Interim / Quarterly Report • Jul 23, 2013
Interim / Quarterly Report
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STRATEC DEVELOPS AND MANUFACTURES FULLY AUTOMATED ANALYZER SYSTEMS BASED ON ITS OWN PATENTED TECHNOLOGIES FOR ITS PARTNERS IN THE FIELDS OF CLINICAL DIAGNOSTICS AND BIOTECHNOLOGY. STRATEC'S PARTNERS ARE MOSTLY GLOBAL PLAYERS OPERATING IN THE IN-VITRO DIAGNOSTICS INDUSTRY. THESE COMPANIES MARKET STRATEC'S SYSTEMS UNDER THEIR OWN NAMES, IN GENERAL TOGETHER WITH THEIR OWN REAGENTS, AS SYSTEM SOLUTIONS TO LABORATORIES, BLOOD BANKS, AND RESEARCH INSTITUTES AROUND THE WORLD.
| 03 | HIGHLIGHTS / KEY GROUP FIGURES AT A GLANCE |
|---|---|
| 04 | FOREWORD BY THE BOARD OF MANAGEMENT |
| 05 | INTERIM GROUP MANAGEMENT REPORT |
| 09 | CONSOLIDATED BALANCE SHEET AS OF JUNE 30, 2013 |
| 11 | CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the Period from April 1 to June 30, 2013 |
| 12 | CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the Period from January 1 to June 30, 2013 |
| 13 | CONSOLIDATED STATEMENT OF CHANGES IN EQUITY for the Period from January 1 to June 30, 2013 |
| 15 | CONSOLIDATED CASH FLOW STATEMENT for the Period from January 1 to June 30, 2013 |
| 16 | NOTES TO THE GROUP INTERIM REPORT for the Period from January 1 to June 30, 2013 |
| 20 | ADDITIONAL INFORMATION |
Sales of 159.4 million in H1/2013 (+8.0%; H1/2012: 155.0 million*)
EBIT margin of 14.1% in H1/2013 (H1/2012: 17.1%*)
Flood-related delays expected to be made up in second half
Consolidated net income of 16.8 million in H1/2013 (-7.8%; H1/2012: 17.4 million)
Earnings per share of 10.58 in H1/2013 (-7.9%; H1/2012: 10.63)
| in u thousands | 01.01.–06.30.2013 01.01. –06.30.2012 | Change | |
|---|---|---|---|
| Sales | 59,381 | 54,974* | +8.0% |
| EBIT | 8,346 | 9,423 | -11.4% |
| EBIT margin (%) | 14.1 | 17.1* | - |
| Consolidated net income | 6,779 | 7,352 | -7.8% |
| Earnings per share (u) | 0.58 | 0.63 | -7.9% |
| No. of employees (absolute) |
537 | 524 | +2.5% |
| in u thousands | 06.30.2013 | 12.31.2012 | Change |
| Shareholders' equity | 92,131 | 91,985 | +0.2% |
| Total assets | 121,054 | 121,838 | -0.6% |
| Equity ratio (%) | 76.1 | 75.5 | - |
* 2012 figure adjusted for a one-off item of 13.3 million due to an income-neutral reclassification from unfinished services and prepayments received upon the write-down of a development project. On an unadjusted basis, sales for the first half of 2012 amounted to 158.2 million and the corresponding EBIT margin amounted to 16.2%.
It is pleasing to note that STRATEC continued to grow during the first half of 2013 – our capacities were extended, our sales increased, our service and spare parts business has continued to stabilize and showed further slight growth, and in the first quarter we signed a major development and supply contract that will make a notable contribution to our ongoing growth in the years from 2015 onwards.
Having said this, we must also report on two less pleasing events. In early June, we were obliged to report flood damages. Due to heavy rainfall, surface water seeped into several buildings. The damage elimination and renovation work has been speedily completed and we expect to make up for the delays in delivering spare parts and systems in the course of the second half of the year.
Shortly after the end of the current period under report, we witnessed the premature discontinuation of a major development and supply project. At an already very advanced point in development, the respective customer informed us that, due to strategic considerations, the project would not be pursued any further. Directly after being informed of this development, we released a corresponding ad-hoc announcement for the stock market and adjusted our company forecast, to account for the resultant loss of sales and earnings. For the current financial year, we thus expect to post sales of between u 127 million and u 138 million with an EBIT margin of 14% to 15.5%. In subsequent years, we expect to generate average annual sales growth of 8% to 12% based on our 2013 sales. These figures do not account for the expected compensation payments.
Even though the termination of this contract is a very unpleasing development, and one that came as a great surprise to us, we would stress that we do not see this as representing any turnaround in our industry away from the trend towards outsourcing. The contracts recently signed with existing and new partners and further contract negotiations for major projects underpin our assessment that key players in the diagnostics industry are set to press ahead with outsourcing system developments and their subsequent production, and with ever greater momentum. We believe that STRATEC, as one of the world's leading partners in this field, will benefit to an above-average extent from this trend.
For as far as we can look ahead, we continue to expect further growth accompanied by positive developments in our profitability.
We very much appreciate the trust that you – our partners, shareholders, and employees – continue to place in our company.
Birkenfeld, July 2013
The Board of Management of STRATEC Biomedical AG
Marcus Wolfinger Dr. Robert Siegle Bernd M. Steidle
Sales for the first six months of the 2013 financial year increased by 8.0 % to 159.4 million (previous year: 155.0 million; adjusted for a one-off item of 13.3 million due an income-neutral reclassification from unfinished services and prepayments received upon the write-down of a development project). At 119.6 million (33.0%), gross profit (as a percentage of sales) fell slightly short of the previous year's figure. This was due to shifts within the product mix of the appliances supplied. Efficiency enhancements continue to make positive contributions.
Gross development expenses are now 10.5 million up on the previous year's figure. Due to efficiency enhancements and the resultant cost adjustments, sales-related expenses fell year-on-year by 10.6 million. The slight increase in administration expenses mainly resulted from changes made to the compensation system.
The net balance of other operating expenses and income improved by 10.1million. The financial result reduced by 10.1million. Depreciation and amortization amounted to 11.9 million, while investments in non-current assets totaled 11.1million. EBIT amounted to 18.4 million (previous year: 19.4 million), corresponding to an EBIT margin of 14.1 % (previous year: 17.1 %; net of aforementioned one-off item). The tax result amounted to 1 1.4 million. STRATEC can therefore report consolidated net income of 16.8 million for the period under report (previous year: 17.4 million). Earnings per share amounted to 0.58 (previous year: 10.63).
Inventories grew to 146.3 million, reflecting strong demand for analyzer systems and the company's fully-stocked development pipeline. Receivables and other assets declined by 15.5 million, a development also reflected in the positive operating cash flow of 18.8 million. Cash and cash equivalents increased from 113.2 million to 114.1million. The reduction compared with the first quarter of 2013 is attributable to payment of the dividend for 2012.
The equity ratio amounts to 76.1%. Non-current financial liabilities could be reduced slightly to 16.6 million. The increase in trade payables was driven by higher procurement volumes for raw materials and supplies. Within other current liabilities, an amount of 17.9 million has been reported for prepayments received for development services.
In its latest forecast, dated July 2013, the International Monetary Fund (IMF) painted a more negative picture than three months earlier. The IMF revised its growth forecast for the global economy this year downwards by 0.2 percentage points to 3.1%. Global economic growth in 2012 amounted to 3.2%. For 2014, the IMF expects to see growth of 3.8%.
The reasons referred to by the IMF for the weaker macroeconomic outlook mainly related to the intensification in the recession in Europe, the slower pace of growth in emerging economies, and the new risks potentially involved in the USA moving away from its loose monetary policy.
The IMF painted a particularly subdued picture for the euro area. The 17 countries in the common currency area are expected to face a decline in economic output by 0.6% in the current year given the contraction in countries such as France, Italy, and Spain. In April, the IMF had still forecast a contraction of only 0.3%. In 2014, however, the euro area should return to positive growth of just under 1%.
Based on the IMF's calculations, the US economy is also set to fall short of the April forecast, with growth of 1.7 % in 2013 and 2.7 % in 2014. The same is true of China, where economic growth of just under 8% is expected in both 2013 and 2014.
Given the risks, the IMF has called on politicians to act. Industrialized economies should introduce policies aimed at stimulating growth, nevertheless combined with reforms and credible strategies to consolidate government finances in the medium term and ongoing loose monetary policy. Furthermore, the IMF has called on euro countries to set their banking sectors in order.
Irrespective of the aforementioned developments, 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 clinical diagnostics tests to be performed, but will also result in new, unique business 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 only have a very limited impact on STRATEC's business performance and business model. Moreover, long-term supply agreements with our customers minimize the potential implications for STRATEC.
Serial production of two recently launched analyzer systems is to be stepped up in the second half of 2013. Moreover, further market launches and approvals of analyzer systems are expected to follow in 2014.
The clearance and renovation work associated with the flood damage in June 2013 has been completed and, now that the damages incurred have been recorded, operations are fully back on track.
On July 12, 2013, STRATEC reported the discontinuation by a customer of a development and supply agreement. Since then, no new insights have been gained concerning the discontinuation of this contractual relationship. Negotiations for compensation for STRATEC are currently underway with the customer and at present, no more precise details can be provided as to the nature, amount, or timing of such compensation. Further projects with this partner and projects with other partners are not affected by the contract discontinuation.
Our ability to issue precise forecasts continues to be impeded by several external factors, such as larger-scale fluctuations in our customers' acceptance forecasts, capacity utilization rates at installed systems, the timing of further market launches, the planned production launches for new systems, further consolidation in the IVD market, and macroeconomic market factors.
STRATEC published a new company forecast on July 12, 2013. In the 2013 financial year, the company expects to generate sales of between 1127 million and 1138 million with an EBIT margin of 14.0% to 15.5%. Average annual sales growth of 8% to 12% based on the sales figures for the 2013 financial year is expected in subsequent years. Profitability is expected to improve slightly, albeit in proportion with the number and scale of new development orders and the investments involved.
Due to the immense debt accumulated by some countries and economic regions and the resultant potential implications (debt crisis), the level of budgeting reliability remains low for all industries, and for the global economy as a whole. This situation continues to harbor risks for STRATEC's customers and suppliers, as a result of which STRATEC also faces economic risks. The ongoing difficult economic climate also means that STRATEC continues to face increased market risk.
Apart from this, since the assessment of the company's situation provided on March 26, 2013 upon the compilation of the Annual Report for the 2012 financial year, no new information has arisen which could lead to any change in our assessment of the company's expected development.
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 to ensure compliance with the relevant legal and industry-specific requirements.
STRATEC's business activities basically focus on sustainability and responsible behavior. In future, the company will document this in a sustainability report.
Apart from 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 for the 2011 financial year dated March 12, 2012. Reference is made to the "Risk Report" section within the 2011 Group Management Report for details concerning our risk management system and our company's specific opportunity and risk profile.
as of June 30, 2013 of STRATEC Biomedical AG
| ASSETS in u thousands | 06.30.2013 | 12.31.2012 |
|---|---|---|
| NON-CURRENT ASSETS | ||
| Goodwill | 4,535 | 4,547 |
| Other intangible assets | 6,869 | 6,192 |
| Property, plant and equipment | 16,929 | 17,108 |
| Interests in associates | 285 | 363 |
| Deferred tax assets | 1,373 | 1,260 |
| 29,991 | 29,470 | |
| current assets | ||
| Raw materials and supplies | 9,496 | 8,857 |
| Unfinished products, unfinished services | 36,837 | 34,406 |
| Finished products and goods | 963 | 807 |
| Trade receivables | 18,718 | 23,802 |
| Future receivables from construction contracts | 4,705 | 6,627 |
| Receivables from associates | 57 | 96 |
| Income tax receivables | 3,395 | 2,016 |
| Other receivables and other assets | 2,402 | 2,182 |
| Other financial assets | 358 | 366 |
| Cash and cash equivalents | 14,132 | 13,209 |
| 91,063 | 92,368 | |
| TOTAL ASSETS | 121,054 | 121,838 |
| SHAREHOLDERS' EQUITY AND DEBT in u thousands | 06.30.2013 | 12.31.2012 |
|---|---|---|
| SHAREHOLDERS' EQUITY | ||
| Share capital | 11,748 | 11,738 |
| Capital reserve | 16,523 | 16,247 |
| Revenue reserves | 56,458 | 48,966 |
| Consolidated net income | 6,779 | 13,973 |
| Other equity | 623 | 1,061 |
| 92,131 | 91,985 | |
| DEBT | ||
| Non-current debt | ||
| Non-current financial liabilities | 6,600 | 7,459 |
| Pension provisions | 28 | 28 |
| Deferred taxes | 1,829 | 2,060 |
| 8,457 | 9,547 | |
| Current debt | ||
| Current financial liabilities | 1,706 | 1,183 |
| Trade payables | 5,246 | 4,288 |
| Liabilities to associates | 209 | 282 |
| Other current liabilities | 12,178 | 13,707 |
| Current provisions | 603 | 608 |
| Income tax liabilities | 524 | 238 |
| 20,466 | 20,306 | |
| TOTAL SHAREHOLDERS' EQUITY AND DEBT | 121,054 | 121,838 |
for the Period from April 1 to June 30, 2013 of STRATEC Biomedical AG
| in u thousands | 04.01.-06.30.2013 | 04.01.-06.30.2012 |
|---|---|---|
| Sales | 30,208 | 29,401 |
| Cost of sales | -20,683 | -18,480 |
| Gross profit | 9,525 | 10,921 |
| Research and development expenses | -1,066 | -686 |
| Information only: Total research and development expenses | -5,237 | -4,638 |
| Information only: Capitalized research and development expenses | 4,171 | 3,952 |
| Sales-related expenses | -2,086 | -2,703 |
| General administrative expenses | -2,290 | -2,520 |
| Other operating income and expenses | -143 | 62 |
| EBIT | 3,940 | 5,074 |
| Net financial expenses | -116 | -182 |
| Earnings before taxes (EBT) | 3,824 | 4,892 |
| Current tax expenses | -782 | -1,270 |
| Deferred tax income | 193 | 291 |
| Consolidated net income | 3,235 | 3,913 |
| Income and expenses recognized directly in equity (after taxes) | ||
| Hedge transactions | 0 | -81 |
| Currency translation of foreign financial statements | -404 | 111 |
| Comprehensive income | 2,831 | 3,943 |
| Earnings per share in v | 0.28 | 0.34 |
| No. of shares used as basis | 11,727,142 | 11,673,473 |
| Earnings per share, diluted, in v | 0.28 | 0.34 |
| No. of shares used as basis, diluted | 11,767,479 | 11,730,018 |
for the Period from January 1 to June 30, 2013 of STRATEC Biomedical AG
| in u thousands | 01.01.-06.30.2013 | 01.01.-06.30.2012 |
|---|---|---|
| Sales | 59,381 | 58,242 |
| Cost of sales | -39,793 | -37,780 |
| Gross profit | 19,588 | 20,462 |
| Research and development expenses | -2,010 | -1,303 |
| Information only: Total research and development expenses | -9,945 | -9,474 |
| Information only: Capitalized research and development expenses | 7,935 | 8,171 |
| Sales-related expenses | -4,270 | -4,865 |
| General administrative expenses | -4,672 | -4,484 |
| Other operating income and expenses | -290 | -387 |
| EBIT | 8,346 | 9,423 |
| Net financial expenses | -209 | -126 |
| Earnings before taxes (EBT) | 8,137 | 9,297 |
| Current tax expenses | -1,676 | -2,608 |
| Deferred tax income | 318 | 663 |
| Consolidated net income | 6,779 | 7,352 |
| Income and expenses recognized directly in equity (after taxes) | ||
| Hedge transactions | 0 | -81 |
| Currency translation of foreign financial statements | -438 | 161 |
| Comprehensive income | 6,341 | 7,432 |
| Earnings per share in € | 0.58 | 0.63 |
| No. of shares used as basis | 11,726,332 | 11,674,895 |
| Earnings per share, diluted, in v | 0.58 | 0.63 |
| No. of shares used as basis, diluted | 11,771,823 | 11,723,741 |
for the Period from January 1 to June 30, 2013 of STRATEC Biomedical AG
| Share capital | Capital reserve | Accumulated net income |
Free revenue reserves |
|
|---|---|---|---|---|
| 11,675 | 15,306 | 26,706 | 13,392 | |
| 28 | 282 | |||
| 63 | ||||
| 3,000 | ||||
| 5,867 | ||||
| 11,703 | 15,651 | 32,573 | 16,392 | |
| Revenue reserves |
| JANUARY - JUNE 2013 | Revenue reserves | ||||
|---|---|---|---|---|---|
| in u thousands | Share capital | Capital reserve | Accumulated net income |
Free revenue reserves |
|
| Balance at 01.01.2013 | 11,738 | 16,247 | 32,574 | 16,392 | |
| Equity transactions with owners | |||||
| Dividend payment | |||||
| Issue of subscription shares from stock option programs, less costs of capital issue after taxes |
10 | 184 | |||
| Allocations due to stock option plans | 88 | ||||
| Value changes recognized directly in equity | |||||
| Allocation to free revenue reserves | 3,000 | ||||
| Profit carried forward | 4,406 | ||||
| Change in scope of consolidation | 4 | 86 | |||
| Comprehensive income | |||||
| Balance at 06.30.2013 | 11,748 | 16,523 | 36,980 | 19,478 |
| Other equity | ||||
|---|---|---|---|---|
| Group equity | Hedge transactions |
Currency translation |
Treasury stock | Consolidated net income |
| 83,231 | 0 | 1,082 | -212 | 15,282 |
| -6,145 | -6,415 | |||
| 310 | ||||
| 63 | ||||
| 80 | -81 | 161 | ||
| 0 | -3,000 | |||
| 0 | -5,867 | |||
| 7,352 | 7,352 | |||
| 84,621 | -81 | 1,243 | -212 | 7,352 |
| Other equity | |||
|---|---|---|---|
| Group equity | Currency translation |
Treasury stock | Consolidated net income |
| 91,985 | 1,273 | -212 | 13,973 |
| -6,567 | -6,567 | ||
| 194 | |||
| 88 | |||
| -438 | -438 | ||
| 0 | -3,000 | ||
| 0 | -4,406 | ||
| 90 | |||
| 6,779 | 6,779 | ||
| 92,131 | 835 | -212 | 6,779 |
for the Period from January 1 to June 30, 2013 of STRATEC Biomedical AG
| in u thousands | 01.01.–06.30.2013 | 01.01.–06.30.2012 |
|---|---|---|
| Consolidated net income (after taxes) | 6,779 | 7,352 |
| Depreciation and amortization | 1,864 | 2,020 |
| Current income tax expenses | 1,676 | 2,608 |
| Income taxes paid less income taxes received | -2,370 | -2,351 |
| Financial income | -29 | -128 |
| Financial expenses | 238 | 98 |
| Interest paid | -231 | -98 |
| Interest received | 42 | 97 |
| Other non-cash expenses | 251 | 304 |
| Other non-cash income | -1,628 | -1,134 |
| Cash flow | 6,592 | 8,768 |
| Change in deferred taxes through profit or loss | -318 | -663 |
| Profit from disposal of non-current assets | -6 | -13 |
| Decrease (previous year: increase) in inventories, trade receivables, and other assets |
2,882 | -6,154 |
| Decrease (previous year: increase) in trade payables and other liabilities |
||
| Inflow of funds from operating activities | -310 8,840 |
3,622 5,560 |
| Incoming payments from disposals of non-current assets | ||
| Property, plant and equipment | 6 | 26 |
| Outgoing payments for investments in non-current assets | ||
| Intangible assets | -319 | -165 |
| Property, plant and equipment | -769 | -980 |
| Financial assets | 0 | -30 |
| Outflow of funds for investing activities | -1,082 | -1,149 |
| Incoming payments from taking up of financial liabilities | 0 | 76 |
| Outgoing payments for repayment of financial liabilities | -288 | -565 |
| Incoming payments for issues of shares | ||
| for employee stock option programs | 194 | 319 |
| Dividend payment | -6,567 | -6,415 |
| Outflow of funds for financing activities | -6,661 | -6,585 |
| Cash-effective change in cash and cash equivalents | 1,097 | -2,174 |
| Cash and cash equivalents at start of period | 13,209 | 19,548 |
| Change in scope of consolidation | 84 | 0 |
| Change in cash and cash equivalents due to changes in exchange rates |
-258 | 285 |
| Cash and cash equivalents at end of period | 14,132 | 17,659 |
for the period from January 1 to June 30, 2013 of STRATEC Biomedical AG
The consolidated financial statements of STRATEC Biomedical AG as of December 31, 2012 were prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU valid at the balance sheet date. In the interim report as of June 30, 2013, which has been prepared 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 2012 financial year. One exception relates to the first-time inclusion in the scope of consolidation of STRATEC Biomedical S.R.L., Romania, a company founded in the 2008 financial year. The implications of the first-time full consolidation of this company for the net asset, financial and earnings position of the STRATEC Group are of subordinate significance.
Application has also been made of all interpretations of the International Financial Reporting Interpretations Committee (IFRIC) with binding effect as of June 30, 2013.
There were no indications of any potential impairment in goodwill at the balance sheet date.
The company's interim reports are neither audited, nor subject to an audit review, by the group auditor, WirtschaftsTreuhand GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft, Stuttgart.
Reference is made to the consolidated financial statements of STRATEC Biomedical AG as of December 31, 2012 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 (1thousand).
Apart from the first-time inclusion of STRATEC Biomedical S.R.L., Romania, in the "Instrumentation" segment, there have been no changes in segmentation compared with the consolidated financial statements as of December 31, 2012.
Segment data by operating segment for the period from January 1 to June 30, 2013
| in u thousands | Instrumentation | All other segments | Reconciliation | Total |
|---|---|---|---|---|
| Sales | 61,348 | 2,071 | -4,038 | 59,381 |
| EBIT | 8,926 | -453 | -127 | 8,346 |
| Assets | 138,695 | 4,345 | -21,986 | 121,054 |
| in u thousands | Instrumentation | All other segments | Reconciliation | Total |
|---|---|---|---|---|
| Sales | 60,878 | 1,779 | -4,415 | 58,242 |
| EBIT | 10,810 | -1,092 | -295 | 9,423 |
| Assets | 130,061 | 3,610 | -17,729 | 115,942 |
Segment data by operating segment for the period from January 1 to June 30, 2012
The breakdown of sales by geographical region represents the distribution of the STRATEC Group's products. As the customers of the STRATEC Group generally supply their country outlets and customers from their own 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 by geographical regions (customer locations) as follows:
| in u thousands | Germany | EU | Other | Total |
|---|---|---|---|---|
| 10,458 | 26,331 | 22,592 | 59,381 | |
| January - June 2013 | 17.6% | 44.3% | 38.1% | 100.0% |
| in u thousands | Germany | EU | Other | Total |
| 9,243 | 24,735 | 24,264 | 58,242 | |
| January - June 2012 | 15.9% | 42.5% | 41.6% | 100.0% |
Research and development expenses not fulfilling the capitalization criteria set out in IAS 38 (Intangible Assets) amounted to c2.0 million in the first six months of the 2013 financial year (previous year: c1.3 million) and mainly involve personnel and material expenses. The STRATEC Group invested a total of c10.0 million in research and development in the first six months of the 2013 financial year (previous year: c9.5 million).
The development in shareholders' equity at the STRATEC Group has been presented in the consolidated statement of changes in equity on Pages 13 and 14.
The number of ordinary shares with a nominal value of c1.00 each issued by STRATEC AG as of June 30, 2013 amounts to 11,747,745. These are all bearer shares.
STRATEC AG owned a total of 12,223 treasury stock at the interim balance sheet date. This corresponds to a prorated amount of 112,223.00 of the company's share capital and to a 0.10% share of its equity.
Members of the Board of Management / Managing Directors and employees held the following numbers of subscription rights (share option rights) at the interim balance sheet date:
| Board of Management/ Managing Directors |
Employees | Total | |
|---|---|---|---|
| Outstanding on 01.01.2013 | 123,000 | 64,200 | 187,200 |
| Issued | 0 | 23,550 | 23,550 |
| Exercised | 0 | 10,000 | 10,000 |
| Lapsed | 0 | 0 | 0 |
| Forfeited | 2,000 | 2,000 | 4,000 |
| Outstanding on 06.30.2013 | 121,000 | 75,750 | 196,750 |
Of the stock option rights granted in the first six months, 0 were granted to members of the Board of Management (previous year: 45,000), 0 to managing directors of subsidiaries (previous year: 0), and 23,500 to employees (previous year: 7,050).
Furthermore, members of the Board of Management exercised 0 stock option rights in the first six months (previous year: 22,500), while managing directors of subsidiaries also exercised 0 stock option rights in this period (previous year: 0). Employees exercised 10,000 stock option rights (previous year: 5,650). To service the stock option rights exercised, a total of 10,000 shares were created from conditional capital (previous year: 28,150).
As in the previous year, no stock option rights lapsed in the period under report.
Furthermore, 2,000 stock option rights were forfeited for each of the managing director and employee categories (previous year: 0 each).
Including temporary employees, the STRATEC Group had a total workforce of 537 employees as of June 30, 2013 (previous year: 524).
On July 12, 2013, STRATEC announced that it had been informed by a customer that, due to a change in strategy at that customer, a contract for the development and supply of an analyzer system would no longer be continued. Due to the discontinuation of this project, STRATEC stands to lose budgeted development and production sales in a double-digit million euro amount. In response to this development, STRATEC has reduced its financial forecast.
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 in the remainder of the financial year.
| July 23, 2013 | Interim Report as of June 30, 2013 | |
|---|---|---|
| October 30, 2013 | Interim Report as of September 30, 2013 | |
| November 2013 | German Equity Forum, Frankfurt/Main, Germany – Analysts' conference – |
Furthermore, based on current planning, STRATEC will be taking part in the following capital market conferences in 2013:
| August 2013 | Commerzbank Sector Conference Week, Frankfurt/Main, Germany | |
|---|---|---|
| September 2013 | 10th Annual Goldman Sachs European Medtech and Healthcare Services Conference, London, UK |
|
| Morgan Stanley Global Healthcare Conference, New York City, USA | ||
| Goldman Sachs & Berenberg Bank German Corporate Conference, Munich, Germany |
||
| UniCredit & Kepler Cheuvreux 11th German Investment Conference, Munich, Germany |
||
| October 2013 | Deutsche Börse Sector Conference, Stockholm, Sweden | |
| November 2013 | 5th LBBW German Company Day, London, UK | |
| Jefferies 2013 Global Healthcare Conference, London, UK | ||
| 7th HSBC Healthcare Day, Frankfurt/Main, Germany |
Partially incomplete/subject to amendment
STRATEC Biomedical 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, as system solutions 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 and are listed in the TecDAX select index of the German Stock Exchange.
Further information about STRATEC is available on the internet at www.stratec.com.
STRATEC Biomedical AG Gewerbestr. 37 75217 Birkenfeld Germany
Phone: +49 7082 7916-0 Fax: +49 7082 7916-999 [email protected] www.stratec.com
Andreas Künzel Phone: +49 7082 7916-185 Fax: +49 7082 7916-999 [email protected]
Andre Loy Phone: +49 7082 7916-190 Fax: +49 7082 7916-999 [email protected]
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.
This interim report contains various disclosures of an economic nature that do not form part of the relevant accounting requirements. These disclosures are to be viewed as a supplement to, rather than as a substitute for the disclosures made in accordance with IFRS.
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.
Gewerbestr. 37 75217 Birkenfeld Germany
Phone: +49 7082 7916-0 Fax: +49 7082 7916-999
[email protected] www.stratec.com
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