Analytik Jena Closes 2009/10 Financial Year with Double-Digit Sales Growth

• Prior-year sales record exceeded
• Earnings below previous year’s level
• Increase in sales and earnings targeted in current financial year

Jena, December 16, 2010 — In the 2009/2010 financial year, Analytik Jena (Frankfurt DE0005213508, Prime Standard: AJA) generated total sales of EUR 80,218 thousand (previous year: EUR 71,132 thousand). With year-on-year sales growth of 12.8%, the provider of analytical, bioanalytical and optical systems has again significantly exceeded the record level of sales it set last year.

Sales Development and Segments

In financial year 2009/2010, Analytik Jena again enjoyed stable sales development in the core business and largest division of Analytical Instrumentation in particular, as well as disproportionally high growth in the Life Science segment. The Analytical Instrumentation division increased its sales by 2.6 % year-on-year to EUR 47,831 thousand (previous year: EUR 46,635 thousand). It should be noted that the division had to compensate for two major orders from the previous year in the period under review. The growth segment Life Science continued its positive sales development, recording strong year-on-year growth of 53.9 % to EUR 27,514 thousand (previous year: EUR 17,876 thousand). This is primarily attributable to the full-year consolidation of Biometra and CyBio. In the past financial year, the Optics segment was again hardest hit by the turmoil on the markets and growing competitive pressure throughout the industry as a whole on account of its consumer-oriented target groups. Segment sales totaled EUR 4,873 thousand (previous year: EUR 6,621 thousand).

"In our anniversary year we succeeded again in recording double-digit sales growth. On the whole, however, our results were unsatisfactory," commented Klaus Berka, CEO of Analytik Jena AG. "We expect to be able to increase both profitability and earnings again in the current financial year."

Financial Position and Results of Operations

In the past financial year, Analytik Jena failed to repeat the level of earnings it recorded in the previous year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) declined by 28.5 % to EUR 6,717 thousand (previous year: EUR 9,400 thousand). Operating profit (EBIT) amounted to EUR 3,144 thousand in the period under review (previous year: EUR 6,316 thousand), down 50.2 % year-on-year, meaning that the company generated an EBIT margin of 3.9 % after 8.9 % in the previous year.

This development is attributable to various events, some of which occurred with little notice. In addition to significant extraordinary effects from the ongoing tax audit, write-downs due to purchase price allocation and the liquidation of CyBio Japan, costs increased to an above-average extent. The core Analytical Instrumentation division also experienced an unexpected degree of margin pressure in its international business due to the impact of the economic crisis in recent years and efforts by companies to reduce existing surplus stocks. The situation was particularly difficult for the Analytik Jena subsidiary AJ Japan. Although the Group again recorded sales growth here, there was a significant cost increase in consolidation as a result of the sharp year-on-year appreciation of the yen, among other things. Although the Optics segment continued to enjoy strong results, these were at a substantially lower level in absolute terms.

Consolidated tax expense amounted to EUR 1,055 thousand (previous year, adjusted: EUR 2,071 thousand). This corresponds to a tax rate of 33.7 %. The adjustment of EUR 264 thousand to the prior-year figure was due to findings of the ongoing tax audit for the years 2003 to 2007. In this period, write-downs on Analytik Jena’s former US company that were offset for tax purposes in 2003 were not recognized, and a calculation error by the tax office in the 2004 tax assessment that had not been noticed by the company was retrospectively corrected.

Consolidated net profit for the year increased by 83.1 % compared with the adjusted prior-year figure, totaling EUR 2,075 thousand (previous year, adjusted: EUR 1,133 thousand). As of September 30, 2010, the Group generated net profit attributable to the shareholders of the parent company after deduction of the earnings share of minority shareholders in the amount of EUR 1,772 thousand (previous year, adjusted: EUR 1,294 thousand). Basic and undiluted earnings per share both amounted to EUR 0.34 (previous year, adjusted: EUR 0.27).

The Group’s total assets increased by 10.7 % from EUR 75,465 thousand to EUR 83,557 thousand as of September 30, 2010.

Human Resources

As of 30 September 2010, the Group had a total of 796 employees, of which 49 were trainees (previous year: 773 employees, 54 trainees), a year-on-year increase of 3.0%.

Outlook

Analytik Jena expects to achieve substantial sales growth, significantly improved earnings and a continued stable financial position in financial year 2010/2011. For the first time, the company will recommend the distribution of a dividend of EUR 0.15 per share to the Supervisory Board in the December 2010 meeting after adoption of the annual financial statements.

"We have made further good progress in our growth and internationalization strategy. In a highly competitive market with significant price pressure, we again recorded year-on-year sales growth. The excellent order situation at present, which is largely driven by our established Analytical Instrumentation division, gives us grounds for optimism for the future. One particular goal for the current financial year is to increase our profitability," Berka added.

The full financial report can be accessed at http://berichte.analytik-jena.de/AnnualReport0910.pdf.