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Notes to the Income Statement

In document Sartorius Group 2012 Annual Report (Page 134-137)

130 Consolidated Financial Statements and Notes Notes to the Income Statement

Reorganization expenses in fiscal 2012 essentially were incurred for relocation of our U.S. manufacturing site for single-use bags (Biotechnology Division) from Concord, California, to Yauco, Puerto, the integration of the Biohit Liquid Handling business and for various cross-divisional projects.

36. Financial Result

2012

¤ in K € in K2011 Interest and similar income 570 698

- of which from affili-

ated companies [130] [104] Income from derivative

financial instruments 2,650 103 Interest and similar ex-

penses –8,676 –8,660

- of which from

affiliated companies [0] [0] Expenses for derivative

financial instruments –3,013 –2,750 Interest for pensions and

other retirement benefits –2,765 –2,201 Interest expenses for

factoring –925 –1,172

Other financial charges –754 –120

–12,913 –14,102

In fiscal 2012, no interest expenses were recognized as assets (2011: €0.3million).

37. Income Tax Expense

2012

¤ in K € in K2011 Current income taxes –26,009 –33,631 Deferred taxes –3,667 10,090

–29,676 –23,541

As a matter of principle, domestic income taxes have been calculated at 30.0% of the estimated taxable profit for fiscal 2012. Income generated outside Germany is taxed at the particular rates that are valid in the corresponding country.

The expected income tax rate must be used for de- ferred taxes at the time the temporary difference is reversed. This rate has been calculated for German companies on the basis of the tax rates of around 30% that have been applicable since 2008. Taking the local tax rates that are to be applied for subsidiaries outside

Germany into account, it is assumed that the income tax rate will average 32.0%. The following table shows the difference between the tax expense to be expected and the income tax expenses reported for each particular fiscal year:

2012

¤ in K € in K2011 Expected tax expense (32.0%) –30,059 –24,428 Difference from the Group

average income tax rate 1,289 2,565 Effects from losses and

interest carried forward and from temporary differences for which no deferred taxes

were accrued –1,615 –3,047 Tax-free income and tax

credits 1,927 999

Expenses not deductible for

tax purposes –1,988 –2,853 Adjustments from previous

years 1,698 4,219

Withholding and similar

taxes –1,068 –901

Other 140 –96

–29,676 –23,541

Effective tax rate 31.6% 30.8%

The effects arising from losses and interest carried forward, for which no deferred taxes were accrued, involve, to a partial extent, the consequential effects resulting from the spin-off of the operating business of Sartorius AG and transfer to its 100% subsidiary Sartorius Weighing Technology GmbH in 2011. The item “Adjustments from previous years” discloses, in particular, the positive effects from the use of losses and interest carried forward for which no deferred taxes had to be accrued. Taxation of the hidden assets and liabilities disclosed offset these positive effects.

Consolidated Financial Statements and Notes Notes to the Income Statement 131

38. Earnings per Share

According to IAS 33, Earnings per Share, the earnings per share for each class must be determined separately. In this case, the higher dividend entitlement of cur- rently two euro cents for preference shares must be taken into account. The undiluted earnings per share (basic EPS) are calculated on the basis of the number of shares outstanding during the period. Diluted earn- ings per share (diluted EPS) were not calculated be- cause there are no option or conversion rights to be exercised on Sartorius shares.

2012 2011

Ordinary shares

Basis for calculating undiluted earnings per ordinary share

(net profit after minority

interest) in € 24,182,426 20,707,442 Weighted average number of

shares outstanding 8,528,056 8,528,056 Earnings per ordinary share

in € 2.84 2.43

Preference shares Basis for calculating

undiluted earnings per preference share (net profit after minority

interest) in € 24,327,175 20,855,875 Weighted average number of

shares outstanding 8,519,017 8,519,017 Earnings per preference share

in € 2.86 2.45

Treasury shares may not be included for calculating the average number of shares outstanding.

39. Other Disclosures

The consolidated financial statements were prepared on a going-concern basis.

No material events occurred up to the end of the preparation of these consolidated financial statements. For the annual financial statements reported by Sartorius Mechatronics C&D GmbH & Co. KG, Aachen, Germany, for the year ended December 31, 2012, the exemption provided by §264 b of the German Commercial Code (HGB) was applied.

Declaration According to §314, Subsec. 1, No. 8, of the German Commercial Code (HGB)

The declaration prescribed by §161 of the German Stock Corporation Law (AktG) was submitted on December 7, 2012, and made available to the share- holders of Sartorius AG on the company’s website “www.sartorius.com."

Members of the Supervisory Board and the Executive Board

The members of the Supervisory Board and the Executive Board are listed at the end of this section.

Raw Materials and Supplies

This item consists of the following:

2012

¤ in K € in K2011 Expenses for raw materials,

supplies and purchased materials including changes

in inventory) 201,125 200,179 Cost of purchased services 18,737 18,096

219,862 218,274

Employee Benefits Expense

This item can be broken down as follows:

2012

¤ in K € in K2011 Wages and salaries 254,180 218,166 Social security 51,573 42,621 Expenses for retirement

benefits and pensions 4,747 3,160

310,500 263,947

Number of Employees

This table shows the average workforce employed during the fiscal year:

2012 2011

Bioprocess Solutions 2,786 2,503 Lab Products & Services 1,967 1,609 Industrial Weighing 738 732

132 Consolidated Financial Statements and Notes Declaration of the Executive Board

Auditors' Fee

In fiscal 2012, the following fees were incurred by the Group for the auditors Deloitte & Touche GmbH:

2012

¤ in K € in K2011

Audits 452 473

Other certification and

verification services 199 493 Tax consultation services 171 248

Other services 93 139

915 1,353

The other certification and verification services include the audit review fee of €102K (2011: €105K) for the first-half financial report purusant to § 37w of the German Securities Trading Act (WpHG).

Proposal for Appropriation of Profits

The Supervisory Board and the Executive Board will submit a proposal to the Annual Shareholders’ Meeting to appropriate the retained profit of €158,991,646.29 reported by Sartorius AG for the year ended December 31, 2012, as follows:

€ Payment of a dividend of €0.94 per

ordinary share 8,016,372.64 Payment of a dividend of €0.96 per

preference share 8,178,256.32 Unappropriated profit carried forward 142,797,017.33

158,991,646.29

Goettingen, February 18, 2013 Sartorius Aktiengesellschaft The Executive Board

We declare to the best of our knowledge that the consolidated financial statements for fiscal 2012 present a true and fair view of the actual net worth, financial situation and profitability of the Group in accordance with the accounting standards used in preparing these statements. We also certify that the progress of the Group’s business, including its business performance and its situation, are represented accu- rately in the Group Management Report in all material respects and present the most important opportunities and risks of the Group’s future development during the fiscal year.

Goettingen, February 18, 2013 Sartorius Aktiengesellschaft The Executive Board

Dr. Joachim Kreuzburg

Jörg Pfirrmann

Reinhard Vogt

Declaration of the

In document Sartorius Group 2012 Annual Report (Page 134-137)