MeVis Medical Solutions AG

NeuroLiverLungBreastMeVis Medical Solutions AG, BremenInterim Report 1. Quarter 2009

2 mevis medical solutions aginterim report 1. quarter 2009

Key consolidated figures (IFRS)

01.01.– 01.01.–

figures in ¤ 000s 31.03.2009 31.03.2008 Changes

Revenues 3,460 2,429 42.4%

ofwhichgeneratedwithcustomersin: Europe 195 261 -25.3%

USA 3,265 2,168 50.6%

EBITDA 1,016 507 100.4%

EBITDA-margin 29.4% 20.9% –

EBIT 437 369 18.4%

EBIT-margin 12.6% 15.2% –

Netfinancialresult -387 316 -222.5%

EBT 51 685 -92.6%

Consolidated net profit for the period 133 394 -66.2%

Earnings per share in ¤ (basic and diluted) 0.08 0.37 -78.4%

Equity 32,411 32,611 -0.6%

Intangibleassets 27,519 26,876 2.4%

Deferredtaxesontheassetside 2,195 2,411 -9.0%

Long-andshorttermliabilities 23,725 26,973 -12.0%

Balancesheettotal 56,136 59,584 -5.8%

Equityratioin% 57.7% 54.7% –

Cashandcashequivalents 15,584 15,257 2.1%

Employees(balancesheetdate) 240 139 72.7%

Status:31.03.2009

Industrysegment Software/Medicaltechnology

Subscribedsharecapital ¤1,820,000.00

Numberofshares 1,820,000

PricelastascertainedonJan.02,2009 ¤41.00

PricelastascertainedonMar31,2009 ¤22.00

High/lowinperiodunderreview ¤43.22/¤18.91

Marketcapitalization ¤40,040million

TreasurystockheldbyMeVis 122,850

Freefloat 38%

PrimeStandard(RegulatedMarket) FrankfurtandXetra

OTC Frankfurt,Berlin,Düsseldorf,Munich,Stuttgart

Indices CDAX,PrimeAllShare,TechnologyAllShare,

DAXsubsectorSoftware,DAXsectorSoftware,

GermanEntrepreneurialIndex(GEX)

ISIN DE000A0LBFE4

Tickersymbol M3V

Share at a glance

3mevis medical solutions aginterim report 1. quarter 2008

Content

Lettertotheshareholders 4MeVisShare 7BusinessactivitiesoftheMeVisGroup 8Interimmanagementreport 10Consolidatedincomestatement 14Statementoftotalcomprehensiveincome 14Consolidatedbalancesheet 15Consolidatedcashflowstatememt 16Statementofchangesinequity 17Notes 18ResponsibilityStatement 26Disclaimer 27


Letter to the shareholders

Asexpected,thefinancialyear2009beganwithaprotractedperiodofreducedbuyingactivityonthepartofclinicalendusersofoursoftwareapplicationsThiswasreflectedespeciallyinadeferralorreductionofinvestmentprojectsofhospitalsandradiologicalcentersaswellasprolongedsalescyclesintheU.S.,akeymarketforourCompany.

Duringthefirstquarterweneverthelesssucceededinrampingupconsolidatedsalesby42percentyear-on-year,toapprox.3.5millioneuros.Thishighgrowthisattributabletotwoeffects.BusinessactivitieswithourindustrypartnerHologic,whichwecarvedoutofourjointventurewithSiemensinOctober2008andfullyintegratedintotheMeVisGroup,werefullyconsolidatedforthefirsttimeinthefirstquarterof2009.Haditnotbeenforthisconsolidationeffect,consolidatedsalesrevenueswouldhaveremainedatlastyear'slevel.Inaddition,theinternationallysuccessfulsoftwareplatformDynaCADofourindustrypartnerInvivocontributedtoourdynamicgrowth.Salesofthisproductwerestabilizedatthepreviousyear'slevelandpartiallyevenextended.TheDynaCAD®systemisusedforcontrast-agent-basedmagneticresonancetomographyofthebreast(includingbiopsies)andcanbeusedwithallmagneticresonanceimagingequipmentoftheworld'sleadingOEMs.

EarlyinMarch2009,ourindustrypartnerSiemensunveiledournewdiagnosticsoftwarefortheautomat-edultrasoundbreastvolumescannerAcusonS2000ABVSattheEuropeanCongressofRadiologists(ECR)inVienna.ThenewAcusonS2000automatedbreastvolumescanner(ABVS)performsautomatic,user-independentandswiftfull-fieldultrasoundbreastscans.Recentscientificresearchhasshownthatultrasoundprovidesanextremelyvaluablemedicalsupplementtodigitalmammographyparticularlyinthecaseofyoungerpatientswhotypicallyhavedensebreasttissue,especiallyiftheyareatrisk.Weexpectthisnewproducttogeneratecontributionstosalesrevenuesbytheendofthesecondquarter.

However,immediatedevelopmentsimpactingonprofitandlossinthecurrentfiscalyeararehighlydependentonthefutureevolvementofoursalesmarkets.Assomeofourindustrypartnerslikewiserefertosubstantialdeclinesindemandintheirlatestinterimreports,wehaveadoptedvariouscost-effectivemeasurestostabilizebusinesstrendsinthisparticularlydifficultfinancialyear.Thisincludesawaiverofwageandsalaryincreasesaswellasofbonuspaymentsagreedwithouremployeesforthefirstquarter-includingthemembersoftheExecutiveBoard-resultinginEBITreliefofapprox.0.28millioneuros.


Nevertheless,withtotalEBITamountingtoapprox.0.44millioneuros(year-agoquarter:0.37millioneuros),anEBITmarginofonly12.6%wasachieved(year-agoquarter:15.2%).Thisisessentiallyduetoincreasedstaffcostsinthewakeofadynamicincreaseinthesizeoftheworkforceanddepreciationarisingfromtheacquisitionsmadein2008,aswellascapitalizeddevelopmentcosts.Aspartofourcost-effectivemeasurestostabilizebusinesstrendsinthecurrentfiscalyear,wemanagedtoreduceotheroperatingexpensesbyapprox.8%inthefirstquarter,year-on-year.

Ournetfinancialresult,amountingto-0.39millioneuros(year-agoquarter:0.32millioneuros)wasimpactedbyalowerlevelofinterestratesyear-on-year,theadversemarketeffectsofcurrencyhedgingandcalculatoryinterestonpaymentinstallmentsrelatedtotheacquisitionscarriedoutin2008.Accord-ingly,consolidatedearningsfortheperiodonlyamountedto0.13millioneuros(previous-yearquarter:0.39millioneuros),whichcorrespondstoearningspershareof¤0.08(previous-yearquarter:¤0.37).

TheMeVisGroupstillretainsadequatefinancialresourcestoachieveitsplannedfurthercorporategrowth.AsatMarch31,2009,cashandcashequivalentsamountedtoapprox.15.6millioneuros(year-agoquarter:15.3millioneuros).Equityremainednearlyunchangedyear-on-yearatapprox.32.4millioneuros,withaslightlyhigherequityratioofapprox.58%(year-agoquarter:55%).Followingtherepaymentofapromissorynoteamountingto5millioneurosonMarch2,2009andduetotheextremelyunfavorableconditionsprevailingonthemoneymarketatpresent,weinvestedapprox.1.5millioneurosinshort-termsecurities.Thisshiftfrommoneymarketinvestmentstoshortandmid-termsecuritieswillbecontinuedduringthesecondquarterof2009.

Significantlyhigheryear-on-yeartaxexpenditureisessentiallyattributabletothecarve-outofthebusinessactivitieswithHologicand,inadditiontoincreaseddepreciationandnegativecurrencyeffects,ultimatelyresultedinanegativecashflowfromoperatingactivitiesof-0.26millioneuros(year-agoquarter:+0.17millioneuros).

Wereviewedourstockbuy-backprogramonseveraloccasionsduringthefirstquarterwithregardtoitsstrategicrelevance,takingaccountofthecurrentpricetrends,andcarrieditoutwithlittleimpactonliquidity.WiththecompletionoftheprogramonMarch31,2009,weholdatotalportfolioof122,850treasurystock,equivalentto6.75%ofoursharecapital.


Weaffirmouroutlookandourexpectationsforthefiscalyear2009,whichwemadewithinthescopeoftheconsolidatedannualfinancialstatementsfor2008.Untiltheglobalfinancialandeconomiccrisissubsides,weonlyperceivelittlegrowthpotentialfortheproductsalreadylaunched.Ontheotherhand,theconsolidationeffectwillhaveapositiveinfluenceonoursalesrevenuesandearnings.Moreover,theintroductionofnewproductsplannedasofthesecondquartershouldproducepositiveearningscontribu-tionsstepbystepinthesecondhalfoftheyear.Inthecurrentmarketsituation,webelievethatareliablerevenueandearningsforecastforthefiscalyear2009canonlybemadeafterthepublicationofourhalf-yearreport.

ThesizeoftheworkforceoftheGroupexpandedbyonly8to240employeesattheendofthefirstquarter(previousyear:139employees).Thisdevelopmentistobeseen,however,againstthebackdropofourcost-effectivemeasurestostabilizebusinesstrends.Wearepleasedtohaveahighlyqualifiedandmotivatedteam,withwhichwecanrealizeoursharedentrepreneurialvision.

Atthisjuncture,wewouldliketothankallemployeesfortheirexceptionalperformanceaswellasourbusinessassociates,customersandshareholdersfortheirconfidence.

Dr.CarlJ.G.Evertsz ChristianH.Seefeldt ThomasE.TynesPresident&CEO Memberofthe Memberofthe ExecutiveBoard ExecutiveBoard


MeVis Share

Roughly55%ofthesharecapitalcontinuedtobeheldbythefoundersasofMarch,31,2009.Thecompanyheldownsharesintreasuryamountingto6.75%ofthesharecapital,resultinginafreefloatofaround38%oftheCompany’ssharecapital,halfofwhichisheldbyinstitutionalandhalfbyprivateinvestors.

Asoftheendofthefirstquarter2009,wewereabletoincreaseourshareholderbasebyaround52percentcomparedwiththestockmarketflotationinmidNovember2007.SincethelastshareholdermeetinginJuly2008,thegrowthrateattheendofthequarterstillamountedtoapprox.14percent,whilethegroupofsmallstockholders(withfewerthan100MeVissharesintheirportfolio)hasseendisproportionatelystronggrowthsincetheendof2008.

Thetradingvolumesincetheendofthelastfiscalyearhasrisenaccordingly.Onlyasmallpartofthisisattributabletothetradingactivitiesinconnectionwiththestockbuy-backprogram.However,generalinvestorrestraintatthebeginningof2009alsolefttracesontradingvolumesforMeVisstock,accompa-niedbyarenewedtemporarydeclinetobelowEUR20.00attheendofthefirstquarterof2009.Mostrecentlytradingactivitieshaveincreasedagaininlinewithamoderatelyhigherquotation.

Stock Chart MeVis ShareFIGURESIN¤

02.01.09 30.01.09 27.02.09

10

20

30

40

50

30.04.09 15.05.0931.03.09


Business activities of the MeVis Group

Group structure

WithinthescopeofajointventurewithSiemensAktiengesellschaft,BerlinandMunich(hereafter:“Siemens”),MeVisMedicalSolutionsAG(hereafter:“MMSAG”)holds51%ofMeVisBreastCareGmbH&Co.KG(hereafter:“MBCKG”).IntermsofanagreementofOctober21,2008,thebusinessdivisionwithindustrycustomerHologic,Inc.,Bedford,USA(hereafter:“Hologic”)wascarvedoutofthejointventureandtheshareattributabletoSiemenswastakenoverbyMMSAG.ThecompanyMeVisBreastCareSolutionsGmbH&Co.KG(hereafter:“MBSKG”)arisingfromthisspin-offhasbeenfullyincludedintheconsolidatedfinancialstatementsofMMSAGsinceNovember1,2008.

Moreover,in2007MMSAGfoundedawhollyownedsubsidiaryintheU.S.,tradingasMeVisMedicalSolutions,Inc.,Pewaukee(hereafter:“MMSInc.”).ThecompanyMeVisResearchGmbH,accountedforasanassociateduntilDecember31,2007,hasnolongerbeenincludedintheconsolidatedfinancialstate-mentssinceJune30,2008.ThesharesheldwerereturnedtotheFreeHanseaticCityofBremenattheircarryingamounts.Asaresult,MeVisResearchwasincorporatedintheFraunhofer-GesellschafteffectiveJanuary1,2009andisnowtradingasFraunhofer-InstitutfürBildgestützteMedizinMEVIS(hereafter:“FraunhoferMEVIS”)

Brief overview of business activities

MMSAGisoneoftheworld’sleadingindependentproducersofsoftwareproductsforimage-basedmedicine,particularlydigitalradiology.AttheirBremenlocation,theexpertsoftheMeVisGrouphavebeenaddressingclinicallyrelevantissuesintheareaofscreening,diagnosticsandtherapyonasystematicillness-orientedbasissince1997.TherearetraditionallyclosetiesbetweenMeVisMedicalSolutionsAG,whichisalistedcompany,andtherenownednon-profitresearchinstituteMeVisResearchGmbH.


Business segments

Forreportingpurposesandinternalgovernance,theMeVisGrouphastwoseparateoperatingsegments(“DigitalMammography”and“OtherDiagnostics”).

TheDigitalMammographysegmentdevelopsandmarketssoftwareproductsforsupportingdiagnosticimagingfordigitalmammography.Theproductsaredistributedtofinalcustomersviaindustrialpartners(OEMs,e.g.SiemensandHologic).

TheOtherDiagnosticssegmentcomprisesdigitalradiologyproducts(e.g.magneticresonancetomogra-phy(MRT),computertomography(CT),etc.)aswellasgeneralreadingandreportingforradiologicalimaging.Othermainactivitiesinthissegmentincludeimageandriskanalysisforplanningliversurgeryandtumordiagnosticsinconnectionwithclinicalstudiesofpharmaceuticscompanies.


Interim management report of MeVis Medical Solutions AG

Results of operations

Consolidatedsalesinthefirstquarterof2009wereessentiallyimpactedbybadnewsinthemarketenvironmentforproductsdistributedbytheMeVisGroup.Forexample,sinceitslastcapitalmarketpressreleaseattheendofthefirstquarterof2009,Hologic(animportantindustrypartnerfortheMeVisGroup)reportedadeclineindemandforproductsofferedbyHologic–inwhichtheproductsofthewhollyownedGroupsubsidiaryMBSKGaredeployed–byapprox.19.3%year-on-year.ThereasonforthisdeclineindemandistheincreasingreluctanceofmarketparticipantsinthekeyU.S.sub-marketfortheMeVisGroupduetotheglobalfinancialandeconomiccrisis.Thisreluctancetobuyisexpressedparticularlyinpostponementsandreductionsofinvestmentprojectsofhospitalsaswellasprolongedsalescycles.ThistrendhasalsoaffectedindustrypartnerInvivoCorp.,Orlando,U.S.(hereafter:“Invivo”),awhollyownedsubsidiaryoftheNetherlands'PhilipsGroup.However,intheperiodunderreview,theMeVisGroupwasinapositiontostabilizethesalesrevenuesrealizedwithInvivoatthepreviousyear'slevelandtopartlyextendthemevenfurther.

However,thankstothe100%inclusionoftheHologicdivisionintheconsolidatedfinancialstatements,theMeVisGroupmanagedtocounteractthesenegativemarkettrends.Haditnotbeenforthisconsolidationeffect,salesrevenueswouldhavedeclinedbyabout1.1%comparedwiththesamequarterayearearlier.Salesrevenuesinthefirstquarterof2009wererampedupby42.4%,toT¤3,460(Q12008:T¤2,429).SalesaredistributedacrossthesegmentsDigitalMammographyatT¤2,312(Q12008:T¤1,774)andOtherDiagnosticsatT¤1,147(Q12008:T¤655).

Totakeaccountofexchangeratefluctuations,theMeVisGrouptransactedcurrencyhedges.

CapitalizeddevelopmentexpensesamountedtoT¤761inthequarterunderreview(Q12008:T¤492).ThesearedistributedinanamountofT¤736tostaffcosts(Q12008:T¤492)andT¤25tocostsofservicespurchased(Q12008:T¤0).

ThesubstantialsurgeinstaffcostsisessentiallyduetotheplannedexpansionofdevelopmentactivitiesoftheMeVisGroupin2007and2008formarketrolloutofnewproductsin2009to2010.Attheendofthefirstquarterof2009,theMeVisGrouphad240employees,correspondingto183full-timeequivalents(Q12008:139employeesof107full-timeequivalents).Onaverage,theMeVisGrouphad207employeesduringtheperiodunderreview(Q12008:126employees).

DepreciationintheperiodunderreviewcametoT¤308(Q12008:T¤0)duetothetakeoverofthe49%shareinMBSKGheldbySiemens,thetakeoverofthe“CT-LungDiagnostic”divisionin2008andalso


compriseddepreciationofcapitalizeddevelopmentcosts.Therelevantdepreciationarisingfromthetakeoversareessentiallyassociatedwithcustomerbases/relationshipsvaluedaswellaswiththetech-nologiesacquiredwithinthescopeofthesetransactions.

OtheroperatingexpensecametoT¤812attheendoftheperiodunderreview(Q12008:T¤879).TheseessentiallycompriserentalexpenditureofT¤145(Q12008:T¤130),legalandconsultancycostsamountingtoT¤132(Q12008:T¤120),externalworkamountingtoT¤68(Q12008:T¤20),travelexpensesofT¤64(Q12008:T¤50),expensesonrepairsandmaintenanceamountingtoT¤38(Q12008:T¤33),recruitingcosts(jobadvertisements,etc.)ofT¤29(Q12008:T¤101)aswellasthecostofpreparingandauditingfinancialstatements,amountingtoT¤29(Q12008:T¤52).

Earningsbeforeinterest,taxesanddepreciationandamortization(EBITDA)cametoT¤1,016inthefirstquarterof2009(Q12008:T¤507),translatingintoanEBITDAmarginof29.4%(previousyear20.9%).

Earningsbeforeinterestandtaxes(EBIT)cametoT¤437(Q12008:T¤369),equivalenttoanEBITmarginof12.6%(Q12008:15.2%).

Thenetfinancialresultdeclinedinthefirstquarterof2009,especiallyduetotherecognitionofnegativemarketvaluesofforwardexchangetransactionsconcludedtohedgeexchangeratefluctuationsunderothernetfinancialincomeandreducedinterestincomeonaccountofthedecreasedlevelofinterestrates.Interestincomegeneratedinthefirstquarterof2009amountedtoT¤85(Q12008:T¤318),whileinterestexpensescametoT¤130(Q12008:T¤18).OthernetfinancialincomeamountstoT¤-342(Q12008:T¤16).

Pre-taxprofitinthefirstquarterof2009amountstoT¤50(Q12008:T¤685),equivalenttoareturnonsalesof1.4%(Q12008:28.2%).

Moreover,netprofit/lossaftertaxesisaffectedbyrefundsoftaxesonincomeamountingtoT¤83(Q12008:T¤-291),amountingtoT¤133inthefirstquarterof2009(Q12008:T¤394).Earningspersharecameto¤0.08(Q12008:¤0.37).

Net assets and financial condition

TheMeVisGroupretainsadequatefinancialresourcestoachieveitsplannedgrowth.AsatMarch31,2009,cashandcashequivalentsamountedtoT¤15,584(December31,2008:T¤15,257).

ThereductionincurrentassetsintheperiodunderreviewbyT¤3,817toT¤25,066waspredominantlyduetothedecreaseinotherfinancialassetsbyT¤4,897toT¤4,262owingtotherepaymentofapromissorynoteamountingtoT¤5,000,anincreaseintradereceivablesbyT¤844toT¤3,189,areductioninincometaxreceivablesbyT¤405toT¤379andtoanincreaseinotherassetsbyT¤331,toT¤1,515.


Non-currentassetsclimbedbyT¤369intheperiodunderreview,toT¤31,070,withintangibleassetsrisingbyT¤643toT¤27,519.Theincreaseintheperiodunderreviewisessentiallyduetothecapitaliza-tionofdevelopmentcosts,amountingtoT¤761.

TheCompany'sproperty,plantandequipmentamountstoT¤1,356atthebalancesheetdate(December31,2008:T¤1,414).

ThelevelofequityatthebalancesheetdatecametoT¤32,411(December31,2008:T¤32,611).Sub-scribedcapitalequaledT¤1,820(December31,2008:T¤1,820).Theequityratioincreasedfrom54.7%to57.7%.

ThecashflowfromcurrentoperatingactivitiescametoT¤-261intheperiodunderreview(Q12008:T¤170).Itessentiallycomprisestheconsolidatednetprofitbeforeinterestandtaxes,amountingtoT¤437(Q12008:T¤311),adjustedfortaxesreceivedandpaid,ofT¤-2,152(Q12008:taxespaidamountingtoT¤324),theincreaseintradepayablesaswellasotherliabilitiesamountingtoT¤843(Q12008:decreaseofT¤333),areductionintradereceivablesandotherassets,amountingtoT¤239(Q12008:T¤308),interestreceivedandpaid,amountingtoT¤275(Q12008:T¤254)andadjustedforothernon-cashexpensesofT¤-196(Q12008:T¤-102).

ThenetcashoutflowfrominvestingactivitiesintheperiodunderreviewamountstoT¤-2,071(Q12008:T¤-1,059)andessentiallycomprisesdisbursementsforinvestmentinproperty,plantandequipmentofT¤80(Q12008:T¤559),anincreaseinintangibleassetsarisingfromthecapitalizationofdevelopmentcosts,amountingtoT¤856(Q12008:T¤492)aswellasforproportionalpaymentsfortheacquisitonofthe”CTLungDiagnostic“businessamountingtoT¤1,113(Q12008:T¤0)

Thenetcashflowfromfinancingactivities,amountingtoT¤2,659(Q12008:T¤-290)comprisesdisbursementsfortheacquisitionoftreasurystock,ofT¤462(Q12008:T¤213),disbursementsfromtherepaymentofloansand(financial)creditsamountingtoT¤351(Q12008:T¤77),disbursementsfortheacquisitionofcurrentsecurities,amountingtoT¤1,528(Q12008:T¤0),anddepositsarisingonmaturityofpromissorynotesamountingtoT¤5,000(Q12008:T¤0).

ChangeincashandcashequivalentsintheyearunderreviewcametoT¤327(Q12008:T¤-1,164).

Risk report

NomaterialchangeshaveoccurredwithregardtotherisksituationoftheMeVisGroupsincethebegin-ningoftheyear.WeperceivenorisksthatmightendangertheexistenceofthecompanieswiththeMeVisGroup.Accordingly,thestatementsmadeintheriskreportwithinthescopeoftheconsolidatedannualfinancialstatementsasatDecember31,2008remainvalid.


Outlook & opportunities

Weaffirmouroutlookforopportunitiesandourassessmentoffiscal2009whichwemadewithinthescopeoftheconsolidatedannualfinancialstatementsfor2008.Againstthebackdropofthedifficultmarketenvironment,weonlyanticipatelimitedgrowthpotentialfortheproductsalreadyrolledoutinthemarketuntilsuchtimeastheglobaleconomicandfinancialcrisissubsides.Comparedwithfiscal2008,however,thefullinclusionofthesubsidiaryMBSKGinthegroupofconsolidatedcompanieswillhaveapositiveimpactonsalesrevenuesandearnings.Initsdeliberationsonearningstrends,theExecutiveBoardhasalsotakenaccountofthefactthattheplannedintroductionofnewproductsplannedstartinginthesecondquarterof2009istobegindeliveringpositivecontributionstoearningsstepbystepasofthethirdquarteroffiscal2009.However,intheopinionoftheExecutiveBoardthatareliableandmeaningfulearningsforecastforfiscal2009asawholecanbemadeonlyafterthehalf-yearreportisreleased,duetothefactthatthefinancialandeconomiccrisistendstoresultinabove-averagerevenuefluctuationsinindividualmonths.

Material events occurring after the balance sheet date

NotransactionsofmaterialrelevancetotheMeVisGrouphavearisensincethebalancesheetdate.

Bremen,May18,2009



Consolidated income statementfortheperiodfromJanuary1untilMarch31,2009

Statement of total comprehensive income fortheperiodfromJanuary1untilMarch31,2009

January 1 – January1–

figures in ¤ 000s Notes March 31, 2009 March31,2008

Revenues 1 3,460 2,429

Incomefromthecapitalizationofdevelopmentexpenses 2 736 492

Otheroperatingincome 287 75

Costofmaterials/costofservicespurchased -108 -122

Staffcosts 3 -2,547 -1,488

Otheroperatingexpenses 4 -812 -879

Earnings before interest, taxes, depreciation and amortization (EBITDA) 1.016 507

Depreciationandamortization 5 -579 -138

Earnings before interest and taxes (EBIT) 437 369

Interestincome 85 318

Interestexpenses -130 -18

Othernetfinancialresult -342 16

Net financial result 6 -387 316

Earnings before taxes (EBT) 50 685

Incometaxexpense 83 -291

Consolidated net profit for the period 133 394

Earnings per share in ¤

Basic 0.08 0.37

Diluted 0.08 0.37


figures in ¤ 000s March 31, 2009 March31,2008

Consolidated profit for the period 133 394

Exchangedifferencesontranslatingforeignoperations 94 -198

Other comprehensive income 94 -198

Total comprehensive income 227 196


Consolidated balance sheetasatMarch31,2009

figures in ¤ 000s Notes 31.03.09 31.12.08

Non-current assets

Intangibleassets 27,519 26,876

Property,plantandequipment 1,356 1,414

Deferredtaxassets 2,195 2,411

31,070 30,701

Current assets

Inventories 137 154

Tradereceivables 3,189 2,345

Incometaxreceivables 7 379 784

Otherfinancialassets 8 4,262 9,159

Otherassets 1,515 1,184

Cashandcashequivalents 15,584 15,257

25,066 28,883

AssETs 56,136 59,584

Equity capital 9

Subscribedcapital 1,820 1,820

Sharepremium 28,397 28,363

Revaluationreserve 1,636 1,679

Treasurystock -4,157 -3,694

Currencytranslationreserve 168 75

Retainedearnings 4,547 4,368

32,411 32,611

Non-current liabilities

Otherfinancialliabilities 10 12,388 13,062

Pensionprovisions 50 39

Deferredtaxliabilities 488 843

12,926 13,944

Current liabilities

Provisions 113 180

Tradepayables 848 1,038

Bankborrowings 113 465

Otherfinancialliabilities 10 6,518 5,911

Deferredincome 1,314 1,019

Miscellaneousotherliabilities 1,720 1,712

Incometaxliabilities 11 173 2,704

10,799 13,029

EquITy AND lIABIlITIEs 56,136 59,584


Consolidated cash flow statememt fortheperiodfromJanuary1untilMarch31,2009




+Depreciationandamortization 579 138

+/-Increase/decreaseinprovisions -57 0

- Othernon-cashexpenses/income -196 -102

+Interestreceived 278 273

- Interestpaid -3 -19

+Taxesreceived 720 0

-Taxespaid -2,872 -324

+/-Received/paidexchangeratedifferences -246 -63

-/+ Increase/decreaseininventories 18 -19

+Decreaseintradereceivablesandotherassets 239 308

+/-Increase/decreaseintradepayablesandotherliabilities 843 -333

= Cash flow from operating activities -261 170

- Paymentsmadeforinvestmentsinproperty,plantandequipment -80 -559

- Paymentsmadeforinvestmentsinintangibleassets

(excludingdevelopmentexpenses) -22 -8

- Paymentsmadeforthecapitalizationofdevelopmentexpenses -856 -492

- Proportionalpaymentsmadefortheacquisitionofbusinessunits -1,113 0

= Cash flow from investing activities -2,071 -1,059

- Paymentsmadefortheacquisitionoftreasurystock -462 -213

+Paymentsreceivedfrompromissorynotesheldtomaturity 5,000 0

- Paymentsmadetorepayborrowings -351 -77

- Paymentsmadeforthepurchaseofshorttermsecurities -1,528 0

= Cash flow from financing activities 2,659 -290

Changes in cash and cash equivalents 352 -1,179

Exchange-rate related changes in cash and cash equivalents -25 15

+ Cash and cash equivalents at the beginning of the period 15,257 28,471

= Cash and cash equivalents at the end of the period 15,584 27,307


Statement of changes in equityfortheperiodfromJanuary1untilMarch31,2009

Changestoequitynot effectingnetincome

Revaluation Currency reservefor Subscribed Share Treasury Retained translation financial figures in ¤ 000s capital premium stock earnings reserve assets Total

BalanceonJanuary1,2008 1,820 28,276 -1,546 2,245 -26 0 30,769

Purchaseoftreasurystock 0 0 -213 0 0 0 -213

Stockoptions–changesinfairvalue 0 61 0 0 0 0 61

Currencytranslationreserve 0 0 0 0 -146 0 -146

Consolidatednetprofitfortheyear 0 0 0 394 0 0 394

(Consolidatednetprofit) (0) (0) (0) (394) (-146) (0) (248)

BalanceonDecember31,2008 1,820 28,337 -1,759 2,639 -172 0 30,865

Balance on January 1, 2009 1,820 28,363 -3,694 4,368 75 1,679 32,611

Purchaseoftreasurystock 0 0 -463 0 0 0 -463

Accounttransferaccording

toamortization 0 0 0 43 0 -43 0

Stockoptions-changesinfairvalue 0 36 0 0 0 0 36

Currencytranslationreserve 0 0 0 0 94 0 94

Consolidatednetprofitfortheyear 0 0 0 133 0 0 133

(Consolidatednetprofit) 0 0 0 (133) (94) 0 (227)

Balance on March 31, 2009 1,820 28,399 -4,157 4,544 169 1,636 32,411


Notes on the interim consolidated financial statements

as of March 31, 2009

General disclosures

ThequarterlyfinancialreportoftheMeVisGroupwaspreparedinaccordancewiththeprovisionsof§37xAbs.3ofthe[German]SecuritiesTradingAct(WpHG)alongwithconsolidatedinterimfinancialstatementsandaconsolidatedmanagementreport.

TheconsolidatedinterimfinancialstatementsofMevisMedicalSolutionsAG,Bremen(MMSAG)asatMarch31,2009werepreparedinaccordancewithSection315a(1)oftheGermanCommercialCode(HGB)inlinewiththerulesandregulationsinforceonthebalancesheetdateandapprovedbytheEuropeanUnionoftheInternationalFinancialReportingStandards(IFRS)publishedbytheInternationalAccountingStandardsBoard(IASB)aswellastheinterpretationsoftheInternationalFinancialReportingInterpretationsCommittee(IFRIC).Accordingly,thisinterimreportasatMarch31,2009waspreparedinconformitywithIAS34“InterimReporting”.ThenotestotheconsolidatedinterimfinancialstatementsarepresentedinabridgedforminlinewiththeoptionprovidedbyIAS34.

Theinterimfinancialstatementsandinterimmanagementreporthaveneitherbeenauditednorsubjectedtoalimitedreview.

Issue of stock options

OnDecember19,2008,theExecutiveBoardutilizedtheauthorizationgrantedbytheshareholdersonAugust22,2007toissueoptionsaspartofthestaffparticipationprogram.Underthissecondinstallment,atotalofupto20,191(firstinstallment:20,300stockoptions)wereissuedatanexercisepriceof¤37.45(firstinstallment:¤55.00).Atotalof182employees(firstinstallment:75employees)wereeligible.InaresolutionpassedonFebruary14,2009,theSupervisoryBoardofMMSAGapprovedtheissueofthesecondinstallment.

AnoptionentitlesstafftoacquireoneMMSAGshareatanexercisepriceequaling¤37.45subjecttoavestingperiodof2years.Theexercisehurdleisexpressedasamarketcondition:intheperiodfromthegrantofstockoptionsandthebeginningoftherespectiveexercisewindowinwhichthestockoptionsareexercised,thepriceofMMSAGstockmusthaveimprovedbyatleast15percentinrelationtothetrendoftheTecDAXindex(“exercisehurdle”).

Therearethreeexercisewindowsperyear,namelytwoweeksaftertheannualgeneralmeetingandthepublicationoftheQ2andQ3results.


AsMMSAGisentitledtosettlethestockoptionsincashform,thisconstitutesacombinationmodel.Alloutstandingstockoptionshaveatermoffiveyearsasofthedateofgrant.AsthestockoptionprogramofMMSAGexpiresonDecember31,2011,themaximumtermoftheoutstandingoptionsislessthansevenyears(untilJanuary1,2016).Thestockoptionsgrantedinfiscal2009haveamaximumtermoflessthanfiveyearsandcanbeexercisedforthefirsttimewithinatimewindowoftwoweeksaftertheAnnualGeneralMeetingatwhichresolutionsareadoptedconcerningthefinancialyear2010iftheexercisehurdlewasreached.

Recognition and measurement methods

TheinterimconsolidatedfinancialstatementsfromJanuary1toMarch31,2008usethesamerecognitionandmeasurementpoliciesastheIFRSconsolidatedfinancialstatementsforfiscal2008.TheinterimconsolidatedfinancialstatementsasofMarch31,2009mustthereforebereadinconjunctionwiththeconsolidatedfinancialstatementsasofDecember31,2008.

Effects of new accounting standards

MMSAG'sconsolidatedfinancialstatementsasofMarch31,2009includingthepreviousyear'sfigureshavebeenpreparedinaccordancewithIFRSasendorsedbytheEuropeanUnionasofMarch31,2009.ThesameaccountingandvaluationprincipleswereappliedthatwereusedinpreparingtheconsolidatedfinancialstatementsasatDecember31,2008;inaddition,IAS34“Interimreporting”wasapplied.SinceJanuary1,2009,IAS1“Presentationoffinancialstatements”hasbeenappliedinitslatestversion.Thishasresultedinseveralchangesinthepresentationoftheoverallnetincomestatementandthestatementofchangesinequity.Inaddition,IFRS8“Businesssegments”wasappliedforthefirsttimeasofJanuary1,2009.OtherannouncementsoftheIASBnewlyapplicableasofMarch31,2009hadnomaterialimpactsontheMeVisconsolidatedfinancialstatements.

Selected notes on the consolidated balance sheet and the consolidated income statement

1. RevenuesRevenuesbreakdownbytypeasfollows:



Softwareandlicenses 2,910 2,212

Maintenance(softwareservicecontracts) 333 163

Hardware 176 40

Services(consultingandtraining) 41 14

3,460 2,429


2. Income from the capitalization of development costsIntheperiodunderreview,expenditureonresearchanddevelopmentcametoT¤1,220(March31,2008:T¤1,049).InaccordancewithIAS38,developmentcostsofT¤736(March31,2008:T¤492)werecapitalized.

3. Staff costsThechangeinstaffcostisduepartlytotheincreasedheadcount.Onaverage,207personswereemployedinthefirstquarterofthecurrentfiscalyear(previous-yearperiod:126).Ofthese,45wereaccountedforbythepro-rataconsolidatedcompanyMeVisBreastCareGmbH&Co.KG(year-agoperiod:47).Theaveragefiguresinclude67testersattheconsolidatedlevel(year-agoperiod:37).

4. Other operating expenses



Rentalexpense 145 130

Legalandconsultingcosts 132 120

Externalwork 68 20

Travelexpense 64 50

Maintenance 38 33

Personnelrecruiting 29 101

Costofpreparingandauditingoffinancialstatements 28 52

Accountingcosts 27 24

Insurance 22 8

Securitiesaccountcharges 19 9

Advertising 18 3

Vehiclecosts 15 4

Officesupplies 13 17

Contributions 11 18

Appropriationstootherprovisions 11 10

25.1%financingobligationtowardsMeVisResearchGmbH 0 143

Others 172 137

812 879

5. Depreciation and amortization



Amortizationofpatentsandlicences,similarrightsandcustomerbase 296 83

Amortizationofcapitalizeddevelopmentexpenditure 138 0

Depreciationofproperty,plantandequipment 145 55

579 138


6. Interest income, interest expense and other net financial resultTheMeVisGroup'snetfinancialresultasatMarch31,2009amountedtoT¤-387(Q12008:T¤316).ThiscomprisesinterestincomefromtheinvestmentofcashofT¤85(Q12008:T¤318)netofinterestexpenseofT¤130(Q12008:T¤18)andotherfinancialresultofT¤-342(Q12008:T¤16).OtherfinancialresultprimarilycomprisesthechangeinvalueofderivativefinancialinstrumentsamountingtoT¤-511(Q12008:T¤171)pluscurrencytranslationgainsnetofcurrencytranslationlossesofT¤169(Q12008:T¤-155).

7. Income tax reimbursement claimsThechangeinincometaxreimbursementclaimswasessentiallyduetoataxrefundtoMMSAGfollowingthespin-offoftheHologicbusinessdivisioninfiscal2008.

8. Other current financial assets

figures in ¤ 000s 31.03.2009 31.12.2008

thereof thereof

Total current Total current

Loansandreceivables 2,640 2,640 3,661 3,661

Accruedinterest 0 0 195 195

Derivatives 94 94 303 303

Othersecurities 1,528 1,528 5,000 5,000

4,262 4,262 9,159 9,159

Derivativescompriseforwardexchangetransactionsandcurrencyoptions,whichweremeasuredatmarketvaluewithanimpactonprofitandloss.ThesesecuritiesprimarilyarePfandbriefbondsandpromissorynotes.

9. Shareholders’ equity

Revaluation reserveInconnectionwiththeacquisitionofthe49%interestinMBSKGfromSiemensAGandthesubsequentfullconsolidationofMBSKG,theassetsandliabilitiesofMBSKGwerecompletelyrevaluated.Wherethisincreasewasattributabletothe51%interestinMBSKGalreadyheldbytheGroup,thedifferencewasrecognizedwithintherevaluationreserve.Amountsequalingthedepreciationexpenserecognizedontheseassetsarereclassifiedasretainedearningsonaproportionatebasis.

figures in ¤ 000s 31.03.09 31.12.08

Balance at the beginning of the period 1,679 0

+Consitutedbytherevaluationofthe51%corporateholdinginMBSKG 0 2,411

-Deferredtaxliabilitiesfollowingtherevaluation 0 -723

-Amortizationofassets -61 -18

+Liquidationofdeferredtaxliabilitiesfromtherevaluation 18 9

Balance at the end of the period 1,636 1,679


Treasury stockInaccordancewithanewresolutionpassedbytheshareholdersattheannualgeneralmeetingonJuly9,2008concerningtheacquisitionoftheCompany'sownstockinaccordancewithSection71(1)No.8oftheStockCorporationAct,theCompanywasauthorizedtoacquireuptotenpercentofitscurrentsharecapital(T¤1,820)onorbeforeJanuary8,2010.OnNovember4,2008,theExecutiveBoarddecidedtobuyuptoafurther91,000oftheCompany'sownshares.Aspartofthisstockbuy-backprogram,theCompanyacquired33,682ofitsownsharesforatotalamountofEUR1,163,223.49asofMarch31,2009.Upontheterminationofthestockbuy-backprogram,MMSAG'stotaltreasurystockcomprised122,850sharesasatMarch31,2009,equivalentto6.75%ofitscurrentsharecapital.

10. Other financial liabilities

figures in ¤ 000s 31.03.09 31.12.08

Liabilityfrom49%acquisitionofMBSKG 10,819 10,819

LiabilityfromtheacquisitionofR2ImageCheckerCT 1,098 1,771

LiabilitytowardsMREGmbH 462 462

Others 9 10

Other non-current financial liabilities 12,388 13,062

Liabilityfrom49%acquisitionofMBSKG 2,500 2,487

LiabilityfromtheacquisitionofR2ImageCheckerCT 2,073 2,273

Staffliabilities 955 628

Derivatives 293 229

LiabilitiestowardsFraunhoferMeVis 189 191

LiabilitiestowardstheSupervisoryBoard 18 18

Otherfinancialliabilities 490 85

Other current financial liabilities 6,518 5,911

11. Income taxesThechangeinincometaxesisessentiallyduetoataxpaymentbyMBSKGamountingtoT¤2,532,whichwasbasedonthecorporateacquisitionoftheHologicbusinessdivisioninfiscal2008.

12. Transactions with related parties Withreferencetobusinesstransactedwithrelatedparties,therehavebeennomaterialchangessinceDecember31,2008.

13. Contingent receivables and contingent liabilitiesIncomparisonwiththecontingentreceivablesandcontingentliabilitiespresentedintheconsolidatedfinancialstatementsforfiscal2008,nochangesoccurredinthefirstquarterofthecurrentfiscalyear.

14. Earnings per shareEarningspershareequaltheprofitoncontinuingactivitiesorprofit(aftertax)dividedbytheweightedaveragenumberofsharesoutstandingduringtheyearunderreview.Earningspershare(fullydiluted)are


calculatedontheassumptionthatallsecurities,stockoptionsandstockawardswithapotentiallydilutoryeffectareconvertedorexercised.

Asthecriteriaforexercisingtheoptionshadnotbeensatisfiedasofthebalancesheetdate,itcanbeassumedthatnooptionshadbeenexercisedbytheemployeesandthatnoshareshadbeenawardedtoMr.Tynes.Accordingly,theyarenotincludedinthecalculationofearningspershare,whichmeansthatdilutedearningspershareareidenticaltobasicearningspershare.

Theweightedaverageofsharesoutstandingisdeterminedbytakingaccountofsharesredeemedandreissuedsubjecttoachronologicalweighting.

figures in ¤ 000s 31.03.09 31.12.08

Consolidatednetprofitfortheyear 133 2,114

Weightedaverageofsharesoutstandingduringthereportingperiod 1,739,891 1,741,254

Basic earnings per share in ¤ 0.08 1.21

Diluted earnings per share in ¤ 0.08 1.21

15. Segment informationTheintroductionofIFRS8didnotleadtoasubstantialstructuralchangeforpurposesofsegmentreportingintheMeVisGroup.

Inthefirstquarterof2009,theactivitiesoftheMeVisGroupweresubdividedintothereportablesegmentsofDigitalMammographyandOtherDiagnostics.ThemanagementofeachofthesesegmentsreportsdirectlytotheExecutiveBoardofMMSAGinitsfunctionastheresponsiblecorporateentity.

Segmentearningsandtheresultofoperatingactivitiesremainthekeybenchmarksforassessingandcontrollingtheearningspositionofaparticularsegment.Asarule,theresultofoperatingactivitiescorrespondstoearningsbeforeinterestandtaxes(EBIT).

Thefollowingtablecontainsareconciliationoftheresultsofoperatingactivitiesofthesegmentswithconsolidatedearningsbeforeinterestandtaxes(EBIT).


Theresultsoftheoperatingactivitiesofthesegmentsarereconciledwiththeconsolidatednetprofit/lossfortheperiodasfollows:

01.01.–31.03.

figures in ¤ 000s 2009 2008

Segmentresultsofoperatingactivities 384 258

ReconciliationtoconsolidatedEBIT 53 112


Netfinancialresult -387 316

Earnings before taxes (EBT) 50 685

Incometaxexpenses 83 -291

Consolidated net profit for the period 133 394

Others/

Digital Other consolidationsand

mammography Diagnostics reconciliations MeVis-Group

figures in ¤ 000s 2009 2008 2009 2008 2009 2008 2009 2008

Externalrevenues 2,312 1,774 1,147 655 0 0 3,460 2,429

Intersegmentrevenues 0 0 0 0 0 0 0 0

Total segment revenues 2,312 1,774 1,147 655 0 0 3,460 2,429

Capitalizationofdevelopmentexpenses 406 249 330 243 0 0 737 492

Depreciationandamortization -239 -39 -339 -122 0 23 -579 -138

Impairment 0 0 0 0 0 0 0 0

Operatingexpenses -906 -540 -1,750 -1,071 0 1 -2,656 -1,610

segment net profit and loss 1,574 1,443 -612 -295 0 24 962 1,173

Otheroperatingincome 40 10 273 90 -78 -25 236 75

Otheroperatingexpenses -219 -279 -673 -712 131 112 -761 -879

Result of operating activities 1,395 1,175 -1,011 -917 53 112 437 369

Assets 23,417 2,601 11,370 3,424 21,098 29,249 55,885 35,274


16. Significant events after the balance sheet date (March 31, 2009)NotransactionsofmaterialrelevancetotheMeVisGrouphavearisensincethebalancesheetdate.

Bremen,May18,2009

MeVisMedicalSolutionsAG



Responsibility Statement (“Bilanzeid”)

Responsibilitystatementrequiredbysection37yoftheWertpapierhandelsgesetz(WpHG–GermanSecuritiesTradingAct)inconjunctionwithsection37w(2)no.3oftheWpHGfortheconsolidatedinterimfinancialstatements:

“Tothebestofourknowledge,andinaccordancewiththeapplicablereportingprinciplesforinterimfinancialreporting,theinterimconsolidatedfinancialstatementsgiveatrueandfairviewoftheassets,liabilities,financialpositionandprofitorlossofthegroup,andtheinterimgroupmanagementreportincludesafairreviewofthedevelopmentandperformanceofthebusinessandthepositionofthegroup,togetherwithadescriptionoftheprincipalopportunitiesandrisksassociatedwiththeexpecteddevelop-mentofthegroupfortheremainingmonthsofthefinancialyear.”

Bremen,May18,2009

MeVisMedicalSolutionsAG



Disclaimer

Forward-looking statements

Thisinterimreportcontainsforward-lookingstatementswhicharebasedonmanagement'scurrentestimatesoffuturedevelopments.Suchstatementsaresubjecttorisksanduncertainties,whichMeVisMedicalSolutionsAGisnotabletocontrolorestimatewithanyprecision,e.g.futuremarketconditionsandthegeneraleconomicenvironment,thebehaviorofothermarketparticipants,thesuccessfulintegra-tionofnewacquisitionsandgovernmentacts.Ifanyoftheseuncertaintiesorimponderabilitiesmaterializeoriftheassumptionsonwhichthesestatementsarebasedprovetobeincorrect,thismaycauseactualresultstodeviatemateriallyfromthoseexpresslyorimplicitlycontainedinthesestatements.MeVisMedicalSolutionsAGdoesnotintendandisundernoobligationtoupdatetheforward-lookingstatementsinthelightofanyeventsordevelopmentsoccurringafterthedateofthisreport.

Deviations for technical reasons

DeviationsmayoccurbetweentheaccountingdatacontainedinthisreportandthatsubmittedtotheelectronicBundesanzeigerfortechnicalreasons(e.g.conversionofelectronicformats).Intheeventofanydoubt,theversionsubmittedtotheelectronicBundesanzeigerwillprevail.

ThisreportisalsoavailableinaGerman-languageversion.Inthecaseofanydoubt,theGerman-languageversiontakespriorityoverthisEnglish-languageone.

ThereportisavailablefordownloadinbothlanguagesontheInternetathttp://www.mevis.de/mms/Finanzberichte.html.

MeVisMedicalSolutionsAGUniversitätsallee2928359Bremen

Tel:+49421224950Fax:+494212249511

www.mevis.de

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