Group net sales in the Q1 2005/ 2006 increased by 7% to € 488 million (previous year:
€ 455 million). After adjusting for the effect of exchange rate movements between the euro and the US dollar, revenue was up 5%. This growth in Q1 revenue is the result of both overall favorable business performance within the Group and good business conducted at the year-end.

Gross margin on revenue before profit charges arising from the carve-out was down 1,3 percentage points on the same quarter last year to 27.5% (previous year: 28.8%). This fall was due to growth in lower-margin regions and the relative growth of outsourcing revenues within the overall business.

Research and development expenses increased € 2 million to € 19 million (previous year:
€ 17 million), 12 percentage points higher than the same quarter last year. The R&D ratio was 3.9% (previous year: 3.7%).

At € 76 million, Q1 selling, general and administration expenses were lower than the same quarter last year (€ 79 million), moving in the opposite direction of the rise in revenue and thus reducing the SG&A/revenue ratio by 1.8 percentage points to 15.6% (previous year: 17.4%), more than compensating for the fall in gross margin. The favorable effects of actions taken within the Group-wide “ProImprove” productivity improvement program continue to make themselves felt clearly.

Within the first three months of the fiscal year, EBITA (operating profit before amortization of product know-how) increased € 4 million or 11% to € 39 million (previous year: € 35 million), improving the return on sales by 0.3 percentage points to 8.0% (previous year: 7.7%).

Net profit for the period in Q1 was € 18 million, € 5 million ahead of the equivalent figure last year. Net profit for the period before carve-out expenses climbed € 4 million to € 22 million (previous year: € 18 million).