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STRATEC SE

Interim / Quarterly Report Jul 23, 2015

416_10-q_2015-07-23_7899d992-c782-4172-a705-6a5fd2938407.pdf

Interim / Quarterly Report

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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

Highlights / Key
Group
Figures
at
a
Glance
03
Letter
from
the
Board
of
Management
04
Interim
Group
Management
Report
05
Consolidated
Balance
Sheet
as
of
June
30,
2015
09
Consolidated
Statement
of
Comprehensive
Income
for
the
Period
from
April
1
to
June
30,
2015
11
Consolidated
Statement
of
Comprehensive
Income
for
the
Period
from
January
1
to
June
30,
2015
12
Consolidated
Statement
of
Changes
in
Equity
for
the
Period
from
January
1
to
June
30,
2015
13
Consolidated
Cash
Flow
Statement
for
the
Period
from
January
1
to
June
30,
2015
15
Notes
to
the
Group
Interim
Report
for
the
Period
from
January
1
to
June
30,
2015
16
Additional
Information
19

Highlights

Sales of 1 70.0 million in 6M/2015 (+1.4%; 6M/2014: 1 69.1 million)

EBIT of 1 12.0 million in 6M/2015 (+6.7%; 6M/2014: 1 11.2 million*)

EBIT margin of 17.1% in 6M/2015 (+80 basis points; 6M/2014: 16.3%*)

Earnings per share of 1 0.83 in 6M/2015 (+1.2%; 6M/2014: 1 0.82*)

Ongoing positive development expected for financial year as a whole

Key Group Figures at a Glance

in D thousands 01.01. –06.30.2015 01.01. –06.30.2014 Change
Sales 70,012 69,050 +1.4 %
EBIT 11,986 11,232 * +6.7 %
EBIT margin (%) 17.1 16.3 * +80 bps
Consolidated net income 9,807 9,635 * +1.8 %
Earnings per share (D) 0.83 0.82 * +1.2 %
No. of employees (06.30.) 562 546 +2.9 %
in D thousands 06.30.2015 12.31.2014 Change
Shareholders' equity 118,026 112,051 +5.3 %
Total assets 150,632 137,748 +9.4 %
Equity ratio (%) 78.4 81.3 -290 bps

bps = basis points

* 2014 figure adjusted to exclude a one-off negative item resulting from the recognition in the first quarter of expenses for the remaining years of the term of a management board contract for a retired member of the Board of Management. Unadjusted EBIT for the first half of 2014 amounted to 1 10.3 million; the corresponding EBIT margin amounted to 14.9%, consolidated net income to 1 8.9 million and earnings per share to 1 0.76. The actual amount of the aforementioned expense item may differ at the time of payment from the amounts presented here.

Letter from the Board of Management

Dear Shareholders, Dear Partners and Friends of STRATEC,

In the second quarter, we upheld the performance already seen in the first three months of the current financial year. At 1 70.0 million, our sales for the first six months were 1.4% ahead of the previous year's figure. We succeeded at the same time in further enhancing our profitability, with an EBIT margin of 17.1% as of June 30, 2015, compared to 16.3% in the same period in the previous year. This margin improvement was driven by both a higher share of sales from service parts, as well as by greater efficiency in our production activities. Consolidated net income grew by 1.8% to 1 9.8 million, while earnings per share rose by 1.2% to 1 0.83 compared to an adjusted earnings per share of 1 0.82 in the previous year.

We continue to expect sales growth in 2015, accompanied by a slight increase in profitability, and can confirm our currently valid financial forecast through to 2017, which provides for average annual sales growth of between 8% and 12% based on figures for the 2013 financial year.

STRATEC is focusing in the current year on achieving further key development milestones for future market launches by our partners. In the first half of 2015 our Data Management business unit successfully acquired a major development order in the field of middleware software from one of the world's leading diagnostics and pharmaceuticals companies. Although the implications of this two-year order for the STRATEC Group are in the low single-digit percentage range, and thus do not impact on the current company forecast, this order nevertheless represents a significant milestone in the development of the Data Management business.

Our construction work in Romania and Switzerland is progressing well and we expect to be able to move into both buildings in the first half of 2016.

Shareholders participating in this year's Annual General Meeting, held in Pforzheim on May 22, 2015, approved all of the proposals submitted by the management. The distribution of a dividend of 1 0.70 per share for the 2014 financial year was approved. This represents the eleventh consecutive dividend increase and is consistent with our aim to remain an attractive growth investment for shareholders, while also ensuring dividend reliability.

We would like to thank you very warmly for the trust you have placed in us.

Birkenfeld, July 2015

The Board of Management of STRATEC Biomedical AG

Marcus Wolfinger Dr. Robert Siegle Dr. Claus Vielsack

Interim Group Management Report

Report on the Earnings, Financial and Net Asset Position

STRATEC increased its sales by 1.4% to 1 70.0 million in the six three months of the 2015 financial year (previous year: 1 69.1 million). The gross profit (gross profit on sales) grew to 1 25.5 million (36.4% of sales), up by 1 2.9 million compared with the previous year (32.7% of sales). This growth was chiefly driven by efficiency enhancements and the solid performance of the spare parts and services business.

Gross development expenses rose by 1 0.2 million to 1 10.8 million, of which 1 7.5 million were capitalized. Sales-related expenses increased from 1 3.0 million to 1 3.3 million, while administration expenses decreased by 1 0.5 million to 1 5.3 million. This was due to the recognition in the previous year of an expense for the remaining years of the term of the employment contract with a departed member of the Board of Management.

Due to lower amortization of intangible assets, depreciation and amortization reduced from 1 3.6 million to 1 2.2 million. At 1 12.0 million, EBIT was 1 1.7 million, or 16.7%, ahead of the previous year's figure (which included a one-off charge due to the aforementioned termination of a management board contract). This resulted in an EBIT margin of 17.1% (previous year: 14.9%). Net financial expenses amounted to 1 0.2 million (previous year: 1 -0.1 million). The tax result amounted to 1 2.3 million. STRATEC can thus report consolidated net income of 1 9.8 million for the period under report (previous year: 1 8.9 million). Earnings per share amounted to 1 0.83 (previous year: 1 0.76).

Despite ongoing strong demand for analyzer systems and a full development pipeline, inventories rose only slightly from 1 18.1 million in the previous year to 1 19.2 million. Due to higher trade receivables and higher income tax receivables, receivables and other assets grew by 1 6.5 million to 1 31.0 million.

The equity ratio amounted to 78.4%. The Group has reduced its non-current financial liabilities from 1 4.5 million to 1 3.8 million. Current financial liabilities, by contrast, grew to 1 4.5 million due to the taking up of a loan on favorable interest terms. The increase in trade payables was driven by higher procurement volumes for raw materials and supplies. Alongside the marked increase in prepayments for development services, other current liabilities also include the aforementioned one-off liability for the remaining years of the term of the employment contract with a departed member of the Board of Management.

The cash flow from operating activities decreased from 1 17.1 million to 1 12.3 million. At 1 2.8 million, investments fell short of the previous year's figure. Even though an amount of 1 8.2 million was distributed as dividends, cash and cash equivalents nevertheless increased from 1 46.6 million to 1 49.1 million.

Changes in the Business Environment and Implications for STRATEC

Macroeconomic framework: In its economic outlook published in July 2015, the International Monetary Fund (IWF) reduced its global economic growth forecast for 2015 by 0.2 percentage points. Alongside the ongoing crisis in Greece and the unexpectedly sharp dip in growth in the US, this reduction was made to account for the further increase in downside risks due to the economic slowdown and marked fall in stock market prices in China.

The IMF has so far not issued any downward correction in its growth forecast for China, but nevertheless significantly reduced its forecasts for North America. The IMF is comparatively confident with regard to further growth in the euro area. Irrespective of the permanent crisis situation in Greece, the IMF may not have changed its growth forecast for the euro area as a whole, but has nevertheless recently raised its forecasts for several euro countries. To date, the events in Greece have not led to any notable contagion. According to the IMF, the economic recovery in the euro area so far appeared largely intact, while domestic economic activity and inflation were showing robust developments.

Based on the IMF's latest forecast, the global economy is set to grow by 3.3% this year – less than the 3.5% forecast by the IMF in April 2015 and the growth of 3.4% achieved last year. The IMF has left its 2016 forecast unchanged at 3.8%.

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.

Industry and market data: Based on different estimates, in-vitro diagnostics (IVD) will continue to show average global growth of around 4% to 5% in the years until 2018 and 2020 respectively. Some regions, such as the BRIC states, are growing significantly faster, while other regions, such as Europe, are not expected to show any growth. Similar developments can be seen in the various IVD segments. While some areas in which STRATEC consciously does not operate, such as blood sugar self-testing, are expected to decline significantly, other segments are expected to show very strong growth in future as well. STRATEC plans to continue benefiting to a disproportionate extent from these growth rates by deliberately tracking down and developing projects in high-growth niches. The company currently has both customer projects and proprietary platform solutions in development for several of these sub-segments.

The US still represent a special case. While cost savings could have a slightly negative impact on the test volumes handled at laboratories, overall test volumes are nevertheless expected to rise due to the growing number of people with health insurance. On the one hand, the number of people insured has most recently risen slightly due to lower unemployment rates and is expected to remain stable until 2018. On the other hand the Affordable Care Act (Obamacare) is expected to substantially increase the number of people insured from around 217 million in 2015 to around 235 million.

Even though the diagnostics, pharmaceuticals and healthcare industry repeatedly witnesses short-term periods of consolidation at individual market players due to corporate takeovers and new technological development possibilities, several underlying factors will guarantee sustainable growth in future as well:

  • Increasing market regulation, leading manual and semi-automated, in some cases homegrown test methods to be displaced by fully automated processes – whose lifecycles are thus simultaneously extended
  • Development and expansion in healthcare systems, particularly in developing and emerging economies (especially in BRIC states)
  • Expansion in global infrastructure and thus improved access to medical care
  • Rapidly growing niche markets due to new medical discoveries and new diagnostic possibilities
  • Newly developed diagnostics tests in all major areas of application, such as for oncology, sexually transmitted diseases, or hospital bugs
  • Demographic developments (growing global population, increasingly elderly population with growing diagnostics requirements).

Report on Forecasts and other Statements Concerning the Company's Expected Development

STRATEC aims to generate permanent, sustainable growth in all business divisions. We are building on innovative solutions enabling our customers to serve their markets with high-quality products. Alongside the activities within our group of companies, we are also relying on further growth in our target markets, especially in the field of in-vitro diagnostics and on the continuing positive trend towards outsourcing at our partners and potential customers.

STRATEC published its currently valid company forecast on July 12, 2013. This forecasts average annual growth of between 8% and 12% through to 2017 on the basis of 2013 sales (1 128 million). Growth rates may fluctuate significantly in individual years and quarters and thus leave the target corridor in individual reporting periods. The overall forecast through to 2017 should nevertheless remain intact. This forecast remains valid for the overall period. The highly transparent forecasts provided by our customers enable us to issue forecasts with a high degree of security, but also reveal potential upward and downward deviations from forecast developments in individual periods.

For the current 2015 financial year, STRATEC expects to be able to generate slight sales growth accompanied by a slight increase in its EBIT margin. Due to expected and planned market launches, among other factors, the company expects to generate substantial sales growth once again in 2016.

Due to the immense debt accumulated by some countries and economic regions and the resultant potential implications (debt crisis), movements in currency markets, and volatile developments in individual economic regions, 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 31, 2015 upon the compilation of the Annual Report for the 2014 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 an internal control system (IKS) and 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 2014 financial year dated March 31, 2015. Details of our risk management system and our company's specific opportunity and risk profile can be found in Section D "Opportunity and Risk Report" of our 2014 Group Management Report. Information about our use of financial instruments can be found in Section F of the 2014 Group Management Report.

Consolidated Balance Sheet

as of June 30, 2015 of STRATEC Biomedical AG

Assets
in D thousands
06.30.2015 12.31.2014
Non-current Assets
Goodwill 5,073 4,785
Other intangible assets 26,890 25,477
Property, plant and equipment 16,840 15,954
Interests in associates 186 263
Deferred tax assets 1,452 1,260
50,441 47,739
Current Assets
Raw materials and supplies 10,277 8,065
Unfinished products, unfinished services 6,718 6,591
Finished products and goods 2,164 3,410
Trade receivables 23,507 18,961
Future receivables from construction contracts 1,239 1,644
Receivables from associates 20 23
Income tax receivables 3,920 2,635
Other receivables and other assets 2,287 1,167
Other financial assets 948 877
Cash and cash equivalents 49,111 46,636
100,191 90,009
Total Assets 150,632 137,748
Total Shareholders' Equity and Debt 150,632 137,748
21,792 15,587
Income tax liabilities 498 1,411
Current provisions 1,815 1,732
Other current liabilities 10,386 7,140
Liabilities to associates 19 41
Trade payables 6,811 2,814
Current financial liabilities 2,263 2,449
Current debt
10,814 10,110
Deferred taxes 6,971 5,565
Pension provisions 61 61
Non-current financial liabilities 3,782 4,484
Non-current debt
Debt
118,026 112,051
Other equity 5,299 1,649
Revenue reserves 82,030 80,478
Capital reserve 18,878 18,129
Share capital 11,819 11,795
Shareholders' Equity
Shareholders' Equity and Debt
in D thousands
06.30.2015 12.31.2014

Consolidated Statement of Comprehensive Income

for the Period from April 1 to June 30, 2015 of STRATEC Biomedical AG

in D thousands
04.01. –06.30.2015
04.01.–06.30.2014
Sales 35,465 34,680
Cost of sales -22,409 -23,327
Gross profit 13,056 11,353
Research and development expenses -1,808 -1,545
Information only: Total research and development expenses -5,432 -4,349
Information only: Capitalized research and development expenses 3,624 2,804
Sales-related expenses -1,374 -1,322
General administrative expenses -2,711 -2,302
Other operating income and expenses -1,017 -278
EBIT 6,146 5,906
Net financial expenses 82 2
Earnings before taxes (EBT) 6,228 5,908
Current tax expenses -608 -513
Deferred tax expenses -552 -132
Consolidated net income 5,068 5,263
Items that may be subsequently reclassified to profit or loss
Currency translation differences from translation of foreign operations 27 247
Comprehensive income 5,095 5,510
Earnings per share in 3 0.43 0.45
No. of shares used as basis 11,791,255 11,759,486
Earnings per share, diluted, in 3 0.43 0.45
No. of shares used as basis, diluted 11,894,041 11,812,079

Consolidated Statement of Comprehensive Income

for the Period from January 1 to June 30, 2015 of STRATEC Biomedical AG

in D thousands 01.01.–06.30.2015 01.01. –06.30.2014
Sales 70,012 69,050
Cost of sales -44,537 -46,466
Gross profit 25,475 22,584
Research and development expenses -3,364 -2,947
Information only: Total research and development expenses -10,814 -9,299
Information only: Capitalized research and development expenses 7,450 6,352
Sales-related expenses -3,264 -2,997
General administrative expenses -5,308 -5,810
Other operating income and expenses -1,553 -556
EBIT 11,986 10,274
Net financial expenses 154 -79
Earnings before taxes (EBT) 12,140 10,195
Current tax expenses -1,192 -969
Deferred tax expenses -1,141 -302
Consolidated net income 9,807 8,924
Items that may be subsequently reclassified to profit or loss
Currency translation differences from translation of foreign operations 3,650 401
Comprehensive income 13,457 9,325
Earnings per share in 3 0.83 0.76
No. of shares used as basis 11,787,238 11,758,754
Earnings per share, diluted, in 3 0.82 0.76
No. of shares used as basis, diluted 11,889,797 11,803,859

Consolidated Statement of Changes in Equity

for the Period from January 1 to June 30, 2014 of STRATEC Biomedical AG

in D thousands Share capital Capital reserve
Balance at 01.01.2014 11,770 17,219
Equity transactions with owners
Dividend payment
Issue of subscription shares from stock option programs,
less costs of capital issue after taxes
21 544
Allocations due to stock option plans 156
Total comprehensive income
Balance at 06.30.2014 11,791 17,919

for the Period from January 1 to June 30, 2015 of STRATEC Biomedical AG

in D thousands Share capital Capital reserve
Balance at 01.01.2015 11,795 18,129
Equity transactions with owners
Dividend payment
Issue of subscription shares from stock option programs,
less costs of capital issue after taxes
24 678
Allocations due to stock option plans 71
Total comprehensive income
Change in scope of consolidation
Balance at 06.30.2015 11,819 18,878
Other equity Revenue reserves
Currency translation
Group equity
Pension plans Treasury stock Free revenue
reserves
Accumulated
net income
654 -18 -212 19,392 48,374
-7,055
401 8,924
1,055
100,170
-18 -212 19,392 50,243
Other equity Revenue reserves
Group equity Currency translation Pension plans Treasury stock Free revenue
reserves
Accumulated
net income
112,051 1,928 -67 -212 19,392 61,086
-8,248 -8,248
702
71
13,457 3,650 9,807
-7 -7
118,026 5,578 -67 -212 19,392 62,638

Consolidated Cash Flow Statement

for the Period from January 1 to June 30, 2015 of STRATEC Biomedical AG

in D thousands 01.01. –06.30.2015 01.01. –06.30.2014
Consolidated net income (after taxes) 9,807 8,924
Depreciation and amortization 2,212 3,588
Current income tax expenses 1,192 969
Income taxes paid less income taxes received -3,542 -2,774
Financial income -168 -61
Financial expenses 85 100
Interest paid -85 -97
Interest received 168 61
Other non-cash expenses 252 218
Other non-cash income -211 -584
Cash flow 9,710 10,344
Change in deferred taxes through profit or loss 1,141 302
Profit on disposals of non-current assets -57 -1
Increase (previous year: decrease) in inventories, trade receivables and other assets -5,410 2,339
Increase in trade payables and other liabilities 6,882 4,077
Inflow of funds from operating activities 12,266 17,061
Incoming payments from disposals of non-current assets
Property, plant and equipment 138 1
Outgoing payments for investments in non-current assets
Intangible assets -1,685 -3,048
Property, plant and equipment -1,284 -858
Outflow of funds for investing activities -2,831 -3,905
Incoming payments from taking up of financial liabilities 2,000 0
Outgoing payments for repayment of financial liabilities -3,174 -747
Incoming payments for issues of shares for employee stock option programs 702 565
Dividend payment -8,248 -7,055
Outflow of funds for financing activities -8,720 -7,237
Cash-effective change in cash and cash equivalents 715 5,919
Cash and cash equivalents at start of period 46,636 20,734
Change in scope of consolidation 79 0
Impact of exchange rate movements 1,681 494
Cash and cash equivalents at end of period 49,111 27,147

Notes to the Group Interim Report

for the Period from January 1 to June 30, 2015 of STRATEC Biomedical AG

Summary of principal accounting and valuation methods

The consolidated financial statements of STRATEC Biomedical AG as of December 31, 2014 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, 2015, 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 2014 financial year. One exception applies to the first-time inclusion in the scope of consolidation of STRATEC Services AG, Beringen, Switzerland, a company founded in the 2014 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, 2015.

There were no indications of any potential impairment in goodwill at the balance sheet date.

The interim reports are neither audited, nor subject to an audit review by the group auditor, Ebner Stolz GmbH & Co. KG Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft, Stuttgart.

Reference is made to the consolidated financial statements of STRATEC Biomedical AG as of December 31, 2014 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 (1 thousand).

Segment disclosures

Apart from the first-time inclusion of STRATEC Services AG, Beringen, Switzerland, in the "Instrumentation" segment, there have been no changes in segmentation compared with the consolidated financial statements as of December 31, 2014.

Segment data by operating segment for the period from January 1 to June 30, 2015

in D thousands Instrumentation All other segments Reconciliation Total
Sales 83,055 5,369 -18,412 70,012
EBIT 12,749 -117 -646 11,986
Assets 169,757 7,311 -26,436 150,632

Segment data by operating segment for the period from January 1 to June 30, 2014

in D thousands Instrumentation All other segments Reconciliation Total
Sales 71,258 3,537 -5,745 69,050
EBIT 10,289 43 -58 10,274
Assets 135,357 6,678 -17,043 124,992

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 D thousands Germany EU Other Total
11,298 28,591 30,123 70,012
January – June 2015 16.2 % 40.8 % 43.0 % 100.0%
in D thousands Germany EU Other Total
8,361 29,187 31,502 69,050
January – June 2014 12.1 % 45.6 % 42.3 % 100.0%

Research and development expenses

Research and development expenses not fulfilling the capitalization criteria set out in IAS 38 (Intangible Assets) amounted to 1 3.4 million in the first six months of the 2015 financial year (previous year: 1 2.9 million) and mainly involve personnel and material expenses. The STRATEC Group invested a total of 1 10.8 million in research and development in the first six months of the 2015 financial year (previous year: 1 9.3 million). Due to the modification in the recognition of gross development expenses in the statement of comprehensive income at the end of the 2014 financial year, the comparative figures in the interim report have also been adjusted accordingly.

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 1 1.00 each issued by STRATEC Biomedical AG as of June 30, 2015, amounts to 11,819,045. 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 Biomedical AG owned a total of 12,223 treasury stock at the interim balance sheet date. This corresponds to a prorated amount of 1 12,223.00 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:

in D thousands Board of Management/
Managing Directors
Employees Total
Outstanding on 01.01.2015 171,000 99,500 270,500
Issued 3,000 8,550 11,550
Exercised 10,000 13,600 23,600
Lapsed 0 0 0
Forfeited 0 0 0
Outstanding on 06.30.2015 161,000 97,450 258,450

Of the stock option rights granted in the first six months, none related to members of the Board of Management (previous year: 40,000), 3,000 to managing directors at subsidiaries (previous year: 0), and 8,550 to employees (previous year: 9,050).

Furthermore, 10,000 stock option rights were exercised by members of the Board of Management in the first six months (previous year: 15,000). As in the previous year, the managing directors at subsidiaries did not exercise any stock option rights in this period. Employees exercised 13,600 stock option rights (previous year: 5,700). To service the stock option rights thereby exercised, a total of 23,600 shares were created from conditional capital (previous year: 20,700).

As in the previous year, no stock option rights lapsed or were forfeited in the period under report.

Employees

Including temporary employees the STRATEC Group had a total workforce of 562 employees as of June 30, 2015 (previous year: 546).

Major events after the interim reporting date

No events of particular significance with material implications for the business performance of our Group have occurred since the interim balance sheet date.

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, 2015 Interim Report as of June 30, 2015
October 28, 2015 Interim Report as of September 30, 2015
November 24, 2015 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 2015:

September 2015 Commerzbank Sector Conference, Frankfurt / Main, Germany
12th Annual Goldman Sachs European Medtech and Healthcare Services Conference, London, UK
Berenberg Bank & Goldman Sachs German Corporate Conference, Munich, Germany
November 2015 HSBC Healthcare Day 2015, Frankfurt / Main, Germany
Jefferies 2015 Global Healthcare Conference, London, UK
December 2015 Berenberg Bank European Conference, Pennyhill Park, UK

Partially incomplete/subject to amendment

About STRATEC

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

Investor Relations

Andreas Künzel Phone: +49 7082 7916-185 Fax: +49 7082 7916-999 [email protected]

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

Corporate Communications

Andre Loy Phone: +49 7082 7916-190 Fax: +49 7082 7916-999 [email protected]

Concept and Design Whitepark GmbH & Co., Hamburg, Germany Text STRATEC Biomedical AG, Birkenfeld, Germany

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 Deutschland

Telefon: +49 7082 7916-0 Telefax: +49 7082 7916-999

[email protected] www.stratec.com

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