Interim / Quarterly Report • Oct 28, 2009
Interim / Quarterly Report
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STRATEC Biomedical Systems AG
Interim Report as of September 30, 2009
| Foreword by the Board of Management .3 |
|---|
| Interim Group Management Report .5 |
| Consolidated Balance Sheet as of September 30, 2009 .9 |
| Consolidated Income Statement for the Period from July 1 to September 30, 2009 .10 |
| Consolidated Income Statement for the Period from January 1 to September 30, 2009 .11 |
| Statement of Changes in Group Shareholders' Equity for the Period from January 1 to September 30, 2009 .12 |
| Consolidated Cash Flow Statement for the Period from January 1 to September 30, 2009 .14 |
| Notes on the Interim Consolidated Financial Statements for the Period from January 1 to September 30, 2009 .15 |
| Financial Calendar .18 |
| About the Company .18 |
| Notice . 19 |
For the first time in STRATEC's history, four development projects are simultaneously in the ramp-up phase for serial production. These newly developed analyzer systems will be launched by our customers in their respective market segments in the coming months.
To account for these serial launches and for our development pipeline, which remains full, production capacities in Switzerland are currently being extended with a new building. The company's main location in Birkenfeld in Germany is due to be expanded in 2010. The construction projects will be financed by the cash flow from operations. These measures will only burden the company's stock of financial funds and depreciation rate to a minor extent. By extending its production sites, STRATEC will gain sufficient capacity to do justice to growing demand at our partners.
The company's positive development is also reflected in its sales and earnings figures for the first nine months of the current financial year and has mainly been driven by strong demand for existing analyzer systems, as well as for consumables such as maintenance kits. Moreover, a number of preserial systems have also been supplied in recent months. Serial production on these will begin in the coming months.
Against this backdrop, the company further boosted its sales by 32.1% to Euro 19.4 million in the period from July 1, 2009 to September 30, 2009 (Q3/2008: Euro 14.7 million). EBIT of Euro 3.5 million was generated over the same period (Q3/2008: Euro 2.4 million), equivalent to growth of 45.8%. The EBIT margin for the third quarter of 2009 amounted to 18.1% (Q3/2008: 16.4%).
Sales for the first nine months of 2009 rose by 26.5% to Euro 56.0 million (Q1-Q3/2008: Euro 44.3 million) and are thus already at the upper end of our forecast range, which provides for sales growth of 20% to 30% in the 2009 financial year. EBIT was increased by 35.0% to Euro 9.8 million (Q1-Q3/2008: Euro 7.2 million).
At 17.5% (Q1-Q3/2008: 16.4%), the EBIT margin for the first nine months of 2009 developed on schedule to reach the forecast range of 18.5% to 19.5% for the 2009 financial year as a whole.
EBIT margin (in %) after 3, 6, 9 and 12 months
Due not least to the acquisition in April 2009 of Invitek, a company specializing in particular in the purification of nucleic acids in the OEM business, STRATEC has seen increased interest in molecular diagnostics system solutions, a development already reflected in the implementation of several feasibility studies for potential OEM customers. Further contract agreements securing our growth beyond 2012 are foreseeable.
Birkenfeld, October 2009
The Board of Management of STRATEC Biomedical Systems AG
Hermann Leistner
Marcus Wolfinger Bernd M. Steidle
While sales rose by 26.5% from Euro 44.3 million in the previous year to Euro 56.0 million in the first nine months of 2009, the Group increased its overall performance over the same period by 27.9% from Euro 48.6 million to Euro 62.2 million. In connection with the launch (production ramp-up) of serial production for four analyzer system families,the cost of materials grew from Euro 22.8 million to Euro 30.9 million.
Due in particular to the further expansion in development activities,as well as to the acquisition of Invitek,personnel expenses rose from Euro 12.1 million to Euro 14.6 million. Other operating expenses increased by Euro 0.8 million to Euro 5.3 million, while depreciation and amortization rose from Euro 1.7 million to Euro 2.0 million on account of the additional amortization of "identified intangible assets" (IFRS 3) at Invitek.Due to the sale of the shareholding held in CyBio AG at a price in excess of its carrying amount, as well as to the higher fair value measurement of marketable securities, net financial expenses rose to Euro 0.4 million, as against Euro 0.3 million in the previous year. STRATEC thus generated consolidated net income of Euro 7.8 million in the period under report (previous year: Euro 5.7 million), corresponding to earnings per share of Euro 0.69 (previous year:Euro 0.50).
In the balance sheet,the acquisition of Invitek led to increases in goodwill and in other intangible assets, while the reduction in financial assets (shareholdings) is attributable to the sale of the shareholding held in CyBio AG.
As a result of the sharp increase in development services for projects at an advanced stage of development, inventories (especially for unfinished services) grew from Euro 24.1 million to Euro 31.4 million. Total receivables and other assets showed a slight reduction of Euro 0.5 million to Euro 15.4 million, while cash and cash equivalents decreased from Euro 19.2 million to Euro 16.2 million in the period under report, a development which was due in particular to the Invitek acquisition and dividend payments.
The slight reduction in the equity ratio from 71.6% to 70.7% is a direct result of the initial consolidation of Invitek into the STRATEC Group. This was also the reason for the increase in deferred taxes and in other current liabilities.The growth in trade payables was attributable to increased procurement volumes for raw materials and supplies. Income tax liabilities,by contrast,could be reduced by Euro 0.8 million to Euro 0.1 million.
With an outflow of funds of Euro 2.2 million, the Group's investment activities in the first nine months of the 2009 financial year were characterized by the Invitek acquisition (a further portion of the purchase price was settled by transfer of treasury stock shares worth Euro 0.8 million). Moreover, over the same period the STRATEC Group invested Euro 1.4 million (previous year: Euro 0.9 million) in property, plant and equipment, especially tools, and Euro 0.3 million in intangible assets (previous year:Euro 0.3 million).
According to an assessment published by the International Monetary Fund (IMF) at the beginning of October 2009,the global economy is set to return to growth faster than expected following its brief, severe recession. Following a contraction in the global economy by 1.1% this year,the IMF expects to see "surprisingly robust" global growth of 3.1% in the coming year already.The IMF has thus once again corrected its growth forecast significantly upwards. In April and July, the IMF had still forecast growth of a mere 1.9% and 2.5% respectively for 2010. Following the economic turnaround, however, the IMF nevertheless expects to see a sluggish recovery in the industrialized economies.
Irrespective of this, global demographic developments represent one of the most serious challenges facing the world.The dynamic growth in the world's population, together with an unprecedented increase in the elderly share of the population and the sharp rise in the number of people with access to medical care, represent key factors which will shape the 21st century.This situation is accompanied by scientific and technological progress, which is opening up ever new possibilities in the fields of medicine, research, diagnostics and life science.
These developments will lead not only to an increase in the numbers of medical tests to be performed, but will also result in new, unique opportunities for which STRATEC is optimally positioned with its automation solutions and on which it will continue to focus its strategy and operations.
In view of the factors outlined above, global economic risks, such as the recent recession, only have a very limited impact on STRATEC's business performance and business model. Moreover, long-term supply agreements with our customers and the fact that the work performed is invoiced almost exclusively in euros further minimize the implications of the crisis for STRATEC.
On April 8, 2009, we issued a sales and earnings forecast for 2009 upon the publication of our annual report for the 2008 financial year.This forecast provides for sales growth of 20% to 30% with an EBIT margin of 18.5% to 19.5%.
Our assessment in respect of the aforementioned growth rates for 2009 has been backed up by our positive current business performance. Our development and production capacities are being very well utilized.
The volume of production orders on hand gives grounds to expect further substantial growth in the fourth quarter of 2009. Furthermore, our planning indicators point to a continuing positive business performance in the 2010 and 2011 financial years as well.
Furthermore, we are holding talks on promising projects with existing and potential customers, which lead us to expect further growth driven by new projects well beyond 2012.
Given the implications of the international economic crisis and the economic downturn, forecasting reliability remains low across all industrial sectors. This situation continues to harbor risks for STRATEC's customers and suppliers, as a result of which STRATEC also faces economic risks.
We avert potential receivables default risk by working with trade credit insurance policies. In view of our existing development projects and forecasts, as well as the partial conversion of our forecast systems to the dates at which orders are actually placed by STRATEC's customers, however, our degree of forecasting reliability remains very high.
Apart from this, since the assessment of the situation of the company provided on March 20, 2009 upon the compilation of the Annual Report for the 2008 financial year, no new information has arisen which could lead to any change in our assessment of the expected development of the company.
We analyze and evaluate the risks facing the company and its business environment within the framework of our risk management system, which has been established as an early warning risk identification system. Furthermore, this system also includes a compliance system safeguarding compliance with the relevant legal and industryspecific requirements.
STRATEC's business activities basically focus on sustainability and responsible behavior. In future, the company will document this in a sustainability report.
STRATEC acted early to address the potential risks arising on account of the "new flu". If need be, the company can draw on an emergency plan adapted to the "new flu", thus minimizing the impact on employees' health and the financial burdens for the company.
With the exception of the factors outlined in the "Report on forecasts and other statements concerning the company's expected development", we do not see any changes compared with the risks and opportunities identified in the Group Management Report of March 20, 2009 for the 2008 financial year. Reference is made to the "Risk Report" section within the 2008 Group Management Report for details concerning our risk management system and our company's specific opportunity and risk profile.
| Assets | 9/30/2009 | 12/31/2008 |
|---|---|---|
| Non-current assets | ||
| Goodwill | 2,002 T€ | 608 T€ |
| Other intangible assets | 4,591 T€ | 2,692 T€ |
| Property, plant and equipment | 7,152 T€ | 6,296 T€ |
| Investments in associates | 357 T€ | 285 T€ |
| Shareholdings | 0 T€ | 609 T€ |
| T€ 14,102 |
10,490 T€ | |
| Current assets | ||
| Raw materials and supplies | 8,230 T€ | 6,986 T€ |
| Unfinished products, unfinished services | 22,610 T€ | 16,825 T€ |
| Finished products and goods | 525 T€ | 284 T€ |
| Trade receivables | 9,538 T€ | 9,682 T€ |
| Future receivables from construction contracts | 4,511 T€ | 4,902 T€ |
| Receivables from associates | 166 T€ | 167 T€ |
| Other receivables and other assets | 1,178 T€ | 1,129 T€ |
| Securities | 613 T€ | 293 T€ |
| Cash and cash equivalents | 16,223 T€ | 19,208 T€ |
| 63,594 T€ | 59,476 T€ | |
| Total assets | 77,696 T€ | 69,966 T€ |
| Shareholders' equity and liabilities |
9/30/2009 | 12/31/2008 |
|---|---|---|
| Shareholders' equity |
||
| Share capital | 11,441 T€ | 11,426 T€ |
| Capital reserve | 10,822 T€ | 10,746 T€ |
| Revenue reserves | 26,434 T€ | 24,280 T€ |
| Consolidated net income | 7,788 T€ | 6,131 T€ |
| Treasury stock | -957 T€ | -2,014 T€ |
| Other equity | -607 T€ | -667 T€ |
| 54,921 T€ | 49,902 T€ | |
| Debt | ||
| Non-current debt | ||
| Non-current financial liabilities | 5,703 T€ | 5,661 T€ |
| Deferred taxes | 1,616 T€ | 1,089 T€ |
| 7,319 T€ | 6,750 T€ | |
| Current debt | ||
| Current financial liabilities | 433 T€ | 447 T€ |
| Trade payables | 4,556 T€ | 3,632 T€ |
| Liabilities to associates | 40 T€ | 70 T€ |
| Other current liabilities | 8,930 T€ | 7,305 T€ |
| Kurzfristige Rückstellungen | 1,365 T€ | 892 T€ |
| Current provisions | 132 T€ | 968 T€ |
| 15,456 T€ | 13,314 T€ | |
| Total shareholders' equity and liabilities |
77,696 T€ | 69,966 T€ |
| 7/1/-9/30/2009 | 7/1/-9/30/2008 | |
|---|---|---|
| Sales | 19,449 T€ | 14,719 T€ |
| Increase in volume of finished and | ||
| unfinished products and unfinished services | 2,183 T€ | 1,640 T€ |
| Other own work capitalized | 144 T€ | 151 T€ |
| Overall performance | 21,776 T€ | 16,510 T€ |
| Other operating income | 116 T€ | 120 T€ |
| Cost of raw materials and supplies | 10,267 T€ | 7,753 T€ |
| Cost of purchased services | 347 T€ | 238 T€ |
| Personnel expenses | 5,270 T€ | 4,137 T€ |
| Other operating expenses | 1,822 T€ | 1,517 T€ |
| EBITDA | 4,186 T€ | 2,985 T€ |
| Depreciation and amortization of property, | ||
| plant and equipment and intangible assets | 666 T€ | 570 T€ |
| EBIT | 3,520 T€ | 2,415 T€ |
| Net financial expenses | 67 T€ | 105 T€ |
| Operating result (EBT) | 3,587 T€ | 2,520 T€ |
| Current tax expenses | 836 T€ | 674 T€ |
| Deferred tax income | 128 T€ | 25 T€ |
| Consolidated net income | 2,879 T€ | 1,871 T€ |
| Earnings per share | 0.25 € | 0.17 € |
| No. of shares used as basis | 11,363,729 | 11,321,216 |
|---|---|---|
| Earnings per share, diluted |
0.25 € | 0.16 € |
|---|---|---|
| No. of shares used as basis | 11,447,169 | 11,344,432 |
| 1/1/-9/30/2009 | 1/1/-9/30/2008 | ||
|---|---|---|---|
| Sales | 56,001 T€ | 44,256 T€ | |
| Increase in volume of finished and | |||
| unfinished products and unfinished services | 5,832 T€ | 4,023 T€ | |
| Other own work capitalized | 331 T€ | 316 T€ | |
| Overall performance | 62,164 T€ | 48,595 T€ | |
| Other operating income | 379 T€ | 527 T€ | |
| Cost of raw materials and supplies | 29,886 T€ | 22,798 T€ | |
| Cost of purchased services | 1,059 T€ | 707 T€ | |
| Personnel expenses | 14,577 T€ | 12,141 T€ | |
| Other operating expenses | 5,286 T€ | 4,512 T€ | |
| EBITDA | 11,735 T€ | 8,964 T€ | |
| Depreciation and amortization of property, | |||
| plant and equipment and intangible assets | 1,960 T€ | 1,724 T€ | |
| EBIT | 9,775 T€ | 7,240 T€ | |
| Net financial expenses | 427 T€ | 290 T€ | |
| Operating result (EBT) | 10,202 T€ | 7,530 T€ | |
| Current tax expenses | 2,633 T€ | 2,005 T€ | |
| Deferred tax income | 219 T€ | 176 T€ | |
| Consolidated net income | 7,788 T€ | 5,701 T€ |
| Earnings per share | 0.69 € | 0.50 € |
|---|---|---|
| No. of shares used as basis | 11,333,543 | 11,383,142 |
| Earnings per share, diluted |
0.68 € | 0.50 € |
|---|---|---|
| No. of shares used as basis | 11,363,729 | 11,409,404 |
| J S b 2 0 0 8 t a n a r e p e m e r u y - |
R e v e n u e |
r e s e r v e s |
O h i t t e r e q u y |
||||||
|---|---|---|---|---|---|---|---|---|---|
| l a e t r i a p h a S c |
e l a v t r i e p s a e C r |
d s e g n n i i a n t r e a R e |
s e e u v r n r e e e h v s t e e O r r |
d e e t m a d o i c l n o s i n t o e C n |
t e n u e l m a v e e r r v u i r a s f e a s e r e o m R f |
y r u k s a c e o r t T s |
n o y i t c a n l e s r n r a u r C t |
y p t u i u o r q G e |
|
| B l 1 2 / 3 1 / 2 0 0 7 t a a n c e a |
1 1, 4 1 5 T € |
1 0, 5 5 4 T € |
1 3, 2 6 1 T € |
3, 5 3 9 T € |
9, 9 9 1 T € |
1 0 5 T € |
1 3 T € - |
2 7 6 T € - |
4 8, 5 7 6 T € |
| D i i d d t v e n p a y m e n |
– | – | – | – | 2, 5 1 1 T € - |
– | – | – | 2, 5 1 1 T € - |
| T f t r a n s e r o h t o e r r e v e n u e r e s e r v e s |
– | – | – | 2, 0 0 0 T € |
2, 0 0 0 T € - |
– | – | – | 0 T € |
| P f i i d f d t r o c a r r e o r w a r |
– | – | € 5, 4 8 0 T |
– | € 5, 4 8 0 T - |
– | – | – | € 0 T |
| A i i i f k t t t c q u s o n o r e a s u r y s o c |
– | – | – | – | – | – | 2, 0 0 1 T € - |
– | 2, 0 0 1 T € - |
| I f b i i h t s s e o s s c r p o n s a r e s u u f k i t t r o m s o c o p o n p r o g r a m s |
9 T € |
3 1 T € |
– | – | – | – | – | – | 4 0 T € |
| f T d t r a n s e r s u e o k i l t t s o c o p o n p a n s |
– | 1 1 8 T € |
– | – | – | – | – | – | 1 1 8 T € |
| A d j d t t t u s m e n u e o f i l t a a e e a s e e r v u m u r m n f i i f l b l l t o e m s a v a a e o r s a e |
– | – | – | – | – | 2, 0 9 € 6 T - |
– | – | 2, 0 9 € 6 T - |
| C l i t t u r r e n c y r a n s a o n |
– | – | – | – | – | – | – | € 5 9 T - |
€ 5 9 T - |
| C l i d d i t t o n s o a e n e n c o m e |
– | – | – | – | 5, 7 0 1 T € |
– | – | – | 5, 7 0 1 T € |
| B l 9 / 3 0 / 2 0 0 8 t a a n c e a |
1 1, 4 2 4 T € |
1 0, 7 0 3 T € |
1 8, 7 4 1 T € |
5, 5 3 9 T € |
5, 7 0 1 T € |
1, 9 6 4 T € - |
2, 0 1 4 T € - |
3 3 5 T € - |
4 7, 7 9 5 T € |
| S 2 0 0 9 J b t a n u a r y e p e m e r - |
R e v e n u e |
r e s e r v e s |
O h i t t e r e q u y |
||||||
|---|---|---|---|---|---|---|---|---|---|
| l a e t r i a p h a S c |
e l a v t r i e p s a e C r |
d s g e n n i i a n t r e a R e |
s e e u v r n r e e e h v s t e e O r r |
d e e t m a d o i c l o n s i n t o e C n |
r o e f n u o e l v i a t r v a e u r s l e i a a R v f |
y r u k s a c e o r t T s |
n o y i t c a n l e s r n r a u r C t |
y p t u i u o r q G e |
|
| B l 1 2 / 3 1 / 2 0 0 8 t a a n c e a |
1 1, 4 2 6 T € |
1 0, 7 4 6 T € |
1 8, 7 4 1 T € |
5, 5 3 9 T € |
6, 1 3 1 T € |
0 T € |
2, 0 1 4 T € - |
6 6 7 T € - |
4 9, 9 0 2 T € |
| D i i d d t v e n p a y m e n |
– | – | – | – | € 3, 9 7 7 T - |
– | – | – | € 3, 9 7 7 T - |
| T f t r a n s e r o h t o e r r e e n e r e s e r e s v u v |
– | – | – | 2, 0 0 0 T € |
2, 0 0 0 T € - |
– | – | – | 0 T € |
| f i i f P d d t r o c a r r e o r w a r |
– | – | 4 € 1 5 T |
– | 4 € 1 5 T - |
– | – | – | 0 € T |
| C i i i i f t t o m p a n y a c q u s o n n r e u r n o r h f k h l d i t t s a r e s r o m r e a s u r y s o c o n g s ( h i f l i d i ) t c a n g e n s c o p e o c o n s o a o n |
– | 2 5 7 T € - |
– | – | – | – | 1, 0 5 7 T € |
– | 8 0 0 T € |
| I f b i i h t s s u e o s u s c r p o n s a r e s f i k t t r o m s o c o p o n p r o g r a m s |
€ 1 5 T |
€ 1 6 9 T |
– | – | – | – | – | – | € 1 8 4 T |
| T f d t r a n s e r s u e o k i l t t s o c o p o n p a n s |
– | 1 6 4 T € |
– | – | – | – | – | – | 1 6 4 T € |
| A d j d t t t s e e o u m n u f i l t a r v a u e m e a s u r e m e n f i i l b l f l t o e m s a v a a e o r s a e |
– | – | – | – | – | € 0 T |
– | – | € 0 T |
| C l i t t u r r e n c y r a n s a o n |
– | – | – | – | – | – | – | 6 0 T € |
6 0 T € |
| C l i d d i t t o n s o a e n e n c o m e |
– | – | – | – | 7, 7 8 8 T € |
– | – | – | 7, 7 8 8 T € |
| B l 9 / 3 0 / 2 0 0 9 t a a n c e a |
1 1, 4 4 1 T € |
1 0, 8 2 2 T € |
1 8, 8 9 5 T € |
7, 5 3 9 T € |
7, 7 8 8 T € |
0 T € |
9 5 7 T € - |
6 0 7 T € - |
5 4, 9 2 1 T € |
| 1/1/-9/30/2009 | 1/1/-9/30/2008 | |
|---|---|---|
| Consolidated net income (after taxes) | 7,788 T€ | 5,701 T€ |
| Depreciation and amortization | 1,960 T€ | 1,724 T€ |
| Other non-cash expenses | 167 T€ | 226 T€ |
| Other non-cash income | -333 T€ | -152 T€ |
| Cash flow | 9,582 T€ | 7,499 T€ |
| Change in deferred taxes through profit or loss | -219 T€ | -177 T€ |
| Profit on the disposal of non-current assets | -192 T€ | -12 T€ |
| Increase in inventories, trade receivables and other assets |
-6,390 T€ | -5,469 T€ |
| Increase (previous year: decrease) in trade payables and other liabilities |
1,507 T€ | -53 T€ |
| Inflow of funds from operating activities |
4,288 T€ | 1,788 T€ |
| Incoming payments from the disposal of non-current assets |
921 T€ | 16 T€ |
| Outgoing payments for investments in consolidated non-current assets |
||
| - Intangible assets | -300 T€ | -320 T€ |
| - Property, plant and equipment | -1,368 T€ 0 T€ |
-889 T€ -69 T€ |
| - Financial assets - Outgoing payments for acquisition of consolidated subsidiaries |
||
| plus overdraft facilities assumed | -2,233 T€ | 0 T€ |
| Outflow of funds for investment activities |
-2,980 T€ | -1,262 T€ |
| Incoming payments from the taking up of financial liabilities |
0 T€ | 1,575 T€ |
| Outgoing payments for the repayment of financial liabilities |
-456 T€ | -187 T€ |
| Incoming payments from the issue of shares for employee stock option programs |
184 T€ | 39 T€ |
| Outgoing payments for the acquisition of treasury stock |
0 T€ | -2,001 T€ |
| Dividend payment | -3,977 T€ | -2,511 T€ |
| Outflow of funds for financing activities |
-4,249 T€ | -3,085 T€ |
| Cash-effective change in cash and cash equivalents |
-2,941 T€ | -2,559 T€ |
| Cash and cash equivalents at start of period |
19,208 T€ | 19,884 T€ |
| Change in cash and cash equivalents due to changes in exchange rates |
-44 T€ | 57 T€ |
| Cash and cash equivalents at end of period |
16,223 T€ | 17,382T€ |
The consolidated financial statements of STRATEC AG as of December 31, 2008 were compiled in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU valid at the reporting date. In the interim report as of September 30, 2009, which has been compiled on the basis of International Accounting Standard (IAS) 34 "Interim Financial Reporting", application has been made of the same accounting methods as in the consolidated financial statements for the 2008 financial year. Application has also been made of all interpretations of the International Financial Reporting Interpretations Committee (IFRIC) with binding effect as of September 30, 2009. Moreover, when compiling the interim report, account was also taken of the near-final draft of German Accounting Standard No.16 (DRS 16) – Interim Reporting – of the German Accounting Standards Committee (DRSC e.V).
There were no indications of any potential impairment in the value of goodwill at the reporting date.
The company's interim reports are neither audited, nor subject to an audit review, by the group auditor,Wirtschafts Treuhand GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft,Stuttgart.
Reference is made to the consolidated financial statements of STRATEC AG as of December 31, 2008 with regard to further information concerning the individual accounting and valuation methods applied.
The Group's currency is the euro. Unless otherwise indicated, all amounts have been stated in thousand euros (Euro 000s).
Following the acquisition of Invitek on April 21, 2009, for the sake of simplicity the company was consolidated in the interim consolidated financial statements of STRATEC AG for the first time as of April 1, 2009.This has not resulted in any major implications for the Group's net asset, financial and earnings position.
The purchase price of Euro 3.2 million consists of three main components.Alongside a cash sum of Euro 2.1 million and treasury stock shares in STRATEC Biomedical Systems AG worth Euro 0.8 million, the disposal of which is subject to restrictions,the parties also agreed a variable purchase price component worth a maximum of Euro 0.3 million by the end of 2009, which is dependent on performance and development targets being met.
When calculating the preliminary "purchase price allocation", the main items identified were intangible assets of Euro 2.4 million for technology, customer base and current development projects, and
goodwill of Euro 1.4 million.Based on our preliminary assessment,we expect scheduled amortization to result in a charge of Euro 0.3 million on consolidated earnings before taxes for 2009.
The breakdown of sales into their respective geographical regions represents the distribution of the STRATEC Group's products. In view of the fact that the customers of the STRATEC Group generally supply their country outlets and customers from central distribution centers, however, this breakdown of sales does not represent the geographical distribution of the final operating locations of the STRATEC Group's analyzer systems.
Sales can be broken down into their respective geographical regions (customer locations) as follows:
| Period | Germany | EU | Other | Total |
|---|---|---|---|---|
| January - September 2009 | 12,688 T€ | 35,780 T€ | 7,533 T€ | 56,001 T€ |
| 22.7% | 63.9% | 13.4% | 100.0% |
| Period | Germany | EU | Other | Total |
|---|---|---|---|---|
| January - September 2008 | 8,894 T€ | 30,885 T€ | 4,476 T€ | 44,255 T€ |
| 20.1% | 69.8% | 10.1% | 100.0% |
The expenses relating to research and project management, and to development services not fulfilling the capitalization criteria set out in IAS 38, amounted to Euro 3.7 million in the first nine months (previous year: Euro 4.0 million) and have been reported, mainly as personnel expenses,in the company's consolidated income statement. Moreover, procurement volumes of around Euro 0.7 million (previous year: Euro 0.6 million) were incurred during the period under report in connection with materials used in research and development.These have been included in the cost of materials item.
The development in shareholders' equity at the STRATEC Group has been depicted in the statement of changes in Group shareholders' equity on Pages 12 and 13.
The number of ordinary shares with a nominal value of one euro each issued by STRATEC AG as of September 30, 2009 amounts to 11,440,950.These are all bearer shares.
STRATEC AG owned a total of 63,895 treasury stock at the interim reporting date. This corresponds to a prorated amount of Euro 63,895.00 of its share capital and to a 0.56% share of its equity.
In view of the several "conditional capitals" created by resolutions adopted at the Annual General Meetings held on May 28, 2003, June 23, 2006, May 16, 2007 and May 20, 2009, these various items have been combined below in the interests of clarity.
The members of the Board of Management / Managing Directors and the employees held the following numbers of subscription rights (share option rights) at the interim reporting date:
| Conditional Capital I / II / III / V |
Board of Management/ Managing Directors |
Employees | Total |
|---|---|---|---|
| Outstanding on 6/30/2009 | 274,000 | 42,077 | 316,077 |
| Issued | 0 | 0 | 0 |
| Exercised | 9,000 | 1,750 | 10,750 |
| Lapsed | 0 | 100 | 100 |
| Outstanding on 9/30/2009 | 265,000 | 40,227 | 305,227 |
Including temporary employees, the STRATEC Group had a total workforce of 351 employees as of September 30, 2009 (previous year: 274).
No events which would require report in this section have occurred since the interim reporting date.
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.
| 11/11/2009 | Deutsches Eigenkapitalforum, Frankfurt/Main, Germany Organized by: Deutsche Börse Group |
|
|---|---|---|
| 11/18/2009 | WestLB Deutschland Conference, Frankfurt/Main, Germany Organized by:WestLB |
|
| 11/24/2009 | HSBC European Healthcare Conference, Frankfurt/Main, Germany Organized by: HSBC |
|
| January 2010 | 9th German Corporate Conference, Frankfurt am Main, Deutschland Organized by: CA Cheuvreux |
|
| 05/21/2009 | Annual General Meeting, Pforzheim, Germany |
Partially incomplete / subject to amendment
STRATEC Biomedical Systems AG designs and manufactures fully automated analyzer systems for its partners in the fields of clinical diagnostics and biotechnology. These partners market such systems, in general together with their own reagents, to laboratories, blood banks and research institutes around the world. The company develops its products on the basis of its own patented technologies.
Shares in the company (ISIN: DE0007289001) are traded in the Prime Standard segment of the Frankfurt Stock Exchange.
The STRATEC Group consists of the publicly listed parent company STRATEC Biomedical Systems AG and of subsidiaries and secondtier subsidiaries in Germany, the USA, the UK, Switzerland and Romania.
Further information about STRATEC is available on the internet at http://www.stratec-biomedical.de.
Forward-looking statements involve risks: This interim report contains various statements concerning the future performance of STRATEC. These statements are based on both assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, we can provide no guarantee of this.This is because our assumptions involve risks and uncertainties which could result in a substantial divergence between actual results and those expected. It is not planned to update these forward-looking statements.
Discrepancies may arise throughout this interim report on account of mathematical rounding up or down in the course of addition.
This interim report is also available in German.
STRATEC Biomedical Systems AG Gewerbestr. 37 75217 Birkenfeld Germany Phone: +49 7082 7916-0 Fax: +49 7082 7916-999 [email protected] www.stratec-biomedical.de
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