STRATEC reports on first nine months of 2015

- Sales of EUR 107.2 million in 9M/2015 (+1.8%; 9M/2014: EUR 105.3 million)
- EBIT of EUR 19.2 million in 9M/2015 (+8.8%; 9M/2014: EUR 17.7 million*)
- EBIT margin of 17.9% in 9M/2015 (+110 basis points; 9M/2014: 16.8%*)
- EBIT margin for 2015: Expected to be above 9M/2015 margin
- Earnings per share of EUR 1.35 in 9M/2015 (+8.9%; 9M/2014: EUR 1.24*)

Birkenfeld, October 28, 2015

STRATEC Biomedical AG, Birkenfeld, Germany (Frankfurt: SBS; Prime Standard, TecDAX) today announced its results for the period from January 1, 2015 to September 30, 2015 upon the publication of its Interim Report as of September 30, 2015.

bps = basis points

* 2014 figure adjusted to exclude a one-off negative item resulting from the recognition in the first quarter of expenses for the remaining years of the term of a management board contract for a retired member of the Board of Management. Unadjusted EBIT for the first nine months of 2014 amounted to EUR 17.0 million; the corresponding EBIT margin amounted to 16.2%, consolidated net income to EUR 14.2 million and earnings per share to EUR 1.20. The actual amount of the aforementioned expense item may differ at the time of payment from the amounts presented here.
 

Financial performance
STRATEC Biomedical AG reported a positive business performance for the first nine months of 2015 characterized by disparate developments in individual business segments. Group sales increased by 1.8% to EUR 107.2 million and the EBIT margin rose from 16.8% (previous year's adjusted figure) to 17.9% in the first nine months of 2015.

Group performance was driven by a positive product mix and efficiency enhancements. Service parts continued to account for a proportionately high share of sales. This was due to a rise in demand for service materials as a result of continued expansion in the global base of installed analyzer systems. Also, the ratio of instruments sold to the growing share of service parts lead to positive margin development on a group level. Individual customers have reported weaker sales figures in various regions within Asia in recent months.

The Group's tax rate amounted to 18.1% for the first nine months of 2015. As a result, consolidated net income was EUR 15.9 million, corresponding to an increase of 8.8% compared to the figure for the first nine months of the previous year (+12.5% on unadjusted 2014 figure). Earnings per share increased by EUR 0.11 to EUR 1.35 (+8.9% / +12.5% on unadjusted 2014 figure).

Free cash flow amounted to EUR 16.1 million after nine months 2015. The decline in comparison to last year was mainly due to higher preliminary tax payments. Cash and cash equivalents rose to EUR 54.7 million at the reporting date on September 30, 2015 and the equity ratio amounted to 80.4%.

Development in personnel
The total number of employees at the STRATEC Group, including personnel hired from temporary employment agencies and trainees, rose year-on-year by 3.4% from 554 to 573 as of September 30, 2015. Given ongoing demand from our partners for our research and development services and for the supply of analyzer systems, we continue to seek well-qualified personnel, especially in the development division.

Projects and other developments
STRATEC is focusing on achieving further key development milestones, further pending market launches, and finalizing negotiations for new development and production contracts. One focus here is on developing proprietary platform solutions, which should contribute to the company's further growth from 2017 onwards.

The expansion in production and development capacities is set to play a major role in terms of planning the company's future growth. The move into new buildings at our site in Romania and in Switzerland is scheduled to take place in the first half of 2016.

Financial forecast remains valid
The Group's performance in the first nine months confirms the current forecast for 2015, according to which STRATEC expects to generate slight year-on-year sales growth at around the growth rates reported to date in 2015. As a result of the developments outlined above, the EBIT margin is expected to be above the level reported for the nine-month period.

Although individual customers have slightly reduced their forecasts for the remainder of the financial year and for 2016 to account for the current dip in turnover figures in Asia, we can confirm our valid mid-term financial forecast. This provides for average annual sales growth of eight to twelve percent through to 2017 based on the figures for the 2013 financial year (EUR 128.0 million) and for this to be accompanied by increasing profitability. We expect figures to fall below or exceed this range in individual years.

As well as pursuing the opportunities offered by organic growth, STRATEC is increasingly reviewing external opportunities which could enable the company to generate faster growth in key areas or access new niche markets. All activities serve to broaden the share of the value chain we can offer to our customers. One key priority is to avoid entering into any situation of competition with existing or potential partners.

Conversion to registered shares
After the close of trading on Friday, August 28, 2015, STRATEC Biomedical AG converted its share capital, at a ratio of 1:1 from bearer shares with a nominal amount of EUR 1.00 to registered shares in the form of no-par shares (shares with no nominal amount). This conversion to registered shares, which was approved by the Annual General Meeting on May 22, 2015, is meant to facilitate direct communication with shareholders and increase transparency of the shareholder structure.

Since this time, only the new international and German security identification numbers have been valid, namely ISIN DE000STRA555 (previously: DE0007289001) and WKN STRA55 (previously 728900). The company's ticker symbol SBS has remained unchanged. Further information about the registered shares can be found at www.stratec.com/registered_shares.

Interim report as of September 30, 2015
Further details can be found in our Interim Report as of September 30, 2015, which has been published today on the company's homepage at www.stratec.com/financial_reports.

About STRATEC
STRATEC Biomedical AG (www.stratec.com) 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: DE000STRA555) 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 can be obtained from:
STRATEC Biomedical AG
André Loy, Corporate Communications
Gewerbestr. 37, 75217 Birkenfeld
Germany
Tel: +49 7082 7916-190
Fax: +49 7082 7916-999
ir@stratec.com
www.stratec.com