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STRATEC SE

Quarterly Report Oct 30, 2013

416_10-q_2013-10-30_cef0c593-fc22-4151-8e74-2787d46b5124.pdf

Quarterly Report

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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 September 30, 2013
11 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the Period from July 1 to September 30, 2013
12 CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the Period from January 1 to September 30, 2013
13 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the Period from January 1 to September 30, 2013
15 CONSOLIDATED CASH FLOW STATEMENT
for the Period from January 1 to September 30, 2013
16 NOTES TO THE GROUP INTERIM REPORT
for the Period from January 1 to September 30, 2013
20 ADDITIONAL INFORMATION

HIGHLIGHTS

Sales of 190.4 million in 9M/2013 (+7.2%; 9M/2012: 184.3 million*)

EBIT margin of 16.2% in Q3/2013 (Q3/2012: 13.4%)

EBIT margin of 14.8% in 9M/2013 (9M/2012: 15.8%*)

Earnings per share of 10.90 in 9M/2013 (-3.2%; 9M/2012: 10.93)

Company forecast confirmed

KEY GROUP FIGURES AT A GLANCE

in u thousands 01.01. –09.30.2013 01.01. –09.30.2012 Change
Sales 90,418 84,316* +7.2%
EBIT 13,361 13,357 +0.0%
EBIT
margin (%)
14.8 15.8* -
Consolidated net income 10,517 10,865 -3.2%
Earnings per share (1) 0.90 0.93 -3.2%
No. of employees
(absolute)
544 524 +3.8%
in u thousands 09.30.2013 12.31.2012 Change
Shareholders' equity 95,874 91,985 +4.2%
Total assets 127,341 121,838 +4.5%
Equity ratio (%) 75.3 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 nine months of 2012 amounted to 187.6 million and the corresponding EBIT margin amounted to 15.3%.

FOREWORD BY THE BOARD OF MANAGEMENT

Dear Shareholders,

We can now look back on the first nine months of the 2013 financial year. Notwithstanding uncertainties within the diagnostics industry as to spending cuts in the global healthcare system, business with our partners is still developing positively after the first nine months.

We increased our sales year-on-year by 3.2% to 1 90.4 million in the first nine months of 2013. Net of a one-off, non-operating item in the first quarter of the previous year, our sales showed growth of 7.2%. At 14.8%, our nine-month EBIT margin was also within the range of 14.0% to 15.5% budgeted for the overall financial year. In the third quarter, our year-on-year sales growth amounted to 5.8% to 131.0 million, with an EBIT margin of 16.2% (previous year: 13.4%).

The volatilities seen in our service part sales performance in the second half of 2012 in particular are no longer detectable to the same extent. In general, STRATEC's partners are still attempting to react flexibly to fluctuations in test volumes at their end customers by adjusting order volumes, even at short notice, to avoid building up stocks. In the first nine months of the current year, we witnessed slight volume growth in the service part business across virtually all of our customer base.

We boosted our overall workforce with a further seven employees in the past quarter to account in particular for the production of systems newly launched onto the market.

Three systems have already been launched onto the market by our partners bioMérieux, Bio-Rad and Quanterix over the past twelve months. These will increasingly contribute to STRATEC's positive sales performance. A further launch is scheduled to take place in the course of the fourth quarter.

Alongside a notable new development and supply agreement signed in the first quarter of 2013, the contract for a further major project is now in the final agreement stage. Both projects are expected to contribute to the positive development in the company's sales from 2015/2016.

The target published by STRATEC of generating sales of between 1 127 million and 1 138 million in the 2013 financial year, with an EBIT margin of 14.0% to 15.5%, is confirmed by the latest developments and by the orders and forecasts received from our partners.

Birkenfeld, October 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

At the end of the first nine months of 2013, STRATEC can report year-on-year sales growth of 3.2% to 1 90.4 million. In the third quarter of 2013, the company achieved growth of 5.8% compared with the equivalent period in 2012. At 1 29.0 million (32.1% of sales), gross profit fell slightly short of the previous year's figure.

Gross development expenses are 1 1.5 million up on the previous year's figure. Sales-related expenses, by contrast, fell year-on-year by 1 2.1 million. This was due to significantly lower market launch expenses. 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 1 0.2 million, while the financial result deteriorated by 1 0.2 million. Depreciation and amortization amounted to 1 2.7 million, while investments in non-current assets totaled 1 3.4 million. EBIT amounted to 1 13.4 million, thus matching the previous year's figure. This corresponds to an EBIT margin of 14.8% (previous year: 15.3%). In the third quarter, the company generated an EBIT margin of 16.2% (previous year: 13.4%). The tax result amounted to 1 2.6 million. STRATEC can therefore report consolidated net income of 1 10.5 million for the period under report (previous year: 1 10.9 million). Earnings per share amounted to 1 0.90 (previous year: 1 0.93).

Inventories grew to 1 49.1 million, reflecting strong demand for analyzer systems and a fully stocked development pipeline. Receivables and other assets declined by 1 5.9 million, a development also reflected in the positive operating cash flow of 1 13.8 million. Cash and cash equivalents increased from 1 13.2 million to 1 18.7 million.

The equity ratio amounted to 75.3%. The increase in trade payables was driven by higher procurement volumes for raw materials and supplies. Within other current liabilities, an amount of 1 8.9 million has been reported for prepayments received for development services.

CHANGES IN THE BUSINESS ENVIRONMENT AND IMPLICATIONS FOR STRATEC

In its latest forecast, dated October 2013, the International Monetary Fund (IMF) sees the global economy growing more slowly than recently predicted. It therefore revised its growth forecast for the global economy downwards by 0.3 percentage points to 2.9%. This represents the fourth downward revision this year and the sixth consecutive downward revision. At 3.6%, growth in 2014 is also expected to be lower than previously thought. In July 2013, the IMF had still forecast 3.8%.

According to the IMF, growth is mainly being held back by high unemployment levels in Europe, uncertainty as to US monetary policy, and the faltering of emerging and developing economies, whose growth rates have had to be corrected significantly downwards.

For the euro area, the IMF now expects to see slightly more positive developments. The core European economies are showing some signs of recovery. As a result, economic output is now only expected to drop by 0.4% in 2013, rather than by the previously expected rate of contraction of 0.6%. In 2014, however, the euro area should show growth of almost 1%.

The IMF looks with some concern to the USA. Despite a recovery in demand in the real estate and financial sectors, the massive cuts in government budgets give the IMF reason to forecast weaker growth in the world's largest economy, namely of 1.6% in 2013 and 2.6% in 2014.

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

The systems already established on the market have generated moderate growth rates. The systems launched onto the market in 2013 so far only account for an immaterial share of the current sales growth. We expect their share of sales to rise consistently over the coming quarters. Moreover, the market launch of a new system is due in the fourth quarter. Furthermore, two further market launches and analyzer system approvals are set to follow in 2014.

Alongside a major new development and supply agreement signed in the first quarter of 2013, a further contract is now in the final agreement stage. Both projects will make notable contributions to STRATEC's sales growth from the 2015 and 2016 financial years respectively.

On July 12, 2013, STRATEC reported the termination by a customer of a development and supply agreement. Compensation for STRATEC is being negotiated with the customer. At present, no more precise details can be provided as to the nature, amount or timing of such compensation. Neither the other projects with this partner nor projects with other partners have been affected by this contract termination.

Our ability to forecast developments continues to be impeded by several other external factors, such as 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.

The launch of mandatory health insurance cover by the Obama administration – so-called "Obamacare" – will benefit millions of previously uninsured American citizens, who will now gain regular access to healthcare services in what is already the world's largest healthcare market. Advocates of this healthcare reform are convinced that the millions of people additionally insured will curb the increase in healthcare costs in the USA and make medical care more cost-effective. Having said this, healthcare providers can expect to see greater pressure on prices due in particular to more widespread tendering by government bodies (tender business). STRATEC expects any additional pressure on prices to be compensated by rising test volumes and an additional increase in the degree of automation.

The current company forecast published on July 12, 2013 remains valid. Accordingly, STRATEC expects to generate sales of between 1 127 million and 1 138 million with an EBIT margin of 14.0% to 15.5% in the 2013 financial year. Average annual sales growth of 8% to 12% based on the figures for the 2013 financial year is then expected in subsequent years until 2017. Profitability is expected to improve slightly, albeit in proportion with the number and scale of new development projects and thus with 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.

On July 12, 2013, STRATEC announced that the company had been informed by a customer that a contract for the development and supply of an analyzer system would no longer be continued due to a change in strategy on the part of the customer. Due to the discontinuation of this project, STRATEC thus stands to lose originally budgeted development and production sales in a double-digit euro range. In response to this event, STRATEC reduced its financial forecast on July 12, 2013. The termination of a contract by a customer at such an advanced stage of development – the analyzer system had almost reached the marketing stage – has never occurred previously in STRATEC's history and thus represents an one-off event. Although STRATEC views the risk of such an event reoccurring as extremely low, the possibility of such development cannot be entirely excluded. Strategic decisions by STRATEC's customers, which are mostly major groups with global operations in the in-vitro diagnostics industry, are difficult to predict and can mostly not be influenced by STRATEC.

Apart from the factors outlined in the "Report on forecasts and other statements concerning the company's expected development" and the comments concerning the customer contract termination in this "Opportunity and risk report", we do not see any changes compared with the risks and opportunities identified in the Group Management Report for the 2012 financial year dated March 26, 2013. Reference is made to the "Risk Report" section within the 2012 Group Management Report for details concerning our risk management system and our company's specific opportunity and risk profile.

CONSOLIDATED BALANCE SHEET

as of September 30, 2013 of STRATEC Biomedical AG

ASSETS in u
thousands
09.30.2013 12.31.2012
NON-CURRENT ASSETS
Goodwill 4,476 4,547
Other intangible assets 6,962 6,192
Property, plant and equipment 17,115 17,108
Interests in associates 391 363
Deferred tax assets 1,447 1,260
30,391 29,470
CURRENT ASSETS
Raw materials and supplies 9,524 8,857
Unfinished products, unfinished services 38,720 34,406
Finished products, goods and prepayments 897 807
Trade receivables 18,076 23,802
Future receivables from construction contracts 6,230 6,627
Receivables from associates 57 96
Income tax receivables 1,952 2,016
Other receivables and other assets 2,256 2,182
Other financial assets 529 366
Cash and cash equivalents 18,709 13,209
96,950 92,368
TOTAL ASSETS 127,341 121,838
09.30.2013 12.31.2012
11,748 11,738
16,568 16,247
56,458 48,966
10,517 13,973
583 1,061
95,874 91,985
6,948 7,459
28 28
2,108 2,060
9,084 9,547
1,736 1,183
6,035 4,288
204 282
13,245 13,707
607 608
556 238
22,383 20,306
121,838
127,341

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the Period from July 1 to September 30, 2013 of STRATEC Biomedical AG

in u
thousands
07.01.–09.30.2013 07.01.–09.30.2012
Sales 31,037 29,342
Cost of sales -21,629 -20,323
Gross profit 9,408 9,019
Research and development expenses -1,169 -569
Information only: Total research and development expenses -4,746 -3,676
Information only: Capitalized research and development expenses 3,577 3,107
Sales-related expenses -998 -2,468
General administrative expenses -2,007 -1,755
Other operating income and expenses -219 -294
EBIT 5,015 3,933
Net financial expenses -42 99
Earnings before taxes (EBT) 4,973 4,032
Current tax expenses -1,043 -570
Deferred tax expenses (previous year: tax income) -192 51
Consolidated net income 3,738 3,513
Income and expenses recognized directly in equity
(after taxes)
Hedge transactions 0 54
Currency translation of foreign financial statements -40 28
Comprehensive income 3,698 3,595
Earnings per share in v 0.32 0.30
No. of shares used as basis 11,735,522 11,701,548
Earnings per share, diluted, in v 0.32 0.30
No. of shares used as basis, diluted 11,745,192 11,737,403

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME for the Period from January 1 to September 30, 2013 of STRATEC Biomedical AG

in u
thousands
01.01.–09.30.2013 01.01.–09.30.2012
Sales 90,418 87,584
Cost of sales -61,422 -58,103
Gross profit 28,996 29,481
Research and development expenses -3,179 -1,872
Information only: Total research and development expenses -14,691 -13,150
Information only: Capitalized research and development expenses 11,512 11,278
Sales-related expenses -5,268 -7,333
General administrative expenses -6,679 -6,239
Other operating income and expenses -509 -680
EBIT 13,361 13,357
Net financial expenses -251 -28
Earnings before taxes (EBT) 13,110 13,329
Current tax expenses -2,719 -3,178
Deferred tax income 126 714
Consolidated net income 10,517 10,865
Income and expenses recognized directly in equity
(after taxes)
Hedge transactions 0 -28
Currency translation of foreign financial statements -478 190
Comprehensive income 10,039 11,027
Earnings per share in v 0.90 0.93
No. of shares used as basis 11,729,395 11,679,231
Earnings per share, diluted, in v 0.90 0.93
No. of shares used as basis, diluted 11,760,492 11,738,467

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

for the Period from January 1 to September 30, 2013 of STRATEC Biomedical AG

JANUARY - September
2012
Revenue reserves
in u
thousands
Share
capital
Capital reserve Accumulated
net income
Free
revenue reserves
Balance at 01.01.2012 11,675 15,307 26,706 13,392
Equity transactions with owners
Dividend payment
Issue of subscription shares from stock
option programs, less costs of capital issue
after taxes
61 759
Allocations due to stock option plans 100
Value changes recognized directly in equity
Allocation to free revenue reserves 3,000
Profit carried forward 5,867
Consolidated net income
Balance at 09.30.2012 11,736 16,166 32,573 16,392
JANUARY - September
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 133
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
Consolidated net income
Balance at 09.30.2013 11,748 16,568 36,980 19,478
Other equity
Group
equity
Hedge
transactions
Currency
translation
Treasury stock Free
revenue reserves
83,232 0 1,082 -212 15,282
-6,415 -6,415
820
100
162 -28 190
0 -3,000
0 -5,867
10,865 10,865
88,764 -28 1,272 -212 10,865
Other equity
Group
equity
Currency
translation
Treasury stock Consolidated net
income
91,985 1,273 -212 13,973
-6,567 -6,567
194
133
-478 -478
0 -3,000
0 -4,406
90
10,517 10,517
95,874 795 -212 10,517

CONSOLIDATED CASH FLOW STATEMENT

for the Period from January 1 to September 30, 2013 of STRATEC Biomedical AG

Consolidated net income (after taxes)
Depreciation and amortization
Current income tax expenses
Income taxes paid less income taxes received
Financial income
Financial expenses
Interest paid
10,517
2,697
2,719
-1,941
-54
305
10,865
2,976
3,178
-4,492
-174
206
-281 -158
Interest received 70 156
Other non-cash expenses 488 222
Other non-cash income -2,340 -1,873
Cash flow 12,180 10,906
Change in deferred taxes through profit or loss -126 -714
Profit on disposals of non-current assets -9 -21
Decrease (previous year: increase) in inventories,
trade receivables, and other assets
311 -11,481
Increase in trade payables and other liabilities 1,424 3,314
Inflow of funds from operating activities 13,780 2,004
Incoming payments from disposals of non-current assets
Property, plant and equipment 9 50
Outgoing payments for investments in non-current assets
Intangible assets -333 -204
Property, plant and equipment -1,260 -1,140
Financial assets -100 -30
Outflow of funds for investing activities -1,684 -1,324
Incoming payments from taking up of financial liabilities 1,000 77
Outgoing payments for repayment of financial liabilities -932 -612
Incoming payments for issues of shares
for employee stock option programs
194 820
Dividend payment -6,567 -6,415
Outflow of funds for financing activities -6,305 -6,130
Cash-effective change in cash and cash equivalents 5,791 -5,450
Cash and cash equivalents at start of period 13,209 19,548
Change in scope of consolidation 84 0
Impact of exchange rate movements -375 27
Cash and cash equivalents at end of period 18,709 14,125

NOTES TO THE GROUP INTERIM REPORT

for the Period from January 1 to September 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 September 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. Exceptions relate to the first-time full consolidation of STRATEC Biomedical S.R.L., Romania, which was founded in the 2008 financial year, the merger of STRATEC Molecular GmbH, Germany*, with STRATEC NewGen GmbH, Germany*, and the foundation of STRATEC Biomedical (Taicang) Co., Ltd., China*. The implications for the net asset, financial and earnings position of the STRATEC Group are still of subordinate significance.

Application has also been made of all interpretations of the International Financial Reporting Interpretations Committee (IFRIC) with binding effect as of September 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 (1 thousand).

* Included in the consolidated financial statements as of December 31, 2012 by way of full consolidation respectively due to subordinate significance included in the consolidated financial statements as of September 30, 2013 at cost.

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.

in u
thousands
Instrumentation All other segments Reconciliation Total
Sales 93,396 3,481 -6,459 90,418
EBIT 14,352 -504 -487 13,361
Assets 145,278 4,300 -22,237 127,341

Segment data by operating segment for the period from January 1 to September 30, 2013

Segment data by operating segment for the period from January 1 to September 30, 2012

in u
thousands
Instrumentation All other segments Reconciliation Total
Sales 91,631 2,978 -7,025 87,584
EBIT 15,250 -1,384 -509 13,357
Assets 133,910 3,613 -18,369 119,154

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
15,059 36,551 38,808 90,418
January– September 2013 16.7 % 42.9 % 40.4 % 100.0 %
in u
thousands
Germany EU Other Total
12,560 38,954 36,070 87,584
January– September 2012 14.3 % 44.5 % 41.2 % 100.0 %

Research and development expenses

Research and development expenses not fulfilling the capitalization criteria set out in IAS 38 (Intangible Assets) amounted to 13.2 million in the first nine months of the 2013 financial year (previous year: 1 1.9 million) and mainly involve personnel and material expenses. The STRATEC Group invested a total of 1 14.7 million in research and development in the first nine months of the 2013 financial year (previous year: 1 13.2 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 1 1.00 each issued by STRATEC Biomedical AG as of September 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 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:

Board of Management/
Managing Directors
Employees Total
Outstanding on 01.01.2013 123,000 64,200 187,200
Issued 50,000 34,550 84,550
Exercised 0 10,000 10,000
Lapsed 0 1,400 1,400
Forfeited 2,000 2,000 4,000
Outstanding on 09.30.2013 171,000 85,350 256,350

Of the stock option rights granted in the first nine months, 50,000 were granted to members of the Board of Management (previous year: 60,000), 0 to managing directors of subsidiaries (previous year: 0), and 34,550 to employees (previous year: 7,050).

Furthermore, members of the Board of Management exercised 0 stock option rights in the first nine months (previous year: 55,000), 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: 5,750). To service the stock option rights exercised, a total of 10,000 shares were created from conditional capital (previous year: 60,750).

A total of 1,400 stock option rights for employees lapsed in the period under report (previous year: 200).

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 544 employees as of September 30, 2013 (previous year: 524).

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

November 12, 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:

November 2013 5th LBB
W German Company Day, London, UK
Jefferies 2013 Global Healthcare Conference, London, UK
7th HSBC
Healthcare Day, Frankfurt/Main, Germany
Bryan, Garnier & Co Conference, Paris, France
December 2013 10th Annual Berenberg 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

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

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