Quarterly Financial Report PULSION Medical Systems SE as of 30 September 2013

Transcription

1 Quarterly Financial Report PULSION Medical Systems SE as of 30 September 2013 PULSION Quarterly Financial Report as of September 30,

2 PULSION at a glance PULSION (Group) IFRS QIII QIII Q I-III Q I-III Change Sales KEUR ,3% Gross profit KEUR ,7% Net operating expenses KEUR ,0% Profit before interest and taxes (EBIT) KEUR ,1% EBITDA KEUR ,5% Group net profit KEUR ,2% Earnings per share EUR 0,27 0,18 0,78 0,59 31,7% Cash flow from operating activities before changes in net working capital KEUR ,7% Gross margin % 67,9% 71,4% 69,4% 70,4% -1,0% EBIT margin % 25,8% 33,9% 25,9% 27,5% -1,6% EBITDA margin % 31,8% 27,0% 31,2% 33,6% -2,4% Employees (average) Number ,0% Sales per employee (annualized) KEUR ,4% PULSION Quarterly Financial Report as of September 30,

3 Report of the Executive Director To the Shareholders, Ladies and Gentlemen The third quarter 2013 was in line with expectations: in all important points, PULSION is now in the "final straight" and is set to achieve the targets set for the full. Sales grew by 6.3 % during the first nine months of the year, slightly ahead of the growth rate of 6 % stated in our guidance for the year Nine-month sales of the Critical Care business unit were 5.0 % up on the previous year, while Perfusion business rose by 12.6 % the eighth quarter in a row with double-digit growth. The reported EBIT margin for the nine-month period was 25.9 % compared to 27.5 % one year earlier. Adjusted for allowances recognized on receivables in Spain and for currency factors, the EBIT margin for the period was 28.1 %. Cash flow from operating activities before changes in working capital amounted to EUR 5.5 million for the nine-month period and was therefore roughly in line with the previous year. Cash flow from operating activities after changes in working capital and free cash flow were both down on the previous year due to exceptional factors in the area of working capital management. Earnings per share for the nine-month period amounted to EUR 0.78 compared to EUR 0.59 in the previous year, an improvement of 32 %. Based on the performance to date we hold to our guidance for the full year: a) sales revenue growth of at least 6 % b) an EBITDA of between EUR 12.5 and EUR 13.0 million c) earnings per share of between EUR 0.95 and EUR 1,05. PULSION Quarterly Financial Report as of September 30,

4 Interim Group Management Report of PULSION Medical Systems SE for period from January 1 to September 30, 2013 Sales by Business Unit Q III Q III Change Q I-III Q I-III Change Business Unit Q III Q III ytd KEUR KEUR KEUR KEUR Critical Care Monitors % % Disposables % % Subtotal % % Perfusion Monitors % % Disposables % % Subtotal % % Total % % Nine-month sales of the Critical Care business unit grew by 5.0 % compared to the previous year. Sales of monitors in this business unit developed particularly well, increasing by 14.7 % during the period under report. This performance was helped in particular by sales of our second platform, PulsioFlex. They accounted for sales of almost EUR 1.0 million, an increase of 42 % for this platform compared to previous year. Nine-month sales of the Perfusion business unit rose by 12.6 %. The main contributing factor here was the sales performance with disposable products (i.e. ICG in this business unit), which rose by 16.3 %. PULSION Quarterly Financial Report as of September 30,

5 Sales by region Q III Q III Change Q I-III Q I-III Change Region Q III Q III ytd KEUR KEUR KEUR KEUR DACH* ,1% ,4% Western Europe (ex DACH) ,0% ,7% Eastern Europe ,7% ,1% USA ,9% ,6% Japan ,8% ,4% Latin America ,4% ,3% Asia Pacific (ex Japan) ,2% ,0% ROW** ,0% ,1% Total ,2% ,3% * Germany, Austria, Switzerland ** Rest of World Sales in the DACH region were slightly down on the previous year's corresponding ninemonth figure, which had been positively impacted by a major order in Switzerland. The Western Europe region excluding DACH continued to grow steadily in the third quarter, with sales up by 5 % on the previous year. The rate of contraction in the socalled PIGS countries (Portugal, Italy, Greece, Spain) in the third quarter slowed down to only 11 %, a continuation of the noticeable improvement over the first quarter already registered by the end of the first half-year: first-quarter sales had been 58 % down on the previous year. The positive trend in Eastern Europe continued, with sales up by 44 % for the ninemonth period. We are now reaping the benefits of our decision to set up direct sales in Poland, where we also increased staffing levels at the beginning of Sales in the USA by the end of the nine-month period were 17.8 % ahead of the previous year. Quarterly results, however, are not always meaningful, since our business in the USA is dominated in the short term by orders from a small number of distributors in the Perfusion Imaging segment. Nine-month sales generated in emerging markets defined as the last three regions in the table above were 34% up on the previous year. Overall, the proportion of sales generated in emerging markets in the first nine months was 12 %. Once again, the motor for this growth was the Chinese market. Following the receipt of a number of product approvals, the first sales were booked with our Mexican joint venture partner. PULSION Quarterly Financial Report as of September 30,

6 Sales structure Q III Q III Change Q I-III Q I-III Change Distribution Channel Q III Q III ytd KEUR KEUR KEUR KEUR Direct ,4% ,2% Joint ventures ,4% ,0% Distributors ,7% ,1% Total ,2% ,3% All three sales channels recorded positive growth in the first three quarters of the year. Monitor utilization level a) PiCCO It is well known that PULSION s business model is based on the razor/razor blade approach. Our aim is to continuously increase sales of our disposable products by expanding the installed base of monitors and encouraging more intensive use of those monitors. In keeping with the reporting standard normally used in the medical technology field, the number of monitors placed comprises all placements made in the last 7 years, since this corresponds to the expected useful life of a monitor. In the case of disposables, we have only taken PiCCO catheters into account: - Accumulated PiCCO monitor sales and placements in the past 7 years (excluding modules placed with business partners): at September 30, 2013: 4,094 at September 30, 2012: 4,055 - Disposables per monitor extrapolated to a 12-month period: at September 30, 2013: 21.6 at September 30, 2012: 21.6 The utilization level of our monitors in the first three quarters is therefore at a similar level to the previous year. PULSION Quarterly Financial Report as of September 30,

7 b) PulsioFlex PulsioFlex is PULSION's latest modular monitor platform, which has only been available in full since Accumulated PulsioFlex monitor sales and placements in the past 3 years: at September 30, 2013: 590 at September 30, 2012: Disposables per monitor extrapolated to a 12-month period: at September 30, 2013: 24.6 at September 30, 2012: 18.8 The figures show the high potential for sales of ProAQT disposables per monitor: in only PulsioFlex's second year, average consumption is already above the one with PiCCO technology. Earnings performance The gross margin for the third quarter was 69.4 % (Q3 2012: 70.4 %) and therefore below the target level. The routine examination of our patent portfolio highlighted that the carrying amount of a number of items is no longer recoverable. The carrying amount of these patents were written off in the quarter under report. Also a result of routine rolling checks, some adjustments were recorded on inventories in the Perfusion business unit due to production-related factors. These two items together caused a 0.6 % decrease in gross margin in the first nine months of the year In addition, sales to distributors in emerging markets, which generate a lower gross margin than direct sales, increased at a more pronounced rate. The impact in the first three quarters of 2013 was approximately 0.5 %. Third-quarter sales and marketing expenses, at KEUR 7,478, were slightly higher than in the previous year (KEUR 7,319) and represented 27.6 % of sales (2012: 28.8%). PULSION's selling capacities were expanded in emerging countries and Latin America by four full-time positions. At KEUR 1,430, nine-month research and development expenses were KEUR 539 lower than in 2012 (KEUR 1,969). The reduction compared to the previous year was due to the capitalization of development costs for two major near-market projects. The R&D ratio for the period under report was 8.4 % (Q1 - Q3 2012: 7.8 %). The development team was strengthened by three new employees. Nine-month general and administrative expenses amounting to KEUR 2,776 were significantly higher than one year earlier (Q1 - Q3 2012: KEUR 2,483). The expense ratio for this period increased accordingly from 9.8 % to 10.3 %. It remains our target to achieve a ratio below the 10 % mark. Net operational costs (i.e. net of other operating income and exchange rate effects) in the first nine months increased by KEUR 552 to KEUR 11,537 to (Q1 - Q3 2012: KEUR 10,985). PULSION Quarterly Financial Report as of September 30,

8 The principal changes compared to the previous year are related to the increase in the general allowance on trade accounts receivable in Spain, measured in accordance with the Group's rules based on the number of days outstanding. The net expense from changes in allowances in the nine months to September 30, 2013 was KEUR 689, which means that the operating profit was reduced by this amount in comparison to the previous year. Our experience with payment patterns of Spanish hospitals over the last three years is that receivables accumulate initially, before being paid without warning following an injection of liquidity from the government. We are working on the basis that some of the overdue balances will be settled by the year-end, thus allowing us to record a corresponding impact to earnings and cash flow. We do not see any risk of actual loss in this case, since our receivables are due ultimately from the Spanish state. Nine-month EBIT amounted to KEUR 7,006 and was therefore almost identical to the previous year's level (KEUR 6,987). A number of exceptional expenses arose in the first nine months of 2013 compared to the previous year: Deterioration in net exchange gains/losses TEUR 287 Net expense for general allowance on receivables in Spain TEUR 689 Total net expense from exceptional factors TEUR 976 Exchanges losses of KEUR 222 and the expense for allocations to the general allowance on receivables in Spain amounting to KEUR 375 were recorded in After adjustment of the reported EBIT for the first nine months of 2013 for these two items (in aggregate by KEUR 597), the adjusted EBIT for the nine-month period was KEUR 7,603, corresponding to an adjusted EBIT margin of 28.1 %. EBITDA for the first nine months of the year totalled KEUR 8,428 (Q1 - Q3 2012: KEUR 8,558). The adjustment described above applies similarly at this level, resulting in an adjusted EBITDA of KEUR 9,025. Segment information shows that the EBIT margin for the Critical Care business unit over the nine-month period was 25.4 %. The EBIT margin for the Perfusion business unit fell slightly as a result of higher development and selling expenses. Group net profit for the nine-month period amounted to KEUR 6,370, an improvement of 25.6% compared to the previous year (Q1 - Q3 2012: KEUR 5,072). The net profit for the third quarter increased to KEUR 2,228 (Q1 - Q3 2012: KEUR 1,504). Earnings per share for the nine-month period amounted to 78 cents, 32.2 % higher than in the same period one year earlier (Q1 - Q3 2012: 59 cents). Third-quarter earnings per share increased to 27 cents (Q3 2012: 18 cents). Treasury shares acquired and held by the Company have not been included in the calculation of the total number of shares in issue. PULSION Quarterly Financial Report as of September 30,

9 Net assets position Balance sheet structure 11,183 treasury shares were bought back during the third quarter of 2013, bringing the total number so acquired during the period from January to September 2013 to 51,751 shares. In conjunction with the Company's stock option programs, 57,250 treasury shares were issued to employees and management. At September 30, 2013, a total of 29,023 treasury shares were held, corresponding to 0.35 % of the Company's share capital. On a net basis (i.e. after offset of treasury shares), the total number of shares therefore remained unchanged at September 30, 2013 at 8,220,977. Working capital management Trade accounts receivable increased by KEUR 667 compared to December 31, 2012 to stand at KEUR 6,396 at the end of the reporting period (by comparison: September 30, 2012: KEUR 5,729). As a result, the number of days of sales outstanding (DSO) increased to 64 days (compared to 56 days at December 31, 2012 and 61 days at September 30, 2012). Overdue receivables in Spain were in the region of EUR 1.0 million at September 30, Excluding the impact of the Spanish receivables, the DSO situation was unchanged from the previous year. At KEUR 7,037, inventories were KEUR 1,301 higher than at December 31, 2012 and approximately EUR 2.0 million higher than at the end of the third quarter last year (TEUR 5,074). Inventories on hand at the end of the reporting period corresponded to 229 days of production costs (September 30, 2012: 182 days). The good sales performance with Perfusion business products meant that production of our annual requirements caused inventory levels to increase in the third quarter, and not as it usually happens, in the fourth quarter. The turnover period of inventories will therefore be reduced over time. Within current liabilities, trade accounts payables decreased during the first nine months of the year by KEUR 106 to KEUR 1,736. Developments in the third quarter highlighted problems arising in the area of working capital management. Since our business is subject to some seasonality, it is more meaningful to compare figures with September 30, Compared to that date, the deterioration arose as follows: Trade accounts receivable (basis = 61 DSO) TEUR -300 Inventories (basis = 200 DSI) TEUR Trade accounts payable TEUR -177 Total negative impact TEUR The project to review and optimize the processes affecting working capital management, of which we gave notice in the previous quarterly report, is making slower progress than expected. PULSION Quarterly Financial Report as of September 30,

10 We are nevertheless confident that we will be able to free up an additional amount of approximately EUR 1 million out of the EUR 2.1 million by the end of the financial year. Net liquidity Cash and cash equivalents amounted to KEUR 999 at September 30, Net liquidity defined as cash and cash equivalents less bank and financial liabilities was a negative amount of KEUR 1,127 at September 30, We are currently forecasting that net liquidity will be positive at the year end. We are working on the basis that net liquidity will stand at between EUR 1.9 million and EUR 2.3 million at the end of the year. The improvement of between approximately EUR 3.0 million and EUR 3.4 million is expected to arise follows: Cash flow from operating activities before changes in working capital: Reduction in inventories Receipt of overdue receivables from Spain Net capital expenditure Inflow of: EUR 1.7 million to EUR 2.0 million Inflow of EUR 0.8 million to EUR 1.0 million Inflow of EUR 1.0 million Outflow of EUR 0.5 million to EUR 0.6 million It is assumed for these purposes that overdue Spanish receivables will be repaid in full by the end of the year. Financial position Cash flow from operating activities in the third quarter of 2013 totalled KEUR 2,288, compared to KEUR 896 one year earlier. Nine-month gross cash flow amounted to KEUR 5,487 and was therefore roughly at the previous year's level (KEUR 5,642). The various changes in net current assets described above resulted in a net cash outflow of KEUR 2,728 in the first three quarters of This was a deterioration of KEUR 3,528 compared to the previous year, when cash flow had benefitted from exceptional, state-financed debt repayments in Spain. The cash outflow for investing activities in the third quarter, at KEUR 1,570, was higher in the previous year (KEUR 1,043), reflecting primarily a renewed increase in the number of monitors and modules placed, a development which lays the foundation for growth in 2014 and beyond. Personnel Number of employees PULSION had an average worldwide workforce of 130 employees in the first three quarters of 2013 (Q1 - Q3 2012: 125), with most of the increase relating to the development and sales departments. PULSION Quarterly Financial Report as of September 30,

11 Employee fluctuation The employee fluctuation rate is calculated on the basis of the average number of employees during the past 12 months - to the end of the reporting period - and the number of employees leaving the Group during that period (BDA formula: fluctuation rate = departures/average number of employees x 100). Temporary staff and student apprentices are not included for the purposes of calculating the employee fluctuation rate. Average number of Employee Employees leaving employees fluctuation rate Field sales force % Other areas % Total % The fluctuation rate in the sales field force increased slightly (from 14 % to 16 %). The fluctuation rate in other areas (administration and R&D) fell, however, from 27 % in the first half of the year to 22 %. In the case of employees who have already been with the company for more than one year and who have not left on a temporary basis (i.e. employees on maternity leave), the employee fluctuation rate for the PULSION Group as a whole is 9 %. This level is considered to be satisfactory. The difference relates primarily to new recruits who leave during the first 12 months. For this reason, we remain committed to improving our selection and recruiting process on the one hand and to ensuring better integration of new members of staff on the other. Research and development New products In September, work was completed on the industrial design definition for a new illumination camera system which is being developed by the Perfusion business unit. Product concept adaptation was finalized following the freedom to operate (FTO) analysis. The new camera system will enable the fluorescent properties of PULSION- ICG to be used in the areas of breast cancer diagnostics and vascular surgery. Further progress was made with the project to measure blood pressure and other hemodynamic parameters continuously on a non-invasive basis with the first successful testing on volunteers using laboratory samples. A prototype is scheduled to be presented in March Development of a CeVOX sensor for the US market is in line with schedule. It is planned to submit an approval application to the FDA in December PULSION Quarterly Financial Report as of September 30,

12 Risk and opportunity report Risks and opportunities and the risk management system of PULSION SE are described in the Annual Report The situation described in that report has not changed significantly. Outlook Sales have grown by 6.3 % during the first nine months of the year. For the full financial year 2013 we were targeting growth of at least 6 %. We remain committed to this target, which means that the growth rate has slightly increased compared to the previous year. From today's perspective, we expect EBITDA for the full year to land within a corridor of between EUR 12.5 and EUR 13.0 million. We continue to predict an EBIT margin for the full year within a target corridor of between 24 % and 28 %. Our prediction of earnings per share (EPS) within a range of EUR 0.95 to EUR 1.05, approximately 20 % higher than the previous year's figure of EUR 0.82, remains unchanged. Feldkirchen, November 8, 2013 Patricio Lacalle Executive Director/ CEO PULSION Quarterly Financial Report as of September 30,

13 Consolidated Balance Sheet of PULSION Medical Systems SE as of September 30, 2013 IFRS ASSETS Sept. 30, 2013 Dec. 31, 2012 KEUR KEUR Non-current assets Intangible assets Property, plant, equipment Investment property Other non-current assets Deferred taxes asset Current assets Inventories Trade accounts receivable Other current assets Cash and cash equivalents Total assets IFRS EQUITY AND LIABILITIES Sept. 30, 2013 Dec. 31, 2012 KEUR KEUR Equity Share capital Additional paid-in capital Treasury shares Other reserves Accumulated profit Minority interests Non-current liabilities Provisions Other liabilities Deferred taxes liabilities Current liabilities Provisions Liabilities to banks Trade accounts payable Taxes payable Other liabilities Total equity and liabilities PULSION Quarterly Financial Report as of September 30,

14 Consolidated Income Statement of PULSION Medical Systems SE for the period from January 1 to September 30, 2013 IFRS Q III Q III Q I-III Q I-III KEUR Sales Cost of sales Gross profit % of sales 67,9% 71,4% 69,4% 70,4% Sales and marketing expenses Research and development expenses General and administrative expenses Other operating expenses Other operating income Operating profit Exchange losses Exchange gains Profit before interest and taxes (EBIT) % of sales 25,8% 27,0% 25,9% 27,5% Interest expenses Interest income Profit before taxes (EBT) Income taxes Group net profit (before minority interests) or which attributable to shareholders of the group parent company of which attributable to minority interests Earnings per share Undiluted - ordinary operations after taxes (in EUR) 0,27 0,18 0,78 0,59 Diluted - ordinary operations after taxes (in EUR) 0,27 0,18 0,77 0,59 Average number of shares in circulation (undiluted) Average number of shares in circulation (diluted) PULSION Quarterly Financial Report as of September 30,

15 Reconciliation of Result to Total comprehensive income of PULSION Medical Systems SE for the period from January 1 to September 30, 2013 IFRS Q III Q III KEUR Group net profit (before minority interests) Income and expenses recognized directly in equity 25 6 Total comprehensive income there attributable to other shareholders there attributable to shareholders of PULSION Medical Systems SE Total comprehensive income Statement of Changes in Equity of PULSION Medical Systems SE as of September 30, 2013 IFRS KEUR Subscribed captial Additional paid-in capital Statutory reserve Treasury shares Other reserves Accumulated profit Minority interests Total Balances at January 1, Exchange differences Groupt net profit Total result for the period Dividends Employee share options programs Other changes in capital reserves Transfer to statutory reserves Employee share options programs Capital reduction / reduction of shares Total Items directly recognised in equity Total Balances at September 30, PULSION Quarterly Financial Report as of September 30,

16 Consolidated Cash Flow Statement of PULSION Medical Systems SE for the period from January 1 to September 30, 2013 Current activities Q III TEUR Q III TEUR Q I-III 2013 TEUR Q I-III 2012 TEUR Group net profit after minority interests Minority interests Amortization and depreciation of assets Interest expenses Interest income Income taxes Change in tax liabilities / Decrease/Increase of other assets /+ Decrease/Increase of other liabilities /+ Decrease/Increase of other and tax provisions /+ Profit/loss from the disposal of assets /+ Decrease/Increase in deferred taxes Interests paid Interests received Taxes paid / Other non-cash income and expenses = Cash flow from operating activities before changes in net working capital / Decrease/Increase in inventories / Decrease/Increase of trade accounts receiveables /+ Decrease/Increase of trade accounts payables = Cash flow from changes in net-current assets = Cash flow from operating activities after changes in net working capital Investment activities + Sale of intangible assets Purchase of intangible assets Sale of property, plant and equipment (incl. monitors) Purchase of property, plant and equipment (incl. monitors) = Cash flow from investing activities Free cash flow Purchase of minority interests/foundation aff. companies Raise of bank borrowings/financial liabilities Bank deposit acquistion of treasury shares Repayments of bank borrowings/financial liabilities Acquisition of treasury shares Dividends = Cash flow from financing activities Net change in cash and cash equivalents Cash funds at the beginning of the period Exchange related variations of cash funds = Cash funds at the end of the period (Cash funds as stated in the balance sheet) PULSION Quarterly Financial Report as of September 30,

17 Explanatory notes 1. Accounting policies The Quarterly Financial Report of PULSION Medical Systems SE as of September 30, 2013 complies with currently valid International Financial Reporting Standards (IFRS) issued by the International Accounting Standard Boards (IASB) and with currently valid Interpretations issued by the International Financial Reporting Interpretations Committee (IFRIC), as applicable in the EU. The same consolidation, accounting, computational methods and estimates have been applied in the Quarterly Financial Report to September 30, 2013 as in the consolidated financial statements for the financial year ended December 31, The Quarterly Financial Report has been prepared in accordance with IAS 34 (Interim Financial Reporting). A description of the Group s accounting policies is provided in the notes to the consolidated financial statements for the financial year 2012 (see Annual Report 2012). The current income tax expense in the interim financial statements is based on the expected effective tax rate for the full year. 2. Group reporting entity The group reporting entity is unchanged from December 31, 2012 and is listed on page 92 of the Annual Report Balance sheet items Intangible assets comprise approvals, patents, capitalized product development costs, software and goodwill. Capital expenditure on property, plant and equipment relates primarily to monitors loaned out to customers and used for trial purposes. Deferred tax assets and liabilities are presented separately in the balance sheet. Inventories comprise the following at September 30, 2013: Inventories Sept. 30, 2013 Dec. 31, 2012 KEUR KEUR Raw materials and supplies Work in progress Finished goods and goods for resale Total inventories PULSION Quarterly Financial Report as of September 30,

18 4. Other operating income Other operating income in the nine-month period comprises mainly income from the private use of company vehicles (KEUR 113), rental income (KEUR 17) income from the reversal of provisions (KEUR 132) and income from usage rights granted (KEUR 433) 5. Segment information IFRS 8 requires operating segments to be identified on the basis of internally used criteria (the management approach ). Accordingly, external segment reporting is based on PULSION's internal organizational and management structure and on the way information is reported internally to the "Chief Operating Decision Maker" (Executive Director). IFRS 8 requires an entity to report financial and descriptive information about its reportable segments. At PULSION, the individual segments are managed on the basis of the operating result achieved. Segment results are measured after taking account of directly attributable income and expenses and costs allocated for cross-segment functions. Segment information at September 30, 2013 is analyzed as follows: Q III 2013 Q I-III 2013 Critical Care Perfusion Group Critical Care Perfusion Group Total sales Cost of sales Gross profit % of sales 69% 61% 68% 71% 61% 69% Operating expenses - Selling and marketing expenses Research and development expenses General and administrative expenses Other operating expenses Other operating income Exchange gains/losses EBIT (Profit before interest and taxes) % of sales 26,8% 21,3% 25,8% 26,3% 24,1% 25,9% PULSION Quarterly Financial Report as of September 30,

19 Segment information at September 30, 2012 is analysed as follows: Q III 2012 Q I - III 2012 Critical Care Perfusion Group Critical Care Perfusion Group Total sales Cost of sales Gross profit % of sales 75% 54% 71% 72% 61% 70% Operating expenses - Selling and marketing expenses Research and development expenses General and administrative expenses Other operating expenses Other operating income Exchange gains/losses EBIT (Profit before interest and taxes) % of sales 27,5% 24,4% 27,0% 26,5% 31,9% 27,5% 6. Stock option programs During the third quarter 3,700 stock options were exercised by employees and 25,000 by the Executive Director. At September 30, 2013, a total of 32,300 options were held by employees on shares of the Company, including 25,000 stock options held by the Executive Director. PULSION Quarterly Financial Report as of September 30,

20 7. Earnings per share Earnings per share are calculated in accordance with IAS 33 on the basis of consolidated earnings for the first nine months of the year and the weighted average number of shares and exercisable option rights in circulation during the reporting period. Q I-III 2013 Q I-III 2012 Weighted average number of shares (undiluted) Number Dilutive effect of options Number Weighted average number of shares (diluted) Number Group net profit (after minority interests) KEUR Earnings per share (undiluted) EUR 0,78 0,59 Earnings per share (diluted) EUR 0,77 0,59 8. Order book and price trends Since PULSION processes customer orders within a few days, it has virtually no order backlog. Despite the launch of a competitor s product, the Group does not consider at present that it is exposed to price pressure. Revenues are, however, increasingly shifting in favor of disposal products as a result of the competitive situation on the one hand and reticence on the part of customers to make investments on the other. The Group s products require a high degree of explanation and are marketed with the help of intensive and expert advice. 9. Seasonal and cyclical influences As a group with worldwide operations, PULSION is exposed to various economic trends. As a result of its innovative and cost-saving technologies, the impact of cyclical economic factors on the business model is not currently significant. 10. Subsequent events There have been no significant events after the balance sheet date. PULSION Quarterly Financial Report as of September 30,

21 11. Litigation Neither the parent company nor any of the group companies were involved in legal disputes or arbitration or similar procedures which could have a significant impact on the financial position of the PULSION Group. 12. Related parties The parent company is PULSION Medical Systems SE, based in Feldkirchen, Germany. Transactions between PULSION SE and its subsidiaries that are also related parties are eliminated on consolidation. These transactions are not commented on in this note on related parties. Transactions with related parties are charged on the basis of arm s length principles. In accordance with IAS 24, the Group also reports all transactions between it and its related parties (including family members). Executive Directors and members of the Administrative Board (and their relatives) have been defined as related parties. Shares held by Executive Directors and Administrative Board Sept. 30, 2013 Sept. 30, 2012 Shares Options Shares Options Executive Directors thereof Patricio Lacalle Members of the Administrative Board gave notice to the Company at September 30, 2013 that they held the following number of shares at that date. Based on the conclusion of a shareholders agreement, Dr. Burkhard Wittek held 4,541,676 shares at September 30, 2013 which are attributable jointly to pool participants pursuant to 30 (2) sentence 1 of the German Securities Acquisition and Takeover Act (WpÜG). Close family members of Dr. Wittek hold a further 4,355 shares at September 30, Jürgen Lauer directly holds 10,525 shares of the Company at September 30, Frank Fischer, together with close family members, holds 56,611 of the Company s shares at September 30, In total, 607,231 shares are attributable directly and indirectly via Mr. Fischer's activities as management board member of Shareholder Value Management AG and Shareholder Value Beteiligungen AG. At September 30, 2013 Patricio Lacalle holds 81,000 shares as well as options to a further 25,000 shares of the Company. PULSION Quarterly Financial Report as of September 30,

22 13. Contingent assets and liabilities There were no contingent assets or liabilities at the balance sheet date. 14. Unusual items No further items that are unusual because of their nature, size or incidence existed at the balance sheet date. Feldkirchen, November 8, 2013 PULSION Medical Systems SE Patricio Lacalle Executive Director/ CEO PULSION Quarterly Financial Report as of September 30,

23 Responsibility Statement by the Executive Director To the best of my knowledge, and in accordance with the applicable principles for interim financial reporting, I confirm that the Interim Group Financial Statements give a true and fair view of the net assets, financial position and results of operation of the Group, and that the Interim Group Management Report 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 for the remaining months of the financial year. Feldkirchen, November 8, 2013 PULSION Medical Systems SE Patricio Lacalle Executive Director/ CEO PULSION Quarterly Financial Report as of September 30,

24 Contacts & Timetable Contacts Ralph Schäfer Investor Relations Tel.: Fax +49 (0) This Quarterly Financial Report contains forward-looking statements. These forwardlooking statements represent the judgment of PULSION Medical Systems SE at the date of publication of the Half-yearly Financial Report. The actual results achieved by PULSION Medical Systems SE may diverge significantly from the comments made in the forward-looking statements. PULSION Medical Systems SE disclaims any obligation to update any of these forward-looking statements. PULSION Quarterly Financial Report as of September 30,