Key points of the first half of 2012:
• Turnover increased by 15.3% to € 268.3 million
• Organic growth of 5.0%
• Recurrent EBITDA increased by 17.9% to € 38.8 million
• EBITDA increased by 18.9% to € 32.8 million
• EBIT increased by 21.1% to € 24.5 million
• Operational working capital decreased by 20.3% compared to 30 June 2011
• Cash flow from operational activities increased by 17.4% to € 23.0 million
• Outlook for 2012: Healthy organic turnover growth and profitability that is
expected to grow faster than turnover
Ger van Jeveren, CEO of Arseus: “The results for the first half of 2012 are convincing. In the first half of 2012, the recurrent EBITDA, EBITDA and EBIT once again increased faster than turnover. Thanks to the constant focus on innovative total concepts and products, Arseus was able to increase the gross margin as a percentage of turnover in the first half of 2012. The commitment to consistently follow an innovation strategy during many years and a focus on operational excellence enable Arseus to adapt quickly to continuously changing and challenging market conditions.
All of Arseus' divisions achieved organic turnover growth in the second quarter of 2012. The organic growth realised by Fagron was adjusted due to the decision to phase out a total of € 14 million in industrial turnover with a lower margin. The introduction from 1 January 2012 of a limited trial period during which dentists in the Netherlands are free to set their own fees has led to considerable uncertainty and unrest on the Dutch dental market. With many dentists and dental laboratories consequently opting to delay investments, the turnover of Arseus Dental in the second quarter of 2012 was lower than originally budgeted.
We look to the future with confidence and consequently confirm the expectations for 2012 that we announced earlier.”

tatement of income (x 1,000 euros) H1 2012 H1 2011 Evolution
Net sales 268,272 232,734 15.3%
Gross margin 131,449 113,825 15.5%
As % of net sales 49.0% 48.9%
Operating costs -92,629 -80,886 14.5%
EBITDA before corporate costs and nonrecurrent
result
38,820 32,939 17.9%
As % of net sales 14.5% 14.2%
Corporate costs -3,447 -3,072 12.2%
EBITDA before non-recurrent result 35,373 29,867 18.4%
As % of net sales 13.2% 12.8%
Non-recurrent result -2,549 -2,253 13.1%
EBITDA 32,824 27,613 18.9%
As % of net sales 12.2% 11.9%
Depreciation and amortization -8,362 -7,414 12.8%
EBIT 24,462 20,199 21.1%
As % of net sales 9.1% 8.7%
Financial result, excluding revaluation of
financial derivatives
-5,288 -4,379 20.8%
Revaluation of financial derivatives 781 1,693 -53.9%
Profit before taxes 19,955 17.513 13.9%
Taxes -4,675 -3,472 34.6%
Net profit 15,280 14,041 8.8%
Recurrent net profit2 16,633 14,411 15.4%
Net profit per share (in euros) 0.50 0.46 8.7%
Recurrent net profit per share (in euros) 0.55 0.48 14.6%
Average number of shares 30,374,461 30,050,851
Balance sheet (x 1,000 euros) 30-06-‘12 31-12-‘11
Intangible assets 393,377 367,069
Property, plant and equipment 58,244 57,150
Deferred tax assets 22,220 20,368
Other non-current assets 1,859 1,788
Operational working capital 61,255 58,405
Other working capital -68,409 -85,452
Equity 221,761 220,452
Provisions 4,921 4,935
Financial instruments 2,687 3,452
Deferred tax liabilities 2,481 1,932
Net financial debt 236,697 188,557

2 Recurrent net profit is defined as the profit before non-recurrent items and the revaluation of financial derivatives, after
taxes based on the effective tax rate for the group.

Notes to the consolidated interim financial statements
Income statement
The consolidated turnover for the first half of 2012 amounted to € 268.3 million, an increase of 15.3% compared to the first half of 2011. Organic growth in the first half of the year amounted to 5.0% (4.8% at constant exchange rates). The consolidated turnover in the second quarter of 2012 increased by 13.0% (13.5%) to € 137.2 million. Organic growth in the second quarter was 3.9% (4.4%).
The gross margin increased by 15.5% to € 131.4 million. Compared to the first half of 2011, the gross margin as a percentage of the turnover increased by 0.1 percentage points to 49.0%.
The operating costs, as a percentage of turnover, decreased by 0.3 percentage point during the first half of 2012.
The recurrent EBITDA 3 increased faster than turnover, by 17.9% to € 38.8 million.
The corporate costs as a percentage of turnover remain unchanged at 1.3%.
The non-recurrent result amounted to -€ 2.5 million, an increase of 13.1% compared to the first half of 2011. This result primarily consists of acquisition costs and integration costs.
The EBITDA increased in the first half of 2012 by 18.9% to € 32.8 million. The operational margin (EBITDA as a percentage of turnover) increased by 0.3 percentage point to 12.2%.
The depreciation and amortization amounted to € 8.4 million, an increase of € 0.9 million or 12.8% compared to the same period in 2011.
The EBIT amounted to € 24.5 million, an increase of 21.1% compared to the first half of 2011. The EBIT increased substantially faster than the turnover, just as the recurrent EBITDA and EBITDA.

The financial result, excluding the revaluation of the financial derivatives, amounted to -€ 5.3 million, an increase of 20.8% compared to the first half of 2011. This increase was due to an increase in the net financial debt, while on the other hand there was a decrease in interest rates.
The revaluation of the financial derivatives amounted to € 0.8 million. This positive revaluation reflects a rising trend in the interest base. This interest-rate hedge does not qualify for hedge accounting according to IAS 39. As a non-cash item, it has been deducted from the financial result and is shown separately on the statement of income.
The effective tax rate, as a percentage of the profit before taxes, was 23.4% in the first half of 2012, compared to 19.8% in the same period last year. The higher tax rate is due to the contribution to the profit of Arseus’ activities in the US and Brazil.

3 EBITDA before corporate costs and non-recurrent result.

In the first half of 2012, the net profit increased by 8.8% to € 15.3 million, despite the higher tax
rate. The net profit per share amounted to € 0.50.

Balance sheet
On the level of the balance sheet, the main changes can be summarised as follows.
The intangible assets increased by € 26.3 million. This increase was largely due to the recognition of goodwill relating to the acquisition of Polish Pharma Cosmetic and the R&D activities of Corilus and Arseus Dental Technology.
The property, plant and equipment increased by € 1.1 million. This increase was mainly due to the last investments in the new head office and distribution centre for Fagron Netherlands.
The operational working capital4 decreased by 20.3% to € 61.3 million compared to 30 June 2011. With turnover growth of 15.3%, the accounts receivable decreased by 13.5% and the stock increased by 16.6%. The increase in the stock was caused mainly by the impact of Brazilian Pharma Nostra, which was acquired in 2011, and Polish Pharma Cosmetic, which was acquired in early 2012.
The net financial debt5 increased by € 48.1 million to € 236.7 million in the first half of 2012.
This increase is due to the acquisition of Polish Pharma Cosmetic, a subsequent payment for Brazilian Pharma Nostra, which was acquired in 2011, and investments in R&D and automation, among other things. At the end of June 2012, the net financial debt / annualised recurrent EBITDA ratio was 3.06, due in part to dividend payments and acquisitions, and therefore satisfied the covenant under the credit facility, which sets a maximum ratio of 3.25. It is expected that this ratio will decrease substantially towards the end of the year, making it possible to continue Arseus’ buyand- build strategy.
The net operational capex6 amounted to € 9.9 million or 3.7% of the turnover in the first half of 2012. The capex consists of, among other things, investments in R&D, automation and the investment in a new head office and distribution centre for Fagron Netherlands already mentioned. Excluding the investments at Corilus, the net operational capex was 2.5% of the turnover.

4 The operational working capital is defined as the sum of stock and trade receivables less the trade payables.
5 The net financial debt is the sum of long-term and short-term financial borrowings (excluding financial instruments) less
cash and cash equivalents.
6 The net operational capex is defined as the acquired and produced intangible assets and property, plant and equipment
(excluding acquisitions) less the assets sold.

Outlook 7
Based on the current view and the existing Arseus portfolio, for 2012 as a whole the management is
expecting healthy organic growth and profitability that is expected to once again grow faster than
turnover.

7 This press release contains data on the future based on the current internal estimates and forecasts, in addition to market
forecasts. The statements concerning the future contain inherent risks and are only applicable on the date on which they are
issued. There may be substantial differences between the actual results and the results cited in the statements about the
future.

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