STRATEC Biomedical AG Interim Report as of September 30, 2014 Birkenfeld, October 22, 2014
Safe Harbor Statement Forward-looking statements involve risks. This company presentation 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. Interim Report as of September 30, 2014 Conference Call October 22, 2014 1
Agenda 1. Overview of the first nine months of 2014 2. Financials 3. Market & Outlook Interim Report as of September 30, 2014 Conference Call October 22, 2014 2
Nine months 2014 at a Glance Revenues increased by 15.9% to 105.3 million EBIT margin after nine months at 16.8% (adjusted) Positive development in delivery of service parts (incl. initial stocking by one partner) Further promising contract negotiations ongoing Noticeable increase in level of confidence amongst partners Test market volumes slowly increasing Guidance reconfirmed with improved confidence in EBIT margin development Interim Report as of September 30, 2014 Conference Call October 22, 2014 3
Outsourcing Defining Outsourcing Design Phase Integration- / Transfer Phase Manufacturing Phase Inhouse Development Department Development Department Supply Chain Contract Manufacturing In-house or 3rd Party Development Department In-house Development Department CMs & EMS Transferring Responsibilities Outsourcing Partner Outsourcing Partner Time / Costs Interim Report as of September 30, 2014 Conference Call October 22, 2014 4
Agenda 1. Overview of the first nine months of 2014 2. Financials 3. Market & Outlook Interim Report as of September 30, 2014 Conference Call October 22, 2014 5
Financials at a Glance Key figures after the first nine months ( million) Sept 30, 2014 Sept 30, 2013 (1) Change Sales 105.3 90.8 + 15.9% EBIT 17.7 (2) 12.8 + 37.7% EBIT margin (%) 16.8 (2) 14.1 + 270bps Consolidated net income 14.6 (2) 10.2 + 43.8% Earnings per share ( ) 1.24 (2) 0.87 + 42.5% (1) The accounting methods used in the consolidated financial statements were amended in line with IAS 8 in the 2013 financial year. Reference is made in this respect to the information in the Annual Report 2013 in Section A of the notes to the consolidated financial statements. (2) 2014 figure adjusted to exclude a one-off negative item resulting from 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 and a positive non-operating item due to recognition of income for a development project discontinued in 2013. Unadjusted EBIT amounts to 17.0 million, the corresponding EBIT margin amounts to 16.2%, consolidated net income to 14.2 million and earnings per share to 1.20. The actual amount of the aforementioned expense item may differ at the time of payment from the amounts presented here. Interim Report as of September 30, 2014 Conference Call October 22, 2014 6
million Sales 9-Months Sales compared to Annual Sales 140 120 100 80 60 40 20 79.6 56.0 102.0 69.2 116.6 80.2 122.4 128.0 87.6 90.8 105.3 Strongest first nine months in company s history Ongoing positive developments in service parts, established and newer analyzer systems Growth expected to continue in Q4/2014 0 2009 2010 2011 2012 2013 2014 Annual Sales as of 12/31 9-Months Sales as of 09/30 Interim Report as of September 30, 2014 Conference Call October 22, 2014 7
EBIT & EBIT Margin As of December 31 9M/2014 EBIT in million EBIT margin in % 24 22 20 18 16 14 12 10 8 6 4 14,7 17,6 21,8 15,6 19,5 17,7 22% 21% 20% 19% 18% 17% 16% 15% 14% 13% 12% Improving EBIT margin at 16.8%*: - Improved gross margin of major systems - Improving share of sales with service parts - Bigger than usual impact from other operational expenses & income 2 11% 0 2009 2010 2011 2012 2013 9M/2014* 10% Full Year EBIT 9-months EBIT EBIT margin * 2014 figure adjusted to exclude a one-off negative item resulting from 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 and a positive non-operating item due to recognition of income for a development project discontinued in 2013. Unadjusted EBIT amounts to 17.0 million, the corresponding EBIT margin amounts to 16.2%. Interim Report as of September 30, 2014 Conference Call October 22, 2014 8
Euro Earnings per Share Earnings per Share (EPS) 1,60 1,40 1,20 1,00 1.03 1.14 1.32 1.06 1.32 1,24 Net income at 14.6* million Rising tax rate EPS at 1.24* after nine months 0,80 0,60 0,40 0,20 0,00 2009 2010 2011 2012 2013 2014 EPS as of 12/31 EPS as of 09/30 * 2014 figure adjusted to exclude a one-off negative item resulting from 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 and a positive non-operating item due to recognition of income for a development project discontinued in 2013. Unadjusted consolidated net income amounts to 14.2 million and earnings per share to 1.20. Interim Report as of September 30, 2014 Conference Call October 22, 2014 9
Cash flow As of September 30 IFRS ( million) 9M/2014 9M/2013 Cash flow 19.5 13.9 Cash flow operating activities 25.7 20.0 Cash flow investment activities -5.7-7.9 Cash flow financing activities -7.9-6.3 Free cash flow 20.1 12.1 Cash and cash equivalents at end of period 34.6 18.7 Interim Report as of September 30, 2014 Conference Call October 22, 2014 10
Agenda 1. Overview of the first nine months of 2014 2. Financials 3. Market & Outlook Interim Report as of September 30, 2014 Conference Call October 22, 2014 11
STRATEC Guidance Sales Guidance million 250 200 150 100 2013 Sales: 128 million CAGR 4-year sales 2014-2017: 8% - 12% based on 2013 Sales Guidance 2014 to 2017: 2014 to 2017: 8% - 12% CAGR based on 2013 EBIT Margin Guidance: 2014: > 2013 50 0 2013 2014 2015 2016 2017 Interim Report as of September 30, 2014 Conference Call October 22, 2014 12
Focus in 2014 / 2015 Revenue Growth: New product launches and ramp-ups Hitting development milestones Further diversification of future revenue streams Business Development: Projects from non-core customers Extension of development and manufacturing capacities Further expand platform business Profitability and Cash flow: Reduction in manufacturing costs Further reduction of working capital requirements Manage development growth Interim Report as of September 30, 2014 Conference Call October 22, 2014 13
Contact STRATEC Biomedical AG Gewerbestr. 37 75217 Birkenfeld Germany Tel: +49 7082 7916-0 Fax: +49 7082 7916-999 www.stratec.com TICKER Symbol: Bloomberg: Reuters: ISIN: SBS.DE SBS:GR SBSG.DE WKN: 728900 DE0007289001 Marcus Wolfinger CEO m.wolfinger@stratec.com Thank you! Interim Report as of September 30, 2014 Conference Call October 22, 2014 14