Tecan Group AG : Tecan posts a solid performance in 2012 and an acceleration in sales in the second half

 Tecan Group AG : Tecan posts a solid performance in 2012 and an acceleration
                         in sales in the second half

Tecan Group AG / Tecan posts a solid performance in 2012 and an acceleration
in sales in the second half . Processed and transmitted by Thomson Reuters
ONE. The issuer is solely responsible for the content of this announcement.

Financial results: full-year and second half of 2012

  oSales of CHF391.1 million (2011: CHF377.0 million)

       oGrowth of 3.8% or 1.9% in local currencies in 2012
       oAccelerated sales growth of 7.1% or 3.3% in local currencies in the
         second half

  oOrder entry of CHF382.3 million (2011: CHF383.9 million)

       oSlight decline of -0.4% or -2.2% in local currencies in 2012
       oGrowth of 7.9% or 4.1% in local currencies in the second half

  oOperating profit (EBIT) of CHF52.3 million (2011: CHF51.3 million)

       oOperating profit margin of 13.4% of sales in 2012 (2011: 13.6%)
       oAbove the expected range of 12.2% to 13.2%

  oNet profit from continuing operations: CHF42.2 million (2011: CHF44.9
    million)

       oProfit margin of 10.8% of sales in 2012 (2011: 11.9%)
       oEarnings per share from continuing operations of CHF3.90 (2011:
         CHF4.18)

  oCash flow from operating activities: CHF2.4 million (2011: CHF45.1
    million)

       oCash flow from operating activities of CHF45.0 million, excluding
         prefinancing of an OEM development project

Other important information

  oStrengthening of management: Manager with extensive sector-specific
    experience to head the Life Sciences Business
  oBoard of Directors: Dr. Christa Kreuzburg to be proposed to the upcoming
    Annual General Meeting as a new member of the Board; Dominique Baly will
    not seek reelection
  oIncrease in the dividend from CHF1.25 to CHF1.50 per share proposed

Outlook

  o2013: Forecast of growth in local currencies in the mid-single-digit
    percentage range and an increase in operating profit margin of around 50
    basis points
  oStart of commercial instrument deliveries under two significant OEM
    programs expected in 2013
  oMedium-term target for 2015: Sales of around CHF500 million with
    increased profitability

Männedorf, Switzerland, March 7, 2013 - The Tecan Group (SIX Swiss Exchange:
TECN) closed 2012 with a solid performance and a substantial acceleration in
sales in the second half. Sales increased by 3.8% to CHF391.1 million in 2012
(2011: CHF377.0 million) and were up by 1.9% in local currency terms.
Following low growth in the first six months, sales growth accelerated
considerably in the second half and was 7.1% higher than in the prior-year
period. This equates to an increase of 3.3% in local currencies. Order entry
in 2012 was only slightly below the prior-year figure at CHF382.3 million
(2011: CHF383.9million). Advance orders in 2011 resulted in a significant
decline in order entry in the first six months of 2012. However, this decline
was almost fully offset by growth in orders of 7.9% (4.1% in local currencies)
in the second half.

Operating profit before interest and taxes (EBIT) increased by 2.0% to
CHF52.3million in 2012 (2011: CHF51.3million). At 13.4% of sales, the
operating profit margin exceeded the expected range of 12.2% to 13.2%, and was
only slightly below the prior-year level (2011: 13.6%), although research and
development spending increased by 0.7 percentage points year-on-year. Net
profit from continuing operations amounted to CHF42.2 million in 2012 (2011:
CHF44.9 million). Net profit in 2011 benefited from a significantly better
financial result, which was largely attributable to gains from currency
hedging. The net profit margin was 10.8% of sales in 2012 (2011: 11.9%).
Earnings per share from continuing operations were CHF3.90 (2011: CHF4.18).
Cash flow from operating activities totaled CHF2.4 million (2011: CHF45.1
million). Excluding prefinancing of an OEM development project, cash flow from
operating activities amounted to CHF45.0 million.

Tecan CEO David Martyr commented: "In a continuing difficult market
environment, Tecan closed financial year 2012 with a solid result overall.
Following low growth in the first six months, sales growth accelerated
considerably in the second half, as we expected. We are particularly pleased
by the strong growth in China, where we generated sales of more than 20
million Swiss francs for the first time, with a clearly double-digit growth
rate. Our component business also posted double-digit growth, thanks to a
number of newly acquired customers."

"We intend to continue to increase our sales and profitability in 2013 and
beyond. The start of instrument deliveries to two OEM partners during the
course of this year and the resulting expected substantial contribution to
sales from 2014 mean that we already have significant growth drivers for the
coming years. We will also implement our growth strategy in a more targeted
way in other areas. For example, we believe growth markets such as China still
harbor considerable potential. Overall, we are well on track to bring Tecan to
the next level of business development. Our aims for 2015 are sales of around
500 million Swiss francs with increased profitability," said Martyr.

Information by business segments
Life Sciences Business (end-customer business)
Sales in the Life Sciences Business segment rose by 1.3% to CHF235.2 million
in 2012 (2011: CHF232.2 million). In local currencies, sales were 1.1% below
the prior-year period. The Life Sciences Business constituted 60.1% of total
Group sales (2011: 61.6%). In the second half of the year, sales increased by
3.4%, and in local currency terms were 1.1% below the prior-year level. In
local currencies, sales generated by liquid handling platforms in 2012 were
close to the previous year's level, while those of detection devices were down
slightly compared to 2011. Tecan posted high double-digit growth in all
product groups in Asia Pacific. Order entry in the Life Sciences Business
remained slightly below the previous year's figure in local currencies, but
improved during the second half.
Operating profit in the segment rose 21.8% to CHF29.0 million in the year
under review (2011: CHF23.8 million). Operating profit margin rose two
percentage points to 11.6% of sales (2011: 9.6%), mainly due to a higher gross
margin.

Partnering Business (OEM business)
The Partnering Business generated sales of CHF156.0 million in the year under
review (2011: CHF144.7 million), which corresponds to an increase of 7.8%  in 
Swiss francs and  6.7% in  local currencies.  The OEM  business accounted  for 
39.9% of total Group sales (2011: 38.4%). Sales growth accelerated further  in 
the second half, and  was 14.4% higher  than 2011 in  Swiss francs, and  12.1% 
higher in local  currency terms. Components,  services and consumables  posted 
double-digit growth in 2012.
Order entry in the Partnering Business was below the prior-year period in  the 
first six months,  due to advance  orders made by  customers in December  2011 
rather than in the first quarter of  2012. In the second half, however,  order 
entry was up  substantially on  the same  period of  2011, and  was down  only 
slightly year-on-year for 2012 as a whole.
The Partnering Business segment achieved  an operating profit margin of  19.1% 
of sales in 2012 (2011: 23.7%). The main reason for the lower operating profit
margin was costs booked  under a development program  for an OEM customer.  At 
CHF30.6 million, operating profit  was therefore below  that of the  previous 
year (2011: CHF35.6 million).

Additional information

Regional development
In Europe, sales in Swiss francs were 7.8% below the prior-year period and
decreased by 7.2% in local currencies. This is due to lower sales in the
Partnering Business, mainly as engineering income generated in an OEM project
declined. In light of the challenging economic situation in some European
countries, sales in the Life Sciences Business were also below the prior-year
level. Sales in Europe were 1.8% below 2011 in Swiss francs, and 2.5% lower in
local currency terms in the second half.

In North America, Tecan generated sales growth of 10.4% in Swiss francs and
5.4% in local currencies. Growth in this region was driven by the strong
performance of the Partnering Business, primarily a considerable increase in
sales in the component business. Life Sciences Business sales to end customers
were below the prior-year level in North America due to the continuing
strained economic environment. In the second half of the year, sales in North
America increased by 9.4%, or 2.4% in local currencies.

Sales in Asia were strong, growing by 24.5% in Swiss francs and by 20.2% in
local currencies. Investments in the market organizations are starting to pay
off, particularly in China. Sales in China increased at a clearly double-digit
percentage rate, driven by the Life Sciences Business. In the second half of
the year, sales in Asia increased by 19.2%, or 14.2% in local currencies.

Recurring sales of consumables and services
Recurring sales of consumables and services increased by 6.0% in the year
under review, or by 4.0% in local currency terms, and accounted for 30.6% of
total sales (2011: 30.0%). As part of this figure, sales of consumables grew
by 17.9% in Swiss francs and by 15.4% in local currencies to a share of 9.1%
of total sales (2011: 8.0%)

Research and development
Research and development spending in 2012 amounted to 13.2% of sales (2011:
12.5%) or CHF51.5 million (2011: CHF47.0 million). All told, research and
development activities came to CHF114.7 million gross (2011: CHF90.6
million). This figure also includes the development costs capitalized in the
balance sheet of CHF4.0 million gross and development costs for OEM partners
of CHF61.9 million.

Tecan has three major development programs currently underway. For the two
major OEM programs under development (P14 and P16), Tecan continues to expect
the start of commercial supply of instruments to its partners in 2013. In a
separate press release, Tecan has announced today that its OEM partner Dako,
an Agilent Technologies Company and worldwide provider of cancer diagnostics,
unveiled the new platform previously referred to by Tecan as P16, at a global
congress.
As communicated before, the launch of Tecan's next generation of liquid
handling platforms is anticipated to take place in 2014.

Strong balance sheet - high equity ratio
Tecan's equity ratio increased during  the reporting period and reached  71.9% 
as of December 31,  2012 (December 31, 2011:  69.1%). Net liquidity (cash  and 
cash equivalents  minus  bank liabilities  and  loans) amounted  to  CHF141.3 
million (December 31, 2011: CHF 163.0 million) despite increased investment in
development programs. The  Company's share capital  stood at CHF1,144,458  at 
the reporting date  (December 31, 2012),  consisting of 11,444,576  registered 
shares with a nominal value of CHF0.10 each.

Further increase in distribution to shareholders
On the  basis  of a  strong  balance sheet  and  a sustainable  good  business 
outlook, Tecan intends  to increase  its profit  distribution to  shareholders 
again. The Board  of Directors will  therefore propose a  20% increase in  the 
dividend from  CHF1.25 to  CHF1.50  per share  to  the shareholders  at  the 
Company's Annual General Meeting on April 17, 2013. The dividend will be  paid 
out in part from the available capital contribution reserve, and this  portion 
of CHF 1.00 is therefore not subject to withholding tax.

Election to the Board of Directors
The Board of Directors will propose the election of Dr. Christa Kreuzberg as a
new member of the  Board at the  Annual General Meeting.  Dr. Kreuzburg is  an 
experienced manager  from  the  pharma  industry, and  has  held  a  range  of 
management positions  at Bayer  AG. Most  recently, she  was a  member of  the 
Executive Committee  of Bayer  HealthCare and  Head of  Bayer Schering  Pharma 
Europe/Canada.

The Board will also propose the reelection of current members Rolf A. Classon,
Heinrich Fischer, Dr. Oliver S. Fetzer, Gérard Vaillant, Erik Walldén and Dr.
Karen Huebscher for a further one-year term.
Dominique F. Baly will not seek reelection at this year's Annual General
Meeting.

Strengthening of management
At the beginning of 2013, CEO David Martyr took the opportunity to restructure
the management  team and  strengthen it  in a  targeted way  to implement  the 
growth strategy. On  February 28, Tecan  announced that it  has appointed  Dr. 
Stefan Traeger  as a  member of  the Management  Board. As  Head of  the  Life 
Sciences Business division Stefan Traeger will be responsible for the  Group's 
global end-customer business. He will take up his new post at Tecan on July 1,
2013.  Stefan  Traeger  has  extensive  domain  experience  in  a  variety  of 
management positions in the life science industry.
Searches for  a  Head  of the  Partnering  Business  division and  a  Head  of 
Corporate Development are underway.

Outlook
Financial year 2013
In a continuing challenging economic environment, Tecan predicts moderate
growth in local currencies in the Life Sciences Business segment in 2013.

Based on customer forecasts for existing products, new instruments scheduled
to be launched in 2013 as well as the anticipated continuation of dynamic
growth in the component business, Tecan expects good sales growth for the
Partnering Business segment in 2013.

Overall, Tecan expects sales growth for full-year 2013 to be in the
mid-single-digit percentage range in local currencies. The Company anticipates
a moderate increase in sales in the first six months followed by stronger
growth in the second half, similar to the trend in 2012. This is primarily
based on the expected start of instrument supply under a significant OEM
program, which should begin contributing to sales in the second half.

Tecan is targeting a further improvement in profitability in 2013.
A reduction in research and development spending as a proportion of sales will
have a positive effect on the operating profit margin here; however, lower
average exchange rates compared with 2012 are expected to have a negative
impact.
Overall, Tecan expects operating profit margin to grow by around 50 basis
points in 2013 compared with 2012.

Medium-term targets for 2015
Tecan also announced its medium-term targets for 2015 today.
The start of commercial instrument deliveries under two significant OEM
programs to partners during the course of this year and the resulting expected
considerable contribution to sales from 2014 mean that the Company already has
significant growth drivers for the near future. Further, the targeted
implementation of the growth strategy should make a substantial contribution
to sales growth, for example in growth markets such as China.
Tecan's aims for 2015 at current exchange rates are sales of around CHF500
million and increased profitability.

Financial Report and Webcast
The full 2012 Financial Report can be accessed on the Company's website
www.tecan.com under Investor Relations. An iPad App for the Tecan Financial
Reports is available from the App Store.

Tecan will hold an analyst and press conference to discuss the 2012 annual
results today at 10:00 am (CET). The presentation will also be relayed by live
audio webcast, which interested parties can access at www.tecan.com. A link to
the webcast will be provided immediately prior to the event.

The dial-in numbers for the conference call are as follows:
For participants from Europe: +41 91 610 5600 or +44 203 059 5862 (UK)
Participants from the US: +1 (1) 866 291 4166
Participants should if possible dial in 15 minutes before the start of the
event.

Key upcoming dates

- The full Annual Report 2012 will be published at the end of March.
- The Annual General Meeting of Tecan's shareholders will take place in
Zurich on April 17, 2013.
- The 2013 Interim Report will be published on August 14, 2013.

About Tecan
Tecan (www.tecan.com) is a leading global provider of laboratory instruments
and solutions in biopharmaceuticals, forensics and clinical diagnostics. The
company specializes in the development, production and distribution of
automated workflow solutions for laboratories in the life sciences sector. Its
clients include pharmaceutical and biotechnology companies, university
research departments, forensic and diagnostic laboratories. As an original
equipment manufacturer (OEM), Tecan is also a leader in developing and
manufacturing OEM instruments and components that are then distributed by
partner companies. Founded in Switzerland in 1980, the company has
manufacturing, research and development sites in both Europe and North America
and maintains a sales and service network in 52 countries. In 2012, Tecan
generated sales of CHF391million (USD416million; EUR323million).
Registered shares of Tecan Group are traded on the SIX Swiss Exchange (TECN;
ISIN CH0012100191).

For further information:

Tecan Group
Dr. Rudolf Eugster        Martin Brändle
Chief Financial Officer   Head of Corporate Communications &
                          Investor Relations
investor@tecan.com        Tel. +41 (0) 44 922 84 30
www.tecan.com             Fax +41 (0) 44 922 88 89

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Seestrasse 103 Männedorf Switzerland

ISIN: CH0012100191;
 
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