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Three Month Report

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									 08   PlasmaSelect AG
      Three-Month Report


 09




Q1
PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                    I 01
Interim management report as of the first quarter 2008/2009




                                                                                Q1 08/ 09*   Q1 07/ 08*   Change
Key Figures        continued operations                                              T-3          T-3       in %


Sales                                                                              6,137        5,382       14,0
EBIT for continued operations                                                     –3,791        –673         n.a.
Earnings before tax for continued operations                                      –4,071        –838         n.a.
Orders on hand on reporting date                                                   2,774        1,640       69.2


Subscribed capital                                                                24,172       16,922       42.8
Equity capital                                                                    56,407       65,200      –13.5
Equity ratio                                                                      48.3%        53.6%        –9.9
Balance sheet total                                                              116,741      121,592       –4.0


Employees (on reporting date)                                          number        201          195        3.1
Employees (average)                                                    number        201          195        3.1
Personal expenses                                                                  2,565        2,360        8.7


Capital expenditure                                                                1,367          483      182.8


Cash flow from operating activities                                               –1,995        –614         n.a.
Cash flow from investing activities                                                3,473      –17,776        n.a.
Cash flow from financing activities                                               –1,457          586     –348.8


Number of shares (average)                                                          24.2         16.9       43.2
Earnings per share (undiluted and diluted)                                        –0.084       –0.058        n.a.


*The financial year commences on December 1 and ends on November 30.
      PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                                                               I 02
      Interim management report as of the first quarter 2008/2009




01.   Business and economic conditions
      PlasmaSelect AG, Munich is an industrial holding company operating in the fields of health care and new technologies.


      Following the Group’s radical restructuring activities in the last financial year, PlasmaSelect AG is now in the “alignment phase“, the last phase of restructuring.
      During this phase, holdings with a clear focus on core competences are set up, so that they can successfully develop in long-term growth markets.


      In the Health Care segment, the DeltaSelect holding is undergoing further development through complementary product lines and internationalisation through coo-
      peration with partners. To this end, the company has plans, not only to develop its own pharmaceutical licenses, but also to purchase licenses or entire pharmaceu-
      tical companies. The aim is to broaden the existing product portfolio in such a way as to reinforce its market position as an international supplier of hospital solu-
      tions in the long term. The investment TheraSelect, which represents German production, is continuing to cut its capacity as planned. Production at the Pfullingen
      plant is limited to high-volume products for DeltaSelect and non-transferable industrial customers. Alternative options for the Pfullingen plant are currently being
      considered.


      The Water Treatment segment is pressing ahead at full speed with the expansion of the global sales and service network for its four business segments – drinking
      water, process water, waste water and ballast water (nautical sector) – with its company Aquaworx Germany. In the first quarter of 2009, work thus began to esta-
      blish business hubs in the UK, US and India. Agreements have already been entered into with sales partners in the Benelux countries, Brazil, Scandinavia, India,
      Russia, Singapore, the Balearic Islands, Canada, Kazakhstan and France. The company Aquaworx ATC has been engaged in activities to obtain the necessary certi-
      fication for its ballast water treatment system from NIOZ (Netherlands Institute for Sea Research), on the island of Texel in Holland, by means of land and ship-
      based tests.




02.   Course of business and economic situation
      In the first quarter of the new financial year, business performance was in line with our expectations. The consolidation of the Health Care segment is now almost
      complete. The closure of the Marburg production site has been postponed in order to permit processing of the last large contract manufacturing order, probably for
      a month, until June 2009. In the course of the expansion of the product portfolio of the Hospital Solutions segment, investment for several licenses is under review.


      Work to set up the Water Treatment segment is progressing in leaps and bounds. Aquaworx is very much in demand, particularly in the Waste Water segment. Since
      this segment is characterized by project business, a certain time elapses between the customer inquiry, the customer order and the acceptance of the service by the
      customer. The Drinking Water business, which is played out largely at international level, is taking a keen interest in Aquaworx products.
PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                                                             I 03
Interim management report as of the first quarter 2008/2009




In the coming months, priority is therefore to be given to continuing to build up production capacity in Switzerland in order to be able to meet market demand. In
the Ballast Water segment, Aquaworx is only a short step away from obtaining “basic approvals”, which will signify that the next milestone on the road to the cer-
tification of ballast water systems will have been reached. This will bring us another step closer to access to the lucrative nautical market, while confirming Aquaworx
technology as an ideal solution to the global ecological problem of ballast water.


The first quarter is closing with a negative EBIT of u –3.8 million. This takes account of minority interests in Aquaworx AG totaling u –1.8 million. The result is affec-
ted by the Water Treatment segment currently being set up, which accounts for u –2.7 million of the loss. The Health Care segment remains more or less unchan-
ged from the previous year, with EBIT of u –0.5 million.


Group sales of u 6.1 million, which come largely from the Health Care segment, are around 14 % higher than the same period of the previous year. Sales costs
amounted to u 6.7 million, of which u 1.6 million are attributable to the Water Treatment segment and u 5.1 million to the Health Care segment. Sales costs in the
Health Care segment include a special effect totaling approx. u –0.5 million compared with the previous year. Allowing for this effect, the gross margin remains
unchanged from the previous year.



Healthcare
The hospital solutions market remains characterized by fierce competition and the far-reaching effects of government regulations. The competition consists predo-
minantly of a small number of rival firms which are dominant because of their financial and organizational resources and their excellent sales performance. Despite
the financial crisis, costs continue to increase in this segment due to rising commodity, energy and transport costs. In order to meet the demands of this environ-
ment and boost its general competitiveness, PlasmaSelect has by and large outsourced production risks, adjusted its own product portfolio and taken measures to
add to its product portfolio in the Hospital Solutions business. In this way, it has succeeded in fleshing out what had formerly been Italian production by founding
the joint venture company, Diaco Medical Group, with a view to increasing production potential and improving production results by scaling up purchasing and
production. Moreover, with our Greek production partner, we have set up a further reliable pillar to secure the supply of high quality goods. The Health Care seg-
ment is expected to make further progress on the market side by broadening its product portfolio and working with international partners.


In the first quarter, the Health Care segment generated sales of approx. u 6.0 million, an increase on the adjusted value of the previous year (sales in the previous
year including Italy: u 8.7 million, share attributable to Italy: u 3.5 million) of u 5.3 million. At approx. u –0.5 million, EBIT remains more or less unchanged from
the previous year’s value of approx. u –0.4 million. From the standpoint of the new strategic direction of the Health Care business, not including own production,
if the current production results are regarded as a special effect in the context of discontinuation of German production activities, calculation of the EBIT result for
the Health Care segment amounts to approx. u 0.1 million.



Water Treatment
The water treatment market is a fast-growing future market which is becoming increasingly important, primarily due to a new trend towards greater environmental
awareness in society, a shortage of drinking water worldwide and the availability of new technologies.
      PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                                                                I 04
      Interim management report as of the first quarter 2008/2009




      The products developed by Aquaworx are ecological and innovative solutions for the submarkets of drinking water, process water (industry), waste water and bal-
      last water. Products are developed and manufactured in Switzerland. They are to be sold worldwide via the German sales company. Aquaworx is building up an
      international sales network with selected partners for this purpose. It now has a highly diversified, international sales network. A strategic partnership with the
      Swiss company, TELSONIC AG provides a basis for the rapid development of the export business. Aquaworx will be able to use the international branches and sales
      channels of this partner, thus securing for itself maintenance capacities on foreign markets. TELSONIC is one of the leading manufacturers of ultrasound technolo-
      gy and, among other things, a supplier of Aquaworx.


      The initial reactions of the markets to the market launch have been extremely encouraging. There is a big demand for water treatment systems, particularly in the
      drinking and waste water markets, and Aquaworx is offering the right products in these areas. The market for process water is characterized by project business
      and invitations to tender, which means that it can take some time to acquire individual orders.


      The Water Treatment segment is still in the process of being set up, and posted sales of u 0.13 million at the end of the first quarter. EBIT stands at u –2.7 million,
      of which u 1.6 million is due to depreciation on technology. Start-up costs for production in Switzerland and international sales structures account for u 1.1 milli-
      on. The share of minority interests in EBIT totals u –1.78 million.




03.   Earnings situation
      Consolidated Earnings Situation
      The review of the earnings situation in the year-on-year comparison includes two prior year items:


      With effect on November 14, 2008, PlasmaSelect AG disposed of its 100% holding in its Italian subsidiaries NovaSelect S. p. A. and AltaSelect S. r. l. and sold this
      to Diaco Medical Group GmbH, Villach/Austria. Under IFRS, divestment of the two subsidiaries is regarded as discontinued operation; the previous year's figures
      have thus been accordingly adjusted in the profit and loss account and cash flow statement.


      The acquisition of shares in Aquaworx in the third quarter of 2008 is recognized in the year-on-year figures for the costs of ongoing operations. From the 3rd quar-
      ter 2007/2008, Aquaworx Group has been fully consolidated in the financial statements of the PlasmaSelect Group. A cost comparison is therefore only meaning-
      ful after the deduction of costs generated by Aquaworx in the first quarter of 2008/2009.


      With u 6.1 million in the first quarter of fiscal year 2008/2009, Group sales in ongoing operations were up by 14% in the year-on-year comparison figures of u 5.4
      million. Additional sales of u 3.5 million were generated in the discontinued area (Italy) in the prior-year quarter.
PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                                                           I 05
Interim management report as of the first quarter 2008/2009




In the first quarter, consolidated sales costs of u 6.7 million were reported, thus exceeding sales revenues. The doubling over the same period last year (u 3.3 mil-
lion) is due to three main facts. In order to compare sales costs, the previous year's figure (assigned to this area in the previous year under an IFRS option), has to
be increased by u 0.6 million, resulting in adjusted sales costs of u 3.9 million. The cost of sales for the reporting period includes amortization of u 1.6 million per
quarter for Aquaworx technology, beginning with the third quarter of 2007/2008. A further increase in cost of sales resulted from extraordinary items in the health-
care segment in the amount of around u 0.5 million from the pending closure of the plant in Marburg. This leads to computationally comparable cost of sales of
u 4.6 million in the first quarter.


In the first three months, development costs totaled T-u 414, which were capitalized in accordance with IFRS. Of these, T-u 41 were capitalized in the Health Care
segment and T-u 373 in the Water Treatment segment, in this case in the ballast water segment.


In the ongoing areas, the balance of sales, administrative and other operating expenses and income was u 3.2 million (previous year: u 2.8 million). Adjusted for
the costs of Aquaworx in the first quarter of 2009 (u 1.2 million), the costs during the reporting period amount to u 2.0 million. In order to compare costs, the sum
of the costs of the prior-year quarter (assigned to this area in the previous year under an IFRS option) must be reduced by u 0.6 million. The sum of comparable
sales, administrative and other operating expenses and income has thus declined by 8.9% from u 2.2 million in the same quarter of the previous year to u 2.0 mil-
lion in the first quarter of the reporting period.


The depreciations included in the cost of sales, distribution and general administration expenses total u 1.7 million (previous year: u 0.6 million in ongoing opera-
tions). In year-on-year comparison, amortization for the Aquaworx technology of u 1.6 million is recognized in the first quarter of the year (previous year: 0).


At u –3.8 million, the Group recorded a negative operating result (EBIT) (previous year: u –0.7 million in ongoing operations). Other investors’ share of EBIT amo-
unts to u –1.8 million (previous year: 0). After the first-time consolidation of Aquaworx in the third quarter of the previous year, EBIT was adjusted for Aquaworx’
negative EBIT. As a result of the aforementioned facts, EBIT for the Group's ongoing operations fell only slightly to u –1.1 million in the reporting period compared
to u –0.7 million in the prior-year quarter.


Group earnings after taxes in ongoing operations fell by u –1.0 million in the prior year period to u –3.3 million the reporting period, including the quarterly result
of the Aquaworx group of u –1.9 million. Group earnings include the u –1.2 million share of other investors in the period result, leading to a period result of
u –2.0 million for PlasmaSelect AG in ongoing operations for the first quarter of the year. Without the Aquaworx result, PlasmaSelect AG’s period result would be
u –1.4 million and thus approximately on a par with prior year’s level (previous year: u –1.0 million).


In a continuing difficult market environment, the listing of PlasmaSelect’s share showed a downward trend. Thus, after a price of u 0.52 as of November 30, 2008,
the share fell by 15% to u 0.44 (Xetra) as of February 28, 2009.
PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                                                             I 06
Interim management report as of the first quarter 2008/2009




Earnings Situation by Segment
Sales revenues were primarily generated in the Health Care segment (u 6 million), while sales of T-u 46 were generated in the Others segment and T-u 133 in the
Water Treatment segment, which is currently in development.


Sales costs accrued predominantly in the Health Care segment. The continuing Health Care sector thus recorded an increase in cost of sales from u 3.9 million in
the prior-year period to u 5.1 million in the reporting period. In order to compare sales costs, the prior year's figure (assigned to this area in the previous year under
an IFRS option), has to be increased by u 0.6 million, resulting in adjusted sales costs of u 4.5 million. Compared to the prior-year quarter, the cost of sales for the
reporting period include extraordinary items of u –0.5 million from the pending closure of the plant in Marburg. Excluding extraordinary items, the cost of sales
would be at last year's level, at u 4.6 million.


The recently added Water Treatment segment generates sales costs of T-u 1,584, resulting primarily from the amortization of technology (T-u 1,557) during the
development stage.


In the Health Care area, the balance of cost of sales, administrative and other operating expenses and income prior to consolidation was u 1.3 million (prior year:
u 1.6 million in the ongoing Health Care area, i.e. excluding Italy). Resulting from improved efficiency at DeltaSelect GmbH, this represents a cost reduction of
14.8%.


The Water Treatment segment recorded cost of sales, administrative and other operating expenses and income of u 1.2 million during the development stage (pre-
vious year: 0).


Before consolidation, the Others segment recorded distribution costs of u 1 million, administrative costs of u 0.7 million and other operating income of u 1.1 mil-
lion, with u 1.1 million of sales and administrative costs being recharged to other segments.


With u –0.5 million in the reporting period, EBIT for the Healthcare segment remains at last year’s level (previous year: u –0.4 million). EBIT for the prior year, adju-
sted for the amount of the discontinued area in Italy, (in November 2008), totaled u –0.2 million. Compared to the prior-year quarter, EBIT for the reporting peri-
od includes extraordinary items of u –0.5 million from the pending closure of the plant in Marburg. Excluding special items, EBIT for this segment would break even
at u 0 million and thus exceed the adjusted EBIT of u –0.2 million of the previous year.


EBIT in the Water Treatment segment of u –2.7 million includes amortization of technology in the amount of u 1.6 million. Other investors’ share of EBIT amounts
to u –1.8 million.


At u –0.6 million, EBIT for the Others segment remains at last year’s level (u –0.5 million).
      PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                                                                I 07
      Interim management report as of the first quarter 2008/2009




04.   Financial position
      The cash flow from operating activities in the continued operations amounts to u –2.0 million in the reporting period after u –0.6 million in the previous year`s first
      quarter. The increased cash outflow is mainly due to start-up and development costs in the area of Water Treatment.


      The inflow of funds provided by investment activities came to u 3.5 million, compared to a cash flow of u –17.8 million in the previous year. The cash inflow in
      2009 results primarily from the sale of securities, and the cash outflow of the previous year from the purchase of securities. There are also higher acquisition costs
      for tangible assets and intangible assets of u 0.9 million in the year-on-year comparison for the Health Care and Water Treatment segments.


      The cash outflow for financing activities totals u 1.4 million, with an inflow of funds in ongoing operations of u 0.6 million in the same quarter last year. The cash
      outflow during the reporting period is the result of an early redemption of leasing contracts and the surplus from loan repayments against the use of short-term
      credit lines.


      At the balance sheet date, the Group has cash and equivalents and short-term securities totaling u 11.9 million.




05.   Asset Position
      Compared to November 30, 2008 (u 120.7 million), consolidated assets were down by 3.3% to u 116.7 million on February 28, 2009, which is due to ordinary business
      activity – see Earnings Situation – as well as the facts reported under Financial Position.


      The change of T-u 25 in other capital reserves involves currency translation differences from the consolidation of accounts of Aquaworx companies with headquar-
      ters in Switzerland.


      Reported as equity on the balance sheet date, other investors’ share of u 18.6 million includes the 70% stake of Sanaworx AG, Arbon (Switzerland) in Aquaworx
      AG, Arbon (Switzerland). Other investors’ share fell by its share of loss in the first quarter of 2009. Due to the quarterly loss of 49.3% as of 30 November 2008,
      the Group’s equity ratio fell to 48.3% on the balance sheet date.
      PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                                                                     I 08
      Interim management report as of the first quarter 2008/2009




06.   Opportunities and risks
      In the scope of our risk management, we monitor our chances and risks through early warning and monitoring systems, which we developed in cooperation with
      our auditors. The supervisory board is regularly updated about the current status regarding the development of the opportunities and risks. The resulting opportu-
      nities for PlasmaSelect are presented in the Forecast report.


      For our segments we anticipate the same risks already mentioned in the annual financial statements as of November 30, 2008:



      Business risks – Health Care area
      Risks associated with procurement, production and sales


      >>> The outsourcing of parts of production to foreign contract manufacturers poses a risk. It is primarily a technical project, which may experience technical faults
      despite the care and commitment of the parties involved, even if the selected manufacturer can demonstrate years of experience in the manufacture of similar pro-
      ducts and uses a well-established technology.


      >>> In production, raw materials and energy are required; depending on the market situation their market prices can fluctuate considerably. Regulatory require-
      ments of the legislative and market conditions do not permit us to pass on rising costs to our customers. As far as possible, we try to protect our interests through
      long-term delivery contracts.


      >>> Since the German generics line of business was sold during the 2007 financial year, the Group has concentrated not only on developing new business seg-
      ments, but also on restructuring and updating the business in infusion, injection and rinsing solutions and other medical products that is now part of the Health
      Care segment. The aim of the restructuring measures initiated is a return of this segment to profitability. Toward this end, extensive measures have already been
      introduced. One of the measures taken was to merge the loss-generating business in Italy with the business of a competitor in order to leverage synergies; it was
      decided that the manufacturing facilities in Marburg, which have experienced difficulties in production, would close. Despite the measures already taken and those
      still to be seized, the risk that it will not be possible to return the segment to profitable operation still exists. As a result, further unscheduled financing could beco-
      me necessary to finance further restructuring expenditure on the one hand and business operations on the other.



      Business risks – Water Treatment segment
      While controlling and scaling our own technology to the production of marketable products for the individual sub-markets are key to the success of the Water
      Treatment segment, securing an edge in terms of know-how or differentiating technology from that of competitors are also important. We must furthermore gain
      a foothold in both national and international markets as quickly as possible in order to achieve the planned market shares and establish ourselves as expert provi-
      ders. We see numerous risks in this context:


      >>> Business planning is based on a market research study produced by external specialists. Even if sales and financial performance are calculated with signifi-
      cantly conservative margins, the risk that Aquaworx will not fully tap the targeted sales and earnings potential cannot be ultimately ruled out. There is thus an
      impairment risk with respect to the intangible assets capitalized in the Water Treatment segment.
      PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                                                             I 09
      Interim management report as of the first quarter 2008/2009




      >>> The competitive position of Aquaworx is heavily dependent on the development of commercially successful products and technologies. There is no guaran-
      tee that all products currently under development will attain their planned marketability and be able to hold their own against the competition with the degree of
      success expected.


      >>> The possibility cannot be ruled out that the market entry of Aquaworx will be unduly complicated as a result of defensive moves by competitors, whether
      this means new technologies, marketing campaigns or cooperation with experienced and strong partners.


      >>> The knowledge and experience accumulated in the still rather young company may not be enough to ensure a lasting presence in the water treatment mar-
      ket in competition with rivals that are already operating successfully in the market. Sales targets in individual product segments run the risk of not being met, or
      could make increased effort, for example in marketing and sales, necessary, thereby putting the planned results at risk.


      >>> Over the medium term, changes could occur on the market in terms of technology, which could lead to unscheduled depreciation on the technology of
      Aquaworx.


      >>> Achieving short-term success depends first and foremost on the granting of the required licenses, particularly in the ballast water segment. Even if the inte-
      rim results can be assessed as unequivocally positive, delays cannot be ruled out. In the area of drinking water treatment, there are also risks – although more
      minor – of a delayed market entry within the next financial year.




07.   Financial Risks
      >>> Credit and foreign exchange risks currently do not represent any material risk to PlasmaSelect AG. To ensure the ability to pay, existing and future payment
      obligations are managed across all Group companies. As part of risk management, plan/actual variances are conducted and measures initiated as needed. Cash
      and cash equivalents are primarily reserved in the form of call money and time deposits. Moreover, lines of credit are available from the house banks. In view of
      the crisis predominating on the financial markets, however, the risks facing banks in granting adequate loans by the banks cannot be ruled out completely.


      >>> Interest rate risks are hedged for the most part by long-term loan agreements with fixed interest rates. Moreover, in order to absorb the effects of possible
      interest rate changes, PlasmaSelect carried out an interest rate swap for u 5 million which matures on August 29, 2012.


      >>> The timely payment of the purchase price receivables accrued in selling the two subsidiaries, NovaSelect S.p.A. and AltaSelect S.r.l. to the associate DIACO
      Medical Group GmbH, amounting to u 8.9 million, could be delayed, or could have a negative impact on the amount of the repayment due to the less-than-posi-
      tive business performance of the joint venture.
      PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                                                                I 10
      Interim management report as of the first quarter 2008/2009




      >>> Under certain circumstances, an obligation by DIACO Medical Group GmbH to financially support NovaSelect S.p.A. and AltaSelect S.r.l. could be created.
      This would be the case if PlasmaSelect Group were to fall short of a certain purchase quantity of goods during the first year. In addition, PlasmaSelect AG could be
      required to compensate for losses if a defined third-party transaction did not take place.


      >>> The development of the new Water Treatment segment could be delayed, postponing – in a departure from the budget established in the business plan –
      the contribution of surplus revenue to the financing of PlasmaSelect AG and to the further development of this new line of business. In such a case, it could beco-
      me necessary to provide PlasmaSelect AG and the shareholders holding the majority of the shares with financial means in the form of equity or borrowed capital.
      Depending on the extent of the departures from the business plan, there is a risk that the financing options would be exhausted.


      >>> PlasmaSelect AG is currently generating negative cash flow from operating activities. If it is not possible to make the Health Care segment once again pro-
      fitable and to develop the Water Treatment segment according to plan, risks that threaten the existence of the company and the Group could result.




08.   Forecast and Outlook
      The restructuring of the Health Care segment is for the most part complete. Economies of scale and synergies generated in purchasing and production by the joint
      venture Diaco Medical Group GmbH with Diaco S.p.A. will lead to improved results in the infusion and rinsing solution business within one year.


      With the planned expansion of the product portfolio to include the Hospital Solution business, the Health Care segment will gain another foothold in the infusion
      solutions business. Work on expanding the product portfolio is proceeding well and will ensure that the Health Care segment will expand its market position. We
      assume that this will allow us to increase the profitability of the Health Care segment with lasting effect. Our planning calls for this segment to return to profita-
      bility in the next financial year, in consideration of any further restructuring measures in the current 2008/2009 financial year.


      The activities for gaining the required certifications in the specific field of application have been successful. In the ballast water (nautics) market segment, we are
      expecting the basic approval to be granted by the IMO (International Maritime Organisation) in the near future. The Type Approval could then be issued at the begin-
      ning of 2010, giving rise to expectations of sales in this important product group during the 2009/2010 financial year.
      PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                                                              I 11
      Interim management report as of the first quarter 2008/2009




      Building the sales company Aquaworx Deutschland GmbH into an effective organization in the segments of technical sales, project and product management and
      business development has made much progress. This is already obvious from customer surveys. In order to meet market demand, production capacities will be
      expanded further and prepared for higher demand. According to our current planning, we expect to break even in operations in this segment in the fourth quarter
      of the current 2008/2009 financial year. In line with our strategic corporate planning, we are expecting positive EBIT for the fourth quarter of the 2008/2009 finan-
      cial year, which will increase considerably in the 2009/2010 financial year.


      For the Group, we expect to reach the break-even point and to generate positive cash flow in the first quarter of the new financial year 2009/2010. In our finan-
      cial planning, based on our business planning, we assume that the financing of the Group is ensured until the break-even point is reached, through careful finan-
      cial management in the fourth quarter of the current financial year. For any financing bottlenecks that may arise, we will examine alternative forms of financing in
      order to ensure that no financing gaps are created in the next two years or until the break-even point is reached in the Group.




09.   Disclaimer
      This interim management report contains certain forward-looking statements, including statements by the Board of Directors about its current expectations for the
      Health Care and Water Treatment segments, its business strategy and future developments and expectations. Such forward-looking statements are subject by their
      very nature to risks and uncertainties, which could cause the actual results and developments to depart materially from the expectations of the Board of Directors.


      All forward-looking statements pertain exclusively to that point in time at which this Group Management Report was created and published. The Board of Directors
      assumes no obligation to adjust its statements to future occurrences or developments.
PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                           I 12
Consolidated Income statement




Consolidated Income statement

                                                                                               2008/2009        2007/2008     2007/2008
                                                                                            Q1 (3 months)    Q1 (3 months)   (12 months)
                                                                                                      T-w              T-w           T-w


1. Continued operations
Sales                                                                                               6,137            5,382        20,202
Cost of sales                                                                                      –6,713*          –3,302       –25,701
Gross profit                                                                                        –576            –2,080        –5,499
Research and development expenses                                                                       0               0           –20
Distribution expenses                                                                              –2,896           –2,513        –7,572
General and administrative expenses                                                                 –718             –685         –6,057
Other operating income                                                                               548              452          1,513
Other operating expenses                                                                            –149               –6         –1,835
Operating profit (EBIT)                                                                           –3,791**           –673        –19,470
Other taxes                                                                                             3              –1            –3
        Result from equity accountes investments                                                        0                -          –16
        Financial result                                                                            –283             –164         –2,099
Financial result and result on investments                                                          –283             –164         –2,115
Earnings before taxes                                                                              –4,071            –838        –21,588
Income taxes                                                                                         804             –136          3,395
Net income after taxes                                                                             –3,267            –974        –18,193
thereof net income attributable to minority interests                                              –1,232                0        –2,031
thereof net income attributable to shareholders of PlasmaSelect from continued operations          –2,035            –974        –16,162
Earnings per share (undiluted and diluted)                                                       –0.084 1           –0.058      –0.669 1


2. Discontinued operations
Sales                                                                                                   0            3,479        13,800
Cost of sales                                                                                           0           –2,802       –14,237
Gross profit                                                                                            0             677          –437
Distribution expenses                                                                                   0            –942         –3,506
General and administrative expenses                                                                     0            –136          –613
Other operating income                                                                                  0             221          2,631
Other operating expenses                                                                                0             –38          –210
Loss from the sales of Generics division                                                                0               0        –17,877
Gain from sale of the Italy geographic sub-segment                                                      0               0          1,013
Operating result                                                                                        0            –218        –18,999
Other taxes                                                                                             0             –16          –141
Financial result                                                                                        0            –103            79
Earnings before taxes                                                                                   0            –337        –19,061
Income taxes                                                                                            0             262           553
Result from discontinued operations                                                                     0             –75        –18,508


3. Total net income attributable to shareholders of PlasmaSelect                                   –2,035           –1,049       –34,670
Earnings per share (undiluted and diluted)                                                       –0.084 1         –0.062 1      –1.434 1


*Includes depreciation T-u –1.557 of the Aquaworx Technology,
thereof attributable to minority interests:                                                        –1,090
** including minority interests:                                                                   –1,783               0         –2,972
PlasmaSelect AG >>> Three-Month Report 2009
                                                                                           I 13
Consolidated Balance sheet




Consolidated Balance sheet

                                                          28/02/09   29/02/08   30/11/08
                                                               T-w        T-w        T-w


ASSETS
Current assets
Cash and cash equivalents                                   10,871     23,057     10,827
Securities                                                    985      17,640      4,416
Trade receivables                                            5,734     10,007      5,402
Receivables from income tax                                     0        143          0
Inventories                                                  5,656     13,261      5,999
Other current assets                                         2,425      4,431      1,798
Total current assets                                        25,671     68,539     29,442


Non-current assets
Loans                                                           0       3,636         0
Property, plant and equipment                                3,337     12,980      2,498
Intangible assets                                           77,881     14,149     79,069
Investments accounted for using the equity method               0           -         0
Deferred tax assets                                           912       4,978       798
Other non-current assets                                     8,940     17,310      8,940
Total non-current assets                                    91,070     53,053     91,305
Total assets                                              116,741    121,592    120,747


SHAREHOLDERS` EQUITY AND LIABILTIES
Liabilities
Current liabilities and provisions
Short-term portion of the financial leasing liabilities       185       1,351       557
Trade payables and other liabilities                        11,207     14,391      9,471
Current tax                                                  2,157      2,145      2,157
Other provisions                                             2,136         0       2,216
Current portion of non-current liabilities                   5,192      6,303      5,727
Total current liabilities and provisions                    20,877     24,190     20,128


Non-current liabilities and provisions
Long-term liabilities, less the current portion             25.385     20.212     25.579
Long-term financial leasing liabilities                        82       2.200       771
Deferred tax liabilities                                    13.991      9.790     14.682
Total non-current liabilities and provisions                39.458     32.202     41.032


Shareholders` equity
Subscribed capital                                          24.172     16.922     24.172
Capital reserves                                           114.725    113.774    114.725
Other reserves                                               –299       –330       –324
Net loss                                                  –100.823    –65.166    –98.787
Minority interest                                           18.631         0      19.801
Total shareholders` equity                                  56.406     65.200     59.587
Total equity and liabilities                              116.741    121.592    120.747
PlasmaSelect AG >>> Three-Month Report 2009
                                                                              I 14
Consolidated Cash flow statement




Consolidated Cash flow statement




Cash flow from operating activities
Operating profit (EBIT)
Depreciation and amortisation of non-current assets
Other non-cash income items


Result before changes in assets and liabilities
Increase (–) / Decrease in trade accounts receivables and other receivables
Increase (–) / Decrease in inventories
Increase / Decrease(–) in liabilities


Cash outflow / inflow from current operations


Interest paid
Income taxes paid


Cash outflow / inflow from operating activities


Cash flows from investing activities
Interest received
Investment in intangible assets and property, plant and equipment
Proceeds from the sale of securities
Payments for the purchase of securities


Cash outflow / inflow from investing activities


Cash flow from financing activities
Increase / Decrease in financial leasing liabilities
Proceeds from short-term and long-term loans
Redemption of loans


Cash outflow / inflow from financing activities
Other changes in shareholders` equity/currency translation


Net change in cash and cash equivalents


Cash and cash equivalents at the beginning of the period


Cash and cash equivalents at the end of the period
                                                                                                    I 15




December 1, 2008 to February 28, 2009             December 1, 2008 to February 28, 2008
                           continued                    discontinued                 continued
                          operations      Total           operations                operations
                                 T-w        T-w                  T-w                          T-w



                              –3,791      –891                  –217                        –674
                               1,716       818                   269                         549
                                –458                                                           0


                              –2,533       –73                    52                        –125
                                –958      4,404               –1,594                        5,998
                                 343      –929                   501                       –1,430
                              –1,736     –3,684                1,001                       –4,685


                              –1,412      –281                   –40                        –241


                                –583      –464                  –106                        –358
                                   0       –47                   –31                         –16


                              –1,995      –791                 –177                         –614



                                 202       197                     0                         197
                              –1,367      –506                   –23                        –483
                               4,638         0                     0                           0
                                   0    –17,489                    0                      –17,489


                               3,473    –17,799                  –23                  –17,776



                              –1,061      –206                     0                        –206
                                 333      1,341                  182                        1,159
                                –729      –393                   –25                        –368


                              –1,457       743                 –157                          586
                                  24


                                  44    –17,847                  –43                  –17,804


                              10,827     40,904                  122                      40,782


                              10,871     23,057                   79                      22,978
PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                I 16
Consolidated Segment information by business segment




Consolidated Segment information by business segment

                                                                Health Care                  Water Treatment
                                                       08/09             07/08      08/09              07/08
                                                          T-w                 T-w      T-w                T-w


External sales                                          5,957             8,746       133                  0
Operating profit (EBIT)                                 –514              –424      –2,701                 0
Earnings before taxes                                   –815            –1,016      –2,699                 0


Capital expenditure                                      558                  166     431                  0
Depreciation and amortization                            138                  799    1,555                 0
Employees (on reporting date 28/02)                      129                  244      19                  0


Segment assets 28/02                                   27,299          111,719      73,994                 0
Segment liabilities 28/02                              43,965          100,727      15,409                 0
                                                                                         I 17




         Other                     Reconciliations               Total group
08/09            07/08    08/09                07/08    08/09                   07/08
   T-w             T-w       T-w                 T-w       T-w                     T-w


   46             116                                    6,136                   8,862
 –577            –467                                   –3,792                   –891
 –588            –159                                   –4,073                  –1,176


  378             340                                   –1,367                    506
   23              19                                    1,716                    818
   53              51                                     201                     295


86,438       91,809      –70,990            –81,936    116,741                 121,592
25,633       17,562      –24,672            –61,897     60,335                  56,392
PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                        I 18
Consolidated Development of group equity




Consolidated Development of group equity

                                     Subscribed       Capital     Other    Net income/         PS AG Anteile anderer       Gesamtes
                                           capital   reserves   reserves          loss   shareholder`   Gesellschafter   Eigenkapital
                                                                                              equity
                                              T-w         T-w        T-w           T-w            T-w             T-w             T-w



Balance as of December 1, 2006             16,922    113,774       –330       –63,701         66,665                0         66,665


Net loss                                        0          0          0          –416           –416                0           –416


Balance as of November 30, 2007/
December 1, 2007                           16,922    113,774       –330       –64,117         66,249                0         66,249


Initial consolidation of Aquaworx               0          0          0             0              0           20,090         20,090
Currency translation differences                0          0         30             0             30               70            100
Capital increase                            7,250        951          0             0          8,201            1,672          9,873
Cost of capital increase                        0          0        –34             0            –34                0            –34
Deferred tax on cost of capital increase        0          0         11             0             11                0             11
Net loss                                        0          0          0        –34,670       –34,670           –2,031        –36,701


Balance as of November 30, 2008            24,172    114,725       –324       –98,787         39,787           19,801         59,587


Currency translation differences                0          0         25             0             25               62             87
Net loss                                        0          0          0         –2,036        –2,036           –1,232         –3,268


Balance as of February 28, 2009            24,172    114,725       –299      –100,823         37,775           18,631         56,406
                                                                                         I 19




    Three-Month Report 2008/2009
Notes
  on the consolidated three-month report statements
  as of February 28, 2009




                                 >>>         Accounting and valuation principles            >>>


                                              >>>        Mergers       >>>


                                                        >>>     Other provisions         >>>


                                                >>>       Segment report           >>>


                                >>>          Unusual circumstances           >>>


                                       >>>          Events after balance sheet reporting date       >>>


                               >>>       Corporate bodies          >>>


                    >>>     Interest held by the Corporate bodies of PlasmaSelect AG              >>>
      PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                                                          I 20
      Notes on annexes




01.   Accounting and valuation principles
      The three-month financial statements for the period ending February 28, 2009 were prepared in accordance with the international Financial Reporting Standards
      (IFRS), particularly the interim reporting requirements set forth in IAS 34.


      The same accounting principles and policies and calculation methods were used as in the previous annual financial statements for the period ending November 30,
      2008, with the exceptions set forth below.


      No deferred tax assets were recognized for tax loss carry forwards of TheraSelect GmbH amounting to u 0.8 million because it is unlikely that they can be offset
      against future taxable income.




02.   Mergers
      None




03.   Other provisions
      In late August 2008, the management of TheraSelect GmbH, a wholly-owned subsidiary of PlasmaSelect, informed the works council of its decision to close down
      the production plant in Marburg in the second quarter of 2009. The close-down of the plant will move probably about one month.


      Due to the decision to close down the production plant in Marburg, other provisions were formed for the first time in the third quarter of 2008 for restructuring
      measures. From the other provisions for the close-down of the plant Marburg amounting to u 1.4 million in the balance sheet as per 30/11/2008 u 0.1 million have
      come to the payment in the actual three-month period.
      PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                                                               I 21
      Notes on annexes




04.   Segment report
      The segment report is attached as an appendix to these financial statements. The regulations of IFRS 8 are voluntarily applied in the current financial year.



      a) Business segments
      Following the partial takeover of Aquaworx AG in the third quarter of 2008, the group’s internal reporting and organizational structure was changed. In accordan-
      ce with the company’s business activities, the new organizational structure is divided into the following segments:


      >>> Healthcare
      >>> Water Treatment
      >>> Others


      The purpose of the new segmentation is to make the productivity and the assets and financial position transparent for the individual activities. The prior-year figu-
      res have been duly adjusted to the new segments.


      The business activities in the Health Care segment comprise the distribution and production of infusion solutions, generics, and other pharmaceutical or chemical
      products, as well as the sale of medical consumables and supplies. The distribution of the products of TheraSelect GmbH as well as, in addition, from contract manu-
      facturers is provided by DeltaSelect GmbH and FarmacoNetwork BV, The Netherlands. The last year's figures contain the contributions of the NovaSelect S.p.A.,
      Potenza (Italy) and the AltaSelect S.r.l., Verona (Italy) who were sold with effect to November 14, 2008.


      The Water Treatment segment comprises the business of the Aquaworx Group in which PlasmaSelect holds 30 % of the shares and 50.1 % of the voting rights.


      The Others segment comprises the holding area and the business activities of PlasmaSelect Zentrale Services GmbH, which mainly renders administration and logi-
      stics services in the group.



      b) Period results per segments
      Health Care segment
      At u 6 million, the sales in this segment fell by 31.9 % compared to the same three-month period of the previous year (u 8.7 million). The Italian companies sold
      in November 2008 have contributed u 3.5 million to the turnover of the last year's quarter. Adjusted by this contribution of u 3.5 million the sales increase by 13 %
      from u 5.3 million to u 6 million in the continued Health Care business.


      The EBIT in the Health Care Segment in the reporting period lies with u –0.5 million on last year’s level (previous year: u –0.4 million). After deducting the contri-
      bution of the Italian business sold in November 2008 the adjusted EBIT of the last year's quarter is amounting to u –0.2 million. In the reporting period the EBIT
      contains a special effect of approx. u –0,5 million in comparison to the last year's quarter which results from preparing measures for close-down the plant Marburg.
PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                                                          I 22
Notes on annexes




Without special influence the EBIT of this segment would be on Break-Even at u 0 million and would lie therewith over the adjusted EBIT of u –0.2 million of the
year before.


The improved financial result in the Health Care segment from u –0.6 million in the same period of the previous year (respectively after deduction of the contribu-
tion of the sold Italian business: u –0.5 million) to u –0.3 million in this year’s three-month period stands out as a positive development. The reduction of loans by
DeltaSelect GmbH contributed to this improved result.


Water Treatment segment
This business segment realized sales revenues of T-u 133 in the reporting period. Depreciation on the technology of u 1.6 million are included in the EBIT of u –2.7
million in this business segment that is still in the setup stage. Minority interests had a share of u –1.8 million in the EBIT and u –1.2 million in the total segment
result.


Others segment
PlasmaSelect Zentrale Services GmbH generated sales revenues of T-u 46 (previous year: 116) from transportation services for third parties. The EBIT of the Others
Segment before consolidation amounted to u –0.6 million. General and administrative expenses as well as distribution expenses amounting to u 1.7 million were
incurred, u 1.1 million of which were recharged.



b) Significant changes in assets per segment
Health Care segment
The significant changes to assets in this segment are as follows:
                                                                                                              28/02/2009           30/11/2008                Change
                                                                                                                       T-w                   T-w                  T-w


Trade receivables                                                                                                   5,519                 8,546               –3,027
Intercompany accounts receivable                                                                                    1,251                      0              +1,251
Financial leasing liabilities short-term and long-term                                                                 267                1,328               –1,061
Trade payables and other liabilities                                                                                7,684                 6,181               +1,503
Intercompany accounts payable                                                                                      23,500                28,966               –5,466
PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                                                      I 23
Notes on annexes




The intercompany accounts receivable constitute mostly of DeltaSelect GmbH’s short-term receivable against the parent company which are to be led back on business
practices usual in the group.


The change of trade receivables and trade payables and other liabilities have been originated in the normal day trading.


A premature contract termination of some financing leasing contracts with, at the same time, purchase of the leasing objects led to a decrease of financial leasing
liabilities.


Payments to the Other segment led to a decline in intercompany accounts payable.


Water Treatment segment
The assets and debts in this segment enclose the consolidated balance positions of the Aquaworx group. The essential changes of the balance positions in this seg-
ment are:
                                                                                                           28/02/2009           30/11/2008               Change


                                                                                                                     T-w                 T-w                  T-w


Intangible assets                                                                                               39,891               41,064               –1,173
Intercompany accounts payable                                                                                      1,173                 298                +875



The residual value of the intangible assets declined due to scheduled depreciation and amortization, including u 1.6 million per quarter for the technology of the
Aquaworx, and increased due to investments in this area in the amount of u 0.4 million.


Mainly to the integration in the Group’s cash pooling resulted in the increase of intercompany accounts payable.


Other segment
The significant changes in assets and liabilities in this segment are as follows:
                                                                                                           28/02/2009           30/11/2008               Change


                                                                                                                     T-w                 T-w                  T-w


Cash and cash equivalents                                                                                          4,918               3,847              +1,071
Securities                                                                                                           985               5,416              –4,431
Intercompany accounts receivable                                                                                23,422               29,264               –5,842
Trade payables and other liabilities                                                                               2,527               6,059              –3,532



Proceeds from the sale of short-term securities had a main impact on the increase of the freely available funding.
      PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                                                                      I 24
      Notes on annexes




      The demands compared with affiliated company have decreased on the basis of payment mainly from the segment Health Care.


      Mainly due to the payment from the Health Care segment, intercompany accounts receivable have decreased. The decrease of trade payables and other liabilities
      are essentially due to the clearing of a single liability.



      Related party transactions and relationships


      The facts stated in the business report as of November 30, 2008, have not changed during the reporting period.




05.   Unusual circumstances
      None




06.   Events after the balance sheet reporting date
      None
PlasmaSelect AG >>> Three-Month Report 2009
                                                                                                                I 25
Notes on annexes




Corporate Bodies
Supervisory Board


Wilfried Riggers, Business Manager
Chairman of the Supervisory Board


Dr. Bernd Achten, Physician
Deputy Chairman of the Supervisory Board


Simon Riggers, Business Manager
Member of the Supervisory Board




Board of Directors


Bernhard Giessel, MBA
Executive Officer since December 1, 2007, Chief Executive Officer since August 15, 2008




Interests held by the corporate bodies of PlasmaSelect AG
                                                                                            Shares    Options
Board of Directors                                                                        (number)   (number)


Bernhard Giessel                                                                           10,000     30,000
PlasmaSelect AG

Bernhard-Wicki-Strasse 5
80636 Munich


info@plasmaselect.de
www.plasmaselect.de

								
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