SnowWorld N.V. — Interim / Quarterly Report 2008

Aug 26, 2008

CONSOLIDATED INTERIM FINANCIAL STATEMENTS

FOR THE FIRST HALF-YEAR 2008

Fornix BioSciences N.V.

CONSOLIDATED INCOME STATEMENT (× € 1,000)

	2008	2007	20071)	2007
	1-1 to 30-06	1-1 to 30-06	1-1 to 30-06 1-1 to 30-06
			Continued Discontinued
		business	business
	Total	activities	activities	Total
Income	19,302	18,395	29,678	48,073
Cost of sales	3,413	3,284	27,701	30,985
Gross result	15,889	15,111	1,977	17,088
Other Income	87	68	-	68
Distribution costs	736	686	89	775
Personnel costs	3,931	3,416	738	4,154
Travel expenses	703	596	35	631
Depreciation and amortization	276	256	117	373
Accommodation costs	138	124	16	140
Research and development costs	2,000	2,109	-	2,109
Quality control costs	166	178	104	282
Production and warehouse costs	86	80	24	104
General overheads	2,154	1,497	425	1,922
Charged on to production and trading inventories	(700)	(698)	(2)	(700)
Sum of the costs	9,490	8,244	1,546	9,790
Result from operating activities	6,486	6,935	431	7,366
Net financing income/expenses	663	478	(145)	333
Profit before taxation	7,149	7,413	286	7,699
Tax on profits	1,896	2,021	25	2,046
Profit for the financial period	5,253	5,392	261	5,653
Attributable to:
Shareholders of the parent company	5,253	5,392	261	5,653
Minority interest	-	-	-	-
Profit for the financial period	5,253	5,392	261	5,653
Ordinary earnings per share (x €)	0.73	0.79	0.04	0.83
Diluted earnings per share (x €)	0.73	0.78	0.04	0.82

1) The 2007 justified discontinued business activities are the result of the sale of the Trading Division in the year 2007.

CONSOLIDATED SUMMARY OF TOTAL RESULT (× € 1,000)

	2008 1-1 to 30-06	2007 1-1 to 30-06
Exercise of staff options	475	211
Net profit directly accounted for in the shareholders' equity	475	211
Profit for the financial period	5,253	5,653
Total result for the financial period Attributable to:	5,728	5,864
Shareholders of the parent company	5,728	5,864
Minority interest Total result for the financial period	- 5,728	- 5,864

CONSOLIDATED BALANCE SHEET (× € 1,000) (before allocation of the result)	30-6-2008	31-12-2007	30-06-2007
ASSETS
Non-current assets
Intangible assets	12,884	12,904	13,600
Property, plant and equipment	3,027	3,036	3,832
Deferred tax assets	132	128	187
Total Non-current assets	16,043	16,068	17,619
Current assets
Inventories	3,461	3,347	12,034
Trade and other receivables	5,656	6,537	12,041
Cash and cash equivalents	31,973	33,235	16,260
Total Current assets	41,090	43,119	40,335
Total Assets	57,133	59,187	57,954
LIABILITIES AND EQUITY
Shareholders' equity
Paid-up and called-up share capital	1,132	1,089	1,074
Share premium	31,756	27,016	25,068
Other reserves	12,029	7,121	11,184
Profit for the financial period	5,253	13,981	5,653
Total Shareholders' equity attributable to shareholders	50,170	49,207	42,979
of the parent Company
Minority interest	1	1	1
Total Shareholders' equity	50,171	49,208	42,980
Non-current liabilities
Employee benefits	133	192	141
Deferred tax liabilities	236	239	285
Total Non-current liabilities	369	431	426
Current liabilities
Provisions	-	35	238
Trade payables	2,101	2,475	4,071
Taxes payable	216	454	398
Other items to be paid	4,276	6,584	9,841
Total Current liabilities	6,593	9,548	14,548
Total Liabilities and equity	57,133	59,187	57,954

CONSOLIDATED CASH FLOW STATEMENT (× € 1, 000)

		2008	2007
	1-1 to 30-06		1-1 to 30-06
Cash flow from operating activities
Receipts from customers	21,100		49,400
Payments to suppliers and employees	(15,237)		(47,153)
Net cash flow from business operations		5,863		2,247
Interest received	680		502
Interest paid	(1)		-
Tax paid on profits	(1,748)		(1,904)
Grants received	-		65
Cash flow from other operating activities		(1,069)		(1,337)
Net cash flow from operating activities		4,794		910
Cash flow from investing activities
Acquisition of subsidiaries	(1,250)		(1,932)
Investments in intangible assets	(31)		(65)
Investments in property, plant and equipment	(228)		(76)
Net cash flow from investing activities		(1,509)		(2,073)
Cash flow from financing activities
Earnings from exercise of staff options	475		211
Dividend paid	(5,022)		(3,611)
Net cash flow from financing activities		(4,547)		(3,400)
Net decrease in cash and cash equivalents		(1,262)		(4,563)
Cash and cash equivalents as at 1 January		33,235		20,749
Cash acquired subsidiaries		-		74
Cash and cash equivalents as at 30 June		31,973		16,260

CHANGES IN SHAREHOLDERS' EQUITY (× € 1,000)

Balance as at 31 December 2006	40,505
Dividend payment 2006	(3,611)
Profit for the first half-year 2007	5,653
Exercise of personnel options first half-year 2007	211
Cost of share ownership plan first half-year 2007	221
Balance as at 30 June 2007	42,979
Interim dividend 2007	(2,431)
Profit for the second half-year 2007	8,328
Exercise of personnel options second half-year 2007	-
Cost of share ownership plan second half-year 2007	331
Balance as at 31 December 2007	49,207
Dividend payment 2008	(5,022)
Profit for the first half-year 2008	5,253
Exercise of personnel options first half-year 2008	475
Cost of share ownership plan first half-year 2008	257
Balance as at 30 June 2008	50,170

Notes to the consolidated interim financial statements

1 General

The consolidated interim financial statements for the first half-year 2008 from Fornix BioSciences N.V. (the "Company") include the Company and its subsidiaries (together referred to as the "Group").

The abridged consolidated interim financial statements were prepared by the Board of Directors and released for publication on 21 August 2008.

2 Statement of compliance

The abridged consolidated interim financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS), as adopted by the European Union, and the interpretations of the International Accounting Standards Board, hereinafter referred to as IFRS. The abridged consolidated interim financial statements have been prepared in accordance with IAS 34 "Interim Financial Reporting".

3 Basis of preparation

The preparation of the interim financial statements requires the Board of Directors of the Company to form opinions and to make estimates and assumptions that influence the application of policies and the reported values of assets and liabilities and of income and expenses. The actual outcomes may differ from these estimates.

For the year 2008 no important changes occurred with regard to the accounting principles of the Group so please see the 2007 Annual accounts for the principals of valuation and profit calculation.

4 Segmented information

The Group's activities can be broken down by division as follows (x € 1,000):

	First half-year 2008	First half-year 2007
Allergy Division
Income	14,746	14,024
Other income	-	38
Sum of the costs 1)	7,227	6,496
Result from operating activities	5,993	6,030
Total depreciation and amortization
(intangible assets and property, plant and equipment)	155	130
Capital employed
(intangible assets and property, plant and equipment plus working capital)	7,645	4,671
Total investments (intangible assets and property, plant and equipment)	181	43
Total liabilities	4,481	3,836
Number of employees (average FTEs)	72.8	65.7

	First half-year 2008	First half-year 2007
Medical Aids Division
Income	4,556	4,371
Other income	-	-
Sum of the costs 1)	1,510	1,466
Result from operating activities	1,158	1,157
Total depreciation and amortization
(intangible assets and property, plant and equipment) Capital employed	47	47
(intangible assets and property, plant and equipment plus working capital)	2,767	2,707
Total investments (intangible assets and property, plant and equipment)	61	15
Total liabilities	825	1.214
Number of employees (average FTEs)	24.3	21.9
Holding Company
Income	-	-
Other income	87	30
Sum of the costs 1)	753	282
Result from operating activities	(665)	(252)
Total depreciation and amortization
(intangible assets and property, plant and equipment)	74	79
Capital employed
(intangible assets and property, plant and equipment plus working capital)	10,699	12,832
Total investments (intangible assets and property, plant and equipment)	17	2,010
Total liabilities	1,656	5,844
Number of employees (average FTEs)	14.9	13.7
Total Group (discontinued activities excluded)
Income	19,302	18,395
Other income	87	68
Sum of the costs 1)	9,490	8,244
Result from operating activities	6,486	6,935
Total depreciation and amortization
(intangible assets and property, plant and equipment) Capital employed	276	256
(intangible assets and property, plant and equipment plus working capital)	21,111	20,210
Total investments (intangible assets and property, plant and equipment)	259	2,068
Total liabilities	6,962	10,894
Number of employees (average FTEs)	112.0	101.3
Trading Division
Income	-	29,678
Other income	-	-
Sum of the costs 1)	-	1,546
Result from operating activities		431
Total depreciation and amortization
(intangible assets and property, plant and equipment)	-	117
Capital employed
(intangible assets and property, plant and equipment plus working capital)	-	15,861
Total investments (intangible assets and property, plant and equipment)	-	64
Total liabilities	-	4,080
Number of employees (average FTEs)	-	43.7

	First half-year 2008	First half-year 2007
Total Group (discontinued activities included)
Income	19,302	48,073
Other income	87	68
Sum of the costs 1)	9,490	9,790
Result from operating activities	6,486	7,366
Total depreciation and amortization
(intangible assets and property, plant and equipment)	276	373
Capital employed
(intangible assets and property, plant and equipment plus working capital)	21,111	36,071
Total investments (intangible assets and property, plant and equipment)	259	2,132
Total liabilities	6,962	14,974
Number of employees (average FTEs)	112.0	145.0

1) The holding company Fornix BioSciences N.V. allocated a total of € 1,504 (2007: € 1,616) to the divisions. The allocation ratio used is based on the proportion of the division costs in relation to the overall costs. For the first half-year of 2008, € 1,261 (2007: € 1,268) was allocated to the Allergy Division and € 243 (2007: € 261) to the Medical Aids Division. For the first-half year of 2007 € 87 was allocated to the Trading Division.

5 Discontinued activities

As at 1 October the Group sold its subsidiary Dr. Fisher Farma B.V.

The comparative figures for the first half-year of 2008 in the consolidated income statement are revised to show the discontinued business activities separate from the continued activities.

6 Artu Biologicals Deutschland

Fornix BioSciences N.V. moved into marketing, sale and distribution of its most important allergy products in Germany on 1 June 2007 with the trade name Igevac®. In the consolidated income statement for the first half-year of 2008 the results for the first half-year of 2008 includes a period of six months in stead of one month for the first half-year of 2007.

7 Expenses of termination of the potential acquisition of Bial-Aristigui (x € 1.000)

As result of the termination of the potential acquisition of Bial-Aristigui the costs for the first half-year of 2008 amounting € 670 are stated under the general overheads in the consolidated income statement.

8 Tax position (x € 1,000)

A total of € 1,896 tax on profits is due on the result of the first half-year of 2008 (first half-year of 2007: € 2,046).

As at 30 June 2008, the tax amounts up to € 445 receivable. End of June 2007 € 76 was due in tax on profits.

All companies with the exception of Artu Biologicals Deutschland GmbH & Co KG and Artu Biologicals Deutschland Verwaltungs GmbH are part of the Fornix BioSciences N.V. tax entity. The loss of Artu Biologicals Deutschland GmbH & Co KG however fully belongs to the fiscal entity.

The Dutch applicable tax rate amounts to 25.5.

The effective tax rate for the first half-year of 2008 is 26.5 (first half-year of 2007: 26.6).

9 Ordinary earnings per share and diluted earnings per share

	First half-year 2008	First half-year 2007
Ordinary earnings per share
Profit after taxation (x € 1,000)	5,253	5,653
Weighted average number of ordinary shares (x 1,000)	7,230	6,846
Ordinary earnings per share (in €)	0.73	0.83
Diluted earnings per share
Profit after taxation (x € 1,000)	5,253	5,653
Weighted average number of shares of
the diluted earnings per share (x 1,000)	7,238	6,870
Diluted earnings per share (in €)	0.73	0.82

10 Dividend (x € 1,000)

In May 2008 the final dividend 2007, an amount of € 9,329 was settled. From this amount a total of € 5,022 was paid in cash. The accompanying dividend tax was paid in June of 2008.

Of the in 2008 paid final dividend 2007, the dividends paid in shares amounted 46%.