KSEK KSEK January - March 2012 April 26, 2012 First quarter 2012 Group net sales increased by 12 percent to 119.6 MSEK (107.2). At comparable exchange rates sales increased by 8 percent. The operating result amounted to 8.6 MSEK (2.6). The result after tax amounted to 7.9 MSEK (1.5). Earnings per share amounted to 0.11 SEK (0.02). The cash flow from operating activities amounted to 10.2 MSEK (32.7). Net cash at March 31 amounted to 179.4 MSEK, compared to 198.4 MSEK at December 31, 2011. Group result development in brief Amounts in SEK millions First quarter First quarter Full year 2012 2011 2011 Net sales 119.6 107.2 428.4 Cost of sales -51.3-44.2-182.1 Gross profit 68.3 63.0 246.3 Operating expenses -59.7-60.4-221.2 Operating profit/loss 8.6 2.6 25.1 Financial items 0.8 0.4 2.9 Profit/loss before tax 9.4 3.0 28.0 Tax expenses -1.3-0.7-2.0 Profit/loss after tax for continuing operations 8.2 2.3 25.9 Profit/loss after tax for discontinued operations -0.3-0.8 6.5 Total profit/loss for the period 7.9 1.5 32.5 12 month rolling net sales 12 month rolling operating profit/loss 470 000 460 000 450 000 440 000 430 000 420 000 410 000 400 000 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 35 000 30 000 25 000 20 000 15 000 10 000 5 000 0 Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Biotage AB (publ) Box 8 SE-751 03 Uppsala Visiting address: Vimpelgatan 5 Phone: 018-56 59 00 Org. No.: 556539-3138 www.biotage.com Page 1 of 13
Comments by CEO Torben Jörgensen The start of the year has been good. We show good growth with a sales increase of 12 percent in the quarter and we bring a strong inflow of orders into the second quarter. The organic growth is 8 percent compared to the corresponding period 2011, calculated at comparable exchange rates. We had sales amounting to 119.6 MSEK, compared with 107.2 MSEK the first quarter 2011. The Group reports an operating result of 8.6 MSEK despite an unfavorable exchange rate development that led to a negative translation effect for foreign assets to the amount of 3.4 MSEK. The US was the biggest single market with 35 percent of the net sales. The EU area contributed 32, Japan 21, China 6 and the rest of the world 6 percent of the net sales. The EU area achieved a good first quarter compared to last year, with good growth above all in analytical chemistry. The sales in the US have been satisfactory during the quarter, with primarily the product areas purification and Sample Prep showing growth. We are especially pleased that the purification sales have recovered in the US, where we for a period have been losing market shares. The Japanese market continues to develop well and we once again see a strong first quarter in this region. Our initiative to build or own representation in China is off to a good start and we have high hopes that we will strengthen our market position in this important market. Sales in other parts of the world where we do not have direct representation vary. We continuously evaluate alternative solutions to strengthen our sales also in these markets. The lack of sales successes is partly due to the general financial climate, where not least funding of academic research plays a part. In spite of this I believe that we have good opportunities to further develop our indirect sales channels, above all in the growing Indian market. To sum up, the efforts in analytical chemistry, above all Sample Prep, have given us new customer groups for sale of Biotage s products. At the same time we continue to develop our product offerings to customers in organic chemistry. At the end of last year we launched a number of new products that have contributed to the good sales development in this quarter. At the beginning of the year we have also carried out well received launches of both instruments and consumables. It is important for Biotage to achieve a good balance between the different customer groups, as this not only improves the opportunities for growth but also levels peaks and dips in the more capital intensive and pharma industry dependent product offering in organic chemistry. The launches of consumables in organic chemistry carried out in the first quarter have, together with the initiative in analytical chemistry, meant that we continue to increase the relative share of consumables in our sales. Taken together, consumables and service now account for 58 percent of our sales, compared to 57 percent in 2011. The new focus on purification and separation projects in production scale is still under development. We have a positive view of the development potential of these operations and we have now started deliveries to a customer in Asia of polymer used in regular industry production. In the second quarter our plant in Lund for the production of polymer raw materials for analytical chemistry and pilot scale will be completed. Biotage continues to have a strong financial position with net cash at March 31 2012 amounting to 179.4 MSEK (198.4 MSEK at the end of 2011). During the quarter the company repurchased 3.1 million own shares for a total of 20.5 MSEK. Sida 2 av 13
Group result, financial position and cash flow First quarter 2012 Group net sales increased by 12 percent and amounted to 119.6 MSEK compared to 107.2 MSEK the first quarter 2011. At comparable exchange rates net sales increased by 8 percent. The US was the biggest single market with 35 percent of the net sales. The EU area contributed 32 percent, Japan 21 percent, China 6 percent and the rest of the world 6 percent of the net sales. The Group s gross margin was 57.1 percent (58.7). In relation to the comparative period last year a reclassification of human resources and thereby costs from research and development to production has affected the reported gross margin negatively in the order of 1 percentage. A product mix with a larger share of sales of high margin products has contributed to an increase of the gross margin by 2.1 percentage compared to the 55.0 percent gross margin reported for the fourth quarter 2011. The operating expenses amounted to 57.9 MSEK (60.4). The operating profit amounted to 8.6 MSEK (2.6) with an operating margin of 7.2 percent (2.4). Net financial income amounted to 0.8 MSEK (0.4). The result after tax amounted to 7.9 MSEK (1,5). The investments amounted to 13.0 MSEK (9.4) and the amortizations to 9.2 MSEK (9.1). 7.4 MSEK (5.9) of the investments were capitalized development costs and 5.5 MSEK (5.3) of the amortizations were amortizations of capitalized development costs. The cash flow from operating activities was 10.2 MSEK (32.7). During the period increased accounts receivable caused a negative cash flow to the amount of 9.0 MSEK, while the comparative figure for last year was influenced positively to the amount of 10.4 MSEK due to decreased accounts receivable. Also the changes in stock and other current receivables had a negative effect on the cash flow for the period (-0.1 MSEK and -0.7 MSEK, respectively), while the corresponding changes in working capital gave positive cash flow effects (3.2 MSEK and 4.9 MSEK, respectively) the same period last year. Balance sheet items At March 31, 2012 the Group s cash and securities totaled 185.5 MSEK, compared to 204.7 MSEK at December 31, 2011. The Group s interest-bearing liabilities amounted to 6.1 MSEK compared to 6.3 MSEK at December 31, 2011. Net cash at March 31, 2012 thus amounted to 179.4 MSEK (198.4). The Group reports a total goodwill of 103.1 MSEK at March 31, 2012, compared to 106.1 MSEK at December 31, 2011. The reported goodwill relates to the acquisitions of MIP Technologies AB and two product lines from Caliper Life Sciences Inc. in 2010. This year s change in reported value is due to currency effects. Other intangible fixed assets amounted to 110.7 MSEK (111.1). Of this sum patents and license rights amounted to 45.2 MSEK (47.4) and capitalized development costs to 65.5 MSEK (63.7). At March 31, 2012 the equity capital amounted to 545.8 MSEK, compared to 563.9 MSEK at December 31, 2011. The change in equity capital in the first quarter is attributable to the period s result, 7.9 MSEK, repurchasing of own shares, -20.5 MSEK, and cash flow hedges and currency effects at the translation of foreign subsidiaries, -5.5 MSEK. Sida 3 av 13
Divested operations The result after tax for divested operations in the first quarter 2012 amounted to -0.3 MSEK (-0.8) and refers to currency effects on additional purchase payments from Qiagen for the Biosystems business area divested in 2008. Major events Patent dispute in the US Biotage has, as previously reported, been sued for patent infringement in the US. There is nothing new to report from these legal proceedings. Biotage believes that the company has a strong position and that the other party lacks good cause for the alleged patent infringement. Major events after the end of the report period There are no other major events after the end of the reported period to report. Human resources At March 31, 2012 the Group had 273 employees, compared to 270 at the start of the year. Parent company The Group s parent company Biotage AB has wholly owned subsidiaries in Sweden, the United States, United Kingdom, Germany, France, Italy, Japan and China. The parent company is responsible for group management, strategic business development and administrative functions at Group level and towards subsidiaries. In the first quarter the parent company s net income amounted to 0.5 MSEK (0.5). The result after financial items in the first quarter was -4.9 MSEK (-2.0). The parent company s investments in intangible fixed assets in the first quarter amounted to 0.2 MSEK (0.0). The parent company s cash and bank balance and short-term investments amounted to 96.5 MSEK at March 31, 2012 and to 104.7 MSEK at December 31, 2011. Risks and uncertainties As an international Group, Biotage is exposed to various risks that affect the possibilities to achieve the established targets. There are operational risks, such as the risk that competitive situations affect price levels and sales volumes, and the risk that the economic development in the markets and segments where the Group operates is not stable. There are also financial risks, such as currency risks, interest risks and credit risks. No major changes in significant risks or uncertainty factors have occurred during the period. A detailed account of Biotage s risks, uncertainty factors and the handling of these can be found in the company s Annual Report for 2011. Readers wishing to study the risks and uncertainties reported in Sida 4 av 13
the 2011 Annual Report can download this from Biotage AB s website www.biotage.com or order it from Biotage AB, Box 8, SE-753 18 Uppsala or info@biotage.com. Reports in 2012 The interim report for the second quarter 2012 will be issued on August 17, 2012. The interim report for the third quarter 2012 will be issued on October 26, 2012. The year-end report for 2012 will be issued on February 12, 2013. This report has not been subject to special review by the company s auditor. Uppsala April 26, 2012 Torben Jörgensen President and CEO For further information, please contact: Torben Jörgensen, President and CEO, phone: +46 707 49 05 84 Erika Söderberg Johnson, CFO, phone: +46 730 50 80 56 The information in this press release is of the kind that Biotage AB (publ) is required to make public according to the Financial Instruments Trading Act. The information was released for publication at 15.00 on April 26, 2012. About Biotage Biotage offers solutions, knowledge and experience in the areas of analytical chemistry and medicinal chemistry. The customers include the world s largest pharmaceutical and biotech companies, and leading academic institutes. The company is headquartered in Uppsala and has offices in the US, UK, China and Japan. Biotage has about 270 employees and had sales of 428.1 MSEK in 2011. Biotage is listed on the NASDAQ OMX Nordic Stockholm stock exchange. Website: www.biotage.com Sida 5 av 13
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 2012-01-01 2011-01-01 2011-01-01 Amounts in SEK thousands 2012-03-31 2011-03-31 2011-12-31 Net sales 119,579 107,198 428,408 Cost of sales -51,262-44,226-182,127 Gross profit 68,317 62,972 246,281 Distribution costs -35,415-35,378-140,824 Administrative expenses -12,935-11,384-46,198 Research and development costs -8,393-9,356-34,900 Other operating income -2,985-4,254 718 Total operating expenses -59,729-60,372-221,205 Operating profit/loss 8,588 2,600 25,076 Financial net income 813 385 2,911 Profit/loss before income tax 9,401 2,985 27,987 Tax expenses -1,250-729 -2,046 Profit/loss after tax for continuing operations 8,151 2,256 25,941 Profit/loss after tax for discontinued operations -288-767 6,533 Total profit/loss for the period 7,863 1,489 32,475 Other comprehensive income Translation differences related to non Swedish subsidiaries -8,717-14,806 4,099 Cash flow hedges 3,256 - -404 Total other comprehensive income -5,461-14,806 3,695 Total comprehensive income for the period 2,402-13,318 36,169 Sida 6 av 13
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (Continuing) 2012-01-01 2011-01-01 2011-01-01 2012-03-31 2011-03-31 2011-12-31 Attributable to parent company s shareholders: Total profit/loss for the period 7,863 1,489 32,475 Attributable to parent company s shareholders: Total comprehensive income for the period 2,402-13,318 36,169 Average shares outstanding 74,443,975 79,637,688 78,094,450 Average shares outstanding after dilution 74,443,975 79,637,688 78,094,450 Shares outstanding at end of reporting period (*) 79,637,688 88,486,320 79,637,688 Total profit/loss for the period per share SEK 0.11 kr 0.02 kr 0.42 kr Total profit/loss for the period per share SEK after dilution 0.11 kr 0.02 kr 0.42 kr Earnings per share relates to: Continuing operations 0.11 kr 0.03 kr 0.33 kr Discontinued operations -0.01 kr -0.01 kr 0.09 kr Total comprehensive income for the period per share SEK 0.03 kr -0.17 kr 0.46 kr Total comprehensive income for the period per share after dilution SEK 0.03 kr -0.17 kr 0.46 kr (*) Of the numbers of shares outstanding are repurchased as per end of reporting period 6,381,983 8,848,632 3,266,956 Average numbers of shares outstanding are reported excluding numbers shares repurchased. Quarterly summary 2012 and 2011 2012 2011 2011 2011 2011 Amounts in KSEK Q 1 Q 4 Q 3 Q 2 Q 1 Net Sales 119,579 116,031 106,551 98,628 107,198 Cost of sales -51,262-52,168-44,999-40,735-44,226 Gross profit 68,317 63,863 61,552 57,893 62,972 Gross margin 57.1% 55.0% 57.8% 58.7% 58.7% Operating expenses -59,729-54,057-50,638-56,138-60,372 Operating profit/loss 8,588 9,806 10,915 1,755 2,600 Finansnetto 813 911 813 803 385 Profit/loss before income tax 9,401 10,717 11,727 2,558 2,985 Tax expenses -1,250-854 -284-178 -729 Profit/loss after tax for continuing operations 8,151 9,863 11,443 2,380 2,256 Profit/loss after tax for discontinued operations -288 7,300 - - -767 Total profit/loss for the period 7,863 17,163 11,443 2,380 1,489 Sida 7 av 13
CONSOLIDATED STATEMENT OF FINANCIAL POSITION Amounts in SEK thousands 2012-03-31 2011-12-31 ASSETS Non-Current assets Property, plant and equipment 41,953 39,468 Goodwill 103,101 106,108 Other intangible assets 110,653 111,100 Financial assets 2,159 2,286 Deferred tax asset 39,436 39,436 Total non-current assets 297,302 298,399 Current assets Inventories 86,700 89,694 Trade and other receivables 109,184 106,251 Cash, cash equivalents and short time deposits 185,527 204,711 Total current assets 381,410 400,656 TOTAL ASSETS 678,712 699,054 EQUITY AND LIABILITIES Capital and reserves attributable to equity holders of the parent company Share capital 89,194 89,194 Other paied-in capital 4,993 4,993 Reserves -106,410-100,949 Retained earnings 558,011 570,659 Total equity 545,788 563,897 Non-current liabilities Liabilities to credit institutions 5,653 5,850 Non-current provisions 25,173 28,228 Total non-current liabilities 30,825 34,078 Current liabilities Trade and others liabilities 96,766 96,037 Tax liabilities 1,292 774 Liabilities to credit institutions 439 442 Current provisions 3,602 3,827 Total current liabilities 102,099 101,079 TOTAL EQUITY AND LIABILITIES 678,712 699,054 Sida 8 av 13
CONSOLIDATED STATEMENT OF CASH FLOWS 2012-01-01 2011-01-01 2011-01-01 Amounts in SEK thousands 2012-03-31 2011-03-31 2011-12-31 Operating activities Profit/loss before income tax 9,401 2,985 27,987 Adjustments for non-cash items 12,478 11,630 35,560 21,879 14,615 63,547 Income tax paid -3,768-619 -3,979 Cash flow from operating activities before changes in working capital 18,112 13,996 59,568 Cash flow from changes in working capital: Increase (-)/ decrease (+) in inventories -120 3,165 9,992 Increase (-)/ decrease (+) in trade receivables -8,961 10,425 8,191 Increase (-)/ decrease (+) in other current receivables -737 4,921 3,951 Increase (+)/ decrease (-) in other liabilities 1,898 175 13,104 Cash flow from operating activities - continuing operations 10,192 32,683 94,806 Cash flow from operating activities - discontinued operations 7,012 14,243 14,243 Cash flow from operating activities 17,203 46,926 109,050 Investing activities Acquisition of intangible assets -7,818-7,219-30,347 Acquisition of property, plant and equipment -5,230-2,230-11,910 Acquisition of financial assets -42-15 -269 Acquisitions of companies and product lines - - -2,027 Sale of financial assets 50 58 753 Cash flow from investing activities - continuing operations -13,039-9,405-43,801 Cash flow from financing activities - discontinued operations - - - Cash flow from investing activities -13,039-9,405-43,801 Financing activities Dividend to shareholders - - -19,909 Buy-back of shares -20,511 - -20,311 Repayment of loans -156-149 -629 Cash flow from financing activities - continuing operations -20,667-149 -40,849 Cash flow from financing activities - discontinued operations - - - Cash flow from financial activities -20,667-149 -40,849 Cash flow for the period -16,504 37,371 24,399 Cash and liquid assets opening balance 204,711 179,573 179,573 Exchange differences in liquid assets -2,680-3,349 739 Cash and liquid assets closing balance 185,527 213,595 204,711 Additional information: Adjustments for non-cash items Depreciations and impairments 9,167 9,060 35,983 Other items 3,312 2,570-423 Total 12,478 11,630 35,560 Interest received 914 552 3,111 Interest paid -101-166 -200 Sida 9 av 13
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY Other Accumulated Share payed-in translation Hedging Retained Total Amounts in SEK thousands capital capital reserve reserve earnings equity Opening balance January 1, 2011 88,486 4,993-104,643 0 579,112 567,948 Changes in equity in the period of January 1 - March 31, 2011 Total comprehensive income - - -14,807-1,489-13,318 Total non-owners changes - - -14,807-1,489-13,318 Transacitions with equity holders of the company - - - - - - Closing balance March 31, 2011 88,486 4,993-119,450 0 580,601 554,630 Changes in equity in the period of April 1 - December 31, 2011 Total comprehensive income - - 18,905-404 30,985 49,487 Total non-owners changes - - 18,905-404 30,985 49,487 Transacitions with equity holders of the company Cancellation of treasury shares (*) -8,849 - - - 8,849 0 Increase of share capital without the issue 9,557 - - - -9,557 0 of new shares, bonus issue (*) Dividend to shareholders of the parent company - - - - -19,909-19,909 Share buy-back by parent company (*) - - - - -20,311-20,311 Closing balance December 31, 2011 89,194 4,993-100,545-404 570,659 563,897 Changes in equity in the period of January 1 - March 31, 2012 Total comprehensive income - - -8,717 3,256 7,863 2,402 Total non-owners changes 0 0-8,717 3,256 7,863 2,402 Transacitions with equity holders of the company Share buy-back by parent company (*) - - - - -20,511-20,511 Closing balance March 31, 2012 89,194 4,993-109,262 2,852 558,011 545,788 (*) Repurchased shares, cancellation of repurchased shares and bonus issue At the Annual General Meeting on April 27, 2009 and the Annual General Meeting on April 29, 2010 the Board was authorized to repurchase the company s shares to the extent that the holding of own shares at most amounts to 10 percent of the total number of shares issued. During the period September 2009 to December 2010 the company thus repurchased a total of 8, 848, 632 shares, corresponding to 10.0 percent of the company s total shares issued. At the Annual General Meeting on April 27, 2011 it was resolved that the repurchased shares should be canceled. As a consequence of the cancellation, the company s share capital decreased by 8,849 KSEK to 79,638 KSEK. The number of shares was reduced from 88,486,320 to 79,637,688. The AGM on April 27, 2011 also resolved that the company should carry out a bonus issue and thereby increase the company s share capital by 9,557 KSEK to 89,194 KSEK without issuing any new shares. After the cancellation of repurchased shares and the bonus issue the number of shares is 79,637,688 with a quota value of 1.12 SEK. The AGM on April 27, 2011 further resolved to authorize the Board to carry out a new repurchasing program comprising a maximum total of 10 percent of the company s outstanding shares, i.e. a total of 7,963,769 shares. At the balance sheet day March 31, 2012 the company has, in accordance with this authorization, repurchased 6,381,983 shares at an average share price of 6.40 SEK. In the notice of AGM on April 26, 2012 the board of directors proposes that the treasury shares should be cancelled and the share capital reduced with TSEK 7 148 and that the AGM decides to increase the company s share capital with TSEK 7 326 through a bonus issue but without the issue of new share. Readers wishing to take part of the complete decisions at the Annual General Meeting on April 27 2011 and the proposal from the board of directors to the AGM on April 26 2012 and the background material for these can download the AGM minutes and the notice of AGM on the company s website www.biotage.com or order the material from the company; Biotage AB, Box 8, SE-751 03 Uppsala, Sweden. Sida 10 av 13
INCOME STATEMENT, PARENT 2012-01-01 2011-01-01 2011-01-01 Amounts in SEK thousands 2012-03-31 2011-03-31 2011-12-31 Net sales 530 471 2,098 Administrative expenses -5,986-5,286-23,384 Research and development costs -224-321 -1,283 Other operating items -2,026-508 6,319 Operating expenses -8,236-6,115-18,348 Operating profit/loss -7,707-5,644-16,251 Profit/loss from financial investments: Interest income from receivables from group compa 2,494 3,583 12,276 Interest expense from liabilities to group companie -495-449 -1,882 Result from participations in group companies - - -9,284 Other interest and similar income 829 519 2,768 Interest and similar expense -1 - - Group contribution received - - 19,245 Finance net 2,827 3,652 23,122 Profit/loss before income tax -4,879-1,992 6,871 Tax expenses - - - Total profit/loss for the period -4,879-1,992 6,871 STATEMENT OF COMPREHENSIVE INCOME. PARENT Total profit/loss for the period -4,879-1,992 6,871 Other comprehensive income: Translation differences related to non Swedish subsidiaries -9,672-23,809-6,305 Total comprehensive income, parent -14,551-25,800 566 Sida 11 av 13
BALANCE SHEET, PARENT Amounts in SEK thousands 2012-03-31 2011-12-31 ASSETS Non-current assets Intangible assets Patents and licenses 7,218 6,909 Financial assets Investments in group companies 504,181 494,181 Receivables from group companies 46,011 60,992 Deferred tax asset 39,436 39,436 589,628 594,609 Total non-current assets 596,846 601,519 Current assets Current receivables Receivables from group companies 475 10,441 Other receivables 794 1,035 Prepaid expenses and accrued income 581 8,089 1,850 19,565 Cash, cash equivalents and short time deposits 96,516 104,684 Total current assets 98,366 124,249 TOTAL ASSETS 695,212 725,767 EQUITY, PROVISIONS AND LIABILITIES Equity Restricted equity Share capital 89,194 89,194 89,194 89,194 Unrestricted equity Fair value reserve -62,905-53,233 Retained earnings 478,214 491,854 Profit/loss for the year -4,879 6,871 410,430 445,492 Total equity 499,624 534,686 Provisions 26,391 26,391 Current liabilities Trade payables 343 1,073 Liabilities to group companies 164,195 158,671 Other current liabilities 337 286 Accrued expenses and prepaid income 4,321 4,661 169,196 164,690 TOTAL EQUITY, PROVISIONS AND LIABILITIES 695,212 725,767 Sida 12 av 13
Accounting principles Biotage s Group reporting is based on International Financial Reporting Standards as adopted by the EU. The Group s interim report is prepared in accordance with IAS 34 Interim Reporting and the Swedish Accounting Act. The parent company s interim report is prepared in accordance with the Swedish Accounting Act and The Swedish Financial Reporting Board s recommendation RFR 2 Reporting for legal entities. Revised or new standards, interpretations or statements from standard-setting bodies for IFRS within the EU that have come into effect on January 1, 2012 have not had any effect on the Group s financial reporting, as these have not been relevant to Biotage AB in the current situation. In the preparation of the Group s and the parent company s interim reports, the same accounting principles and calculation methods were applied as in the preparation of Biotage s Annual Report for 2011. These are described on pp. 32-41 in the Annual Report. Readers wishing to study the accounting principles presented in the 2011 Annual Report can download this report from Biotage AB s website www.biotage.com or order it from Biotage AB, Box 8, SE-753 18 Uppsala, Sweden, or info@biotage.com. Sida 13 av 13