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2 mevis medical solutions aginterim report 1. quarter 2009
Key consolidated figures (IFRS)
01.01.– 01.01.–
figures in ¤ 000s 31.03.2009 31.03.2008 Changes
Revenues 3,460 2,429 42.4%
ofwhichgeneratedwithcustomersin: Europe 195 261 -25.3%
USA 3,265 2,168 50.6%
EBITDA 1,016 507 100.4%
EBITDA-margin 29.4% 20.9% –
EBIT 437 369 18.4%
EBIT-margin 12.6% 15.2% –
Netfinancialresult -387 316 -222.5%
EBT 51 685 -92.6%
Consolidated net profit for the period 133 394 -66.2%
Earnings per share in ¤ (basic and diluted) 0.08 0.37 -78.4%
Equity 32,411 32,611 -0.6%
Intangibleassets 27,519 26,876 2.4%
Deferredtaxesontheassetside 2,195 2,411 -9.0%
Long-andshorttermliabilities 23,725 26,973 -12.0%
Balancesheettotal 56,136 59,584 -5.8%
Equityratioin% 57.7% 54.7% –
Cashandcashequivalents 15,584 15,257 2.1%
Employees(balancesheetdate) 240 139 72.7%
Status:31.03.2009
Industrysegment Software/Medicaltechnology
Subscribedsharecapital ¤1,820,000.00
Numberofshares 1,820,000
PricelastascertainedonJan.02,2009 ¤41.00
PricelastascertainedonMar31,2009 ¤22.00
High/lowinperiodunderreview ¤43.22/¤18.91
Marketcapitalization ¤40,040million
TreasurystockheldbyMeVis 122,850
Freefloat 38%
PrimeStandard(RegulatedMarket) FrankfurtandXetra
OTC Frankfurt,Berlin,Düsseldorf,Munich,Stuttgart
Indices CDAX,PrimeAllShare,TechnologyAllShare,
DAXsubsectorSoftware,DAXsectorSoftware,
GermanEntrepreneurialIndex(GEX)
ISIN DE000A0LBFE4
Tickersymbol M3V
Share at a glance
3mevis medical solutions aginterim report 1. quarter 2008
Content
Lettertotheshareholders 4MeVisShare 7BusinessactivitiesoftheMeVisGroup 8Interimmanagementreport 10Consolidatedincomestatement 14Statementoftotalcomprehensiveincome 14Consolidatedbalancesheet 15Consolidatedcashflowstatememt 16Statementofchangesinequity 17Notes 18ResponsibilityStatement 26Disclaimer 27
4 mevis medical solutions aginterim report 1. quarter 2009
Letter to the shareholders
Asexpected,thefinancialyear2009beganwithaprotractedperiodofreducedbuyingactivityonthepartofclinicalendusersofoursoftwareapplicationsThiswasreflectedespeciallyinadeferralorreductionofinvestmentprojectsofhospitalsandradiologicalcentersaswellasprolongedsalescyclesintheU.S.,akeymarketforourCompany.
Duringthefirstquarterweneverthelesssucceededinrampingupconsolidatedsalesby42percentyear-on-year,toapprox.3.5millioneuros.Thishighgrowthisattributabletotwoeffects.BusinessactivitieswithourindustrypartnerHologic,whichwecarvedoutofourjointventurewithSiemensinOctober2008andfullyintegratedintotheMeVisGroup,werefullyconsolidatedforthefirsttimeinthefirstquarterof2009.Haditnotbeenforthisconsolidationeffect,consolidatedsalesrevenueswouldhaveremainedatlastyear'slevel.Inaddition,theinternationallysuccessfulsoftwareplatformDynaCADofourindustrypartnerInvivocontributedtoourdynamicgrowth.Salesofthisproductwerestabilizedatthepreviousyear'slevelandpartiallyevenextended.TheDynaCAD®systemisusedforcontrast-agent-basedmagneticresonancetomographyofthebreast(includingbiopsies)andcanbeusedwithallmagneticresonanceimagingequipmentoftheworld'sleadingOEMs.
EarlyinMarch2009,ourindustrypartnerSiemensunveiledournewdiagnosticsoftwarefortheautomat-edultrasoundbreastvolumescannerAcusonS2000ABVSattheEuropeanCongressofRadiologists(ECR)inVienna.ThenewAcusonS2000automatedbreastvolumescanner(ABVS)performsautomatic,user-independentandswiftfull-fieldultrasoundbreastscans.Recentscientificresearchhasshownthatultrasoundprovidesanextremelyvaluablemedicalsupplementtodigitalmammographyparticularlyinthecaseofyoungerpatientswhotypicallyhavedensebreasttissue,especiallyiftheyareatrisk.Weexpectthisnewproducttogeneratecontributionstosalesrevenuesbytheendofthesecondquarter.
However,immediatedevelopmentsimpactingonprofitandlossinthecurrentfiscalyeararehighlydependentonthefutureevolvementofoursalesmarkets.Assomeofourindustrypartnerslikewiserefertosubstantialdeclinesindemandintheirlatestinterimreports,wehaveadoptedvariouscost-effectivemeasurestostabilizebusinesstrendsinthisparticularlydifficultfinancialyear.Thisincludesawaiverofwageandsalaryincreasesaswellasofbonuspaymentsagreedwithouremployeesforthefirstquarter-includingthemembersoftheExecutiveBoard-resultinginEBITreliefofapprox.0.28millioneuros.
5mevis medical solutions aginterim report 1. quarter 2009
Nevertheless,withtotalEBITamountingtoapprox.0.44millioneuros(year-agoquarter:0.37millioneuros),anEBITmarginofonly12.6%wasachieved(year-agoquarter:15.2%).Thisisessentiallyduetoincreasedstaffcostsinthewakeofadynamicincreaseinthesizeoftheworkforceanddepreciationarisingfromtheacquisitionsmadein2008,aswellascapitalizeddevelopmentcosts.Aspartofourcost-effectivemeasurestostabilizebusinesstrendsinthecurrentfiscalyear,wemanagedtoreduceotheroperatingexpensesbyapprox.8%inthefirstquarter,year-on-year.
Ournetfinancialresult,amountingto-0.39millioneuros(year-agoquarter:0.32millioneuros)wasimpactedbyalowerlevelofinterestratesyear-on-year,theadversemarketeffectsofcurrencyhedgingandcalculatoryinterestonpaymentinstallmentsrelatedtotheacquisitionscarriedoutin2008.Accord-ingly,consolidatedearningsfortheperiodonlyamountedto0.13millioneuros(previous-yearquarter:0.39millioneuros),whichcorrespondstoearningspershareof¤0.08(previous-yearquarter:¤0.37).
TheMeVisGroupstillretainsadequatefinancialresourcestoachieveitsplannedfurthercorporategrowth.AsatMarch31,2009,cashandcashequivalentsamountedtoapprox.15.6millioneuros(year-agoquarter:15.3millioneuros).Equityremainednearlyunchangedyear-on-yearatapprox.32.4millioneuros,withaslightlyhigherequityratioofapprox.58%(year-agoquarter:55%).Followingtherepaymentofapromissorynoteamountingto5millioneurosonMarch2,2009andduetotheextremelyunfavorableconditionsprevailingonthemoneymarketatpresent,weinvestedapprox.1.5millioneurosinshort-termsecurities.Thisshiftfrommoneymarketinvestmentstoshortandmid-termsecuritieswillbecontinuedduringthesecondquarterof2009.
Significantlyhigheryear-on-yeartaxexpenditureisessentiallyattributabletothecarve-outofthebusinessactivitieswithHologicand,inadditiontoincreaseddepreciationandnegativecurrencyeffects,ultimatelyresultedinanegativecashflowfromoperatingactivitiesof-0.26millioneuros(year-agoquarter:+0.17millioneuros).
Wereviewedourstockbuy-backprogramonseveraloccasionsduringthefirstquarterwithregardtoitsstrategicrelevance,takingaccountofthecurrentpricetrends,andcarrieditoutwithlittleimpactonliquidity.WiththecompletionoftheprogramonMarch31,2009,weholdatotalportfolioof122,850treasurystock,equivalentto6.75%ofoursharecapital.
6 mevis medical solutions aginterim report 1. quarter 2009
Weaffirmouroutlookandourexpectationsforthefiscalyear2009,whichwemadewithinthescopeoftheconsolidatedannualfinancialstatementsfor2008.Untiltheglobalfinancialandeconomiccrisissubsides,weonlyperceivelittlegrowthpotentialfortheproductsalreadylaunched.Ontheotherhand,theconsolidationeffectwillhaveapositiveinfluenceonoursalesrevenuesandearnings.Moreover,theintroductionofnewproductsplannedasofthesecondquartershouldproducepositiveearningscontribu-tionsstepbystepinthesecondhalfoftheyear.Inthecurrentmarketsituation,webelievethatareliablerevenueandearningsforecastforthefiscalyear2009canonlybemadeafterthepublicationofourhalf-yearreport.
ThesizeoftheworkforceoftheGroupexpandedbyonly8to240employeesattheendofthefirstquarter(previousyear:139employees).Thisdevelopmentistobeseen,however,againstthebackdropofourcost-effectivemeasurestostabilizebusinesstrends.Wearepleasedtohaveahighlyqualifiedandmotivatedteam,withwhichwecanrealizeoursharedentrepreneurialvision.
Atthisjuncture,wewouldliketothankallemployeesfortheirexceptionalperformanceaswellasourbusinessassociates,customersandshareholdersfortheirconfidence.
Dr.CarlJ.G.Evertsz ChristianH.Seefeldt ThomasE.TynesPresident&CEO Memberofthe Memberofthe ExecutiveBoard ExecutiveBoard
7mevis medical solutions aginterim report 1. quarter 2009
MeVis Share
Roughly55%ofthesharecapitalcontinuedtobeheldbythefoundersasofMarch,31,2009.Thecompanyheldownsharesintreasuryamountingto6.75%ofthesharecapital,resultinginafreefloatofaround38%oftheCompany’ssharecapital,halfofwhichisheldbyinstitutionalandhalfbyprivateinvestors.
Asoftheendofthefirstquarter2009,wewereabletoincreaseourshareholderbasebyaround52percentcomparedwiththestockmarketflotationinmidNovember2007.SincethelastshareholdermeetinginJuly2008,thegrowthrateattheendofthequarterstillamountedtoapprox.14percent,whilethegroupofsmallstockholders(withfewerthan100MeVissharesintheirportfolio)hasseendisproportionatelystronggrowthsincetheendof2008.
Thetradingvolumesincetheendofthelastfiscalyearhasrisenaccordingly.Onlyasmallpartofthisisattributabletothetradingactivitiesinconnectionwiththestockbuy-backprogram.However,generalinvestorrestraintatthebeginningof2009alsolefttracesontradingvolumesforMeVisstock,accompa-niedbyarenewedtemporarydeclinetobelowEUR20.00attheendofthefirstquarterof2009.Mostrecentlytradingactivitieshaveincreasedagaininlinewithamoderatelyhigherquotation.
Stock Chart MeVis ShareFIGURESIN¤
02.01.09 30.01.09 27.02.09
10
20
30
40
50
30.04.09 15.05.0931.03.09
8 mevis medical solutions aginterim report 1. quarter 2009
Business activities of the MeVis Group
Group structure
WithinthescopeofajointventurewithSiemensAktiengesellschaft,BerlinandMunich(hereafter:“Siemens”),MeVisMedicalSolutionsAG(hereafter:“MMSAG”)holds51%ofMeVisBreastCareGmbH&Co.KG(hereafter:“MBCKG”).IntermsofanagreementofOctober21,2008,thebusinessdivisionwithindustrycustomerHologic,Inc.,Bedford,USA(hereafter:“Hologic”)wascarvedoutofthejointventureandtheshareattributabletoSiemenswastakenoverbyMMSAG.ThecompanyMeVisBreastCareSolutionsGmbH&Co.KG(hereafter:“MBSKG”)arisingfromthisspin-offhasbeenfullyincludedintheconsolidatedfinancialstatementsofMMSAGsinceNovember1,2008.
Moreover,in2007MMSAGfoundedawhollyownedsubsidiaryintheU.S.,tradingasMeVisMedicalSolutions,Inc.,Pewaukee(hereafter:“MMSInc.”).ThecompanyMeVisResearchGmbH,accountedforasanassociateduntilDecember31,2007,hasnolongerbeenincludedintheconsolidatedfinancialstate-mentssinceJune30,2008.ThesharesheldwerereturnedtotheFreeHanseaticCityofBremenattheircarryingamounts.Asaresult,MeVisResearchwasincorporatedintheFraunhofer-GesellschafteffectiveJanuary1,2009andisnowtradingasFraunhofer-InstitutfürBildgestützteMedizinMEVIS(hereafter:“FraunhoferMEVIS”)
Brief overview of business activities
MMSAGisoneoftheworld’sleadingindependentproducersofsoftwareproductsforimage-basedmedicine,particularlydigitalradiology.AttheirBremenlocation,theexpertsoftheMeVisGrouphavebeenaddressingclinicallyrelevantissuesintheareaofscreening,diagnosticsandtherapyonasystematicillness-orientedbasissince1997.TherearetraditionallyclosetiesbetweenMeVisMedicalSolutionsAG,whichisalistedcompany,andtherenownednon-profitresearchinstituteMeVisResearchGmbH.
9mevis medical solutions aginterim report 1. quarter 2009
Business segments
Forreportingpurposesandinternalgovernance,theMeVisGrouphastwoseparateoperatingsegments(“DigitalMammography”and“OtherDiagnostics”).
TheDigitalMammographysegmentdevelopsandmarketssoftwareproductsforsupportingdiagnosticimagingfordigitalmammography.Theproductsaredistributedtofinalcustomersviaindustrialpartners(OEMs,e.g.SiemensandHologic).
TheOtherDiagnosticssegmentcomprisesdigitalradiologyproducts(e.g.magneticresonancetomogra-phy(MRT),computertomography(CT),etc.)aswellasgeneralreadingandreportingforradiologicalimaging.Othermainactivitiesinthissegmentincludeimageandriskanalysisforplanningliversurgeryandtumordiagnosticsinconnectionwithclinicalstudiesofpharmaceuticscompanies.
10 mevis medical solutions aginterim report 1. quarter 2009
Interim management report of MeVis Medical Solutions AG
Results of operations
Consolidatedsalesinthefirstquarterof2009wereessentiallyimpactedbybadnewsinthemarketenvironmentforproductsdistributedbytheMeVisGroup.Forexample,sinceitslastcapitalmarketpressreleaseattheendofthefirstquarterof2009,Hologic(animportantindustrypartnerfortheMeVisGroup)reportedadeclineindemandforproductsofferedbyHologic–inwhichtheproductsofthewhollyownedGroupsubsidiaryMBSKGaredeployed–byapprox.19.3%year-on-year.ThereasonforthisdeclineindemandistheincreasingreluctanceofmarketparticipantsinthekeyU.S.sub-marketfortheMeVisGroupduetotheglobalfinancialandeconomiccrisis.Thisreluctancetobuyisexpressedparticularlyinpostponementsandreductionsofinvestmentprojectsofhospitalsaswellasprolongedsalescycles.ThistrendhasalsoaffectedindustrypartnerInvivoCorp.,Orlando,U.S.(hereafter:“Invivo”),awhollyownedsubsidiaryoftheNetherlands'PhilipsGroup.However,intheperiodunderreview,theMeVisGroupwasinapositiontostabilizethesalesrevenuesrealizedwithInvivoatthepreviousyear'slevelandtopartlyextendthemevenfurther.
However,thankstothe100%inclusionoftheHologicdivisionintheconsolidatedfinancialstatements,theMeVisGroupmanagedtocounteractthesenegativemarkettrends.Haditnotbeenforthisconsolidationeffect,salesrevenueswouldhavedeclinedbyabout1.1%comparedwiththesamequarterayearearlier.Salesrevenuesinthefirstquarterof2009wererampedupby42.4%,toT¤3,460(Q12008:T¤2,429).SalesaredistributedacrossthesegmentsDigitalMammographyatT¤2,312(Q12008:T¤1,774)andOtherDiagnosticsatT¤1,147(Q12008:T¤655).
Totakeaccountofexchangeratefluctuations,theMeVisGrouptransactedcurrencyhedges.
CapitalizeddevelopmentexpensesamountedtoT¤761inthequarterunderreview(Q12008:T¤492).ThesearedistributedinanamountofT¤736tostaffcosts(Q12008:T¤492)andT¤25tocostsofservicespurchased(Q12008:T¤0).
ThesubstantialsurgeinstaffcostsisessentiallyduetotheplannedexpansionofdevelopmentactivitiesoftheMeVisGroupin2007and2008formarketrolloutofnewproductsin2009to2010.Attheendofthefirstquarterof2009,theMeVisGrouphad240employees,correspondingto183full-timeequivalents(Q12008:139employeesof107full-timeequivalents).Onaverage,theMeVisGrouphad207employeesduringtheperiodunderreview(Q12008:126employees).
DepreciationintheperiodunderreviewcametoT¤308(Q12008:T¤0)duetothetakeoverofthe49%shareinMBSKGheldbySiemens,thetakeoverofthe“CT-LungDiagnostic”divisionin2008andalso
11mevis medical solutions aginterim report 1. quarter 2009
compriseddepreciationofcapitalizeddevelopmentcosts.Therelevantdepreciationarisingfromthetakeoversareessentiallyassociatedwithcustomerbases/relationshipsvaluedaswellaswiththetech-nologiesacquiredwithinthescopeofthesetransactions.
OtheroperatingexpensecametoT¤812attheendoftheperiodunderreview(Q12008:T¤879).TheseessentiallycompriserentalexpenditureofT¤145(Q12008:T¤130),legalandconsultancycostsamountingtoT¤132(Q12008:T¤120),externalworkamountingtoT¤68(Q12008:T¤20),travelexpensesofT¤64(Q12008:T¤50),expensesonrepairsandmaintenanceamountingtoT¤38(Q12008:T¤33),recruitingcosts(jobadvertisements,etc.)ofT¤29(Q12008:T¤101)aswellasthecostofpreparingandauditingfinancialstatements,amountingtoT¤29(Q12008:T¤52).
Earningsbeforeinterest,taxesanddepreciationandamortization(EBITDA)cametoT¤1,016inthefirstquarterof2009(Q12008:T¤507),translatingintoanEBITDAmarginof29.4%(previousyear20.9%).
Earningsbeforeinterestandtaxes(EBIT)cametoT¤437(Q12008:T¤369),equivalenttoanEBITmarginof12.6%(Q12008:15.2%).
Thenetfinancialresultdeclinedinthefirstquarterof2009,especiallyduetotherecognitionofnegativemarketvaluesofforwardexchangetransactionsconcludedtohedgeexchangeratefluctuationsunderothernetfinancialincomeandreducedinterestincomeonaccountofthedecreasedlevelofinterestrates.Interestincomegeneratedinthefirstquarterof2009amountedtoT¤85(Q12008:T¤318),whileinterestexpensescametoT¤130(Q12008:T¤18).OthernetfinancialincomeamountstoT¤-342(Q12008:T¤16).
Pre-taxprofitinthefirstquarterof2009amountstoT¤50(Q12008:T¤685),equivalenttoareturnonsalesof1.4%(Q12008:28.2%).
Moreover,netprofit/lossaftertaxesisaffectedbyrefundsoftaxesonincomeamountingtoT¤83(Q12008:T¤-291),amountingtoT¤133inthefirstquarterof2009(Q12008:T¤394).Earningspersharecameto¤0.08(Q12008:¤0.37).
Net assets and financial condition
TheMeVisGroupretainsadequatefinancialresourcestoachieveitsplannedgrowth.AsatMarch31,2009,cashandcashequivalentsamountedtoT¤15,584(December31,2008:T¤15,257).
ThereductionincurrentassetsintheperiodunderreviewbyT¤3,817toT¤25,066waspredominantlyduetothedecreaseinotherfinancialassetsbyT¤4,897toT¤4,262owingtotherepaymentofapromissorynoteamountingtoT¤5,000,anincreaseintradereceivablesbyT¤844toT¤3,189,areductioninincometaxreceivablesbyT¤405toT¤379andtoanincreaseinotherassetsbyT¤331,toT¤1,515.
12 mevis medical solutions aginterim report 1. quarter 2009
Non-currentassetsclimbedbyT¤369intheperiodunderreview,toT¤31,070,withintangibleassetsrisingbyT¤643toT¤27,519.Theincreaseintheperiodunderreviewisessentiallyduetothecapitaliza-tionofdevelopmentcosts,amountingtoT¤761.
TheCompany'sproperty,plantandequipmentamountstoT¤1,356atthebalancesheetdate(December31,2008:T¤1,414).
ThelevelofequityatthebalancesheetdatecametoT¤32,411(December31,2008:T¤32,611).Sub-scribedcapitalequaledT¤1,820(December31,2008:T¤1,820).Theequityratioincreasedfrom54.7%to57.7%.
ThecashflowfromcurrentoperatingactivitiescametoT¤-261intheperiodunderreview(Q12008:T¤170).Itessentiallycomprisestheconsolidatednetprofitbeforeinterestandtaxes,amountingtoT¤437(Q12008:T¤311),adjustedfortaxesreceivedandpaid,ofT¤-2,152(Q12008:taxespaidamountingtoT¤324),theincreaseintradepayablesaswellasotherliabilitiesamountingtoT¤843(Q12008:decreaseofT¤333),areductionintradereceivablesandotherassets,amountingtoT¤239(Q12008:T¤308),interestreceivedandpaid,amountingtoT¤275(Q12008:T¤254)andadjustedforothernon-cashexpensesofT¤-196(Q12008:T¤-102).
ThenetcashoutflowfrominvestingactivitiesintheperiodunderreviewamountstoT¤-2,071(Q12008:T¤-1,059)andessentiallycomprisesdisbursementsforinvestmentinproperty,plantandequipmentofT¤80(Q12008:T¤559),anincreaseinintangibleassetsarisingfromthecapitalizationofdevelopmentcosts,amountingtoT¤856(Q12008:T¤492)aswellasforproportionalpaymentsfortheacquisitonofthe”CTLungDiagnostic“businessamountingtoT¤1,113(Q12008:T¤0)
Thenetcashflowfromfinancingactivities,amountingtoT¤2,659(Q12008:T¤-290)comprisesdisbursementsfortheacquisitionoftreasurystock,ofT¤462(Q12008:T¤213),disbursementsfromtherepaymentofloansand(financial)creditsamountingtoT¤351(Q12008:T¤77),disbursementsfortheacquisitionofcurrentsecurities,amountingtoT¤1,528(Q12008:T¤0),anddepositsarisingonmaturityofpromissorynotesamountingtoT¤5,000(Q12008:T¤0).
ChangeincashandcashequivalentsintheyearunderreviewcametoT¤327(Q12008:T¤-1,164).
Risk report
NomaterialchangeshaveoccurredwithregardtotherisksituationoftheMeVisGroupsincethebegin-ningoftheyear.WeperceivenorisksthatmightendangertheexistenceofthecompanieswiththeMeVisGroup.Accordingly,thestatementsmadeintheriskreportwithinthescopeoftheconsolidatedannualfinancialstatementsasatDecember31,2008remainvalid.
13mevis medical solutions aginterim report 1. quarter 2009
Outlook & opportunities
Weaffirmouroutlookforopportunitiesandourassessmentoffiscal2009whichwemadewithinthescopeoftheconsolidatedannualfinancialstatementsfor2008.Againstthebackdropofthedifficultmarketenvironment,weonlyanticipatelimitedgrowthpotentialfortheproductsalreadyrolledoutinthemarketuntilsuchtimeastheglobaleconomicandfinancialcrisissubsides.Comparedwithfiscal2008,however,thefullinclusionofthesubsidiaryMBSKGinthegroupofconsolidatedcompanieswillhaveapositiveimpactonsalesrevenuesandearnings.Initsdeliberationsonearningstrends,theExecutiveBoardhasalsotakenaccountofthefactthattheplannedintroductionofnewproductsplannedstartinginthesecondquarterof2009istobegindeliveringpositivecontributionstoearningsstepbystepasofthethirdquarteroffiscal2009.However,intheopinionoftheExecutiveBoardthatareliableandmeaningfulearningsforecastforfiscal2009asawholecanbemadeonlyafterthehalf-yearreportisreleased,duetothefactthatthefinancialandeconomiccrisistendstoresultinabove-averagerevenuefluctuationsinindividualmonths.
Material events occurring after the balance sheet date
NotransactionsofmaterialrelevancetotheMeVisGrouphavearisensincethebalancesheetdate.
Bremen,May18,2009
Dr.CarlJ.G.Evertsz ChristianH.Seefeldt ThomasE.TynesPresident&CEO Memberofthe Memberofthe ExecutiveBoard ExecutiveBoard
14 mevis medical solutions aginterim report 1. quarter 2009
Consolidated income statementfortheperiodfromJanuary1untilMarch31,2009
Statement of total comprehensive income fortheperiodfromJanuary1untilMarch31,2009
January 1 – January1–
figures in ¤ 000s Notes March 31, 2009 March31,2008
Revenues 1 3,460 2,429
Incomefromthecapitalizationofdevelopmentexpenses 2 736 492
Otheroperatingincome 287 75
Costofmaterials/costofservicespurchased -108 -122
Staffcosts 3 -2,547 -1,488
Otheroperatingexpenses 4 -812 -879
Earnings before interest, taxes, depreciation and amortization (EBITDA) 1.016 507
Depreciationandamortization 5 -579 -138
Earnings before interest and taxes (EBIT) 437 369
Interestincome 85 318
Interestexpenses -130 -18
Othernetfinancialresult -342 16
Net financial result 6 -387 316
Earnings before taxes (EBT) 50 685
Incometaxexpense 83 -291
Consolidated net profit for the period 133 394
Earnings per share in ¤
Basic 0.08 0.37
Diluted 0.08 0.37
January 1 – January1–
figures in ¤ 000s March 31, 2009 March31,2008
Consolidated profit for the period 133 394
Exchangedifferencesontranslatingforeignoperations 94 -198
Other comprehensive income 94 -198
Total comprehensive income 227 196
15mevis medical solutions aginterim report 1. quarter 2009
Consolidated balance sheetasatMarch31,2009
figures in ¤ 000s Notes 31.03.09 31.12.08
Non-current assets
Intangibleassets 27,519 26,876
Property,plantandequipment 1,356 1,414
Deferredtaxassets 2,195 2,411
31,070 30,701
Current assets
Inventories 137 154
Tradereceivables 3,189 2,345
Incometaxreceivables 7 379 784
Otherfinancialassets 8 4,262 9,159
Otherassets 1,515 1,184
Cashandcashequivalents 15,584 15,257
25,066 28,883
AssETs 56,136 59,584
Equity capital 9
Subscribedcapital 1,820 1,820
Sharepremium 28,397 28,363
Revaluationreserve 1,636 1,679
Treasurystock -4,157 -3,694
Currencytranslationreserve 168 75
Retainedearnings 4,547 4,368
32,411 32,611
Non-current liabilities
Otherfinancialliabilities 10 12,388 13,062
Pensionprovisions 50 39
Deferredtaxliabilities 488 843
12,926 13,944
Current liabilities
Provisions 113 180
Tradepayables 848 1,038
Bankborrowings 113 465
Otherfinancialliabilities 10 6,518 5,911
Deferredincome 1,314 1,019
Miscellaneousotherliabilities 1,720 1,712
Incometaxliabilities 11 173 2,704
10,799 13,029
EquITy AND lIABIlITIEs 56,136 59,584
16 mevis medical solutions aginterim report 1. quarter 2009
Consolidated cash flow statememt fortheperiodfromJanuary1untilMarch31,2009
January 1 – January1–
figures in ¤ 000s March 31, 2009 March31,2008
Earnings before interest and taxes (EBIT) 437 311
+Depreciationandamortization 579 138
+/-Increase/decreaseinprovisions -57 0
- Othernon-cashexpenses/income -196 -102
+Interestreceived 278 273
- Interestpaid -3 -19
+Taxesreceived 720 0
-Taxespaid -2,872 -324
+/-Received/paidexchangeratedifferences -246 -63
-/+ Increase/decreaseininventories 18 -19
+Decreaseintradereceivablesandotherassets 239 308
+/-Increase/decreaseintradepayablesandotherliabilities 843 -333
= Cash flow from operating activities -261 170
- Paymentsmadeforinvestmentsinproperty,plantandequipment -80 -559
- Paymentsmadeforinvestmentsinintangibleassets
(excludingdevelopmentexpenses) -22 -8
- Paymentsmadeforthecapitalizationofdevelopmentexpenses -856 -492
- Proportionalpaymentsmadefortheacquisitionofbusinessunits -1,113 0
= Cash flow from investing activities -2,071 -1,059
- Paymentsmadefortheacquisitionoftreasurystock -462 -213
+Paymentsreceivedfrompromissorynotesheldtomaturity 5,000 0
- Paymentsmadetorepayborrowings -351 -77
- Paymentsmadeforthepurchaseofshorttermsecurities -1,528 0
= Cash flow from financing activities 2,659 -290
Changes in cash and cash equivalents 352 -1,179
Exchange-rate related changes in cash and cash equivalents -25 15
+ Cash and cash equivalents at the beginning of the period 15,257 28,471
= Cash and cash equivalents at the end of the period 15,584 27,307
17mevis medical solutions aginterim report 1. quarter 2009
Statement of changes in equityfortheperiodfromJanuary1untilMarch31,2009
Changestoequitynot effectingnetincome
Revaluation Currency reservefor Subscribed Share Treasury Retained translation financial figures in ¤ 000s capital premium stock earnings reserve assets Total
BalanceonJanuary1,2008 1,820 28,276 -1,546 2,245 -26 0 30,769
Purchaseoftreasurystock 0 0 -213 0 0 0 -213
Stockoptions–changesinfairvalue 0 61 0 0 0 0 61
Currencytranslationreserve 0 0 0 0 -146 0 -146
Consolidatednetprofitfortheyear 0 0 0 394 0 0 394
(Consolidatednetprofit) (0) (0) (0) (394) (-146) (0) (248)
BalanceonDecember31,2008 1,820 28,337 -1,759 2,639 -172 0 30,865
Balance on January 1, 2009 1,820 28,363 -3,694 4,368 75 1,679 32,611
Purchaseoftreasurystock 0 0 -463 0 0 0 -463
Accounttransferaccording
toamortization 0 0 0 43 0 -43 0
Stockoptions-changesinfairvalue 0 36 0 0 0 0 36
Currencytranslationreserve 0 0 0 0 94 0 94
Consolidatednetprofitfortheyear 0 0 0 133 0 0 133
(Consolidatednetprofit) 0 0 0 (133) (94) 0 (227)
Balance on March 31, 2009 1,820 28,399 -4,157 4,544 169 1,636 32,411
18 mevis medical solutions aginterim report 1. quarter 2009
Notes on the interim consolidated financial statements
as of March 31, 2009
General disclosures
ThequarterlyfinancialreportoftheMeVisGroupwaspreparedinaccordancewiththeprovisionsof§37xAbs.3ofthe[German]SecuritiesTradingAct(WpHG)alongwithconsolidatedinterimfinancialstatementsandaconsolidatedmanagementreport.
TheconsolidatedinterimfinancialstatementsofMevisMedicalSolutionsAG,Bremen(MMSAG)asatMarch31,2009werepreparedinaccordancewithSection315a(1)oftheGermanCommercialCode(HGB)inlinewiththerulesandregulationsinforceonthebalancesheetdateandapprovedbytheEuropeanUnionoftheInternationalFinancialReportingStandards(IFRS)publishedbytheInternationalAccountingStandardsBoard(IASB)aswellastheinterpretationsoftheInternationalFinancialReportingInterpretationsCommittee(IFRIC).Accordingly,thisinterimreportasatMarch31,2009waspreparedinconformitywithIAS34“InterimReporting”.ThenotestotheconsolidatedinterimfinancialstatementsarepresentedinabridgedforminlinewiththeoptionprovidedbyIAS34.
Theinterimfinancialstatementsandinterimmanagementreporthaveneitherbeenauditednorsubjectedtoalimitedreview.
Issue of stock options
OnDecember19,2008,theExecutiveBoardutilizedtheauthorizationgrantedbytheshareholdersonAugust22,2007toissueoptionsaspartofthestaffparticipationprogram.Underthissecondinstallment,atotalofupto20,191(firstinstallment:20,300stockoptions)wereissuedatanexercisepriceof¤37.45(firstinstallment:¤55.00).Atotalof182employees(firstinstallment:75employees)wereeligible.InaresolutionpassedonFebruary14,2009,theSupervisoryBoardofMMSAGapprovedtheissueofthesecondinstallment.
AnoptionentitlesstafftoacquireoneMMSAGshareatanexercisepriceequaling¤37.45subjecttoavestingperiodof2years.Theexercisehurdleisexpressedasamarketcondition:intheperiodfromthegrantofstockoptionsandthebeginningoftherespectiveexercisewindowinwhichthestockoptionsareexercised,thepriceofMMSAGstockmusthaveimprovedbyatleast15percentinrelationtothetrendoftheTecDAXindex(“exercisehurdle”).
Therearethreeexercisewindowsperyear,namelytwoweeksaftertheannualgeneralmeetingandthepublicationoftheQ2andQ3results.
19mevis medical solutions aginterim report 1. quarter 2009
AsMMSAGisentitledtosettlethestockoptionsincashform,thisconstitutesacombinationmodel.Alloutstandingstockoptionshaveatermoffiveyearsasofthedateofgrant.AsthestockoptionprogramofMMSAGexpiresonDecember31,2011,themaximumtermoftheoutstandingoptionsislessthansevenyears(untilJanuary1,2016).Thestockoptionsgrantedinfiscal2009haveamaximumtermoflessthanfiveyearsandcanbeexercisedforthefirsttimewithinatimewindowoftwoweeksaftertheAnnualGeneralMeetingatwhichresolutionsareadoptedconcerningthefinancialyear2010iftheexercisehurdlewasreached.
Recognition and measurement methods
TheinterimconsolidatedfinancialstatementsfromJanuary1toMarch31,2008usethesamerecognitionandmeasurementpoliciesastheIFRSconsolidatedfinancialstatementsforfiscal2008.TheinterimconsolidatedfinancialstatementsasofMarch31,2009mustthereforebereadinconjunctionwiththeconsolidatedfinancialstatementsasofDecember31,2008.
Effects of new accounting standards
MMSAG'sconsolidatedfinancialstatementsasofMarch31,2009includingthepreviousyear'sfigureshavebeenpreparedinaccordancewithIFRSasendorsedbytheEuropeanUnionasofMarch31,2009.ThesameaccountingandvaluationprincipleswereappliedthatwereusedinpreparingtheconsolidatedfinancialstatementsasatDecember31,2008;inaddition,IAS34“Interimreporting”wasapplied.SinceJanuary1,2009,IAS1“Presentationoffinancialstatements”hasbeenappliedinitslatestversion.Thishasresultedinseveralchangesinthepresentationoftheoverallnetincomestatementandthestatementofchangesinequity.Inaddition,IFRS8“Businesssegments”wasappliedforthefirsttimeasofJanuary1,2009.OtherannouncementsoftheIASBnewlyapplicableasofMarch31,2009hadnomaterialimpactsontheMeVisconsolidatedfinancialstatements.
Selected notes on the consolidated balance sheet and the consolidated income statement
1. RevenuesRevenuesbreakdownbytypeasfollows:
January 1 – January1–
figures in ¤ 000s March 31, 2009 March31,2008
Softwareandlicenses 2,910 2,212
Maintenance(softwareservicecontracts) 333 163
Hardware 176 40
Services(consultingandtraining) 41 14
3,460 2,429
20 mevis medical solutions aginterim report 1. quarter 2009
2. Income from the capitalization of development costsIntheperiodunderreview,expenditureonresearchanddevelopmentcametoT¤1,220(March31,2008:T¤1,049).InaccordancewithIAS38,developmentcostsofT¤736(March31,2008:T¤492)werecapitalized.
3. Staff costsThechangeinstaffcostisduepartlytotheincreasedheadcount.Onaverage,207personswereemployedinthefirstquarterofthecurrentfiscalyear(previous-yearperiod:126).Ofthese,45wereaccountedforbythepro-rataconsolidatedcompanyMeVisBreastCareGmbH&Co.KG(year-agoperiod:47).Theaveragefiguresinclude67testersattheconsolidatedlevel(year-agoperiod:37).
4. Other operating expenses
January 1 – January1–
figures in ¤ 000s March 31, 2009 March31,2008
Rentalexpense 145 130
Legalandconsultingcosts 132 120
Externalwork 68 20
Travelexpense 64 50
Maintenance 38 33
Personnelrecruiting 29 101
Costofpreparingandauditingoffinancialstatements 28 52
Accountingcosts 27 24
Insurance 22 8
Securitiesaccountcharges 19 9
Advertising 18 3
Vehiclecosts 15 4
Officesupplies 13 17
Contributions 11 18
Appropriationstootherprovisions 11 10
25.1%financingobligationtowardsMeVisResearchGmbH 0 143
Others 172 137
812 879
5. Depreciation and amortization
January 1 – January1–
figures in ¤ 000s March 31, 2009 March31,2008
Amortizationofpatentsandlicences,similarrightsandcustomerbase 296 83
Amortizationofcapitalizeddevelopmentexpenditure 138 0
Depreciationofproperty,plantandequipment 145 55
579 138
21mevis medical solutions aginterim report 1. quarter 2009
6. Interest income, interest expense and other net financial resultTheMeVisGroup'snetfinancialresultasatMarch31,2009amountedtoT¤-387(Q12008:T¤316).ThiscomprisesinterestincomefromtheinvestmentofcashofT¤85(Q12008:T¤318)netofinterestexpenseofT¤130(Q12008:T¤18)andotherfinancialresultofT¤-342(Q12008:T¤16).OtherfinancialresultprimarilycomprisesthechangeinvalueofderivativefinancialinstrumentsamountingtoT¤-511(Q12008:T¤171)pluscurrencytranslationgainsnetofcurrencytranslationlossesofT¤169(Q12008:T¤-155).
7. Income tax reimbursement claimsThechangeinincometaxreimbursementclaimswasessentiallyduetoataxrefundtoMMSAGfollowingthespin-offoftheHologicbusinessdivisioninfiscal2008.
8. Other current financial assets
figures in ¤ 000s 31.03.2009 31.12.2008
thereof thereof
Total current Total current
Loansandreceivables 2,640 2,640 3,661 3,661
Accruedinterest 0 0 195 195
Derivatives 94 94 303 303
Othersecurities 1,528 1,528 5,000 5,000
4,262 4,262 9,159 9,159
Derivativescompriseforwardexchangetransactionsandcurrencyoptions,whichweremeasuredatmarketvaluewithanimpactonprofitandloss.ThesesecuritiesprimarilyarePfandbriefbondsandpromissorynotes.
9. Shareholders’ equity
Revaluation reserveInconnectionwiththeacquisitionofthe49%interestinMBSKGfromSiemensAGandthesubsequentfullconsolidationofMBSKG,theassetsandliabilitiesofMBSKGwerecompletelyrevaluated.Wherethisincreasewasattributabletothe51%interestinMBSKGalreadyheldbytheGroup,thedifferencewasrecognizedwithintherevaluationreserve.Amountsequalingthedepreciationexpenserecognizedontheseassetsarereclassifiedasretainedearningsonaproportionatebasis.
figures in ¤ 000s 31.03.09 31.12.08
Balance at the beginning of the period 1,679 0
+Consitutedbytherevaluationofthe51%corporateholdinginMBSKG 0 2,411
-Deferredtaxliabilitiesfollowingtherevaluation 0 -723
-Amortizationofassets -61 -18
+Liquidationofdeferredtaxliabilitiesfromtherevaluation 18 9
Balance at the end of the period 1,636 1,679
22 mevis medical solutions aginterim report 1. quarter 2009
Treasury stockInaccordancewithanewresolutionpassedbytheshareholdersattheannualgeneralmeetingonJuly9,2008concerningtheacquisitionoftheCompany'sownstockinaccordancewithSection71(1)No.8oftheStockCorporationAct,theCompanywasauthorizedtoacquireuptotenpercentofitscurrentsharecapital(T¤1,820)onorbeforeJanuary8,2010.OnNovember4,2008,theExecutiveBoarddecidedtobuyuptoafurther91,000oftheCompany'sownshares.Aspartofthisstockbuy-backprogram,theCompanyacquired33,682ofitsownsharesforatotalamountofEUR1,163,223.49asofMarch31,2009.Upontheterminationofthestockbuy-backprogram,MMSAG'stotaltreasurystockcomprised122,850sharesasatMarch31,2009,equivalentto6.75%ofitscurrentsharecapital.
10. Other financial liabilities
figures in ¤ 000s 31.03.09 31.12.08
Liabilityfrom49%acquisitionofMBSKG 10,819 10,819
LiabilityfromtheacquisitionofR2ImageCheckerCT 1,098 1,771
LiabilitytowardsMREGmbH 462 462
Others 9 10
Other non-current financial liabilities 12,388 13,062
Liabilityfrom49%acquisitionofMBSKG 2,500 2,487
LiabilityfromtheacquisitionofR2ImageCheckerCT 2,073 2,273
Staffliabilities 955 628
Derivatives 293 229
LiabilitiestowardsFraunhoferMeVis 189 191
LiabilitiestowardstheSupervisoryBoard 18 18
Otherfinancialliabilities 490 85
Other current financial liabilities 6,518 5,911
11. Income taxesThechangeinincometaxesisessentiallyduetoataxpaymentbyMBSKGamountingtoT¤2,532,whichwasbasedonthecorporateacquisitionoftheHologicbusinessdivisioninfiscal2008.
12. Transactions with related parties Withreferencetobusinesstransactedwithrelatedparties,therehavebeennomaterialchangessinceDecember31,2008.
13. Contingent receivables and contingent liabilitiesIncomparisonwiththecontingentreceivablesandcontingentliabilitiespresentedintheconsolidatedfinancialstatementsforfiscal2008,nochangesoccurredinthefirstquarterofthecurrentfiscalyear.
14. Earnings per shareEarningspershareequaltheprofitoncontinuingactivitiesorprofit(aftertax)dividedbytheweightedaveragenumberofsharesoutstandingduringtheyearunderreview.Earningspershare(fullydiluted)are
23mevis medical solutions aginterim report 1. quarter 2009
calculatedontheassumptionthatallsecurities,stockoptionsandstockawardswithapotentiallydilutoryeffectareconvertedorexercised.
Asthecriteriaforexercisingtheoptionshadnotbeensatisfiedasofthebalancesheetdate,itcanbeassumedthatnooptionshadbeenexercisedbytheemployeesandthatnoshareshadbeenawardedtoMr.Tynes.Accordingly,theyarenotincludedinthecalculationofearningspershare,whichmeansthatdilutedearningspershareareidenticaltobasicearningspershare.
Theweightedaverageofsharesoutstandingisdeterminedbytakingaccountofsharesredeemedandreissuedsubjecttoachronologicalweighting.
figures in ¤ 000s 31.03.09 31.12.08
Consolidatednetprofitfortheyear 133 2,114
Weightedaverageofsharesoutstandingduringthereportingperiod 1,739,891 1,741,254
Basic earnings per share in ¤ 0.08 1.21
Diluted earnings per share in ¤ 0.08 1.21
15. Segment informationTheintroductionofIFRS8didnotleadtoasubstantialstructuralchangeforpurposesofsegmentreportingintheMeVisGroup.
Inthefirstquarterof2009,theactivitiesoftheMeVisGroupweresubdividedintothereportablesegmentsofDigitalMammographyandOtherDiagnostics.ThemanagementofeachofthesesegmentsreportsdirectlytotheExecutiveBoardofMMSAGinitsfunctionastheresponsiblecorporateentity.
Segmentearningsandtheresultofoperatingactivitiesremainthekeybenchmarksforassessingandcontrollingtheearningspositionofaparticularsegment.Asarule,theresultofoperatingactivitiescorrespondstoearningsbeforeinterestandtaxes(EBIT).
Thefollowingtablecontainsareconciliationoftheresultsofoperatingactivitiesofthesegmentswithconsolidatedearningsbeforeinterestandtaxes(EBIT).
24 mevis medical solutions aginterim report 1. quarter 2009
Theresultsoftheoperatingactivitiesofthesegmentsarereconciledwiththeconsolidatednetprofit/lossfortheperiodasfollows:
01.01.–31.03.
figures in ¤ 000s 2009 2008
Segmentresultsofoperatingactivities 384 258
ReconciliationtoconsolidatedEBIT 53 112
Earnings before interest and taxes (EBIT) 437 369
Netfinancialresult -387 316
Earnings before taxes (EBT) 50 685
Incometaxexpenses 83 -291
Consolidated net profit for the period 133 394
Others/
Digital Other consolidationsand
mammography Diagnostics reconciliations MeVis-Group
figures in ¤ 000s 2009 2008 2009 2008 2009 2008 2009 2008
Externalrevenues 2,312 1,774 1,147 655 0 0 3,460 2,429
Intersegmentrevenues 0 0 0 0 0 0 0 0
Total segment revenues 2,312 1,774 1,147 655 0 0 3,460 2,429
Capitalizationofdevelopmentexpenses 406 249 330 243 0 0 737 492
Depreciationandamortization -239 -39 -339 -122 0 23 -579 -138
Impairment 0 0 0 0 0 0 0 0
Operatingexpenses -906 -540 -1,750 -1,071 0 1 -2,656 -1,610
segment net profit and loss 1,574 1,443 -612 -295 0 24 962 1,173
Otheroperatingincome 40 10 273 90 -78 -25 236 75
Otheroperatingexpenses -219 -279 -673 -712 131 112 -761 -879
Result of operating activities 1,395 1,175 -1,011 -917 53 112 437 369
Assets 23,417 2,601 11,370 3,424 21,098 29,249 55,885 35,274
25mevis medical solutions aginterim report 1. quarter 2009
16. Significant events after the balance sheet date (March 31, 2009)NotransactionsofmaterialrelevancetotheMeVisGrouphavearisensincethebalancesheetdate.
Bremen,May18,2009
MeVisMedicalSolutionsAG
Dr.CarlJ.G.Evertsz ChristianH.Seefeldt ThomasE.TynesPresident&CEO Memberofthe Memberofthe ExecutiveBoard ExecutiveBoard
26 mevis medical solutions aginterim report 1. quarter 2009
Responsibility Statement (“Bilanzeid”)
Responsibilitystatementrequiredbysection37yoftheWertpapierhandelsgesetz(WpHG–GermanSecuritiesTradingAct)inconjunctionwithsection37w(2)no.3oftheWpHGfortheconsolidatedinterimfinancialstatements:
“Tothebestofourknowledge,andinaccordancewiththeapplicablereportingprinciplesforinterimfinancialreporting,theinterimconsolidatedfinancialstatementsgiveatrueandfairviewoftheassets,liabilities,financialpositionandprofitorlossofthegroup,andtheinterimgroupmanagementreportincludesafairreviewofthedevelopmentandperformanceofthebusinessandthepositionofthegroup,togetherwithadescriptionoftheprincipalopportunitiesandrisksassociatedwiththeexpecteddevelop-mentofthegroupfortheremainingmonthsofthefinancialyear.”
Bremen,May18,2009
MeVisMedicalSolutionsAG
Dr.CarlJ.G.Evertsz ChristianH.Seefeldt ThomasE.TynesPresident&CEO Memberofthe Memberofthe ExecutiveBoard ExecutiveBoard
27mevis medical solutions aginterim report 1. quarter 2009
Disclaimer
Forward-looking statements
Thisinterimreportcontainsforward-lookingstatementswhicharebasedonmanagement'scurrentestimatesoffuturedevelopments.Suchstatementsaresubjecttorisksanduncertainties,whichMeVisMedicalSolutionsAGisnotabletocontrolorestimatewithanyprecision,e.g.futuremarketconditionsandthegeneraleconomicenvironment,thebehaviorofothermarketparticipants,thesuccessfulintegra-tionofnewacquisitionsandgovernmentacts.Ifanyoftheseuncertaintiesorimponderabilitiesmaterializeoriftheassumptionsonwhichthesestatementsarebasedprovetobeincorrect,thismaycauseactualresultstodeviatemateriallyfromthoseexpresslyorimplicitlycontainedinthesestatements.MeVisMedicalSolutionsAGdoesnotintendandisundernoobligationtoupdatetheforward-lookingstatementsinthelightofanyeventsordevelopmentsoccurringafterthedateofthisreport.
Deviations for technical reasons
DeviationsmayoccurbetweentheaccountingdatacontainedinthisreportandthatsubmittedtotheelectronicBundesanzeigerfortechnicalreasons(e.g.conversionofelectronicformats).Intheeventofanydoubt,theversionsubmittedtotheelectronicBundesanzeigerwillprevail.
ThisreportisalsoavailableinaGerman-languageversion.Inthecaseofanydoubt,theGerman-languageversiontakespriorityoverthisEnglish-languageone.
ThereportisavailablefordownloadinbothlanguagesontheInternetathttp://www.mevis.de/mms/Finanzberichte.html.