6-month
	report	report	report
€ thousand	1–6/2022	1–6/2022	1–6/2023

Revenues	106,837	107,403	117,973
Cost of sales	– 51,508	– 51,965	– 60,600
Gross profit on sales	55,329	55,438	57,372
Selling expenses	– 12,822	– 12,822	– 12,773
General and administrative expenses	– 17,587	– 17,587	– 19,440
Impairment/reversals in accordance with IFRS 9	– 39	– 39	– 70
Other operating income	752	774	1,338
Other operating expenses	– 2,885	– 2,885	– 5,833

Profit from operations	22,747	22,878	20,594
Results from shares measured at equity	– 106	– 106	310
Results from the valuation of financial instruments	0	0	– 24
Currency gains	2,804	2,804	834
Currency losses	– 1,050	– 1,050	– 1,089
Loss according to IAS 29 (hyperinflation)		– 1,087	– 1,134
Earnings before interest and taxes (EBIT)	24,395	23,439	19,491
Interest received	53	53	327
Interest paid	– 570	– 570	– 1,877

Profit before tax	23,878	22,922	17,941
Income tax expense	– 8,168	– 8,168	– 6,894
Net income/loss from continuing operations	15,710	14,754	11,047
Profit (–)/loss (+) attributable to minority interests	303	303	135

Profit attributable to the shareholders of Eckert & Ziegler AG	15,407	14,451	10,912
Earnings per share
Undiluted (€ per share)	0.74	0.70	0.52
Diluted (€ per share)	0.74	0.69	0.52

Average number of shares in circulation (undiluted – in thousand units)	20,760	20,760	20,809
Average number of shares in circulation (diluted – in thousand units)	20,812	20,812	20,854

		Restated
	Q2 report	Q2 report	Q2 report
€ thousand	4–6/2022	4–6/2022	4–6/2023
Revenues	56,944	57,435	60,037
Cost of sales	– 27,807	– 28,197	– 30,093

Gross profit on sales	29,137	29,238	29,944
Selling expenses	– 7,017	– 7,017	– 6,565
General and administrative expenses	– 8,569	– 8,569	– 9,976
Impairment/reversals in accordance with IFRS 9	– 18	– 18	– 49
Other operating income	629	649	750
Other operating expenses	– 1,368	– 1,368	– 3,304

Profit from operations	12,794	12,915	10,800
Results from shares measured at equity	– 96	– 96	369
Results from the valuation of financial instruments	0	0	– 24
Currency gains	3,029	3,029	834
Currency losses	– 1,585	– 1,585	– 486
Loss according to IAS 29 (hyperinflation)		– 689	– 605

Earnings before interest and taxes (EBIT)	14,142	13,574	10,888
Interest received	5	5	214
Interest paid	– 239	– 239	– 1,002

Profit before tax	13,908	13,340	10,100
Income tax expense	– 4,882	– 4,882	– 3,834

Net income/loss from continuing operations	9,026	8,458	6,266
Profit (–)/loss (+) attributable to minority interests	174	174	98

Profit attributable to the shareholders of Eckert & Ziegler AG	8,852	8,284	6,168

Earnings per share
Undiluted (€ per share)	0.43	0.40	0.30
Diluted (€ per share)	0.43	0.40	0.30

Average number of shares in circulation (undiluted – in thousand units)	20,763	20,763	20.812
Average number of shares in circulation (diluted – in thousand units)	20,815	20,815	20.857

B.2 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

		Restated
	6-month	6-month	6-month
	report	report	report
€ thousand	1–6/2022	1–6/2022	1–6/2023

Profit for the period	15,710	14,754	11,047
of which attributable to shareholders of Eckert & Ziegler AG	15,407	14,451	10,912
of which attributable to other shareholders	303	303	135
Items that could subsequently be reclassified into the income statement
if certain conditions are met
Adjustment of balancing item from the currency translation of
foreign subsidiaries	3,214	3,214	– 343
Currency differences from the translation of foreign operations	3,214	3,214	– 343

Items that will not be reclassified to the profit or loss statement
in the future
Earnings from equity instruments designated at fair value through
other comprehensive income	– 387	– 387	0
Net earnings from equity instruments designated at fair value through
other comprehensive income	– 387	– 387	0

Other comprehensive income after taxes	2,827	2,827	– 343
Consolidated comprehensive income	18,537	17,581	10,704
of which attributable to shareholders of Eckert & Ziegler AG	18,228	17,272	10,540
of which attributable to non-controlling interests	309	309	164

		Restated
	Q2-report	Q2-report	Q2-report
€ thousand	4–6/2022	4–6/2022	4–6/2023

Profit for the period	9,026	8,458	6,266
of which attributable to shareholders of Eckert & Ziegler AG	8,852	8,284	6,168
of which attributable to other shareholders	174	174	98
Items that could subsequently be reclassified into the income statement
if certain conditions are met
Adjustment of balancing item from the currency translation of
foreign subsidiaries	2,130	2,130	– 293
Currency differences from the translation of foreign operations	2,130	2,130	– 293

Items that will not be reclassified to the profit or loss statement
in the future
Earnings from equity instruments designated at fair value through
other comprehensive income	– 387	– 387	0
Net earnings from equity instruments designated at fair value through
other comprehensive income	– 387	– 387	0

Other comprehensive income after taxes	1,743	1,743	– 293
Consolidated comprehensive income	10,769	10,201	5,973
of which attributable to shareholders of Eckert & Ziegler AG	10,619	10,051	5,845
of which attributable to non-controlling interests	150	150	128

B.3 CONSOLIDATED BALANCE SHEET

€ thousand	Dec 31, 2022	June 30, 2022

ASSETS
Non current assets
Goodwill	43,141	43,016
Other intangible assets	53,865	57,438
Property, plant and equipment	85,130	89,614
Rights of use (IFRS 16)	26,495	24,773
Investments in affiliates or joint ventures	13,972	13,836
Deferred tax assets	8,563	8,366
Other non-current assets	1,934	1,932
Total non-current assets	233,100	238,975
Current assets
Cash and cash equivalents	82,701	77,109
Trade accounts receivable	37,171	55,503
Inventories	51,614	45,085
Income tax receivables	5,909	10,416
Other current assets	6,342	5,998
Total current assets	183,737	194,111
Total assets	416,837	433,086

EQUITY AND LIABILITIES Shareholder's equity

Subscribed capital	21,172	21,172
Capital reserves	66,607	66,669
Retained earnings	123,177	123,683
Other reserves	4,681	4,309
Own shares	– 3,570	– 3,404
Portion of equity attributable to the shareholders of Eckert & Ziegler AG	212,067	212,429
Minority interests	1,562	1,394
Total shareholders' equity	213,629	213,823
Non-current liabilities Long-term debt	22,400	23,801

Long-term lease obligations (IFRS 16)	24,497	23,178
Deferred income from grants and other deferred income	2,250	1,922
Deferred tax liabilities Retirement benefit obligations	5,082 10,271	4,808 10,323
Other non-current provisions	61,989	66,132
Other non-current liabilities	10,685	9,254
Total non-current liabilities	137,174	139,419
Current liabilities
Short-term debt	0	5,525
Current portion of lease obligations (IFRS 16)	2,690	2,443
Trade accounts payable	8,340	5,667
Advance payments received	19,026	24,695
Deferred income from grants and other deferred income (current)	37	272
Income tax liabilities	3,872	8,282
Other current provisions	4,571	5,449
Other current liabilities	27,498	27,511
Total current liabilities	66,034	79,844
Total equity and liabilities	416,837	433,086

B.4 CONSOLIDATED CASH-FLOW STATEMENT

		Restated
	6-month	6-month	6-month
	report	report	report
	01/01/2022 –	01/01/2022 –	01/01/2023 –
€ thousand	06/30/2022	06/30/2022	06/30/2023

Cash flows from operating activities:
Profit for the period	15,710	14,754	11,047
Adjustments for:
Depreciation and value impairments	4,936	4,936	6,076
Net interest income [interest expense (+)/income (–)]	517	517	1,550
Income tax expense	8,168	8,168	7,331
Income tax payments	– 10,914	– 10,914	– 6,652
Gains (–)/losses on the disposal of non-current assets	– 486	– 486	– 172
Change in non-current provisions, other non-current liabilities	1,586	1,586	1,548
Change in other non-current assets and receivables	– 290	– 290	2
Other non-cash items	– 732	224	2,765
Changes in current assets and liabilities:
Receivables	– 5,522	– 5,522	– 19,170
Inventories	– 4,811	– 4,811	6,280
Change in other current assets	758	758	– 4,117
Change in current liabilities and provisions	– 3,622	– 3,622	8,558


Cash inflows generated from operating activities	5,298	5,298	15,046
Cash flows from investing activities:
Outflows for intangible assets and property, plant and equipment	– 14,559	– 14,559	– 12,222
Income from the sale of intangible assets and property, plant and equipment	5	5	69
Income from the sale of shares in consolidated companies
(less cash and cash equivalents transferred)	794	794	0
Expenses for acquisitions (less cash and cash equivalents transferred)	– 6,691	– 6,691	– 3,185
Expenses for the acquisition of shareholdings	– 787	– 787	0
Income from investments	892	892	446
Income from the sale of securities	1,178	1,178	0

Cash inflows/outflows from investing activities	– 19,169	– 19,169	– 14,892

Cash flows from financing activities:
Dividends paid	– 10,382	– 10,382	– 10,406
Dividend paid to minority shareholders	– 359	– 359	– 332
Payments from taking out loans	17,183	17,183	7,101
Cash outflows for repayment of loans and lease liabilities	– 10,702	– 10,702	– 1,532
Interest received	53	53	327
Interest paid	– 494	– 494	– 556

Cash outflows from financing activities	– 4,702	– 4,702	– 5,398

Effect of exchange rates on cash and cash equivalents	2,079	2,079	– 348
Increase/reduction in cash and cash equivalents	– 16,493	– 16,493	– 5,592
Cash and cash equivalents at beginning of period	93,659	93,659	82,701
Cash and cash equivalents at end of period	77,166	77,166	77,109

B.5 CONSOLIDATED STATEMENT OF SHAREHOLDERS EQUITY

	Subscribed capital					Cumulative other equity items
					Unrealized				Equity
					profit		Foreign		attributable
					pension	Unrealized	currency		to share		Group
amounts in € thousand		Nominal	Capital	Retained	commit	profit	exchange	Own	holders'	Minority	shareholders'
except number of shares	Number	value	reserve	reserves	ments	securities	differences	shares	equity	shares	equity
Balance as of January 1, 2022	21,171,932	21,172	66,162	106,223	– 3,597	387	987	– 3,942	187,392	5,134	192,526
Total of expenditures and income
directly entered in equity	0	0	0	0	1,888	– 387	5,403	0	6,904	45	6,949
Net profit for the year	0	0	0	29,278	0	0	0	0	29,278	469	29,747
Total income for the period	0	0	0	29,278	1,888	– 387	5,403	0	36,182	514	36,696
Dividends paid/resolved	0	0	0	– 10,382	0	0	0	0	– 10,382	– 359	– 10,741
Minority interest in acquisitions	0	0	0	– 1,942	0	0	0	0	– 1,942	– 3,727	– 5,669
Share-based payment	0	0	– 651	0	0	0	0	87	– 564	0	– 564
Use of treasury shares for acquisition	0	0	1,096	0	0	0	0	285	1,381	0	1,381
As of December 31, 2022	21,171,932	21,172	66,607	123,177	– 1,709	0	6,390	– 3,570	212,067	1,562	213,629
Balance as of January 1, 2023	21,171,932	21,172	66,607	123,177	– 1,709	0	6,390	– 3,570	212,067	1,562	213,629
Total income and expenses directly
recognized in equity	0	0	0	0	0	0	– 372	0	– 372	29	– 343
Consolidated net income	0	0	0	10,912	0	0	0	0	10,912	135	11,047
Consolidated comprehensive income	0	0	0	10,912	0	0	– 372	0	10,540	164	10,704
Dividend payment or resolution	0	0	0	– 10,406	0	0	0	0	– 10,406	– 332	– 10,738
Stock-based compensation	0	0	62	0	0	0	0	166	228	0	228
As of June 30, 2023	21,171,932	21,172	66,669	123,683	– 1,709	0	6,018	– 3,404	212,429	1,394	213,823

B.6 NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS

General information

These interim consolidated financial statements as of June 30, 2023 comprise the financial statements of Eckert & Ziegler Strahlen- und Medizintechnik AG and its subsidiaries (hereinafter also referred to as "Eckert & Ziegler AG").

Accounting policies

The interim consolidated financial statements of Eckert & Ziegler AG as of June 30, 2023 have been prepared in accordance with IAS 34, the International Financial Reporting Standards (IFRS) applicable to interim financial reporting. All standards of the International Accounting Standards Board (IASB), London, applicable in the EU on the reporting date, as well as the valid interpretations of the International Financial Interpretations Committee (IFRIC) and the Standing Interpretations Committee (SIC), respectively, have been taken into account. The interim financial statements should be read in conjunction with the consolidated financial statements of Eckert & Ziegler AG as of December 31, 2022. The accounting and valuation methods explained in the notes to the 2022 consolidated financial statements have been applied unchanged. The presentation is in abbreviated form.

The preparation of the consolidated financial statements in conformity with IFRS requires the use of estimates and assumptions that affect the reported amounts of assets and liabilities, income and expenses. The actual values may differ from the estimates. Significant assumptions and estimates are made with respect to useful lives, recoverable amounts of non-current assets, the realizability of receivables and the recognition and measurement of provisions. Due to rounding, individual figures may not add up precisely to the totals provided.

This interim report contains all necessary information and adjustments required for a true and fair view of the net assets, financial position, and results of operations of Eckert & Ziegler AG for the interim report. The results for the current fiscal year are not necessarily indicative of future results.

In the current reporting period, a number of amendments to standards came into force, but these did not have any effect on the Group's accounting methods or the need for retrospective adjustments.

Scope of consolidated financial statements

The consolidated financial statements of Eckert & Ziegler AG include all companies in which Eckert & Ziegler AG has the direct or indirect possibility of determining the financial and business policy (control concept).

Significant events for the interim financial statements

In the first half of 2023, Myelo Therapeutics GmbH received an advance payment on a grant from the European Defence Fund (EDF) in the amount of €5.7 million; the grant will be used to finance development costs.

In addition, €7.1 million of two fixed-rate loans were drawn down in the reporting period to finance the construction of a production facility at the Dresden-Rossendorf site (Isotope Products segment) and other projects in the Medical segment.

Acquisitions and disposals of companies

There were no company acquisitions and disposals in the first half of 2023.

The purchase price allocation in the context of the acquisition of Myelo Therapeutics GmbH remains preliminary and will be finalized in the second half of the year.Änderung im Ausweis

Recognition in the balance sheet of the "percentage of completion" under "trade accounts receivable" instead of "inventories"

For the projects of the plant engineering business, which is allocated to the Medical segment, there are generally contracts with customers that lead to revenue recognition over a certain period of time according to the percentage of completion (POC) method under IFRS 15. The offsetting item represents receivables from POC revenue. These amount to €15,747 thousand as of June 30, 2023 and are now reported under the item "Trade receivables". Until 2022, the POC receivables (€14,719 thousand as of December 31, 2022) were still reported under the item "Inventories".

Recognition in the income statement of the loss according to IAS29 (hyperinflation)

Due to the high inflation in Argentina, EZAG Group applies IAS 29. The interim financial statements of Tecnonuclear SA, Argentina, whose functional currency is the Argentine peso, are adjusted to the current purchasing power at the end of the reporting period. Half-year 2023 transactions and non-monetary items are revalued at the end of the reporting period to reflect the current price index at the reporting date. The monetary loss of €1,134 thousand is presented as a separate line item in the income statement below the operating result in the financial result. In the annual financial statements for 2022, this item was still included in the item "Other operating expenses". After reviewing the presentation of the previous year, we consider this change in presentation to be a more appropriate form of presentation.

Restatement hyperinflation (IAS 29)

For technical and timing reasons, the effect of IAS 29 (hyperinflation) was not recognized in the 2022 half-year financial statements but only (retrospectively) at the end of the year. In order to ensure the comparability of the figures, they have essentially been adjusted in the half-year financial statements for 2022 as if the effects of hyperinflation had already been recognized in the income statement as of June 30, 2022.

Revenue recognition

Sales in the first half of the year break down as follows:

€ thousand	06/30/2023	06/30/2022
Revenue from the sale of goods	99,619	88,558
Revenue from the provision of services	14,910	17,003
Revenue from construction contracts	3,444	1,842
Total	117,973	107,403

Currency translation

The financial statements of companies outside the European Monetary Union are translated using the functional currency concept. The following exchange rates have been used for currency translation purposes:

Country	Currency	Exchange rate on 06/30/2023	Exchange rate on 12/31/2022	Average exchange rate 01/01–06/30/2023	Average exchange rate 01/01–06/30/2022
USA	USD	1.0866	1.0666	1.0811	1.0558
CZ	CZK	23.7420	24.1160	23.6801	24.7196
GB	GBP	0.8583	0.8869	0.8766	0.8578
CHN	CNY	7.8983	7.3582	7.4898	7.0711
BR	BRL	5.2788	5.6386	5.4833	5.3315
ARG	ARS	280.1367	189.6852		129.7725
CH	CHF	0.9788	0.9847	0.9856	1.0241

Equity and treasury stock

As of June 30, 2023, Eckert & Ziegler AG held 359,506 of its own shares (previous year: 408,506). This corresponds to a share of 1.70% (previous year: 1.93%) of the company's share capital.

Segment information

SEGMENT REPORT – INCOME STATEMENT

	Isotope Products			Medical		Holding		Elimination		Total
€ thousand	H1/2023	H1/2022R	H1/2023	H1/2022R	H1/2023	H1/2022R	H1/2023	H1/2022R	H1/2023	H1/2022R
Sales to external customers	65,316	65,919	52,646	41,469	10	15	0	0	117,973	107,403
Sales to other segments	4,652	2,832	62	198	0	0	– 4,715	– 3,030	0	0
Total segment sales	69,969	68,751	52,708	41,667	10	15	– 4,715	– 3,030	117,973	107,403
Result from investments valued at equity	– 8	– 115	31	9	288	0	0	0	310	– 106
Segment profit before interest and
profit taxes (EBIT)	9,706	12,447	12,224	12,420	– 2,439	– 1,428	0	0	19,491	23,439
Interest expenses and revenues	– 801	– 272	– 587	– 170	– 163	– 75		0	– 1,550	– 517
Income tax expense	– 2,955	– 3,908	– 4,688	– 4,617	750	357	0	0	– 6,894	– 8,168
Profit before minority interests	5,950	8,267	6,948	7,633	– 1,851	– 1,146	0	0	11,047	14,754

Note: H1/2022R = H1/2022 restated according to IAS 29 adjustment due to hyperinflation in Argentina

SEGMENT REPORT – BALANCE SHEET

	Isotope Products		Medical		Holding		Total
€ thousand	H1/2023	H1/2022	H1/2023	H1/2022	H1/2023	H1/2022	H1/2023	H1/2022
Segmental assets	201,526	194,256	165,333	138,488	190,731	162,401	557,590	495,145
Elimination of inter-segmental shares, equity investments and receivables							– 124,504	– 127,263
Consolidated total assets							433,086	367,882
Segmental liabilities	– 112,099	– 107,322	– 89,691	– 76,224	– 30,411	– 27,910	– 232,201	– 211,456
Elimination of intersegmental liabilities							12,938	36,288
Consolidated liabilities							– 219,263	– 175,168
Investments in associated companies	1,652	2,570	12,184	12,307	0	0	13,836	14,877
Investments (without acquisitions)	3,790	3,273	6,057	9,219	2,375	2,067	12,222	14,559
Depreciation and amortization incl. RoU according to IFRS 16	–3,038	– 2,899	–2,332	– 1,446	–706	– 591	–6,076	– 4,936
Impairments	–32	– 37	13	– 2	0	0	–19	– 39

Significant transactions with related parties

In accordance with IAS 24, transactions with persons or companies that control or are controlled by Eckert & Ziegler AG must be disclosed. Transactions between the Company and its subsidiaries that are related parties have been eliminated in the course of consolidation and are therefore not explained. Details of transactions between the Group and other related parties are disclosed below.

Other significant related parties for the half-year financial statements are:

Eckert Wagniskapital und Frühphasenfinanzierung GmbH (EWK), which holds 30.9% of the shares in Eckert & Ziegler AG, and its main shareholder, Dr. Andreas Eckert, who was Chairman of the Executive Board until June 07, 2023 and is Chairman of the Supervisory Board of Eckert & Ziegler AG with effect from June 07, 2023.
Eckert Beteiligungen 2 GmbH (EB2), which is a 100% subsidiary of Eckert Wagniskapital und Frühphasenfinanzierung GmbH.

In the half-year financial statements 2023, the following material transactions were carried out with related parties, whereby these transactions were conducted at arm's length:

EB2 leased a production and administration building in Berlin-Buch to Eckert & Ziegler AG. During the first six months, Eckert & Ziegler AG paid an amount of €427 thousand (previous year: €413 thousand) for the rent. As of June 30, 2023, lease liabilities to EB2 amounting to €5,669 thousand are reported in the balance sheet due to the application of lease accounting in accordance with IFRS 16.

Events after the balance sheet date

There were no events after the balance sheet date that had a significant impact on the net assets, financial position or results of operations of the Group.

C. ADDITIONAL INFORMATION

C.1 RESPONSIBILITY STATEMENT BY THE STATUTORY REPRESENTATIVES (BALANCE-SHEET OATH)

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 for the remaining months of the financial year.

Berlin, 10 August 2023

Dr Harald Hasselmann Dr Hakim Bouterfa Jutta Ludwig Frank Yeager Chairman of the Member of the Member of the Member of the

Executive Board Executive Board Executive Board Executive Board

C.2 REVIEW CERTIFICATE

To Eckert & Ziegler Strahlen- und Medizintechnik AG

We have reviewed the condensed interim consolidated financial statements – comprising the consolidated balance sheet, the consolidated income statement, the consolidated statement of comprehensive income, the consolidated cash flow statement, the consolidated statement of changes in equity, and selected notes – as well asthe interim group management report of Eckert & Ziegler Strahlen- und Medizintechnik AG, Berlin, for the period from January 1, 2023 to June 30, 2023, which are part of the half-year financial report pursuant to § 115 WpHG ("Wertpapierhandelsgesetz": German Securities Trading Act).

The preparation of the half-year consolidated financial statements in accordance with the IFRS for the Interim Financial Reporting as adopted by the EU, and of the interim group management report in accordance with the requirements of the WpHG applicable to interim group management reports, is the responsibility of the Company's management. Our responsibility is to issue a report on the half-year consolidated financial statements and on the interim group management report based on our review.

We performed our review of the half-year consolidated financial statements and the interim group management report in accordance with the German generally accepted standards for the review of financial statements promulgated by the Institut der Wirtschaftsprüfer (IDW). Those standards require that we plan and perform the review so that we can preclude, through critical evaluation, with a certain level of assurance, that the half-year consolidated financial statements have not been prepared, in all material respects, in accordance with the IFRS for the Interim Financial Reporting as adopted by the EU and that the interim group management report has not been prepared, in all material respects, in accordance with the provisions of the WpHG applicable to interim group management reports. A review is limited primarily to inquiries of company employees and analytical assessments and therefore does not provide the assurance attainable in a financial statement audit. Since, in accordance with our engagement, we have not performed a financial statement audit, we cannot issue an auditor's report.

Based on our review, no matters have come to our attention that cause us to presume that the half-year consolidated financial statements have not been prepared, in material respects, in accordance with the IFRS for the Interim Financial Reporting as adopted by the EU, or that the interim group management report has not been prepared, in material respects, in accordance with the requirements of the WpHG applicable to interim group management reports.

Berlin, August 10, 2023

Mazars GmbH & Co. KG Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft

Udo Heckeler David Reinhard (German Public Auditor) (German Public Auditor)

FINANCIAL CALENDAR

September 18–20, 2023	Berenberg/Goldman Sachs Conference, Munich
November 14, 2023	Quarterly Report iii/2023
November 15–16, 2023	Berenberg US Conference (virtual)
November 27–29, 2023	German Equity Forum, Frankfurt
January 15, 2024	Kepler Cheuvreux Conference, Frankfurt
March 22, 2024	Annual Financial Statement 2023
May 14, 2024	Quarterly Report i/2024
May 28, 2024	Annual General Meeting
August 13, 2024	Quarterly Report ii/2024
November 14, 2024	Quarterly Report iii/2024
November 25–27, 2024	German Equity Forum, Frankfurt
Subject to changes

IMPRINT

PUBLISHER

Eckert & Ziegler Strahlen- und Medizintechnik AG

DESIGN

Ligaturas GmbH Reportdesign, Harrislee, Germany

PHOTOS

Eckert & Ziegler Archive Bernhard Ludewig Nils Hendrik Müller

CONTACT

Eckert & Ziegler Strahlen- und Medizintechnik AG

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

Karolin Riehle Investor Relations

Phone + 49 30 94 10 84 – 0 [email protected]

ISIN DE0005659700 WKN 565970

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