PlasmaSelect AG / Quarter Results 05.11.2008 Release of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- PlasmaSelect AG takes decisive steps in Q3 2008 for conversion into an investment holding company Full scope of restructuring measures burdens third-quarter result with minus of 9.5 million; excluding extraordinary expenditure, nine-month EBIT is level with prior year Munich, 31 October 2008 PlasmaSelect AG (WKN 547 180), innovative Munich-based investment holding company on the healthcare and water treatment market, announces its results for the third quarter of 2008 and nine-month results for fiscal 2007/2008 as at 31 August 2008. The third quarter saw a preliminary peak in the process announced in previous quarters of transforming PlasmaSelect AG from an operational corporate holding in the health care sector into an investment company with two core divisions of Health Care (traditional health and pharmaceutical market) and Water Treatment. The one-off and extraordinary expenditures directly associated with restructuring measures in the company's Health Care division plus startup costs for the expansion of the company's new Water Treatment division generated negative EBIT of -9.5 million in the third quarter and negative EBIT of -11.4 million for the first nine months of 2008. These expenditures break down as provisions for the closure of the Marburg plant ( 2 million), further expenditures relating to the plant closure decision ( 1.4 million), non-capitalizable consulting and restructuring costs associated with the reorientation and internationalization of the Health Care division ( 1.4 million) and one-off personnel payments ( 0.4 million) from the second quarter. The Water Treatment division was a new addition in the third quarter; its EBIT is fully consolidated but economically regards PlasmaSelect AG just in 30 % and in 70 % other shareholders. This division showed EBIT of -2.1 million in its startup phase, primarily accounted for by goodwill depreciation on Aquaworx technologies ( 1.6 million). Excluding one-off and extraordinary effects, nine-month EBIT totalled -4.1 million and was thus roughly equal to the adjusted level of -4.0 million for the prior year (excluding EBIT contribution from the generics business sold off in the meantime). Sales revenues for the third quarter of 2008 rose year-on-year by 53,000 to 8,648,000 (3rd quarter of 2007: 8,595,000). Despite the turmoil in the global economy, corporate sales for the first nine months of 2008 fell year-on-year by only 4.7% to 26.3 m (compared with 27.6 m for the same period 2006/2007). 'Results for the third quarter and the nine-month period of fiscal 2007/2008 are in line with our anticipations', declares Bernhard Giessel, CEO of PlasmaSelect AG. 'PlasmaSelect AG's Health Care division is currently undergoing extensive restructuring with the goal of repositioning existing health care business. The one-off special effects associated with this process in the third quarter have proved a heavy burden for EBIT. However, the preconditions required for restructuring the company as an investment holding company with core divisions of Health Care and Water Treatment are now in place, and PlasmaSelect AG is in an ideal position to expand successfully in long-term growth markets.' Highlights in the third quarter of 2008 / nine-month period of fiscal 2007/2008 and prospects for the future Water Treatment PlasmaSelect AG acquired 30% equity in Aquaworx AG on 2 June 2008 and now holds 50.1% of voting rights. Aquaworx AG is an innovative technology company in the field of development and production of technologies for water and liquid disinfection treatment. The water treatment market is a relatively new high-growth market which is receiving impetus from society's increasing ecological awareness, from global shortages of drinking water and from the availability of new technologies. Products already developed by Aquaworx provide timely and appropriate solutions for the sub-markets of drinking water, process water (industry) and waste water which are ecological, low-maintenance and innovative. Production takes place in Switzerland, and products are marketed by the company's German marketing subsidiary. Aquaworx is currently establishing an international sales network of selected partners; markets in Benelux, Brazil, Finland, India, Russia, Singapore, the UK and USA, the Balearics, Canada, Kazakhstan and France are already covered by marketing intermediary agreements. Rapid establishment and expansion of the export business is based on a strategic partnership with Swiss company TELSONIC AG, a leading producer of ultrasonic technology and supplier to Aquaworx. Aquaworx will be able to take advantage of this partner's network of international branches and sales channels. Health Care As part of restructuring measures in the company's health care division, after the sale of the generics division last year the management of PlasmaSelect AG embarked on the task of lowering production costs for the existing product portfolio to significantly improve results for fiscal 2008/2009. Numerous measures were adopted in the field of production which will lead to reduced production costs and enhanced competitiveness. After the closure of the Marburg plant and the shift of product manufacture to a contracted producer, from February 2009 the sales organizations will receive the same products as before at comparable prices, while PlasmaSelect AG will no longer be burdened by the production risk, production problems and ongoing negative results of the Marburg plant. PlasmaSelect is also planning structural changes to the Italian production and sales organization aimed at improving its position on the Italian market and generating progress in the development of financial results. The business model of the affiliated company DeltaSelect will be advanced and internationalized, incorporating complementary product lines. In doing this, PlasmaSelect's goal is to establish its own roster of approvals, but also to acquire approvals or even entire pharmaceutical companies which complement the existing product portfolio and thus strengthen PlasmaSelect's market position as a provider of hospital solutions. The company aims to increase DeltaSelect's enterprise value as a trading company in the hospital solutions sector. The production-based actions described and the sales activities already under way are intended to return the health care division into profitability. The Nine-Month Report can be downloaded at www.plasmaselect.de under the heading 'Investor Relations'. PlasmaSelect AG Founded in 1998 as a specialist in the sale of adsorber, infusion and irrigation solutions and complementary medical products, today PlasmaSelect AG is an innovative investment holding company on the healthcare and new technologies market. The holding comprises five operating investment holding companies with a total of almost 300 staff worldwide. In fiscal 2007 (as of 30 November 2007) the company reported consolidated sales of EUR 56.3 million. PlasmaSelect AG is listed on the Regulated Market (Prime Standard) of the Frankfurt Stock Exchange (securities ID 547 180). For more information please see www.plasmaselect.de DGAP 05.11.2008 --------------------------------------------------------------------------- Language: English Issuer: PlasmaSelect AG Pettenkoferstraße 22 80336 München Deutschland Phone: +49 (0)89 810 29-0 Fax: +49 (0)89 810 29-111 E-mail: info@plasmaselect.de Internet: www.plasmaselect.de ISIN: DE0005471809 WKN: 547180 Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Hamburg, München, Berlin, Stuttgart End of News DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: PlasmaSelect AG takes decisive steps in Q3 2008 for conversion into an investment holding company
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