Quarterly Report III

QUARTERLY REPORT III

1 July to 30 September 2021

QUARTERLY REPORT III/2021 OF ECKERT & ZIEGLER STRAHLEN- UND MEDIZINTECHNIK AG 2

KEY DATA

				1-9/2020	1-9/2021		Change
Sales
	€ million		126.9		131.0		+3%
Return on revenue before tax		%		20		30		+10%
EBITDA		€ million		34.8		47.8		+37%
EBIT		€ million	26.3		40.3	+54%
EBT		€ million		25.6		39.6		+55%
Net income before other shareholder´s interests		€ million		17.9		29.3		+64%
Profit		€ million	17.7		29.2	+65%
Earnings per share (basic)		€		0.86		1.41		+64%
Operational cash flow		€ million	17.6		20.8	+18%
Depreciation and amortization on
non-current assets		€ million		8.6		7.5		-13%
Staff as end of period		Persons		825		841	+2%

QUARTERLY REPORT III/2021 OF ECKERT & ZIEGLER STRAHLEN- UND MEDIZINTECHNIK AG 3

MILESTONES

ACQUISITION IN BRAZIL

The takeover of Ambientis Radioproteção, based in São Paulo, Brazil, strengthens Eckert & Ziegler's presence in South America. The business with annual sales in the low single-digit million range and 24 employees have been integrated into EZBIS's Special Transportation Business Unit. Ambientis has 25 years of experience in radiation protection services and holds Brazil's and LATAM's only ISO-17025 certified counting laboratory.

TECHNETIUM-99 DELIVERY IN BRAZIL

Eckert & Ziegler has started the delivery of Technetium-99 generators in Brazil. The subsidiary Eckert & Ziegler Brasil Comercial Ltda. had recently received a license from the Brazilian health authority ANVISA as the first and only private company to import and distribute technetium generators. Two leading hospitals in the greater Sao Paulo area are among the first customers, and further orders have already been placed.

MANUFACTURING AUTHORIZATION FOR THORIUM AND LUTETIUM COMPOUNDS

The Lower Saxony authorities have granted manufacturing authorization under the Medicines Act for several thorium and lutetium preparations. This authorization enables Eckert & Ziegler to supply its customers in the pharmaceutical industry with therapeutic radioisotopes for clinical trials and beyond. The radioisotopes are the central active ingredients in a series of innovative cancer drugs that are currently being tested in advanced phases by numerous drug manufacturers.

NANTES UNIVERSITY HOSPITAL DOSES FIRST PATIENTS WITH NOVEL GA-68 IMAGING AGENT

The Centre Hospitalier Universitaire de Nantes has started to dose first patients with PENTIXAFOR, an innovative imaging compound for the initial staging of cancer patients

with symptomatic multiple myelomas. The Ga-68 based radio-diagnostic promises to significantly improve the patient management for early forms of the disease by identifying the optimal therapeutic alternative.

QUARTERLY REPORT III/2021 OF ECKERT & ZIEGLER STRAHLEN- UND MEDIZINTECHNIK AG 4

A. GROUP INTERIM MANAGEMENT REPORT

A.1 EARNINGS PERFORMANCE

In the first nine months of 2021, the Eckert & Ziegler Group once again generated a record result with a net profit of € 29.2 million or € 1.41 per share. Thus, after nine months, the result for the entire year 2020 has already been significantly exceeded. Compared to the same period of the previous year, the Group result increased significantly by € 11.5 million or 65%.

Even though a large part of this growth is based on income from the sale of the tumor equipment business, the development of the operating business in both segments is also extremely encouraging.

This becomes evident when analyzing the operating result, which increased from € 27.1 million in the previous year to currently € 37.8 million. Slightly more than half of the increase of € 10.7 million compared with the first nine months of 2020 (€ 6.3 million) resulted from the increase in the difference between other operating income and expenses, while a further € 4.4 million was attributable to improvements in the operating result.

Revenue

At the end of September 2021, consolidated sales amounted to € 131.0 million, up € 4.1 million or 3% on the previous year's level of € 126.9 million. Adjusted for the tumor irradiation business, which has been sold in the meantime, sales increased from € 116.5 million to € 126,0 million, i.e. € 9.5 million or 8%.

The breakdown by segment shows an increase in sales in both operating segments.

The Medical segment increased its sales revenue by a total of € 1.4 million or 2% to € 61.6 million. In nominal terms, the increase in sales is relatively small, although it should be noted that the comparative figures for the previous year still include the sales revenues of the tumor equipment division. The sales lost due to the deconsolidation of this division were fully compensated and additional growth was generated. The main growth driver continues to be the pharmaceutical radioisotope business, while sales in plant engineering, laboratory equipment and project business also increased.

The Isotope Products segment generated sales of € 73.1 million, an increase of € 3.5 million or around 5% compared with the first nine months of 2020. Following the slumps in connection with the covide and oil crises last year, the segment was thus able to grow again as expected.

Earnings (net profit for the period)

The Group's record earnings of € 29.2 million, or € 1.41 per share, are mainly attributable to earnings improvements in the two operating segments, Medical and Isotope Products, as well as to a one-off effect from the sale of the tumor equipment business in the Medical segment.

The Medical segment increased its earnings by € 7.9 million year-on-year to € 21.7 million. One-off effects, primarily the deconsolidation of the tumor equipment business in 2021 and the sale of the Belgian site in 2020, contributed around 5.9 mil- lion to the improvement in the segment's earnings. Adjusted for the non-recurring effect, the segment's net profit amounted to € 12.4 million and was thus approximately € 2.0 million or around 20% higher than the result for the first nine months of the previous year adjusted for non-recurring effects.

The Isotope Products segment also generated an increase in earnings (before minorities) by around € 2.2 million year-on- year to € 7.3 million. In addition to a recovery in sales and the associated contribution margins, an improved financial result was achieved in the first nine months of 2021. In the previous year, the financial result was mainly impacted by loan write- downs in connection with the weakness of the Brazilian real.

The Group's third segment, the holding company, closed the third quarter with an almost balanced result (before minority interests), compared with a loss of around € 1.1 million in the previous year. The improvement in earnings compared to the same period of the previous year is mainly due to dividend payments received from associated companies, which did not occur in the previous year.

QUARTERLY REPORT III/2021 OF ECKERT & ZIEGLER STRAHLEN- UND MEDIZINTECHNIK AG 5

A.2 FINANCIAL POSITION

Balance

The balance sheet total at the end of September 2021 increased compared with the annual financial statements for 2020 and amounts to € 333 million (previous year: € 292 million).

On the assets side, the increase is primarily reflected in an increase in goodwill from € 32.4 million to € 54.1 million. The significant increase is mainly due to the preliminary purchase price allocation for Pentixapharm GmbH, which was acquired in April 2021. The increase in other intangible assets to € 11.8 million (previous year: € 9.0 million) is largely due to the capitalization of development costs for a project at Pentixapharm GmbH in accordance with IAS 38.

Shares in associated companies, which increased by € 7.8 million, also showed a significant rise. This increase is mainly due to the first-timeat-equity consolidation of BEBIG Medical GmbH. As a consequence of the sale of the HDR business in the Medical segment, the companies concerned were initially deconsolidated in full. The remaining 49% interest held by the Group was subsequently accounted for as investments in associated companies. This item was offset by repayments in connection with the investment in the Americium Consortium LLC joint venture and the transition from at-equity to full consolidation for the shares in Pentixapharm GmbH.

Trade receivables increased by € 0.8 million and inventories by € 6.9 million. By contrast, assets held for sale decreased by € 12.3 million compared with the balance sheet as of December 31, 2020, as the corresponding sale of the HDR unit was realized in March 2021.

The changes on the liabilities side mainly relate to lease liabilities, which increased by € 1.1 million, partly due to the conclusion of a new long-term lease agreement. Deferred tax liabilities and income tax liabilities increased by a total of € 3.3 million, while non-current and current provisions rose by € 1.4 million. Liabilities directly associated with assets held for sale decreased by € 3.0 million (again in connection with the sale of the HDR business).

Equity increased by € 36.6 million to € 185.5 million as of September 30, 2021. The increase resulted primarily from the net profit for the period of € 29.2 million, the use of treasury shares for employee compensation and company acquisitions of € 9.9 million, the currency differences of € 2.7 million reported in equity and from non-controlling interests accounted for 3.9 million. The distribution of a dividend to the shareholders of Eckert & Ziegler AG amounting to € 9.3 million had an opposite effect. The equity ratio increased from 51% to 56%.

Liquidity

At € 20.8 million the operating cash flow is € 3.2 million higher than the figure for the same period in the previous year of € 17.6 million. The main reason for this was the higher profit for the period. In contrast, around € 2.4 million more was used to build up receivables and inventories in the first nine months of 2021 than in the same period of the previous year. This was offset by the increase in non-current provisions and liabilities of around € 1.6 million and the change in other current and non-current receivables and liabilities of € 1.2 million.

In the investing activity, the total cash outflow amounted to € 5.0 million, compared with € 9.3 million in the previous year. At € 9.8 million, approximately double the amount of the previous year (€ 4.9 million) was used for the acquisition of fixed assets. The Group received a total of € 10.4 million from the sale of shares in consolidated companies after deduction of the cash transferred on the sale; there were no such sales in the previous year. Cash and cash equivalents of € 7,9 million (pre- vious year: € 0.0 million) were used for acquisitions. In addition, € 0.1 million has been paid to date in 2021 for the acquisition of shares in associated companies (previous year: € 4.4 million). In connection with the winding up of the Americium Consortium LLC joint venture, the Group received repayments of € 0.8 million (previous year € 0.9 million) in the first nine months of 2021. The Group received a further € 1.6 million from dividends paid by associated companies.