Regulatory News:
Sartorius Stedim Biotech Group
Business Development and Outlook
- Currency-adjusted sales revenue rose 1.6%
- Order intake in constant currencies -0.6%
- Operating result at €29.8 million; EBITA margin: 10.8%
- Financing on a solid, broad-based footing
- Despite persistently difficult economic environment, robust earnings for fourth quarter expected
Important Note
To ensure the best possible comparability, the nine-month figures of 2008 are presented in parallel with those of 2007 on a pro forma basis and are adjusted for extraordinary expenses and non-permanent effects.
Order Intake
In the first nine months of the current business year, the Sartorius Stedim Biotech Group's order intake was €270.8 million (2007: €283.8 million). Due to the persistently difficult market environment in North America and, in the third quarter, lower demand for equipment that affected our business in Europe, order intake eased by 0.6% in constant currencies. At the current exchange rates, this translates to a decrease of 4.6%.
Sales Revenue
The currency-adjusted sales revenue of Sartorius Stedim Biotech Group rose 1.6%. Besides the persistently weak development in North America, we reported a third-quarter decline in equipment business, particularly in Europe, while revenue in Asia|Pacific grew moderately. At €275.0 million, sales revenue for the Group at the current exchange rates is 2.4% below the pro forma year-earlier figure of €281.8 million.
Key Figures | |||||||||
 |  |  |  | ||||||
In millions of € (unless otherwise specified) |  | 9 months 2008 |  | 9 months 2007 pro forma |  |
| Â |
| |
Sales revenue | Â | 275.0 | Â | 281.8 | Â | -2.4 | Â | +1.6 | |
Europe1) | Â | 169.5 | Â | 160.4 | Â | +5.7 | Â | +7.3 | |
North America1) | Â | 59.5 | Â | 74.9 | Â | -20.6 | Â | -10.4 | |
Asia | Pacific1) | Â | 37.2 | Â | 37.5 | Â | -0.8 | Â | 2.1 | |
Other Markets1) | Â | 8.8 | Â | 9.0 | Â | -1.6 | Â | -1.3 | |
EBITA2) | Â | 29.8 | Â | 35.2 | Â | -15.5 | Â | Â | |
EBITA margin2) in % | Â | 10.8 | Â | 12.5 | Â | Â | Â | Â | |
Net profit2)3) | Â | 13.9 | Â | 18.3 | Â | Â | Â | Â | |
Earnings per share2)3) in € |  | 0.81 |  | 1.07 |  |  |  |  | |
1) According to customers' location 2) For 2007: underlying 3) Excluding amortization |
Earnings Development
Operating earnings (EBITA = earnings before interest, taxes and amortization) were at €29.8 million for the first nine months in 2008. Pro forma underlying EBITA of the comparable year-earlier period was €35.2 million.
The EBITA margin eased from 12.5% to 10.8% against the nine-month figure for 2007. Besides sales revenue that was lower than our expectations, currency fluctuations weighed down on profitability. Based on the year-earlier exchange rates, this earnings margin is approximately at about 11.5%.
Nine-month amortization was €4.7 million as budgeted (previous year, pro forma: €5.5 million).
The increase in financing expenditures is due to the higher European base interest rate over last year's and the increased expenses for hedging transactions.
Nine-month net profit after minority interest for the Sartorius Stedim Biotech Group totals €10.7 million (previous year, pro forma underlying: €14.5 million). Earnings per share amount to €0.63 (previous year, pro forma underlying: €0.85). Without non-cash amortization, net profit is at €13.9 million (previous year, pro forma underlying: €18.3 million). The corresponding earnings per share are at €0.81 (previous year, pro forma underlying: €1.07).
Assessment
Sales revenue development for the Sartorius Stedim Biotech Group in the first nine months of 2008 was substantially below our forecast, especially because of the persistently difficult market situation in North America. However, this market situation has affected the entire competitive environment so according to our estimates, we reinforced our market position in this year and could continue to extend this position in a few submarkets.
Given the unfavorable currency impact, consolidated operating earnings have remained solid in accordance with our level of sales.
Financing | Treasury
Sartorius Stedim Biotech signed a facility agreement on September 17, 2008, with a five-year term, for credit lines amounting to an aggregate €220 million. Ten additional banks joined the syndicate of banks headed by the mandated lead arrangers Commerzbank Aktiengesellschaft, Dresdner Kleinwort, and WestLB AG, to participate in this credit facility. Sartorius Stedim Biotech's syndicated loan is part of a financing package of the Sartorius Group, which totals an aggregate €400 million. With this transaction, Sartorius Stedim Biotech has put its financing on a solid, broad-based footing over the long term.
Consolidated Balance Sheet
The balance sheet total of the Sartorius Stedim Biotech Group rose slightly in the first nine months of the current financial year from €640.7 million to €644.6 million.
As of September 30, 2008, equity is at €366.6 million (Dec. 31, 2007: €362.8 million). This has resulted in a highly robust equity ratio of 56.9% (Dec. 31, 2007: 56.6%).
Since the company recently signed a new long-term facility agreement, which entailed a decrease in the "current liabilities item," the maturity structure of our balance sheet substantially improved.
Gross debt owed to banks are at €158.6 million (Dec. 31, 2007: €161.3 million); net debt amounts to €142.7 million (Dec. 31, 2007: €153.8 million). The ratio of net debt to EBITDA of the past 12 months is 2.3 (Dec. 31, 2007: 2.3).
Gearing, the ratio of net debt to equity, remains unchanged at 0.4. Thus, these key ratios for assessing creditworthiness continue to remain at robust levels.
Cash Flow
Nine-month cash earnings total €29.9 million (previous year: €18.2 million). Cash flow from working capital is positive at €2.3 million, up from -€7.3 million a year ago. We invested €14.3 million, up from €9.3 million a year earlier, or 5.2% of sales revenue (previous year: 5.4%). On the whole, nine-month net cash flow is €22.8 million (previous year: €4.1 million).
Research and Development
During the first three quarters, research and development (R&D) costs eased slightly from the pro forma year-earlier figure of €19.7 million to €19.4 million. The ratio of R&D costs to sales revenue edged up from 6.9% to 7.0%.
Employees
As of September 30, 2008, the Sartorius Stedim Biotech Group employed 2,358 persons and thus 47 more than at the end of 2007 (2,311). The number of employees rose in Asia and especially in Europe, whereas the workforce in North America decreased from 426 employees as of December 31, 2007, to 371, due to reorganization measures.
Outlook for the Full Year of 2008
Because of the increasingly difficult and uncertain global economic conditions, we do not consider it possible to make an accurate and reliable quantitative forecast about further business development in the fourth quarter. Nevertheless, we do expect that the overall stable development of the first three quarters seen so far, though at a level downscaled from our earlier forecasts, will continue on into the following months. For this reason, we do not expect to reach our full-year targets announced after the first half, which, among others, projected that sales revenue and profitability would be higher in the second half than in the first half. Yet we do anticipate a robust operating result and significantly positive operating cash flows for the fourth quarter.
We continue to uphold our assessment of our markets as having above-average attractiveness, and consider ourselves very well-positioned in theses markets. In the overall global economic situation that is anticipated to become even gloomier, our major customer segment, the biopharmaceutical industry, is expected to prove to be relatively robust on the whole. Moreover, we assess our broad-based geographical presence and the recent increase in the value of the U.S. dollar as positive factors for the further development of the Group.
Balance Sheet  |  |  | |||||||
 | |||||||||
Assets | Â | Â | Â | Â | |||||
 | |||||||||
September 2008 | December 2007 Audited | ||||||||
 | € in mn |  | % | € in mn |  | % | |||
 |  |  |  |  |  |  |  |  |  |
Non-current assets | Â | Â | Â | Â | Â | Â | Â | Â | |
 | Goodwill |  | 249.3 |  | 38.7 |  | 249.3 |  | 38.9 |
 | Intangible assets |  | 101.7 |  | 15.8 |  | 105.2 |  | 16.4 |
 | Property, plant and equipment |  | 114.7 |  | 17.8 |  | 113.9 |  | 17.8 |
 | Financial assets |  | 1.9 |  | 0.3 |  | 1.8 |  | 0.3 |
 |  | 467.6 |  | 72.5 |  | 470.2 |  | 73.4 | |
 |  |  |  |  |  |  |  | ||
 | Receivables and other assets |  | 1.5 |  | 0.2 |  | 0.3 |  | 0.0 |
 | Deferred tax assets |  | 8.5 |  | 1.3 |  | 8.5 |  | 1.3 |
477.6 | Â | 74.1 | Â | 479.0 | Â | 74.8 | |||
 |  |  |  |  |  |  |  |  |  |
Current assets | Â | Â | Â | Â | Â | Â | Â | Â | |
 | Inventories |  | 65.4 |  | 10.1 |  | 53.8 |  | 8.4 |
 | Trade receivables |  | 72.5 |  | 11.3 |  | 84.9 |  | 13.2 |
 | Current tax assets |  | 4.4 |  | 0.7 |  | 5.3 |  | 0.8 |
 | Other assets |  | 8.8 |  | 1.4 |  | 10.4 |  | 1.6 |
 | Cash and cash equivalents |  | 15.9 |  | 2.5 |  | 7.5 |  | 1.2 |
167.0 | Â | 25.9 | Â | 161.7 | Â | 25.2 | |||
 |  |  |  |  |  |  |  |  | |
Total assets | Â | 644.6 | Â | 100.0 | Â | 640.7 | Â | 100.0 | |
 | |||||||||
Equity and Liabilities | Â | Â | Â | Â | Â | Â | Â | Â | |
 | |||||||||
 | September 2008 | December 20071) | |||||||
 | € in mn |  | % |  | € in mn |  | % | ||
Equity | Â | Â | Â | Â | Â | Â | Â | Â | |
 | Issued capital |  | 10.3 |  | 1.6 |  | 10.3 |  | 1.6 |
 | Capital reserves |  | 338.2 |  | 52.5 |  | 338.2 |  | 52.8 |
 | Retained earnings |  | 18.1 |  | 2.8 |  | 14.2 |  | 2.2 |
 | Minority interest |  | 0.0 |  | 0.0 |  | 0.0 |  | 0.0 |
366.6 | Â | 56.9 | Â | 362.8 | Â | 56.6 | |||
 |  |  |  |  |  |  |  |  |  |
Non-current liabilities | Â | Â | Â | Â | Â | Â | Â | Â | |
 | Pension provisions |  | 12.0 |  | 1.9 |  | 11.4 |  | 1.8 |
 | Deferred tax liabilities |  | 34.2 |  | 5.3 |  | 36.4 |  | 5.7 |
 | Other provisions |  | 2.7 |  | 0.4 |  | 2.6 |  | 0.4 |
 | Loans and borrowings |  | 127.6 |  | 19.8 |  | 4.9 |  | 0.8 |
 | Other liabilities |  | 0.3 |  | 0.0 |  | 0.3 |  | 0.0 |
176.8 | Â | 27.4 | Â | 55.7 | Â | 8.7 | |||
 |  |  |  |  |  |  |  |  |  |
Current liabilities | Â | Â | Â | Â | Â | Â | Â | Â | |
 | Provisions |  | 6.4 |  | 1.0 |  | 7.5 |  | 1.2 |
 | Trade payables |  | 32.1 |  | 5.0 |  | 31.3 |  | 4.9 |
 | Loans and borrowings |  | 31.0 |  | 4.8 |  | 156.4 |  | 24.4 |
 | Current tax liabilities |  | 4.9 |  | 0.8 |  | 3.5 |  | 0.5 |
 | Other liabilities |  | 26.9 |  | 4.2 |  | 23.6 |  | 3.7 |
101.3 | Â | 15.7 | Â | 222.3 | Â | 34.7 | |||
 |  |  |  |  |  |  |  |  |  |
Total equity and liabilities | Â | 644.6 | Â | 100.0 | Â | 640.7 | Â | 100.0 | |
1) The figures of the balance sheet consolidated as of December 31, 2007, have been adjusted with regard to the allocation of liabilities of the Sartorius AG Group subsidiaries and payments received for orders. These have been reclassified from the item "Other liabilities" into "Trade payables" in order to better reflect their nature. |
Income Statement | ||||||||||||||||
 |  |  |  |  |  |  |  |  | ||||||||
 |  | 3rd quarter 2008 |  | 3rd quarter 2007 |  | 9 months 20081) |  | 9 months 20071) | ||||||||
€ in mn |  | % | € in mn |  | % | € in mn |  | % | € in mn |  | % | |||||
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | |
Sales revenue | Â | 89.6 | Â | 100.0 | Â | 96.3 | Â | 100.0 | Â | 275.0 | Â | 100.0 | Â | 173.9 | Â | 100.0 |
Cost of sales | Â | -47.3 | Â | -52.8 | Â | -52.0 | Â | -54.0 | Â | -142.2 | Â | -51.7 | Â | -93.5 | Â | -53.8 |
Gross profit on sales | Â | 42.3 | Â | 47.2 | Â | 44.3 | Â | 46.0 | Â | 132.8 | Â | 48.3 | Â | 80.4 | Â | 46.2 |
Selling and distribution costs | Â | -21.7 | Â | -24.2 | Â | -20.9 | Â | -21.7 | Â | -65.8 | Â | -23.9 | Â | -38.5 | Â | -22.1 |
Research and development costs | Â | -6.6 | Â | -7.4 | Â | -6.3 | Â | -6.6 | Â | -19.4 | Â | -7.1 | Â | -12.2 | Â | -7.0 |
General administrative expenses | Â | -5.7 | Â | -6.3 | Â | -6.0 | Â | -6.3 | Â | -18.3 | Â | -6.6 | Â | -10.2 | Â | -5.8 |
Other operating income and expenses | Â | 0.6 | Â | 0.7 | Â | -3.6 | Â | -3.8 | Â | 0.4 | Â | 0.1 | Â | -3.5 | Â | -2.0 |
Earnings before interest, taxes and amortization (EBITA) | Â | 8.9 | Â | 10.0 | Â | 7.4 | Â | 7.7 | Â | 29.8 | Â | 10.8 | Â | 16.1 | Â | 9.2 |
Amortization2) | Â | -1.6 | Â | -1.7 | Â | -2.5 | Â | -2.6 | Â | -4.7 | Â | -1.7 | Â | -2.6 | Â | -1.5 |
Earnings before interest and taxes (EBIT) | Â | 7.4 | Â | 8.2 | Â | 4.9 | Â | 5.1 | Â | 25.1 | Â | 9.1 | Â | 13.4 | Â | 7.7 |
Interest and similar income | Â | 0.1 | Â | 0.1 | Â | 0.0 | Â | 0.0 | Â | 0.4 | Â | 0.1 | Â | 0.1 | Â | 0.0 |
Interest and similar expenses | Â | -3.2 | Â | -3.6 | Â | -2.3 | Â | -2.4 | Â | -8.1 | Â | -2.9 | Â | -3.9 | Â | -2.2 |
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Profit before tax | Â | 4.2 | Â | 4.7 | Â | 2.6 | Â | 2.7 | Â | 17.4 | Â | 6.3 | Â | 9.6 | Â | 5.5 |
Income tax expenses | Â | -1.2 | Â | -1.3 | Â | -2.7 | Â | -2.8 | Â | -6.3 | Â | -2.3 | Â | -4.6 | Â | -2.7 |
Other taxes | Â | -0.5 | Â | -0.6 | Â | -0.2 | Â | -0.2 | Â | -1.7 | Â | -0.6 | Â | -0.4 | Â | -0.2 |
Deferred taxes | Â | 0.0 | Â | 0.0 | Â | 1.8 | Â | 1.9 | Â | 1.3 | Â | 0.5 | Â | 1.4 | Â | 0.8 |
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net profit for the period | Â | 2.5 | Â | 2.8 | Â | 1.6 | Â | 1.7 | Â | 10.7 | Â | 3.9 | Â | 6.0 | Â | 3.5 |
Attributable to: | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
Equity holders of Sartorius Stedim Biotech | Â | 2.5 | Â | 2.8 | Â | 1.6 | Â | 1.6 | Â | 10.7 | Â | 3.9 | Â | 6.0 | Â | 3.4 |
Minority interest | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 |
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Basic earnings per share (in €) |  | 0.15 |  |  |  |  |  |  |  | 0.63 |  |  |  | 0.55 |  |  |
Diluted earnings per share (in €) |  | 0.15 |  |  |  |  |  |  |  | 0.63 |  |  |  | 0.54 |  |  |
1) The nine-month figures for 2007 refer to the former Sartorius Biotech subgroup from April 1, 2007, to June 30, 2007, and to the activity of the combined Sartorius Stedim Biotech subgroup from July 1, 2007, to September 30, 2007. The nine-month figures for 2008 refer to the activity of the combined Sartorius Stedim Biotech Group from January 1, 2008, to September 30, 2008. 2) Amortization refers only to amortization of goodwill (if applicable) and of intangible assets recognized in connection with the purchase price allocation (PPA) according to IFRS 3. |
Cash Flow Statement | Â | Â | ||
 |  |  |  |  |
9 months 20081) € in mn | 9 months 20071) € in mn | |||
 |  |  |  |  |
Profit before income taxes | Â | 15.7 | Â | 9.2 |
Deferred taxes | Â | 1.3 | Â | 1.4 |
Minority interest | Â | 0.0 | Â | 0.0 |
Depreciation and amortization of fixed assets | Â | 15.1 | Â | 9.0 |
Change in non-current assets | Â | -1.0 | Â | 0.4 |
Change in non-current provisions | Â | -1.2 | Â | -1.8 |
Cash earnings | 29.9 | Â | 18.2 | |
 |  |  |  |  |
Change in current provisions | Â | -1.2 | Â | 1.6 |
Change in inventories | Â | -11.5 | Â | -4.3 |
Change in trade and other receivables | Â | 11.0 | Â | -1.6 |
Change in liabilities (excl. loans and borrowings) | Â | 4.0 | Â | -3.0 |
Cash flow from working capital | 2.3 | Â | -7.3 | |
 |  |  |  |  |
Interest income | Â | -0.4 | Â | -0.1 |
Interest expenses | Â | 8.1 | Â | 3.9 |
Income taxes paid | Â | -4.0 | Â | -4.6 |
Cash flows from operating activities | 35.9 | Â | 10.1 | |
 |  |  |  |  |
Proceeds from fixed asset disposals | Â | 1.4 | Â | 0.2 |
Payments for intangible assets | Â | -2.8 | Â | -1.7 |
Payments for property, plant and equipment | Â | -11.5 | Â | -7.7 |
Payments for financial assets | Â | -0.2 | Â | 0.0 |
Cash and cash equivalents acquired in the business combination | Â | 0.0 | Â | 3.2 |
Cash flows from investing activities | -13.1 | Â | -5.9 | |
 |  |  |  |  |
Net cash flow | 22.8 | Â | 4.1 | |
 |  |  |  |  |
Dividend payments | Â | -5.1 | Â | 0.0 |
Interest income | Â | 0.4 | Â | 0.1 |
Interest expenses | Â | -7.8 | Â | -3.9 |
Change in minority interest | Â | 0.0 | Â | 0.0 |
Additions to | repayment of loans and borrowings | Â | -2.5 | Â | 3.1 |
Cash flows from financing activities | -15.0 | Â | -0.7 | |
 |  |  |  |  |
Change due to currency translation | 0.5 | Â | -0.3 | |
 |  |  |  |  |
Change in cash and cash equivalents | 8.4 | Â | 3.2 | |
 |  |  |  |  |
Cash and cash equivalents at the beginning of the period | Â | 7.5 | Â | 2.9 |
Cash and cash equivalents at the end of the period | 15.9 | Â | 6.1 | |
 |  |  |  |  |
Gross debt owed to banks | Â | 158.6 | Â | 158.7 |
Net debt owed to banks | Â | 142.7 | Â | 152.6 |
1) The nine-month figures for 2007 refer
to the former Sartorius Biotech subgroup from April 1, 2007, The nine-month figures for 2008 refer to the activity of the
combined Sartorius Stedim Biotech Group from |
Segment Reports | ||||||||||||||||||||
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Segment Report by Division | ||||||||||||||||||||
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€ in mn |  | Biopharma |  |  |  |  |  |  |  |  |  | Group | ||||||||
 |  | 9 months 2008 |  | 9 months 2007 |  | Δ |  |  |  |  |  |  |  |  |  | 9 months 2008 |  | 9 months 2007 |  | Δ |
Order intake | Â | 270.8 | Â | 165.5 | Â | 64% | Â | Â | Â | Â | Â | Â | Â | Â | Â | 270.8 | Â | 165.5 | Â | 64% |
Sales revenue | Â | 275.0 | Â | 173.9 | Â | 58% | Â | Â | Â | Â | Â | Â | Â | Â | Â | 275.0 | Â | 173.9 | Â | 58% |
As a total % | Â | 100.0% | Â | 100.0% | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | 100.0% | Â | 100.0% | Â | Â |
EBITDA | Â | 40.2 | Â | 22.4 | Â | 80% | Â | Â | Â | Â | Â | Â | Â | Â | Â | 40.2 | Â | 22.4 | Â | 80% |
As a % of sales revenue | Â | 14.6% | Â | 12.9% | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | 14.6% | Â | 12.9% | Â | Â |
Depreciation and amortization | Â | 15.1 | Â | 9.0 | Â | 69% | Â | Â | Â | Â | Â | Â | Â | Â | Â | 15.1 | Â | 9.0 | Â | 69% |
EBITA | Â | 29.8 | Â | 16.1 | Â | 85% | Â | Â | Â | Â | Â | Â | Â | Â | Â | 29.8 | Â | 16.1 | Â | 85% |
As a % of sales revenue | Â | 10.8% | Â | 9.2% | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | 10.8% | Â | 9.2% | Â | Â |
EBIT | Â | 25.1 | Â | 13.4 | Â | 87% | Â | Â | Â | Â | Â | Â | Â | Â | Â | 25.1 | Â | 13.4 | Â | 87% |
As a % of sales revenue | Â | 9.1% | Â | 7.7% | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | 9.1% | Â | 7.7% | Â | Â |
R&D costs | Â | 19.4 | Â | 12.2 | Â | 59% | Â | Â | Â | Â | Â | Â | Â | Â | Â | 19.4 | Â | 12.2 | Â | 59% |
No. of employees at September 30 | Â | 2,358 | Â | 2,300 | Â | 3% | Â | Â | Â | Â | Â | Â | Â | Â | Â | 2,358 | Â | 2,300 | Â | 3% |
Segment Report by Region | ||||||||||||||||||||||||||||||
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€ in mn |  | Europe |  | North America |  | Asia | Pacific |  | Other Markets |  | Group | ||||||||||||||||||||
 |  | 9 months 2008 |  | 9 months 2007 |  | Δ |  | 9 months 2008 |  | 9 months 2007 |  | Δ |  | 9 months 2008 |  | 9 months 2007 |  | Δ |  | 9 months 2008 |  | 9 months 2007 |  | Δ |  | 9 months 2008 |  | 9 months 2007 |  | Δ |
Sales revenue | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â | Â |
- acc. to customers' location | Â | 169.5 | Â | 97.9 | Â | 73% | Â | 59.5 | Â | 43.1 | Â | 38% | Â | 37.2 | Â | 27.2 | Â | 37% | Â | 8.8 | Â | 5.7 | Â | 55% | Â | 275.0 | Â | 173.9 | Â | 58% |
As a total % | Â | 61.6% | Â | 56.3% | Â | Â | Â | 21.6% | Â | 24.8% | Â | Â | Â | 13.5% | Â | 15.6% | Â | Â | Â | 3.2% | Â | 3.3% | Â | Â | Â | 100.0% | Â | 100.0% | Â | Â |
- acc. to company location | Â | 196.3 | Â | 117.8 | Â | 67% | Â | 59.7 | Â | 41.7 | Â | 43% | Â | 18.9 | Â | 14.5 | Â | 31% | Â | 0.0 | Â | 0.0 | Â | Â | Â | 275.0 | Â | 173.9 | Â | 58% |
EBITA | Â | 22.8 | Â | 10.7 | Â | 112% | Â | 3.5 | Â | 3.0 | Â | 18% | Â | 3.0 | Â | 2.2 | Â | 36% | Â | 0.4 | Â | 0.1 | Â | Â | Â | 29.8 | Â | 16.1 | Â | 85% |
As a % of sales revenue | Â | 11.6% | Â | 9.1% | Â | Â | Â | 5.9% | Â | 7.2% | Â | Â | Â | 16.1% | Â | 15.5% | Â | Â | Â | Â | Â | Â | Â | Â | Â | 10.8% | Â | 9.2% | Â | Â |
No. of employees at September 30 | Â | 1,567 | Â | 1,457 | Â | 8% | Â | 371 | Â | 446 | Â | -17% | Â | 314 | Â | 313 | Â | 0% | Â | 106 | Â | 84 | Â | 26% | Â | 2,358 | Â | 2,300 | Â | 3% |
Statement of Changes in Equity | ||||||||||||||||||
 | ||||||||||||||||||
€ in mn |  | Issued capital |  | Capital reserves |  | Hedging reserves |  | Pension reserves |  | Retained earnings |  | Currency translation reserves |  | Total |  | Minority interest |  | Total equity |
Balance at April 1, 2007 | Â | 4.3 | Â | 34.5 | Â | 0.0 | Â | -1.1 | Â | 13.4 | Â | 0.0 | Â | 51.2 | Â | 0.0 | Â | 51.2 |
Currency translation differences | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | -2.6 | Â | -2.6 | Â | 0.0 | Â | -2.6 |
Net income recognized directly in equity | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | -2.6 | Â | -2.6 | Â | 0.0 | Â | -2.6 |
Net profit for the period | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 6.0 | Â | 0.0 | Â | 6.0 | Â | 0.0 | Â | 6.0 |
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total recognized income and expense for the period | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 6.0 | Â | -2.6 | Â | 3.4 | Â | 0.0 | Â | 3.4 |
Effects from reverse acquisition | Â | 6.0 | Â | 309.1 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 315.1 | Â | 0.0 | Â | 315.1 |
Equity issuance costs | Â | 0.0 | Â | -5.3 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | -5.3 | Â | 0.0 | Â | -5.3 |
Change in minority interest | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.3 | Â | 0.3 |
Dividends | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 |
Balance at September 30, 2007 | Â | 10.3 | Â | 338.3 | Â | 0.0 | Â | -1.1 | Â | 19.4 | Â | -2.6 | Â | 364.3 | Â | 0.3 | Â | 364.6 |
€ in mn |  | Issued capital |  | Capital reserves |  | Hedging reserves |  | Pension reserves |  | Retained earnings |  | Currency translation reserves |  | Total |  | Minority interest |  | Total equity |
Balance at Jan. 1, 2008 | Â | 10.3 | Â | 338.2 | Â | 1.1 | Â | -0.2 | Â | 18.2 | Â | -4.8 | Â | 362.8 | Â | 0.0 | Â | 362.8 |
Cash flow hedges | Â | 0.0 | Â | 0.0 | Â | -2.6 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | -2.6 | Â | 0.0 | Â | -2.6 |
Actuarial losses from pension provisions | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | -0.1 | Â | 0.0 | Â | 0.0 | Â | -0.1 | Â | 0.0 | Â | -0.1 |
Currency translation differences | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.1 | Â | 0.1 | Â | 0.0 | Â | 0.1 |
Deferred taxes | Â | 0.0 | Â | 0.0 | Â | 0.8 | Â | 0.1 | Â | 0.0 | Â | 0.0 | Â | 0.9 | Â | 0.0 | Â | 0.9 |
Net income recognized directly in equity | Â | 0.0 | Â | 0.0 | Â | -1.8 | Â | -0.1 | Â | 0.0 | Â | 0.1 | Â | -1.8 | Â | 0.0 | Â | -1.8 |
Net profit for the period | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 10.7 | Â | 0.0 | Â | 10.7 | Â | 0.0 | Â | 10.7 |
 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total recognized income and expense for the period | Â | 0.0 | Â | 0.0 | Â | -1.8 | Â | -0.1 | Â | 10.7 | Â | 0.1 | Â | 8.9 | Â | 0.0 | Â | 8.9 |
Stock options | Â | 0.0 | Â | 0.1 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.1 | Â | 0.0 | Â | 0.1 |
Dividends | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | 0.0 | Â | -5.1 | Â | 0.0 | Â | -5.1 | Â | 0.0 | Â | -5.1 |
Balance at September 30, 2008 | Â | 10.3 | Â | 338.3 | Â | -0.7 | Â | -0.3 | Â | 23.8 | Â | -4.8 | Â | 366.6 | Â | 0.0 | Â | 366.6 |
As explained in the Consolidated Statement of Changes in Equity included in the Reference Document 2007 and to apply the principles required by IFRS 3 (revised 2008), we retroactively adjusted the legal subsidiary's (Sartorius Stedim Biotech GmbH's) issued capital as of April 1, 2007, to reflect the equity structure of the legal parent (Sartorius Stedim Biotech S.A.).
Key Figures | Â | Â | Â | |||
 |  |  |  |  |  |  |
All figures are given in millions of €, unless otherwise specified |  | 9 months 2008 |  | 9 months 2007 |  | Change in % |
Operating results | Â | Â | Â | Â | Â | Â |
Order intake | Â | 270.8 | Â | 165.5 | Â | 63.6 |
Sales revenue | Â | 275.0 | Â | 173.9 | Â | 58.1 |
EBITDA | Â | 40.2 | Â | 22.4 | Â | 79.9 |
EBITA | Â | 29.8 | Â | 16.1 | Â | 85.4 |
EBIT | Â | 25.1 | Â | 13.4 | Â | 87.1 |
Earnings before taxes | Â | 17.4 | Â | 9.6 | Â | 80.7 |
Net profit | Â | 10.7 | Â | 6.0 | Â | 78.3 |
(Basic) earnings per share in € |  | 0.63 |  | 0.55 |  | 15.8 |
 |  |  |  |  |  |  |
As a % of sales revenue | Â | Â | Â | Â | Â | Â |
EBITDA | Â | 14.6% | Â | 12.9% | Â | Â |
EBITA | Â | 10.8% | Â | 9.2% | Â | Â |
EBIT | Â | 9.1% | Â | 7.7% | Â | Â |
Profit before tax | Â | 6.3% | Â | 5.5% | Â | Â |
Net profit | Â | 3.9% | Â | 3.4% | Â | Â |
 |  |  |  |  |  |  |
Financials | Â | Â | Â | Â | Â | Â |
Cash earnings | Â | 29.9 | Â | 18.2 | Â | 64.1 |
Depreciation and amortization (without financial assets) | Â | 15.1 | Â | 9.0 | Â | 69.1 |
Net cash flow | Â | 22.8 | Â | 4.1 | Â | 451.0 |
Capital expenditures | Â | 14.3 | Â | 9.3 | Â | 53.3 |
As a % of sales revenue | Â | 5.2% | Â | 5.4% | Â | Â |
Net debt | Â | 142.7 | Â | 152.6 | Â | -6.5 |
 |  |  |  |  |  |  |
Employees | Â | Â | Â | Â | Â | Â |
Total | Â | 2,358 | Â | 2,300 | Â | 2.5 |
 |  |  |  |  |  |  |
R&D | Â | Â | Â | Â | Â | Â |
R&D costs | Â | 19.4 | Â | 12.2 | Â | 59.2 |
As a % of sales revenue | Â | 7.1% | Â | 7.0% | Â | Â |
Notes to the Interim Financial Statements
Recognition and Measurement Principles
The annual financial statements of the Sartorius Stedim Biotech Group. for the period ended December 31, 2007, were prepared in accordance with the accounting standards of the International Accounting Standards Board (IASB) - the International Financial Reporting Standards (IFRS).
In the present interim financial statements that were prepared in conformance with the requirements of IAS 34 "Interim financial reporting," basically the same accounting and measurement principles were applied on which the past consolidated financial statements of fiscal 2007 were based.
Furthermore, all interpretations of the International Financial Reporting Interpretations Committee (IFRIC) to be applied effective September 30, 2008, were observed. An explanation of the individual accounting and measurement principles applied is given in the Notes to the Financial Statements of the Group for the year ended December 31, 2007.
Other Disclosures
In the reporting period, Sartorius Stedim Biotech S.A. paid a dividend of €5.1 million.
The third-quarter report was not reviewed by the Group auditors.
Sartorius Stedim Biotech S.A. |
Z.I. des Paluds |
Avenue de Jouques |
B.P. 1051 |
13781 Aubagne, France |
info@sartorius-stedim.com |
www.sartorius-stedim.com |
Financial Schedule
January 8 - 9, 2009
European Mid Cap Event Oddo Midcap in Lyon, France
This is a translation of the original French-language nine-month financial report "Information financiere trimestrielle." Sartorius shall not assume any liability for the correctness of this translation. The original French interim report is the legally binding version. Furthermore, Sartorius Stedim Biotech S.A. reserves the right not to be responsible for the topicality, correctness, completeness or quality of the information provided. Liability claims regarding damage caused by the use of any information provided, including any kind of information which is incomplete or incorrect, will therefore be rejected.
Forward-looking Statements Contain Risks
This interim report contains various statements concerning the Sartorius Stedim Biotech Group's future performance. These statements are based on assumptions and estimates. Although we are convinced that these forward-looking statements are realistic, we cannot guarantee that they will actually apply. This is because our assumptions harbor risks and uncertainties that could lead to actual results diverging substantially from the expected ones.
It is not planned to update our forward-looking statements. Throughout the entire report, differences may be apparent as a result of rounding during addition.