Quarterly Report • Nov 15, 2007
Quarterly Report
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STRATEC Biomedical Systems AG
Interim Report as of September 30, 2007
| Foreword by the Board of Management Page 3 |
|---|
| Group Interim Management Report Page 4 |
| Consolidated Balance Sheet as of September 30, 2007 . Page 7 |
| Consolidated Income Statement for the Period from July 1 to September 30, 2007 Page 8 |
| Consolidated Income Statement for the Period from January 1 to September 30, 2007 Page 9 |
| Statement of Changes in Group Shareholders' Equity for the Period from January 1 to September 30, 2007 . Page 10 |
| Consolidated Cash Flow Statement for the Period from January 1 to September 30, 2007 . Page 12 |
| Notes on the Consolidated Interim Financial Statements for the Period from January 1 to September 30, 2007 . Page 13 |
| Financial Calendar 2007/2008 . Page 18 |
| About the Company Page 18 |
| Notice Page 19 |
In the first nine months of the 2007 financial year, the STRATEC Group raised its consolidated net income to EUR 7.0 million, an increase of 32% on the equivalent period in the previous year. Earnings per share therefore reached EUR 0.62 at the end of the first nine months (previous year: EUR 0.48). One-off factors, such as the impact of the 2008 Corporate Taxation Reform and sales not affected by output, contributed a total of EUR 0.6 million to the consolidated net income for the third quarter, and thus for the first nine months.
In spite of external factors, in particular delays in the marketing launch of a serial analyzer system newly developed for one of our customers and now in production, and the decision taken by a further STRATEC customer to implement the envisaged market launch of the extension of its reagents portfolio initially only in part, the STRATEC Group succeeded in maintaining its sales for the first nine months of the 2007 financial year at EUR 50.5 million, and thus almost unchanged (minus 2.7%) on the previous year's figure (EUR 51.9 million).
The automation products currently in their predevelopment and development stages, including products targeting molecular diagnostics, the fastest growing segment of the diagnostics market, as well as the existing partnerships with our customers in this area and the overall youth of our product portfolio show that STRATEC's future growth will continue to benefit disproportionately from the outsourcing requirements of the diagnostics industry and the growth in the overall market. By maintaining its high level of investment in development work, STRATEC is securing its growth, innovative leadership and competitive advantage.
Birkenfeld, November 2007
The Board of Management of STRATEC Biomedical Systems AG
Hermann Leistner
Marcus Wolfinger Bernd M. Steidle
While the overall performance of the STRATEC Group rose to EUR 52.2 million (previous year: EUR 51.9 million), the Group's sales of EUR 50.5 million were 2.7% lower than in the previous year.
The increased share of sales not requiring material input and sales not affected by output, coupled with the further growth in sales with replacement parts, enabled costs of materials to be reduced by 14.8% in nominal terms.
Personnel expenses rose from EUR 10.0 million to EUR 11.5 million on account of the complete consolidation of Sanguin International Ltd. and the further expansion of development activities. With a marginal increase of EUR 0.2 million, other operating expenses remained virtually stable. The rise in depreciation and amortization by EUR 0.6 million is chiefly due to the scheduled amortization of fair values identified at Sanguin International Ltd.
The volume of raw materials and supplies could be reduced by EUR 1.1 million compared with December 31,2006.Total receivables also fell by EUR 1.1 million. Cash and cash equivalents rose from EUR 12.0 million to EUR 20.0 million during the period under report.
The increase in long-term financial liabilities following the taking up of a loan at a favorable interest rate was accompanied by a significant reduction in short-term financial liabilities. Short-term provisions rose by EUR 0.4 million.
In the first nine months of the 2007 financial year, the STRATEC Group invested EUR 0.8 million in property, plant and equipment (previous year: EUR 0.4 million), EUR 0.2 million in software (previous year: EUR 0.1 million) and EUR 0.3 million in financial assets (previous year: EUR 1.7 million). The investments of EUR 4.7 million made in the previous year largely involved the acquisition of Sanguin International Ltd. and the stocking up of shareholdings.
Although STRATEC's business performance is largely independent of macroeconomic cycles, in the following section we will depict the potential changes in the business framework resulting from macroeconomic developments, raw materials prices and in particular from the development of the US economy.
The global economy has continued to show strong growth. The slowdown in the momentum of the US economy has largely been offset by ongoing high levels of growth in other regions, especially in the emerging Asian economies, and robust growth in Europe. The growth in the global economy amounted to around 3.5% in the first nine months (previous year: 3.8%).
As a result of the crisis on the US mortgage market, however, as well as of continued high raw materials prices, there has been a deterioration in the economic outlook,particularly for industrialized economies, since the middle of the year.
In the USA, the negative impact of developments on the real estate market intensified at the middle of the year.The central bank reacted to these developments by reducing the base rate.In September,the US dollar exchange rate reached a new record low against the euro. Companies, especially those which export into regions using the US dollar, can therefore be expected to see increasing pressure on their exports and margins.
The German economy continued to develop positively. However, this growth was still mainly driven by exports and corporate investment.
The growth rates forecast worldwide are nonetheless largely subject to the risks resulting from the further development of the US economy and from fluctuating raw materials prices.
Now that the external factors responsible for the slowdown in our sales growth have largely been solved, our planning indicators, such as the further development of existing projects and customer forecasts, indicate a positive business performance.
In the ad-hoc announcement issued on October 29, 2007, we accounted for the delays in the marketing launch of individual projects by our customers and adjusted our sales forecast for the 2007 financial year. The company now expects its sales for the 2007 financial year to approximate to the level seen in the previous year (2006 sales: EUR 68.4 million). Sales of at least EUR 75 million had originally been forecast for the 2007 financial year on the basis of forecasts provided by STRATEC's customers.Enhanced efficiency means that the company can confirm its original earnings forecast (EBT) of at least EUR 14 million for the 2007 financial year.
Our planning indicators, such as the further development of existing projects and the forecasts provided by our customers, indicate a continuation of our positive business performance, particularly in 2008 and 2009.
Notwithstanding the constant expansion of our development capacities, these are fully committed to customer projects for several years.This already provides us with an indication that the company's growth will exceed the development of the overall market up to and beyond the 2010 financial year.
Since the assessment of the situation of the company provided on March 14, 2007 in connection with the compilation of the Annual Report for the 2006 financial year, no new information has arisen which could lead to a substantial change in the company's position. Moreover, we have not since identified any factors resulting in any change in our assessment of the expected development of the company.
We analyze and evaluate the risks facing the company and its environment within the framework of our risk management system, which has been established as an early warning risk identification system.
With the exception of the temporary factors outlined in the "Report on forecasts on other statements concerning the company's expected development" and the potential temporary implications of the integration of Bayer Diagnostics and Dade Behring into Siemens Medical Solutions Diagnostics, we do not see any changes compared with the risks and opportunities identified in the Group Management Report of March 14, 2007 for the 2006 financial year. Reference is made to the risk report section within the 2006 Group Management Report for details concerning our risk management system and our company's specific opportunity and risk profile.
| Assets | 9.30.2007 | 12.31.2006 |
|---|---|---|
| Long-term assets | ||
| Goodwill | 867 T€ | 897 T€ |
| Other intangible assets | 4,588 T€ | 5,358 T€ |
| Property, plant and equipment | 5,629 T€ | 5,575 T€ |
| Shares in associated companies | 319 T€ | 329 T€ |
| Shareholdings | 2,995 T€ | 2,678 T€ |
| Other financial assets | 21 T€ | 26 T€ |
| T€ 14,419 |
14,863 T€ | |
| Short-term assets | ||
| Raw materials and supplies | 4,412 T€ | 5.551 T€ |
| Unfinished products, unfinished services | 10,449 T€ | 8,922 T€ |
| Finished products | 215 T€ | 213 T€ |
| Accounts receivable | 8,542 T€ | 8,885 T€ |
| Future receivables from production orders | 4,621 T€ | 5,516 T€ |
| Receivables from associated companies | 9 T€ | 43 T€ |
| Other receivables and other assets | 771 T€ | 687 T€ |
| Securities | 538 T€ | 449 T€ |
| Cash and cash equivalents | 20,021 T€ | 11,991 T€ |
| 49,578 T€ | 42,257 T€ | |
| Total assets | 63,997 T€ | 57,120 T€ |
| Shareholders' equity and liabilities |
9.30.2007 | 12.31.2006 |
|---|---|---|
| Shareholders' equity |
||
| Share capital | 11,410 T€ | 11,260 T€ |
| Capital reserve | 10,449 T€ | 9,864 T€ |
| Revenue reserves | 16,831 T€ | 10,778 T€ |
| Consolidated net earnings | 7,011 T€ | 7,741 T€ |
| Other equity | 398 T€ | 491 T€ |
| 46,099 T€ | 40,134 T€ | |
| Debt | ||
| Long-term debt | ||
| Long-term financial liabilities | 4,225 T€ | 2,460 T€ |
| Pension provisions | 53 T€ | 53 T€ |
| Deferred taxes | 1,654 T€ | 2,241 T€ |
| 5,932 T€ | 4,754 T€ | |
| Short-term debt | ||
| Short-term financial liabilities | 347 T€ | 1,255 T€ |
| Accounts payable | 3,130 T€ | 2,934 T€ |
| Liabilities to associated companies | 19 T€ | 55 T€ |
| Other short-term liabilities | 4,186 T€ | 3,939 T€ |
| Short-term provisions | 2,776 T€ | 2,366 T€ |
| Tax provisions | 1,508 T€ | 1,683 T€ |
| 11,966 T€ | 12,232 T€ | |
| Total shareholders' equity and liabilities |
63,997 T€ | 57,120 T€ |
| 16,428 T€ 19,260 T€ Sales Increase in volume of finished and unfinished 1,123 T€ products and unfinished services 63 T€ Other capitalized own-account services 17,614 T€ 19,385 T€ Overall performance 233 T€ Other operating income |
7.1.-9.30.2006 |
|---|---|
| 84 T€ | |
| 41 T€ | |
| 77 T€ | |
| 7,873 T€ 11,587 T€ Cost of raw materials and supplies |
|
| 129 T€ Cost of services rendered |
204 T€ |
| 3,940 T€ 3,537 T€ Personnel expenses *1 |
|
| 1,282 T€ 1,421 T€ Other operating expenses |
|
| 4,623 T€ 2,713 T€ EBITDA |
|
| Depreciation and amortization of property, 550 T€ plant and equipment and intangible assets |
415 T€ |
| 4,073 T€ 2,298 T€ EBIT |
|
| 77 T€ Financial result |
-33 T€ |
| 4,150 T€ 2,265 T€ Operating result (EBT) |
|
| 1,490 T€ Current tax expenses |
585 T€ |
| 166 T€ Deferred tax income |
76 T€ |
| 2,826 T€ 1,756 T€ Consolidated net income |
|
| Earnings per share | 0.25 € | 0.16 € |
|---|---|---|
| No. of shares used as basis | 11,350,865 | 11,165,284 |
| Diluted earnings per share | 0.25 € | 0.15 € |
|---|---|---|
| Diluted no. of shares used as basis | 11,456,024 | 11,365,237 |
| 1.1.-9.30.2007 | 1.1.-9.30.2006 | |
|---|---|---|
| Sales | 50,526 T€ | 51,933 T€ |
| Increase (previous year: decrease) in volume of finished and unfinished products and |
||
| unfinished services | 1,549 T€ | 171 T€ |
| Other capitalized own-account services | 164 T€ | 125 T€ |
| Overall performance | 52,239 T€ | 51,887 T€ |
| Other operating income | 520 T€ | 273 T€ |
| Cost of raw materials and supplies | 25,045 T€ | 29,389 T€ |
| Cost of services rendered | 488 T€ | 508 T€ |
| Personnel expenses *1 | 11,483 T€ | 10,007 T€ |
| Other operating expenses | 4,127 T€ | 3,961 T€ |
| EBITDA | 11,616 T€ | 8,295 T€ |
| Depreciation and amortization of property, plant and equipment and intangible assets |
1,646 T€ | 1,096 T€ |
| EBIT | 9,970 T€ | 7,199 T€ |
| Financial result | 88 T€ | -102 T€ |
| Operating result (EBT) | 10,058 T€ | 7,097 T€ |
| Current tax expenses | 3,561 T€ | 1,559 T€ |
| Deferred tax income | ||
| (previous year: tax expenses) | 514 T€ | 234 T€ |
| Consolidated net income | 7,011 T€ | 5,304 T€ |
| Earnings per share | 0.62 € | 0.48 € |
|---|---|---|
| No. of shares used as basis | 11,295,783 | 11,059,426 |
| Diluted earnings per share | 0.61 € | 0.47 € |
|---|---|---|
| No. of shares used as basis | 11,457,301 | 11,346,176 |
*1 Due to the increasing significance of temporary employees for the services performed by the company, the resultant expenses have been reported under personnel expenses.The previous year's figures have been adjusted accordingly.
| mber 2007 January - Septe |
Revenue reserves | Other equity | |||||||
|---|---|---|---|---|---|---|---|---|---|
| capital Share |
reserve Capital |
earnings ve Cumulati |
reserves revenue Free |
net inco me ated Consolid |
n valuatio e fair valu for Reserve |
stock Treasury |
on conversi Currency |
equity Group |
|
| Balance at 12.31.2006 | € | € | € | € | € | € | € | € | € |
| 11,260 T | 9,864 T | 9,239 T | 1,539 T | 7,741 T | 362 T | - 13 T | 142 T | 40,134 T | |
| Transfer to free revenue reserves | € | € | € | € | € | € | € | € | € |
| – T | – T | – T | 2,000 T | - 2,000 T | – T | – T | – T | – T | |
| Dividend payment | € | € | € | € | € | € | € | € | € |
| – T | – T | – T | – T | - 1,688 T | – T | – T | – T | - 1,688 T | |
| Profit carried forward | € | € | € | € | € | € | € | € | € |
| – T | – T | 4,053 T | – T | - 4,053 T | – T | – T | – T | – T | |
| from stock option programs | € | € | € | € | € | € | € | € | € |
| Issue of subscription shares | 150 T | 470 T | – T | – T | – T | – T | – T | – T | 620 T |
| Transfers due to stock option plan | € | € | € | € | € | € | € | € | € |
| – T | 115 T | – T | – T | – T | – T | – T | – T | 115 T | |
| Adjustment resulting from the available for sale at fair value valuation of assets |
€ – T |
€ – T |
€ – T |
€ – T |
€ – T |
€ 17 T |
€ – T |
€ – T |
€ 17 T |
| Currency conversion | € | € | € | € | € | € | € | € | € |
| – T | – T | – T | – T | – T | – T | – T | - 110 T | - 110 T | |
| Consolidated net income | € | € | € | € | € | € | € | € | € |
| – T | – T | – T | – T | 7,011 T | – T | – T | – T | 7,011 T | |
| Balance at 9.30.2007 | € | € | € | € | € | € | € | € | € |
| 11,410 T | 10,449 T | 13,292 T | 3,539 T | 7,011 T | 379 T | - 13 T | 32 T | 46,099 T |
| mber 2006 January - Septe |
Revenue reserves | Other equity | ||||||
|---|---|---|---|---|---|---|---|---|
| capital Share |
reserve Capital |
earnings ve Cumulati |
reserve revenue Free |
me net inco ated Consolid |
valuatio n e fair valu for Reserve |
stock Treasury |
equity Group |
|
| Balance at 12.31.2005 | € | € | € | € | € | € | € | € |
| 3,660 T | 15,896 T | 5,923 T | 1,539 T | 4,412 T | 106 T | - 13 T | 31,523 T | |
| Dividend payment | € | € | € | € | € | € | € | € |
| – T | – T | – T | – T | - 1,097 T | – T | – T | - 1,097 T | |
| Profit carried forward | € | € | € | € | € | € | € | € |
| – T | – T | 3,315 T | – T | - 3,315 T | – T | – T | – T | |
| from company funds | € | € | € | € | € | € | € | € |
| Capital increase | 7,416 T | - 7,416 T | – T | – T | – T | – T | – T | – T |
| Issue of subscription shares from | € | € | € | € | € | € | € | € |
| stock option programs | 109 T | 312 T | – T | – T | – T | – T | – T | 421 T |
| Transfers due to stock option plan | € | € | € | € | € | € | € | € |
| – T | 94 T | – T | – T | – T | – T | – T | 94 T | |
| Company acquisition in return for shares from real capital increase (change in reporting entity) |
€ 18 T |
€ 782 T |
€ – T |
€ – T |
€ – T |
€ – T |
€ – T |
€ 800 T |
| the valuationof assets available Adjustment resulting from for sale at fair value |
€ – T |
€ – T |
€ – T |
€ – T |
€ – T |
€ 549 T |
€ – T |
€ 549 T |
| Consolidated net income | € | € | € | € | € | € | € | € |
| – T | – T | – T | – T | 5,304 T | – T | – T | 5,304 T | |
| Balance at 9.30.2006 | € | € | € | € | € | € | € | € |
| 11,203 T | 9,668 T | 9,238 T | 1,539 T | 5,304 T | 655 T | - 13 T | 37,594 T |
| 1.1.-9.30.2007 | 1.1.-9.30.2006 | |
|---|---|---|
| Consolidated net income | 7,011 T€ | 5,304 T€ |
| Depreciation and amortization | 1,646 T€ | 1,096 T€ |
| Other non-cash expenses | 115 T€ | 147 T€ |
| Other non-cash income | - 205 T€ | 0 T€ |
| Change in deferred taxes | - 514 T€ | 234 T€ |
| Cash flow | 8,053 T€ | 6,781 T€ |
| Profit on the disposal of long-term assets | - 6 T€ | - 27 T€ |
| Decrease (previous year: increase) in inventories, accounts receivable and other assets |
1.071 T€ | - 4.436 T€ |
| Increase in accounts payable and other liabilities |
247 T€ | 2.541 T€ |
| Inflow of funds from operating activities |
9,365 T€ | 4,859 T€ |
| Incoming payments from disposals of long-term assets |
10 T€ | 33 T€ |
| Outgoing payments for investments in long-term consolidated assets - Intangible assets - Property, plant and equipment |
- 214 T€ - 754 T€ |
- 128 T€ - 412 T€ |
| - Financial assets | - 299 T€ | - 1,654 T€ |
| Outgoing payments for the acquisition of consolidated subsidiaries, less cash and cash equivalents thereby taken over |
0 T€ | - 2,560 T€ |
| Outflow of funds for investment activities |
- 1,257 T€ | - 4,721 T€ |
| Incoming payments from taking up (previous year: outgoing payments for the repayment) of financial debt *1 |
855 T€ | - 1,120 T€ |
| Incoming payments from the issue of shares for employee stock option programs |
619 T€ | 438 T€ |
| Dividend payments *1 | - 1,688 T€ | - 1,097 T€ |
| Outflow of funds for financing activities |
- 214 T€ | - 1,779 T€ |
| Cash-effective change in financial funds |
7,894 T€ | - 1,641 T€ |
| Financial funds at start of period | 11,991 T€ | 9,962 T€ |
| Change in financial funds due to changes in exchange rates |
136 T€ | 0 T€ |
| Financial funds at end of period | 20,021 T€ | 8,321 T€ |
*1The depiction has been adjusted compared with the interim report as of September 30, 2006.
The consolidated financial statements of STRATEC AG as of December 31, 2006 were compiled in accordance with the International Financial Reporting Standards (IFRS) as applicable in the EU valid at the reporting report. In the interim report as of September 30, 2007, which has been compiled on the basis of International Accounting Standard (IAS) 34 "Interim Financial Reporting", application has been made of the same accounting methods as in the consolidated financial statements for the 2006 financial year.Application has also been made of all interpretations of the International Financial Reporting Interpretations Committee (IFRIC) with binding effect as of September 30, 2007. Moreover, when compiling the interim report, account was also taken of the near-final draft of German Accounting Standard No. 16 (DRS 16) – Interim Reporting – of the German Accounting Standards Committee (DRSC e.V).
Given that Sanguin International Ltd. was consolidated for the first time as of March 31, 2006, its results for the period from January to March 2006 are not included in the consolidated income statement for the equivalent period in the previous year.
The Swiss subsidiary Robion AG introduced the Swiss franc as its functional currency as of January 1, 2007.This has resulted in the assets and liabilities stated in the balance sheet of Robion AG being converted at the respective reporting date rates and the income statement being converted at average exchange rates.
There were no indications of any potential impairment in the value of goodwill at the reporting date.
The company's interim reports are neither audited, not subject to an audit review, by the Group auditor, Wirtschaftstreuhand GmbH Wirtschaftsprüfungsgesellschaft Steuerberatungsgesellschaft Stuttgart.
Reference is made to the consolidated financial statements of STRATEC AG as of December 31, 2006 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 (EUR 000s).
The breakdown of sales into their respective geographical regions represents the distribution of the STRATEC Group's products. In view of the fact that the customers of the STRATEC Group generally supply their country outlets and customers from central distribution centers, however, this breakdown of sales does not represent the geographical distribution of the final operating locations of the STRATEC Group's analyzer systems.We assume that the overwhelming majority, with a rising tendency, of all analyzer systems ever produced by STRATEC are now located outside Germany.
Sales can be broken down into their respective geographical regions (customer locations) as follows:
| Period | Germany | EU | Other | Total |
|---|---|---|---|---|
| 9,400 T€ | 32,346 T€ | 8,780 T€ | 50,526 T€ | |
| Januar - September 2007 | 18.6% | 64.0% | 17.4% | 100.0% |
| Period | Germany | EU | Other | Total |
|---|---|---|---|---|
| Januar - September 2006 | 10,114 T€ | 36,440 T€ | 5,379 T€ | 51,933 T€ |
| 19.5% | 70.2% | 10.3% | 100.0% |
The expenses relating to research and project management, and to development services not fulfilling the capitalization criteria set out in IAS 38, amounted to EUR 3.9 million in the first nine months (previous year: EUR 5.6 million) and have been reported, mainly as personnel expenses, in the company's consolidated income statement. Moreover, procurement volumes of around EUR 0.5 million (previous year: EUR 0.5 million) were incurred during the period under report in connection with materials used in research and development. These have been included in the cost of materials item.
The development in the equity of the STRATEC Group has been depicted in the statement of changes in Group shareholders' equity on Pages 10 and 11.
The number of ordinary shares with a nominal value of one euro each issued by STRATEC AG as of September 30, 2007 amounts to 11,409,828.These are all bearer shares.
STRATEC AG owned a total of 4,492 of its own shares at the interim reporting date.This corresponds to a prorated amount of EUR 4,492.00 of its share capital and to a 0.04% share of its equity.
In view of the several "conditional capitals" created by resolutions adopted at the Annual General Meetings held on May 28, 2003, June 23, 2006 and May 16, 2007, these various items have been combined below in the interests of clarity.
The members of the Board of Management/Managing Directors and the employees held the following numbers of subscription rights (share option rights) at the interim reporting date):
| Conditional Capital I / II / III |
Board of Management/ Managing Directors |
Employees | Total |
|---|---|---|---|
| Outstanding on 6.30.2007 | 98,120 | 56,823 | 154,943 |
| Issued | - | 300 | 300 |
| Exercised | 18,750 | 15,175 | 33,925 |
| Lapsed | - | - | - |
| Outstanding on 9.30.2007 | 79,370 | 41,948 | 121,318 |
The 2008 Corporate Taxation Act was approved by the German Parliament on May, 25, 2007 and adopted by the German Federal Council on July 6, 2007.The 2008 Corporate Taxation Reform has thus impacted on the valuation of tax receivables and liabilities for the first time in this interim report of STRATEC AG. Deferred tax assets and liabilities have therefore been adjusted in accordance with IAS 34, Interim Financial Reporting. As a result of lower income tax rates from January 1, 2008, the calculation of deferred taxes resulted in net tax income of EUR 76k.
Including the personnel provided by a temporary employment agency,the STRATEC Group had a total workforce of 269 employees as of September 30, 2007.
Cooperation with Future Diagnostics: On October 24, 2007, Future Diagnostics B.V., Wijchen, Netherlands, and STRATEC signed an agreement concerning the joint development of new system solutions.
In the interests of their OEM customers, the two companies will contribute to the cooperation their expertise in developing and producing reagents and analyzer systems in order to develop system solutions together based on common specifications. The jointly developed systems are to be offered to OEM customers for marketing. Cooperation has initially been agreed for three years.
With the cooperation, STRATEC and Future Diagnostics intend to offer their customers complete system solutions from a single source in future, such as those used for near-patient testing, for example the rapid, reliable and routine-laboratory-compatible performance of cardiovascular tests for coronary and apoplectic parameters. This possibility of outsourcing analyzer system and reagent development will provide the two companies' mutual customers with decisive added value.
Forecast for 2007, 2008 and beyond: Upon the announcement of its preliminary results, STRATEC also adjusted its forecasts for the coming financial years.
Accordingly, we expect our sales for the 2007 financial year to approximate to the level of sales generated in the previous year, namely EUR 68.4 million, as against our initial expectation of more than EUR 75 million.
Increased efficiency, the ongoing pleasing level of turnover with consumables and expendable parts, as well as continued improvements in the product portfolio in terms of margins, mean that STRATEC was able to confirm the original earnings forecast (EBIT) of "at least EUR 14 million" for the 2007 financial year.
With regard to the 2008 financial year, the company expects sales to grow to between EUR 78 million and EUR 82 million and earnings before taxes (EBT) to lie within the originally forecast range of EUR 16.2 million to EUR 18.2 million.
For subsequent years from 2009, the company also expects to generate average annual growth rates (CAGR) of more than 11% in the case of sales and of more than 18% in terms of earnings before taxes (EBT), thus achieving a level of growth more than double that expected for the overall market.
We hereby confirm that to the best of our knowledge the consolidated interim financial statements provide a true and fair picture of the net asset, financial and earnings position of the Group in accordance with the accounting principles governing interim reporting and that the course of business, including business results and the situation of the Group, are presented in such a way in the interim management report that a true and fair picture of actual circumstances is provided, as well as the major opportunities and risks involved in the expected development of the Group in the remainder of the financial year.
| 11.28.2007 | European Healthcare Conference, London (HSBC Trinkaus & Burkhardt) |
|
|---|---|---|
| 01.21.2008 | 7th German Corporate Conference, Frankfurt am Main (CA Cheuvreux S.A.) |
|
| April 2008 | Annual results telephone conference | |
| 05.20.2008 | Publication of 3 month report | |
| 05.21.2008 | Annual General Meeting, Pforzheim |
Partially incomplete / subject to amendment
STRATEC Biomedical Systems AG designs and manufactures fully automated systems for its partners in the fields of clinical diagnostics and biotechnology.These partners market such systems, in general together with their own reagents, to laboratories, blood banks and research institutes around the world. The company develops its products on the basis of its own patented technologies.
Shares in the company (ISIN: DE0007289001) are listed in the Prime Standard (segment of the official market involving additional admissions requirements) of the Frankfurt Stock Exchange.
The STRATEC Group consists of the publicly listed parent company STRATEC Biomedical Systems AG and its subsidiaries STRATEC Biomedical Inc., STRATEC NewGen GmbH, Robion AG and Sanguin International Ltd., as well as Sanguin International Inc, a subsidiary of Sanguin International Ltd.
Further information about STRATEC is available on the internet at http://www.stratec-biomedical.de.
Forward-looking statements involve risks – This interim report contains various statements concerning the future performance of STRATEC. These statements are based both on assumptions and on estimates. Although we are convinced that these forwardlooking statements are realistic, we can provide no guarantee of this.This is because our assumptions involve risks and uncertainties which could result in a substantial divergence between actual results and those expected. It is not planned to update these forward-looking statements.
Discrepancies may arise throughout this interim report on account of mathematical rounding up or down in the course of addition.
English terminology in the field of diagnostics – The specialist terminology used in the field of diagnostics mainly derives from linguistic usage in the English-speaking world. For this reason, we make periodic use of English terminology in our ongoing German reporting. Any attempt to find a suitable German equivalent for these established terms relating to diagnostics could result in an impairment of the concepts in question. We nevertheless take trouble to define such concepts in German wherever we consider it feasible.
This interim report is also available in German.
STRATEC Biomedical Systems AG Gewerbestrasse 37 75217 Birkenfeld Germany Fon: +49 (0)7082 7916-0 Fax: +49 (0)7082 7916-999 [email protected] www.stratec-biomedical.de
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