Quarterly Report • Oct 30, 2013
Quarterly Report
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STRATEC DEVELOPS AND MANUFACTURES FULLY AUTOMATED ANALYZER SYSTEMS BASED ON ITS OWN PATENTED TECHNOLOGIES FOR ITS PARTNERS IN THE FIELDS OF CLINICAL DIAGNOSTICS AND BIOTECHNOLOGY. STRATEC'S PARTNERS ARE MOSTLY GLOBAL PLAYERS OPERATING IN THE IN-VITRO DIAGNOSTICS INDUSTRY. THESE COMPANIES MARKET STRATEC'S SYSTEMS UNDER THEIR OWN NAMES, IN GENERAL TOGETHER WITH THEIR OWN REAGENTS, AS SYSTEM SOLUTIONS TO LABORATORIES, BLOOD BANKS, AND RESEARCH INSTITUTES AROUND THE WORLD.
| 03 | HIGHLIGHTS/KEY GROUP FIGURES AT A GLANCE |
|---|---|
| 04 | FOREWORD BY THE BOARD OF MANAGEMENT |
| 05 | INTERIM GROUP MANAGEMENT REPORT |
| 09 | CONSOLIDATED BALANCE SHEET as of 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 |
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
| 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%.
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
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.
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.
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.
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.
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 |
| 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 |
| 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 |
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 |
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 |
for the Period from January 1 to September 30, 2013 of STRATEC Biomedical AG
The consolidated financial statements of STRATEC Biomedical AG as of December 31, 2012 were prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU valid at the balance sheet date. In the interim report as of 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.
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 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).
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.
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.
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).
Including temporary employees, the STRATEC Group had a total workforce of 544 employees as of September 30, 2013 (previous year: 524).
No events of particular significance with material implications for the business performance of our Group have occurred since the interim balance sheet date.
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.
| 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
STRATEC Biomedical AG designs and manufactures fully automated analyzer systems for its partners in the fields of clinical diagnostics and biotechnology. These partners market such systems, in general together with their own reagents, as system solutions to laboratories, blood banks and research institutes around the world. The company develops its products on the basis of its own patented technologies.
Shares in the company (ISIN: DE0007289001) are traded in the Prime Standard segment of the Frankfurt Stock Exchange and are listed in the TecDAX select index of the German Stock Exchange.
Further information about STRATEC is available on the internet at www.stratec.com.
STRATEC Biomedical AG Gewerbestr. 37 75217 Birkenfeld Germany
Phone: +49 7082 7916-0 Fax: +49 7082 7916-999 [email protected] www.stratec.com
Andreas Künzel Phone: +49 7082 7916-185 Fax: +49 7082 7916-999 [email protected]
Andre Loy Phone: +49 7082 7916-190 Fax: +49 7082 7916-999 [email protected]
Forward-looking statements involve risks: This interim report contains various statements concerning the future performance of STRATEC. These statements are based on both assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, we can provide no guarantee of this. This is because our assumptions involve risks and uncertainties which could result in a substantial divergence between actual results and those expected. It is not planned to update these forward-looking statements.
This interim report contains various disclosures of an economic nature that do not form part of the relevant accounting requirements. These disclosures are to be viewed as a supplement to, rather than as a substitute for the disclosures made in accordance with IFRS.
Discrepancies may arise throughout this interim report on account of mathematical rounding up or down in the course of addition.
This interim report is also available in German.
Gewerbestr, 37 75217 Birkenfeld Germany
Phone: +49 7082 7916-0 Fax: +49 7082 7916-999
[email protected] www.stratec.com
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