Eckert & Ziegler Strahlen und Medizintechnik : Half-Year Financial Report 2021

HALF-YEAR FINANCIAL REPORT

1 January to 30 June 2021

HALF-YEAR FINANCIAL REPORT 2021 | ECKERT & ZIEGLER STRAHLEN- UND MEDIZINTECHNIK AG 2

KEY DATA

				01-06/2020	01-06/2021			Change
Sales
	€ million		83.6		89.5			+7%
Return on revenue before tax		%		22		32			+49%
EBITDA		€ million		24.2		34.5			+43%
EBIT		€ million	18.7		29.5	+58%
EBT		€ million		18.3		29.0			+59%
Net income before other shareholder's interests		€ million		12.9		22.3			+73%
Profit		€ million	12.7		22.3	+75%
Earnings per share (basic)		€		0.62		1.08			+75%
Operational cash flow		€ million		0.6		7.2			+1.151%
Depreciation and amortization on non-current assets		€ million	5.5		5.0			-8%
Staff as end of period		Persons		828		814			-2%

HALF-YEAR FINANCIAL REPORT 2021 | ECKERT & ZIEGLER STRAHLEN- UND MEDIZINTECHNIK AG 3

MILESTONES

LONG-TERM SUPPLY AGREEMENT WITH SIRTEX MEDICAL ON YTTRIUM-90 FOR TREATING LIVER CANCER

The long-term supply agreement for the use of EZAG's Yttrium-90 in Sirtex SIR-Spheres®Y-90 resin microspheres for liver cancer has an initial term of five years and guarantees Eckert & Ziegler a substantial share of Sirtex's rising global demand.

MAJORITY STAKE IN DRUG DEVELOPER PENTIXAPHARM

Eckert & Ziegler acquires several share packages from the founders of the drug developer Pentixapharm GmbH. Together with another internal share transfer, Eckert & Ziegler will directly hold a

total of about 83% of the shares in the Würzburg-based company as of closing of the transactions.

NEW CGMP FACILITY FOR RADIOPHARMACEUTICAL SERVICES IN BERLIN

The production site in Berlin is being expanded to include a new production facility for the contract manufacturing of radiopharmaceuticals. This new cGMP clean room suite with a total area of around 270 m² will be a 21 CFR 211 compliant, radiopharmaceutical manufacturing facility dedicated to late stage investigational and commercial stage radiopharmaceuticals and be operational from the first quarter of 2022.

HALF-YEAR FINANCIAL REPORT 2021 | ECKERT & ZIEGLER STRAHLEN- UND MEDIZINTECHNIK AG 4

EXCLUSIVE DISTRIBUTION RIGHTS FOR

PROSTATE CANCER DIAGNOSTIC FROM

TELIX PHARMACEUTICALS

Australian Telix Pharmaceuticals (Telix) grants Eckert & Ziegler exclusive distribution rights for Illuccix® in Ger- many. Illuccix® is a preparation for imaging prostate cancer with positron emission tomography (PET), currently under review for regulatory approval in multiple markets worldwide, including Germany. In addition, the two companies will work closely together on the commercialization of GalliaPharm® (68Ge/68Ga generator) and Illuccix® in the United States.

MYELO THERAPEUTICS RECEIVES

ADDITIONAL FUNDING FOR

PHARMACEUTICAL DEVELOPMENT

Myelo Therapeutics GmbH, an affiliated company of Eckert & Ziegler, has received additional funding from NIAD, a branch of the U.S. Food and Drug Administra- tion, for the development of its drug component Myelo001.

TECHNETIUM GENERATORS IN BRAZIL

The Brazilian Health Authority has granted Eckert & Ziegler a license to import and distribute technetium generators. This is the second license ever granted for this product in Brazil and the first to be granted to a private company.

Thanks to the Regula tory Affairs team in Brasil for this exciting accomplishmen t!

HALF-YEAR FINANCIAL REPORT 2021 | ECKERT & ZIEGLER STRAHLEN- UND MEDIZINTECHNIK AG 5

A. GROUP INTERIM MANAGEMENT REPORT

A.1 EARNINGS PERFORMANCE

In the first half of 2021, the Eckert & Ziegler Group generated a new record result with a net profit of € 22.3 million or € 1.08 per share. After six months, the result for the year 2020 as a whole has thus already been almost achieved. Compared to the same period of the previous year, Group earnings increased significantly by € 9.4 million or 73%.

Although a large part of this growth is due to income from the sale of the tumor irradiation business, the development of the operating business in both segments continues to be extremely encouraging.

The increase is evident when analyzing the operating result, which rose from € 19.0 million in the previous year to currently € 29.4 million. Approximately half of the increase of € 10.4 million compared with the first half of 2020 (€ 5.4 million) resulted from the increase in the balance of other operating income and expenses, while a further € 5.0 million was due to improvements in the operating result.

Revenue

At the end of June 2021, consolidated sales amounted to € 89.5 million, up € 5.9 million or 7% on the previous year's level of € 83.6 million.

The breakdown by segment shows a strong increase in sales in both operating segments:

Despite the deconsolidation of the tumor irradiation business and the subsequent loss of this revenue, the Medical segment increased its revenue by a total of € 3.2 million or 8% to € 41.5 million. The main growth driver continues to be the pharmaceutical radioisotope business, while sales of plant engineering, laboratory equipment and project business also increased.

The Isotope Products segment generated sales of € 50.3 million, € 3.2 million or around 7% higher than in the first six months of 2020. Following the slumps in connection with the Covid and oil crises last year, the segment was thus able to grow again, as expected.

Earnings (net profit for the period)

Record half-year earnings of the Group of € 22.3 million, or € 1.08 per share, were due to improved earnings in the two operating segments, Medical and Isotope Products, as well as to a one-time effect from the sale of the tumor equipment business in the Medical segment. This was partially offset by increased R&D expenses, which were recorded in the holding company.

The Medical segment increased its earnings by € 8.8 million compared with the first half of 2020 to € 18.5 million. One-time effects, primarily the deconsolidation of the tumor irradiation business in 2021 and the sale of the Belgian site in 2020, contributed around € 6.1 million to the improvement in the segment's earnings. Adjusted for the one-off effect at the end of the first half of the year, the segment's net profit amounted to € 9.1 million and was thus approximately € 2.7 million or more than 40% higher than in the same period of the previous year adjusted for one-off effects.

The Isotope Products segment also increased its earnings (before minorities) by around € 2.5 million compared with the first half of 2020 to € 6.1 million. In addition to a recovery in sales and the associated contribution margins, an improved financial result was also achieved in the first half of 2021. In the previous year, this was mainly impacted by loan write-offs in connection with the weakness of the Brazilian real.

The Group's third segment, the Holding, closed the first half of the year with a loss (before minorities) of € 2.3 million, compared with a nearly balanced result in the previous year. The deterioration in earnings compared to the same period of the previous year is mainly due to the research and development expenses in connection with the investment in Pentixapharm GmbH, which had not yet been incurred in the previous year.