Results of Operations, Financial Situation and Balance Sheet

At the end of 2012 MorphoSys announced the sale of substantially all of the AbD Serotec segment to Bio-Rad. On 31 December 2012, substantially all of the AbD Serotec segment represents a discontinued operation in the context of IFRS 5. The segments Partnered Discovery, Proprietary Development and the continued operation of the AbD Serotec segment therefore qualified as continued operations as of the balance sheet date.

Revenues

Compared to the previous year, Group revenues from continuing operations decreased by 37 % to € 51.9 million (2011: € 82.1 million). This decrease resulted primarily from lower successbased payments received in the financial year 2012. In 2011, MorphoSys received a one-time technology milestone payment from Novartis in relation to the successful installation of the HuCAL  antibody platform in the Novartis Institutes for BioMedical Research. Overall, the revenues from funded research and licensing fees decreased in the continued operations Partnered Discovery and Proprietary Development compared to the previous year.

The continuing operations of the segments Partnered Discovery and Proprietary Development contributed (prior to the elimination of inter-segment effects) € 44.7 million and € 7.0 million (2011: € 79.3 million and € 2.4 million) respectively to Group turnover. The discontinued operations of AbD Serotec generated revenues of € 17.7 million in 2012 (2011: € 18.7 million). The continued operations of the AbD Serotec segment contributed 34 € 0.3 million (2011: € 0.6 million) to Group turnover. In 2012, inter-segment revenues in the amount of € 0.04 million were eliminated between the segments AbD Serotec and Partnered Discovery (2011: € 0.3 million).

Geographically, MorphoSys generated 5 % or € 2.7 million of its commercial revenues with biotechnology and pharmaceutical companies and non-profit organizations located in North America, and 95 % or € 49.2 million with customers mainly located in Europe and Asia. In the same period of the previous year, these percentages amounted to 6 % and 94 %, respectively. The relatively higher contribution of European revenues to Group revenues mainly reflects the contribution from MorphoSys’s largest customer Novartis.

PARTNERED DISCOVERY AND PROPRIETARY DEVELOPMENT SEGMENTS

Revenues from the Partnered Discovery segment included € 42.7 million of funded research and licensing fees (2011: € 46.6 million) as well as € 1.9 million (2011: € 32.7 million) in success-based payments. The success-based payments contributed 4 % (2011: 40 %) of the total revenues from the segments Partnered Discovery and Proprietary Development. Funded research and licensing fees decreased due to the fact that most of MorphoSys’s collaborations were concluded as planned and contractually agreed. The main reason for the high revenues from success-based payments achieved in 2011 was a unique technology milestone from Novartis for the installation of the HuCAL technology.

Revenues of the Proprietary Development segment included € 7.0 million (2011: € 2.4 million) of funded research. The revenues of the Proprietary Development segment contained a one-off payment from Novartis.

Around 97 % of Group revenues arose from the Company’s three largest alliances with Novartis, Pfi zer and Roche (2011: 94 % with Novartis, Daiichi Sankyo and Pfizer).

Assuming constant foreign exchange rates at the average rate of 2011, revenues in the Partnered Discovery and Proprietary Development segments would have amounted to € 51.3 million.

ABD SEROTEC SEGMENT

Compared to the same period in the previous year, segment revenues from AbD Serotec decreased in 2012 by 7 % or € 1.3 million to € 18.0 million (2011: € 19.3 million). Assuming constant foreign exchange rates at the average rate of 2011, revenues in the AbD Serotec segment would have amounted to € 17.0 million. Revenues in the amount of € 17.7 million from the discontinued operations of AbD Serotec were not included in the Group revenues due to the application of IFRS 5, and are presented as revenue from discontinued operations (2011: € 18.7 million).

As of 31 December 2012, orders in the amount of € 0.7 million were classified as back orders in the segment (2011: € 0.8 million).

Operating Expenses

Total operating expenses decreased in 2012 by 30 % to € 49.8 million (2011: € 70.8 million). This reduction of € 21.0 million was due to research and development ( R&D  ) expenses decreasing by 33 % or € 18.2 million as well as the reduction of sales, general and administrative (S, G&A) expenses by 19 % or € 2.8 million to € 12.1 million. The discontinued operations of AbD Serotec incurred operating expenses of € 18.1 million in 2012 (2011: € 18.3 million). € 6.2 million of this amount arose from cost of goods sold (2011: € 7.0 million). Operating expenses in the Partnered Discovery segment decreased to € 21.8 million (2011: € 23.7 million) and in the Proprietary Development segment they decreased by 48 % to € 18.1 million (2011: € 35.0 million). In the AbD Serotec segment, operating expenses decreased by 4 % to € 17.6 million (2011: € 18.4 million). Assuming constant foreign exchange rates at the average rate of 2011, operating expenses in AbD Serotec would have amounted to € 16.7 million.

Stock-based compensation expenses are embedded in cost of goods sold (COGS), S, G&A and R&D expense amounts. Stockbased compensation in 2012 amounted to € 1.3 million (2011: € 1.5 million) and is a non-cash charge.

fig. 9 /// DISTRIBUTION OF R&D EXPENSES ( IN MILLION €)

COST OF GOODS SOLD

COGS is composed of the discontinued operations of AbD Serotec’s cost of goods sold in 2012 and – compared to the same period of the previous year – decreased by 11 % from € 7.0 million to € 6.2 million. The gross margin for the AbD Serotec segment increased slightly to 65 % (2011: 64 %).

RESEARCH AND DEVELOPMENT EXPENSES

In 2012, expenses for research and development decreased by € 18.2 million to € 37.7 million (2011: € 55.9 million). This was mainly due to the reduction of costs for external laboratory funding (2012: € 7.2 million; 2011: € 18.3 million), for personnel (2012: € 17.9 million; 2011: € 20.7 million), and for consumables (2012: € 1.5 million; 2011: € 3.3 million). In 2012, external studies in connection with the proprietary antibody program MOR103 were finished, while in 2011 this proprietary program triggered additional costs due to the advanced status of the project. The discontinued operations of AbD Serotec incurred research and development expenses of € 1.8 million in 2012 (2011: € 1.6 million).

In 2012, the Company incurred costs for proprietary product development of € 18.1 million (2011: € 35.0 million). In 2011, this amount contained segment allocations for technology development in the amount of € 1.1 million. Total costs for technology development amounted to € 3.6 million (2011: € 2.9 million).

SALES, GENERAL AND ADMINISTRATIVE EXPENSES

Compared to the same period of the previous year, sales, general and administrative expenses decreased by 19 % or € 2.8 million to € 12.1 million (2011: € 14.9 million) mainly due to lower personnel costs of € 0.6 million and lower expenses for external services of € 1.7 million. The discontinued operations of AbD Serotec incurred sales, general and administrative expenses of € 10.0 million in 2012 (2011: € 9.7 million).

Other Income/Expenses

Other income amounted to € 0.4 million (2011: € 0.5 million) and predominantly comprised funding from public authorities and currency gains, whilst other expenses of € 0.1 million (2011: € 2.0 million) primarily resulted from foreign-exchange losses. The discontinued operations of AbD Serotec incurred other expenses of € 0.2 million in 2012 (2011: € 0.1 million).

EBIT

Earnings before interest and taxes (EBIT) of continued operations amounted to € 2.5 million; in 2011, EBIT amounted to € 9.8 million. EBIT of the continued operations of the segments Partnered Discovery and Proprietary Development amounted to € 23.0 million (2011: € 55.7 million) and € -11.0 million (2011: € –32.2 million), respectively. The AbD Serotec segment reported EBIT of € 0.3 million (2011: € 0.9 million); assuming constant foreign exchange rates at the average rate of the twelve months of 2011, this profit would have amounted to € 0.2 million. After deduction of transaction costs directly attributable to the sale of the AbD Serotec business, the discontinued operations generated an EBIT of € -0.6 million in 2012 (2011: € 0.3 million).

Finance Income/Expenses

Finance income amounted to € 0.7 million (2011: € 1.5 million) and primarily included realized gains on marketable securities sold in the reporting period as well as interest income. Finance expenses amounted to € 0.1 million (2011: € 0.1 million) mainly resulting from banking fees and losses on foreign-exchange derivatives. The discontinued operations of AbD Serotec incurred finance expenses of € 0.1 million in 2012 (2011: € 0.1 million).

Taxes

In 2012, the continued operations reported income tax expenses in the amount of € 0.7 million (2011: € 3.0 million). This line item mainly comprised current tax expenses in the amount of € 1.1 million (2011: € 3.3 million) as well as deferred tax income in the amount of € 0.4 million (2011: € 0.3 million). The discontinued operations incurred income tax income of € 0.2 million in 2012 (2011: income tax expense of € 0.2 million).

Net profit

In the fiscal year 2012, a net profit after taxes of € 2.4 million was achieved for continued operations (2011: € 8.2 million). After deduction of transaction costs directly attributable to the sale of the AbD Serotec business, the discontinued operations reported a net loss of € 0.4 million (2011: net profit of € 0.01 million).

Financial Situation

FINANCIAL MANAGEMENT PRINCIPLES

The most important objective of financial management at MorphoSys is to provide suffi cient liquidity reserves for industry- specific fluctuations and for the Group’s continued growth at all times. The most important sources of liquidity are the operating business activities of the individual Group segments and the resulting cash inflows. Scenarios and cash-flow planning are used to determine the liquidity requirements.

CASH FLOWS

Net cash inflow from operations in 2012 amounted to € 1.8 million (2011: € 27.1 million). Of this amount, a net cash inflow of € 1.0 million resulted from the discontinued operations in 2012 (2011: € 1.6 million), while the continued operations generated a cash inflow from operations of € 0.7 million in 2012 and € 25.4 million in 2011.

Investment activities resulted in a cash outflow in the amount of € 12.1 million (2011: € 18.1 million), of which a cash outflow of € 0.3 million (2011: € 0.6 million) occurred from the discontinued operations and € 11.8 million (2011: € 17.5 million) from continued operations.

Financing activities generated a cash inflow of € 1.6 million in 2012 (2011: € 1.3 million), which was fully attributable to continued operations.

Multiple-Year Overview – Results of Operations

TAB. 8 /// MULTIPLE-YEAR OVERVIEW – RESULTS OF OPERATIONS

in million €   20121   20111   2010   2009   2008  
Revenues 51.9 82.1 87.0 81.0 71.6
Cost of Goods Sold 0.0 0.0 7.3 6.7 7.1
Gross Profit 51.9 82.1 79.7 74.3 64.5
Research & Development Expenses 37.7 55.9 46.9 39.0 27.6
Sales, General and Administrative Expenses 12.1 14.9 23.2 23.9 20.5
Other Operating Income2 0.3 (1.5) 0.2 0.1
EBIT2,3 2.5 9.8 9.8 11.4 16.4
Non-operating Income/Expenses2 0.6 1.4 3.4 1.6 1.6
Income Tax Expenses (0.7) (3.0) (4.0) (4.1) (4.8)
Profit for the Year from Continuing Operations 2.4 8.2 9.2 9.0 13.2
(Loss)/Profit for the Year from
Discontinued Operations1
(0.4) 0.0 0.0 0.0 0.0
Consolidated Net Profit 1.9 8.2 9.2 9.0 13.2

1 Due to the in December 2012 agreed divestment of substantially all of the AbD Serotec segment, all transaction-related items of 2012 and 2011 will be presented in the position “Profit/loss from discontinued operations”. All other items contain the values of continued operations. See also the Notes to the Financial Statements.
2 To increase the comparability with its peer group, MorphoSys has changed the structure of its profit- and loss statement in 2012, showing now EBIT instead of profit from operations. For further details please refer to section 2.1 of the Notes to the Financial Statements.
3 2008 – 2010: Profit from Operations

Multiple-Year Overview – Financial Situation

TAB. 9 /// MULTIPLE-YEAR OVERVIEW – FINANCIAL SITUATION

in million €   2012   2011   2010   2009   2008  
Net Cash Provided by/(Used In)
Operating Activities1
1.8 27.1 1.9 (1.0) 28.6
Net Cash Provided by/(Used in)
Investing Activities
(12.1) (18.1) (2.0) 0.6 (39.3)
Net Cash Provided by/(Used in)
Financing Activities1
1.6 1.3 2.3 1.4 2.5
Cash and Cash Equivalents (as of 31 December)2 40.7 54.6 44.1 41.3 40.1
Available-for-sale Financial Assets 79.7 79.8 64.3 93.9 97.8

1 In 2011, purchases of derivative financial instruments and proceeds from disposal of derivative financial instruments have been reclassified within the cash flow statement from financing activities to operating activities. To provide comparative information for the prior year, the figures for the year 2010 have been adjusted accordingly.
2 In 2012, cash in the amount of € 5.3 million was attributed to the disposal group classified as held for sale.

INVESTMENTS

MorphoSys’s investment in property, plant and equipment mainly focused on laboratory equipment (see table No. 6) and amounted to € 1.0 million in fiscal year 2012 (2011: € 2.3 million). Depreciation of property, plant and equipment in 2012 amounted to € 2.3 million compared to € 2.4 million in 2011. In 2012, an impairment in the amount of € 0.2 million was recognized for property, plant and equipment of the Proprietary Development segment. Investments in the amount of € 0.3 million (2011: € 0.6 million) as well as depreciation in the amount of € 0.5 million (2011: € 0.6 million) were attributable to discontinued operations.

In 2012, the Company invested € 1.3 million in intangible assets (2011: € 1.3 million). Amortization of intangible assets in 2012 amounted to € 4.0 million, and was below the level of the previous year (2011: € 4.3 million). In 2011, an impairment of € 0.2 million for intangible assets of the Proprietary Development segment was recognized. Investments in the amount of € 0.2 million (2011: € 0.1 million) as well as amortization in the amount of € 0.5 million (2011: € 0.5 million) were attributable to discontinued operations.

LIQUIDITY

As of 31 December 2012, the Company held € 120.4 million in cash, cash equivalents and available-for-sale financial assets, compared to a year-end 2011 balance of € 134.4 million. This decrease in liquidity was mainly impacted by the allocation of an interest-bearing transferable loan amounting to € 10.0 million. Furthermore, cash in the amount of € 5.3 million was attributed to the disposal group classified as held for sale in 2012.

Balance Sheet

ASSETS

Total assets amounted to € 224.3 million as of 31 December 2012, and were € 4.1 million below the value as of 31 December 2011 (€ 228.4 million). The decrease in current assets by € 11.0 million was mainly a result of a decrease in accounts receivable from continued operations in the amount of € 1.6 million and the reclassifi cation of current assets in the amount of € 10.9 million to the line item “assets of disposal group classified as held for sale”. The decrease in cash and marketable securities by € 8.7 million and the decrease in prepaid expenses and other current assets from continued operations by € 0.6 million were mainly off set by the allocation of an interest-bearing transferable loan amounting to € 10.0 million, which is presented under other receivables. Compared to 31 December 2011, noncurrent assets decreased by € 33.1 million, mainly as a result of the depreciation of property, plant, and equipment in the amount of € 1.7 million, the amortization of licenses and patents in the amount of € 2.0 million and € 1.0 million, respectively, as well as the reclassifi cation of non-current assets in the amount of € 30.0 million to the line item “assets of disposal group classified as held for sale”. As of 31 December 2012, the investment in Lanthio Pharma B.V., a privately led company located in Groningen in the Netherlands, in the amount of € 0.9 million was accounted for as “available-for-sale financial asset”. As of the balance sheet date 31 December 2012, the Group holds a percentage of 19.98 % in the share capital of Lanthio Pharma B.V.

As of 31 December 2012, the Company reported “assets of disposal group classified as held for sale” in the amount of € 40.9 million. This line item mainly included cash in the amount of € 5.3 million, inventories in the amount of € 2.8 million as well as accounts receivable in the amount of € 1.7 million from discontinued operations of the AbD Serotec segment. Furthermore, goodwill in the amount of € 26.8 million, property, plant, and equipment amounting to € 1.5 million as well as know-how and customer lists amounting to € 1.0 million were reclassified to this line item.

As of 31 December 2011, the “assets of disposal group classified as held for sale” also comprised the property held by the affi liate Poole Real Estate Ltd., Poole, UK, with a carrying amount of € 0.8 million. In March 2012, MorphoSys accomplished the sale of the property for € 0.8 million.

LIABILITIES

The decrease in current liabilities from € 23.8 million as of 31 December 2011, to € 11.9 million as of 31 December 2012, mainly arose from a decrease in accounts payable, accrued expenses as well as tax liabilities by € 6.0 million and € 2.2 million, respectively. Compared to 31 December 2011, accrued expenses for external laboratory funding decreased by € 3.7 million to € 2.9 million, while accrued expenses for personnelrelated costs decreased by € 1.3 million to € 3.8 million. As of 31 December 2012, current liabilities in the amount of € 3.3 million from the discontinued operations of the AbD Serotec segment were reclassified to the line item “liabilities of disposal group classified as held for sale”.

The decrease in non-current liabilities in 2012 by € 0.9 million to € 6.6 million resulted mainly from deferred tax liabilities which decreased by € 0.4 million. In addition, non-current liabilities in the amount of € 0.4 million from the discontinued operations of the AbD Serotec segment were reclassified to the line item “liabilities of disposal group classified as held for sale”.

The line item “liabilities of disposal group classified as held for sale” reported as of 31 December 2012, in the amount of € 3.7 million is primarily composed of accounts payable, accrued expenses and accruals amounting to € 2.4 million, deferred revenues amounting to € 0.4 million as well as deferred tax liabilities amounting to € 0.4 million.

EQUITY

Total Group equity amounted to € 202.0 million as of 31 December 2012, compared to € 197.1 million as of 31 December 2011.

As of 31 December 2012, the total number of shares issued amounted to 23,358,228, of which 23,102,813 were outstanding (31 December 2011: 23,112,167 and 22,948,252 shares).

The increase of shares outstanding by 154,561 arose from the net effect of exercised stock options and convertible bonds issued to members of the Management Board and employees (246,061 shares) and a repurchase of the Company’s own shares (91,500 shares).

In April 2012, the Company repurchased 91,500 MorphoSys shares on the stock market and increased the amount of treasury shares accordingly. The shares will be used to implement the Company’s long-term incentive plan for management.

Multiple-Year Overview – Balance Sheet Structure

TAB. 10 /// MULTIPLE-YEAR OVERVIEW – BALANCE SHEET STRUCTURE

in million €   12/31/2012  12/31/2011   12/31/2010   12/31/2009   12/31/2008  
Assets
Current Assets 142.9 153.9 132.5 155.6 150.1
Non-current Assets 40.6 73.7 77.3 50.5 53.2
Assets of Disposal Group Classified
as Held for Sale
40.9 0.8 0 0 0
Total 224.3 228.4 209.8 206.1 203.3
 
Equity and Liabilities
Current Liabilities 11.9 23.8 21.4 24.3 27.4
Total Non-current Liabilities 6.6 7.5 2.5 7.9 13.9
Liabilities of Disposal Group Classified
as Held for Sale
3.7 0 0 0 0
Equity 202.0 197.1 185.9 173.9 162.0
Total 224.3 228.4 209.8 206.1 203.3

Financing

As of 31 December 2012, the equity ratio of the Company amounted to 90 %, compared to an equity ratio of 86 % as of 31 December 2011. The Company is currently not financed via financial debt.

Off-Balance Sheet Financing

MorphoSys is not involved in any off -balance sheet financing instruments such as the sale of receivables, asset-backed bonds, sale-and-lease-back transactions or contingent liabilities in relation to special purpose entities not consolidated.

Credit Rating

MorphoSys is not currently being assessed on its credit-worthiness.

Comparison of the Actual Business Results with Forecasts

MorphoSys demonstrated a solid financial performance in the 2012 reporting year. In the fourth quarter, the Company slightly reduced the turnover goal it published at the beginning of 2012. This was in part due to the first commercial agreement for the Ylanthia  platform being concluded later than expected. The reported Group turnover of € 51.9 million does not include the turnover of the discontinued operation amounting to € 17.7 million, which is disclosed separately as discontinued operations in accordance with the IFRS 5 accounting standard.

The Management’s General Assessment of Business Performance

The Management Board can once again look back on a very solid performance of the MorphoSys Group in the 2012 financial year. The majority of the goals it set at the start of 2012 have been met. Marketing of the Ylanthia platform began very late in the reporting year and some milestone payments were delayed. Excluding the turnover from the AbD Serotec segment, which is disclosed separately as discontinued operations in the Group Consolidated Financial Statements owing to the sale of the segment to Bio-Rad, the turnover of the MorphoSys Group for 2012 amounts to € 51.9 million, 37 % below the likewise adjusted comparison value in the previous year. The unfavorable comparison to the 2011 annual turnover derives from the one-time milestone payment from Novartis in the first quarter of 2011 related to the installation of the HuCAL antibody platform at the Novartis Institutes for BioMedical Research in Basel, Switzerland. As targeted for 2012, the Company remained profitable with operating profits of € 2.5 million. The equity quota of 90 %, a liquidity position of € 130.4 million (including an interest bearing and assignable loan in the amount of € 10.0 million, excluding € 5.3 million in the discontinued operation) as well as no financial debt whatsoever testify to the Company’s thoroughly solid financial situation.

The greatest contribution to business success was once again generated by the Company’s Partnered Discovery segment. Based on the positive financial performance of this business segment, MorphoSys could continue to invest in its proprietary product and technology development. Despite the further investment increases, the Company showed solid operating profits.

Investments in research and development are also reflected in a more mature product pipeline. In particular, MorphoSys’s proprietary compounds demonstrated pleasing progress, with initial clinical efficacy data on MOR103 and the advancement of a further drug candidate, MOR208, to phase 2 clinical development. With gantenerumab, a HuCAL program reached a phase 3 trial for the first time in 2012. There are currently 20 programs in clinical evaluation, four of which are proprietary.

The AbD Serotec business segment did not meet its growth expectations due to a challenging market environment in 2012. The demand in the research and diagnostics markets was particularly negatively influenced in Europe and the USA. However, the segment made pleasing gains in market coverage with an increasing number of HuCAL-based tests in clinical diagnostics.

TAB. 11 /// COMPARISON OF ACTUAL BUSINESS RESULTS WITH FORECASTS

  2012 Goals   2012 Achievements  
Financials

Group revenues of € 70 – 75 million (originally € 75 – 80 million, adjusted in November 2012)
Group revenues of continuing operations € 51.9 million
(AbD Serotec segment revenues are disclosed separately as
discontinued operation at € 17.7 million)
Investments in proprietary R&D amounting to € 20 – 25 million Investments in proprietary R&D amounting to € 21.7 million
AbD Serotec profit margin of approx. 6 – 8 %

AbD Serotec profit margin of 2 %. The agreed sale of AbD Serotec caused additional transaction costs, which reduced the profit margin.
EBIT of € 1 – 5 million

EBIT of continuing operations of € 2.5 million
(EBIT of AbD Serotec segment is disclosed separately as ­discontinued operation at € – 0.4 million)
Proprietary R&D MOR103:
  • Conclusion of phase 1b/2a trial on patients with rheumatoid arthritis and presentation of clinical results
  • Continuation of phase 1b safety trial for multiple sclerosis as a second indication
  • Evaluation of subcutaneous formulation
MOR103:
  • Publication of positive data from phase 1b/2a trial and ­presentation of clinical results at the annual meeting of the American College for Rheumatology (ACR)
  • Continuation of phase 1b trial with increasing dosage for ­multiple sclerosis
  • Positive results from phase 1 trial of subcutaneous delivery
MOR202:
Continuation of phase 1/2a trial in multiple myeloma
MOR202:
Continuation of phase 1/2a trial in multiple myeloma. It could be verified that MOR202 is able to induce the elimination of MM cells in patients also via antibody-dependent cellular phagocytosis (ADCP) in vitro; presentation of corresponding data at the American Society of Hematologyʼs 2012 annual conference (ASH)
MOR208:
  • Conclusion of Xencor-sponsored phase 1 trial on CLL/SLL patients
  • Start of MorphoSys-sponsored trials in NHL and ALL
MOR208:
  • Successful conclusion of phase 1/2a trial with encouraging first signs of anti-tumor efficacy and an acceptable safety
    and compatibility profile; further clinical development under sole responsibility of MorphoSys
  • Trials in NHL and ALL in preparation; approvals for start of phase 2 studies received in 2012/planned start in April 2013
  • Partnered Pipeline Continuation of development programs with partners
  • Net increase of 2 partner programs milestone
  • Further project advances in the collaborations with Novartis, OncoMed and Janssen Biotech, partly with preclinical and ­clinical milestone payments
  • 1 – 3 IND filings in 2012 One partner program from Novartis started clinical development
    AbD Serotec Profitable growth and focus on diagnostics market
  • Decrease in revenues and profit – a difficult market environment and the sale in the fourth quarter of 2012 had impact on the annual result
  • Increase in number of HuCAL-based tests in clinical diagnostics, e.g. in the field of infectious diseases and pregnancyrelated diagnostics
  • Accounting Judgments

    No accounting policies were applied or related options exercised in the Consolidated Financial Statements 2012 that differ from those in prior years and that, if applied or exercised differently, would have had a material effect on the results of operations, financial situation, and balance sheet structure. Information on the effects of the use of estimates, assumptions, and judgments by the management can be found in the Notes to the Consolidated Financial Statements.