AI Terminal

MODULE: AI_ANALYST
Interactive Q&A, Risk Assessment, Summarization
MODULE: DATA_EXTRACT
Excel Export, XBRL Parsing, Table Digitization
MODULE: PEER_COMP
Sector Benchmarking, Sentiment Analysis
SYSTEM ACCESS LOCKED
Authenticate / Register Log In

STRATEC SE

Interim / Quarterly Report Jul 23, 2013

416_10-q_2013-07-23_1559b62c-14eb-408e-8964-0a01f619e4bc.pdf

Interim / Quarterly Report

Open in Viewer

Opens in native device viewer

growth & Innovat ion

Profile

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.

contents

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

HIGHLIGHTS

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)

KEY GROUP FIGURES AT A GLANCE

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%.

FOREWORD BY THE BOARD OF MANAGEMENT

Dear Shareholders,

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

INTERIM GROUP MANAGEMENT REPORT

REPORT ON THE EARNINGS, FINANCIAL AND NET ASSET POSITION

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.

CHANGES IN THE BUSINESS ENVIRONMENT AND IMPLICATIONS FOR STRATEC

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.

REPORT ON FORECASTS AND OTHER STATEMENTS CONCERNING THE COMPANY'S EXPECTED DEVELOPMENT

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.

OPPORTUNITY AND RISK REPORT

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.

CONSOLIDATED BALANCE SHEET

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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

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

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

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

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

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

CONSOLIDATED CASH FLOW STATEMENT

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

NOTES TO THE GROUP INTERIM REPORT

for the period from January 1 to June 30, 2013 of STRATEC Biomedical AG

Summary of principal accounting and valuation methods

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).

Segment disclosures

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

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).

Shareholders' equity

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.

Disclosures on the volume of treasury stock and on subscription rights held by members of the company's executive and supervisory bodies and its employees pursuant to § 160 (1) Nos. 2 and 5 of the German Stock Corporation Act (AktG).

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.

Stock option programs

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).

Employees

Including temporary employees, the STRATEC Group had a total workforce of 537 employees as of June 30, 2013 (previous year: 524).

Major events after the interim reporting date

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.

Responsibility statement

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.

ADDITIONAL INFORMATION

financial calendar

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

ABOUTSTRATEC

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.

IMPRINT

Published by

STRATEC Biomedical AG Gewerbestr. 37 75217 Birkenfeld Germany

Phone: +49 7082 7916-0 Fax: +49 7082 7916-999 [email protected] www.stratec.com

Investor Relations

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]

NOTICE

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.

STRATEC Biomedical AG

Gewerbestr. 37 75217 Birkenfeld Germany

Phone: +49 7082 7916-0 Fax: +49 7082 7916-999

[email protected] www.stratec.com

Talk to a Data Expert

Have a question? We'll get back to you promptly.