112 Consolidated Financial Statements and Notes 04

1 112 consolidated financial statements and notes Independent Auditors' Fees 04. Consolidated Financial Statements and Notes Consolidated Financial Statements and Notes Statement of Profit or Loss and Other Comprehensive Income 113. Statement of Profit or Loss and Other Comprehensive Income Notes 2016 2015. 12 months 12 months in K in K. Sales revenue [9] 1,051,611 884,331. Cost of sales 524,791 432,546. Gross profit on sales 526,820 451,785. Selling and distribution costs 186,601 167,191. Research and development costs 47,536 41,529.

2 General administrative expenses 56,471 48,912. Other operating income and expenses [11] 10,296 9,621. Earnings before interest and taxes (EBIT) 225,916 184,532. Financial income [12] 1,884 2,854. Financial expenses [12] 14,815 17,708. Financial result 12,931 14,854. Profit before tax 212,985 169,678. Income taxes [13] 57,108 50,184. Net profit for the period 155,877 119,494. Attributable to: Equity holders of Sartorius Stedim Biotech 153,678 117,999. Non-controlling interest [23] 2,199 1,495. Earnings per share ( )1) [15] Diluted earnings per share ( )1) [15] Other Comprehensive Income 2016 2015.

3 12 months 12 months Notes in K in K. Net profit for the period 155,877 119,494. Cash flow hedges [30] 5,258 1,392. of which effective portion of changes in fair value 1,760 9,320. of which reclassified to profit or loss 3,498 7,928. Income tax on cash flow hedges [18] 1,577 418. Net investment in a foreign operation2) 3,240 6,646. Income tax on net investment in a foreign operation [18] 974 1,992. Foreign currency translation differences 385 21,840. Items that are or may be reclassified subsequently to profit or loss 5,562 16,212.

4 Remeasurements of the net defined benefit liabilities [24] 1,784 195. Income tax on remeasurements of the net defined benefits liabilities [18] 229 7. Items that will not be reclassified to profit or loss 1,555 202. Other comprehensive income after tax 7,117 16,010. Total comprehensive income 148,760 135,504. Attributable to: Equity holders of Sartorius Stedim Biotech 146,504 133,697. Non-controlling interest 2,255 1,807. 1). Earnings per share for 2015 have been adjusted according to the increase in number of shares following the stock split (see chapter 22).

5 2). This caption refers to foreign exchange gains and losses in connection with intragroup loans granted on a long-term basis. 114 Consolidated Financial Statements and Notes Statement of Financial Position Statement of Financial Position Notes Dec. 31, 2016 Dec. 31, 2015. in K in K. Non-current assets Goodwill [16] 344,777 336,959. Other Intangible Assets [16] 144,018 143,349. Property, plant and equipment [17] 261,464 222,875. Financial Assets 2,272 1,330. Other Assets 832 751. Deferred tax assets [18] 10,754 10,042.

6 764,116 715,306. Current assets Inventories [19] 171,057 146,970. Trade receivables [20] 183,952 142,344. Other Financial assets [21] 8,543 8,362. Current tax assets 20,901 9,783. Other assets 12,524 11,541. Cash and cash equivalents 34,756 31,831. 431,733 350,831. Total assets 1,195,849 1,066,137. Equity Equity attributable to SSB shareholders 758,005 641,441. Issued capital [22] 18,083 15,367. Capital reserves 231,526 235,231. Retained earnings (including net profit) 508,396 390,843. Non-controlling interest [23] 5,551 5,778.

7 763,556 647,219. Non-current liabilities Pension provisions [24] 34,219 31,737. Other provisions [27] 3,083 3,278. Loans and borrowings [25] 9,375 12,602. Finance lease liabilities [29] 16,678 16,937. Other Financial liabilities [26] 55,792 51,488. Deferred tax liabilities [18] 28,780 30,186. 147,928 146,229. Current liabilities Provisions [27] 9,281 8,014. Trade payables [28] 107,754 100,598. Loans and borrowings [25] 74,677 87,214. Finance lease liabilities [29] 1,592 1,506. Other Financial liabilities [28] 23,245 14,953.

8 Employee benefits 28,619 26,374. Current tax liabilities 20,997 19,964. Other liabilities 18,200 14,067. 284,364 272,689. Total equity and liabilities 1,195,849 1,066,137. Consolidated Financial Statements and Notes Statement of Cash Flows 115. Statement of Cash Flows Notes 2016 2015. 12 months 12 months in K in K. Profit before tax 212,985 169,678. Financial result [12] 12,931 14,854. Earnings before interest and taxes (EBIT) 225,916 184,532. Depreciation | amortization of fixed assets [16][17] 44,687 39,856.

9 Increase | decrease in provisions [24][27] 449 730. Income taxes paid [13] 65,717 43,570. Other non-cash items 583 0. Gross cash flows from operating activities 205,020 180,087. Increase | decrease in receivables and other assets [20][21] 45,206 11,466. Increase | decrease in inventories [19] 23,429 32,428. Increase | decrease in liabilities [26][28] 20,274 6,596. Net cash flow from operating activities 156,659 142,789. Acquisitions of intangible and tangible assets [16][17] 79,713 52,985. Other payments 0 544.

10 Net cash flow from investing activities 79,713 52,441. Payments for acquisitions of Consolidated subsidiaries and other business operations;. net of cash acquired [8] 23,020 53,888. Net cash flow from investing activities and acquisitions 102,733 106,329. Changes in capital [22] 636 175. Interest received [12] 129 129. Interest paid and other Financial charges [12] 1,681 2,937. Dividends paid to: - Shareholders of Sartorius Stedim Biotech SA 30,734 19,967. - Non-controlling interest 795 446. Gross cash flows from financing activities 33,717 23,046.