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Alphaform AG
Recommendation:
BUY (Initial Coverage)
Risk:
HIGH (-)
Price Target:
EUR 2.30 (-)
Growth drivers for the company are the
automotive and the orthopaedic sector
The business model of Alphaform is based on contract manufacturing of
prototypes and series production for national and multinational companies
in the medical, automotive, aviation and aerospace industry as well as for
electronics and telecommunications companies. Alphaforms manufacturing
process of prototypes is characterized by using technologies of additive
manufacturing.
The combination of the cyclical Automotive segment and the non-cyclical
Medical segment has a stabilising effect on the groups business
development.
IHS Global Insight and LMC Automotive predict the car industry to grow
also in the mid-term. Given Alphaforms exposure to the automobile OEMs,
the company will benefit from this development.
The orthopaedic market has shown a continuous and strong growth over
the last decade and will grow further in the future due to an aging
population, an increasing obesity rate as well as people wishing to remain
active at an advanced age and therefore more sport and activity related
injuries. Given Alphaforms exposure to the orthopaedic sector, the
company will also benefit from this development.
For FY 2012E the company expects revenue growth in the single-digit
percentage range and a significant EBIT improvement compared to the
previous year. For the current fiscal year (31 December 2012) we expect
sales of approximately EUR 28.2m (+7.0% yoy) and an EBIT of EUR +0.8m
(PY: EUR -1.3m). For the next financial years we expect a continuing sales
growth and improvements on income level.
Our valuation models lead to a fair value of EUR 2.30. We start our
coverage on Alphaform with a EUR 2.30 price target and a BUY
recommendation.

06 November 2012
Source: Alphaform AG; CBS Research AG
Key data
FY 12/31, EURm 2008 2009 2010 2011 2012E 2013E 2014E
Sales 21.4 19.4 20.7 26.3 28.2 30.1 32.2
EBIT -0.5 -3.8 -1.5 -1.3 0.8 1.2 1.5
Net result -0.7 -3.8 -1.6 -1.6 0.5 0.9 1.1
EPS -0.12 -0.71 -0.29 -0.30 0.10 0.16 0.21
DPS 0.00 0.00 0.00 0.00 0.00 0.00 0.00
EBITDA margin 6.2% -7.3% 2.9% 3.6% 8.0% 8.9% 9.5%
EBIT margin -2.3% -19.4% -7.1% -4.9% 3.0% 3.9% 4.5%
EV/EBITDA 8.1 -6.7 17.3 11.8 5.0 4.2 3.7
EV/EBIT neg. neg. neg. neg. 13.4 9.6 7.8
P/E neg. neg. neg. neg. 19.0 12.0 9.2
Shares outstanding (m):
daily trading volume (3 m., no. of shares):
Absolute performance (12 months):
Relative performance vs. CDAX:
1 month
3 months
6 months
12 months
Shareholders:
Management
Other management
Axxion
Multiadvisor Sicav
IPConcept Fund Management
Supervisory board and families
Free Float
Financial calendar:
3Q Report 9 November 2012
German Equity Forum 12 November 2012
Author: Daniel Kukalj (Analyst)
Close Brothers Seydler Research AG
Phone: +49 (0) 69-977 84 56 0
Email: research@cbseydlerresearch.ag
www.cbseydlerresearch.ag
4.5%
32.6%
-5.3%
2.4%
7.4%
8.8%
8.8%
35.5%
7.9%
14.5%
7.4%
Low 52 weeks (EUR): 1.45
0.3%
Performance data:
High 52 weeks (EUR): 1.98
2,769
5.3
Market capitalisation (EUR m): 10.4
Enterprise value (EUR m): 11.3
Share price (EUR, latest closing price): 1.95
Share data:
Alphaform AG designs, develops, manufactures
prototypes (Additive Manufacturing) and offers series
production for different industries (e.g. orthopaedic and
automotive sector) in Europe.
Reuters: ATFG.DE Bloomberg: ATF GY
Short company profile:
WKN: 548795 ISIN: DE0005487953
Internet: alphaform.de Sector: Industrials
- EPS 0.10 - 0.16 - 0.21
EBIT 0.8 - 1.2 - 1.5 -
- Sales 28.2 - 30.1 - 32.2
Share price (dark) vs. CDAX
Source: CBS Research AG, Bloomberg, Alphaform AG
new old new old new old
Change 2012E 2013E 2014E

Alphaform AG

Close Brothers Seydler Research AG | 2

Table of contents
Investment thesis ...................................................... 3
SWOT analysis ........................................................... 4
Strengths ...................................................................................................... 4
Weaknesses ................................................................................................. 4
Opportunities................................................................................................. 5
Threats .......................................................................................................... 5
Valuation.................................................................... 6
Valuation summary ....................................................................................... 6
Peer group analysis ...................................................................................... 6
Peer group ................................................................................................. 6
DCF model .................................................................................................... 9
Company profile ....................................................... 10
Company structure ...................................................................................... 10
Company history ......................................................................................... 11
Management team ...................................................................................... 11
Management board .................................................................................. 11
Supervisory Board .................................................................................... 12
Shareholder structure ................................................................................. 12
Business Model ........................................................ 13
Additive manufacturing, rapid prototyping, rapid tooling ............................. 13
Business segments ..................................................................................... 14
Rapid Tooling and Rapid Prototyping ....................................................... 14
Alphaforms Medical division ................................................................... 16
Revenue distribution ................................................................................ 17
Customers ................................................................................................ 18
Strategy ................................................................... 19
Competitive Landscape ........................................... 20
Market environment ................................................ 22
Orthopaedic Industry ................................................................................ 22
Additive manufacturing market ................................................................. 24
Automotive ............................................................................................... 25
Financials ................................................................ 29
9M (1 January 2012 30 September 2012) results .................................... 29
Historical financial development of the last quarters ................................... 29
Financial forecast ........................................................................................ 30
Balance sheet outlook ................................................................................. 31
Cash flow outlook ........................................................................................ 31
Appendix .................................................................. 32
Financials .................................................................................................... 32

Alphaform AG


Investment thesis
Alphaform AG designs, develops, manufactures prototypes (Additive
Manufacturing) and offers series production for different industries (e.g. orthopaedic
and automotive sector) in Europe. The main business comprises the manufacturing
of medical implants, medical instruments and trauma products. Furthermore, the
company provides various services ranging from the production and assembly of
plastic-, carbon-, or metal-based design and functional models, through the
manufacturing of pre-production models and components, to the production of small
series components to the automotive sector. Alphaform also serves customers in
aerospace, electronics, plant construction, household appliances, engineering, and
telecommunications industries.

The competitive landscape is characterized by small, mid and large global producers.
With about 7% market share, Alphaform is one of the leading service providers in
Europe in the Rapid Prototyping / Rapid Manufacturing market.

According to Wohlers the Additive Manufacturing (AM) industry is expected to
continue strong double digit growth over the next several years. The AM industry is
forecast to reach USD 2.0bn in 2012. Sales of AM products and services will reach
worldwide USD 3.7bn by 2015 and USD 4bn in 2016. Assuming the industry is not
affected by larger influences, such as another global economic recession or natural
disasters, AM market volume is expected to surpass the USD 6.5bn mark by 2019.

IHS Global Insight expects that car sales will rise to 103.1m (2011: 75.6m) units in
2018. This corresponds to a compound annual growth rate of 4.5% (CAGR: period
2011 - 2018). The forecasted light vehicle sales can only be realized by more car
models and derivatives to approach more customers. Therefore, the variety is further
forwarded by the OEM to meet country- and customer-specific needs. OEMs like
BMW, Audi, Daimler and others prepare to increase its car models and derivatives in
the next years. Given Alphaforms exposure to the OEM sector, the company will
benefit from this development with its products and solutions.

The focus of Alphaforms strategy is based on further growth in terms of geography
and alternative industries and the dissemination and establishment of additive
manufacturing.

In 9M 2012 consolidated sales rose by 6.0% yoy to EUR 20.84m. Compared to the
same period in the previous year, the net result of the Alphaform Group improved by
EUR 0.71m from EUR -0.19m in 9M 2011 to EUR +0.52m in the first nine months of
FY 2012.

For FY 2012E the management expects a revenue slightly over previous year level
and a positive net result.

For the current fiscal year (31 December 2012) we expect sales of approximately
EUR 28.2m (+7.0% yoy). Owing to the positive sales development we believe EBIT-
margin to be at +3.0% (2011: -4.9%) for fiscal year 2012E.

We applied a valuation based on a peer group and a Discounted Cash Flow (DCF)
model. On the basis of both results this approach resulted in a fair value of EUR 2.30
per share. In our view, the expected sales and earnings increases have not yet been
sufficiently reflected in the share price. Hence, we initiate our coverage with a BUY
recommendation and a EUR 2.30 price target.
A niche player in the
field of Additive
Manufacturing
One of the leading
service providers in
Europe
AM industry is
expected to grow
further
Further growth in the
car industry predicted
Alphaforms strategy
Improved financial
figures
Expected positive net
result in FY 2012E
Expected sales growth
and positive operating
result
PT EUR 2.30, BUY

Alphaform AG


SWOT analysis
Strengths

Alphaform offers a large product portfolio and is able to specifically adjust the
services and products towards customers needs through its well proven know-
how and production capabilities.

The combination of the cyclical Automotive segment and the Medical segment
has a stabilising effect on the groups business development. Revenues of
medical technology are characterized by medium-to long-term contract maturities,
a stable demand and rather robust growth.

Reputation is underlined through a large customer base within the automotive
and medical industry.

Solid Balance sheet figures: By the end of June 2012 equity ratio was at 61.7%.

The company has an industry experienced management.

Weaknesses

Rapid prototyping / Rapid tooling are characterized by rather short-term projects
and contract, thus there is a cyclical income of orders due to a high of percentage
of contracts belonging to automotive industry but also to the other industry
sectors including aerospace and mechanical engineering.

At the moment the company has a low market capitalisation.

No dividends are expected in the near future.

Alphaform AG


Opportunities

International expansion could generate further sales and profit growth, especially
in Northern Europe.

Still large growth potential for the company with its products and solutions in the
medical segment.

More and more Original Equipment Manufacturers (OEMs) are outsourcing their
production from the field of medical technology. This development could lead to
new orders for Alphaform

Threats

The future success of Alphaform depends on its ability to develop and bring to the
market new and improved products in a timely manner. Both the automotive and
the medical market entail technical challenges. Consequently, Alphaform may be
unable to adapt innovative products and solutions quickly enough.

Global production of vehicles and sales to OEMs are cyclical and depend, among
other things, on general economic conditions and consumer spending, which can
be affected by a number of factors, including fuel costs and the availability of
consumer financing. Future developments in the automobile markets are difficult
to predict and there is a risk that the facilities are underutilised or have insufficient
capacity to meet customer demand if the markets either decline or grow faster
than anticipated.

The customers of Alphaform are under continuing margin pressures and attempt
to pass it on to Alphaform.

Alphaform AG


Valuation
Valuation summary
We applied a multiple valuation and a discounted cash flow (DCF) model to derive
the companys fair value. Our peer group comparison indicates a fair value of EUR
2.12 per share. We focused on the earnings multiples for 2012E to 2014E. Our DCF
model results in a fair value of EUR 2.42 per share.

Weighting DCF valuation result at 60% and Peer-group analysis with a smaller
weighting factor of 40%, we derive a final fair value of EUR 2.30.The rationale behind
this decision is the lack of suitable listed companies for Peer-group comparison.

Consolidation of valuation methods

Source: CBS Research AG

Peer group analysis
We have chosen German and international companies which have a similar or
partially similar business model. In line with its peers, Alphaform would be fairly
valued at EUR 2.12 per share.

Peer group
aap Implantate AG, a medical technology company, was incorporated in 1997 and is
headquartered in Berlin, Germany. The company engages in the research,
development, manufacture, and sale of implants, medical instruments, and
biomaterials for the areas of ortho/trauma/spine in Germany and internationally. The
company markets its products directly to hospitals, buying syndicates, and clinic
groups, as well as through a network of distributors.

Eckert & Ziegler AG manufactures equipment for the pharmaceutical industry. The
company produces low-level radiation sources used to treat cancer, heart and other
diseases, and in equipment used to calibrate gamma cameras and positron emission
computer tomographs. Eckert & Ziegler also develops cancer drugs.

Greatbatch Inc. develops and manufactures power sources, feedthroughs, and wet
tantalum capacitors used in implantable medical devices. The company also
manufactures other components used in implantable medical devices. Greatbatch
provides pacemaker batteries, implantable cardiovascular defibrillator batteries, and
batteries for commercial applications.

Sandvik AB is a high-technology engineering group. The company develops,
manufactures, and markets tools for metalworking applications, machinery and tools
for rock excavation, stainless steel products, special alloys, and resistance heating
materials and process systems.

Weighting Fair value
factor per share (EUR)
Peer group valuation 40.0% 2.12
DCF valuation 60.0% 2.42
Fair value per share (EUR) 2.30
Valuation on the basis
of a DCF model and a
peer group comparison
Fair Value per share is
EUR 2.30
Peer group multiples
lead to EUR 2.12 per
share
aap Implantate
Eckert & Ziegler
Greatbatch
Sandvik

Alphaform AG


Sanmina-SCI Corporation provides integrated electronics manufacturing services
worldwide. It offers product design and engineering services, including initial
development, detailed design, prototyping, validation, preproduction, and
manufacturing design. It provides its services to OEMs primarily in the
communication, enterprise computing and storage, multimedia, industrial and
semiconductor capital equipment, defense and aerospace, medical, clean
technology, and automotive industries.

Smith & Nephew Plc develops, manufactures, markets, and sells medical devices in
orthopaedics, endoscopy, and advanced wound management sectors worldwide.
Smith & Nephews Orthopaedics segment offers reconstruction implants, including
hip, knee, and shoulder joints, as well as ancillary products, such as bone cement
and mixing systems used in cemented reconstruction joint surgery.

Stryker Corporation develops, manufactures, and markets specialty surgical and
medical products. The company's products include implants, biologics, surgical,
neurologic, ear, nose and throat and interventional pain equipment, endoscopic,
surgical navigation, communications and digital imaging systems, as well as patient
handling and emergency medical equipment.

Symmetry Medical Inc. designs, develops, and produces implants and related
surgical instruments, and cases primarily to orthopaedic device manufacturers
worldwide. Further, the company engages in the design, engineering, and
manufacturing of aerospace products comprising net shaped aerofoils and non-
rotating aircraft engine forgings for the aerospace customers, as well as offers
aerospace machining capabilities.

Wright Medical Group Inc., an orthopaedic device company, specializes in the
design, manufacture, and marketing of reconstructive joint devices and bio-
orthopaedic materials. The company's joint devices are used to replace knee, hip,
and other joints that have deteriorated through disease or injury.

Zimmer Holdings Inc. engages in the design, development, manufacture, and
marketing of orthopaedic reconstructive devices, spinal and trauma devices, dental
implants, and related surgical products in the Americas, Europe, and the Asia Pacific.
The company also provides other healthcare related services.

Source: CBS Research AG, Bloomberg

Peer group: Margins
Company name
2012E 2013E 2014E 2012E 2013E 2014E 2012E 2013E 2014E
AAP IMPLANTATE 15.1% 15.1% 15.8% 6.5% 6.4% 7.9% 3.3% 3.3% 4.5%
ECKERT & ZIEGLER STRAHLEN UN 22.6% 23.1% 23.9% 16.9% 17.4% 18.2% 9.1% 9.8% 10.7%
GREATBATCH INC 20.0% 23.4% n.a. 5.5% 10.5% n.a. 6.4% 6.8% 6.3%
SANDVIK AB 19.4% 19.8% 20.5% 15.2% 15.4% 15.9% 9.9% 10.4% 11.1%
SANMINA-SCI CORP 4.7% 4.8% 4.8% 3.1% 3.3% n.a. 1.9% 2.2% 2.1%
SMITH & NEPHEW PLC 28.7% 29.4% 29.8% 21.5% 21.9% 22.7% 16.3% 16.2% 16.7%
STRYKER CORP 29.6% 30.7% 31.0% 24.1% 25.2% 25.8% 18.0% 18.3% 18.9%
SYMMETRY MEDICAL INC 19.6% 20.5% 20.8% 12.2% 12.7% 13.4% 5.2% 5.8% 5.9%
WRIGHT MEDICAL GROUP INC 13.3% 14.4% 15.0% 3.1% 5.3% 7.2% 1.7% 2.0% 4.2%
ZIMMER HOLDINGS INC 38.0% 37.5% 38.5% 29.6% 30.1% 31.0% 20.5% 21.0% 21.3%
Average 21.1% 21.9% 22.2% 13.8% 14.8% 17.8% 9.2% 9.6% 10.2%
Median 19.8% 21.8% 20.8% 13.7% 14.0% 17.1% 7.8% 8.3% 8.5%
EBITDA margin EBIT margin Net margin
Sanmina-SCI
Smith & Nephew
Stryker
Symmetry Medical
Wright Medical Group
Zimmer Holdings

Alphaform AG


The next table shows current multiples:

We applied these multiples from the peer group to our financial forecasts for
Alphaform. We deducted the companys net financial debt from the derived
enterprise values in order to get the fair value of equity. With the P/E, EV/EBIT and
EV/EBITDA multiples for 2012E to 2014E, we calculated the fair value of equity. The
peer group approach indicates a fair value of EUR 2.12.

Peer Group: Multiples
Company name
2012E 2013E 2014E 2012E 2013E 2014E 2012E 2013E 2014E
AAP IMPLANTATE 8.9 8.8 7.4 20.7 20.5 14.9 32.5 32.5 21.7
ECKERT & ZIEGLER STRAHLEN UN 4.1 3.9 3.5 5.5 5.1 4.6 11.2 10.0 8.7
GREATBATCH INC 5.8 4.8 n.a. 21.0 10.7 n.a. 13.0 12.4 12.0
SANDVIK AB 7.6 7.5 7.1 9.7 9.7 9.2 12.1 11.9 10.9
SANMINA-SCI CORP 4.3 4.0 3.8 6.5 5.9 n.a. 6.4 5.5 4.8
SMITH & NEPHEW PLC 4.8 4.6 4.4 6.4 6.2 5.8 8.4 8.0 7.6
STRYKER CORP 7.0 6.5 6.2 8.7 8.0 7.4 13.0 12.2 11.2
SYMMETRY MEDICAL INC 6.8 6.1 5.8 10.8 9.8 8.9 16.9 11.5 n.a.
WRIGHT MEDICAL GROUP INC 12.0 10.8 9.9 50.9 29.5 20.4 108.3 95.9 54.4
ZIMMER HOLDINGS INC 6.9 6.7 6.3 8.9 8.4 7.9 12.4 11.5 10.5
Average 6.8 6.4 6.0 14.9 11.4 9.9 23.4 21.1 15.7
Median 6.8 6.3 6.2 9.3 9.0 8.4 12.7 11.7 10.9
EV / EBITDA EV / EBIT P / E
EURm, except EPS (EUR)
2012E 2013E 2014E 2012E 2013E 2014E 2012E 2013E 2014E
2.3 2.7 3.1 0.8 1.2 1.5 0.10 0.16 0.21
Applied multiples: Peer group median 6.8 6.3 6.2 9.3 9.0 8.4 12.7 11.7 10.9
Enterprise value (derived) 15.4 16.9 18.9 7.9 10.7 12.2 - - -
+ Excess cash 1.1
- Financial debt -2.1
Market capitalization (derived) 14.4 15.9 18.0 6.9 9.7 11.3 6.9 10.1 12.2
Median 11.3
Premium (discount) vs. Peer Group 0%
Fair market capitalization (after discount) 11.3
Number of shares (m) 5.3
Fair value per share (EUR) 2.12
Alphaform AG: Financial estimates CBS Research
EBITDA EBIT EPS

Alphaform AG


DCF model
Our DCF model indicates a fair value of EUR 2.42 for Alphaform. Our assumptions
are as follows:

Phase 1 (2012-14E): We estimated the free cash flows (FCF) of Phase 1 according
to our detailed financial forecasts for this period stated in the financials section.

Phase 2 (2015-21E): For Phase 2, we started off, using more general assumptions.
We assumed a sales growth of 10% annually at the beginning and then decreasing
sales growth rates. In the midterm we forecast improvements of EBIT margins, but at
the end of Phase 2 we expect that the company will face higher costs and thus
experience a negative impact on EBIT-margin development.

Phase 3: For the calculation of the terminal value, we applied a long-term FCF
growth rate of 2.0% which equals the estimated long-term inflation rate.

Based on these assumptions, we calculated a fair value of the operating business of
EUR 13.9m. We deducted Alphaforms net debt (cash minus financial debt). The
resulting fair value of equity is EUR 12.9m. The fair value per share amounts to EUR
2.42 according to our DCF model.

Discounted Cash Flow Model


PHASE 1 PHASE 2 PHASE 3
EURm 2012E 2013E 2014E 2015E 2016E 2017E 2018E 2019E 2020E 2021E
8
Sales 28.2 30.1 32.2 35.5 39.0 42.9 47.2 50.5 53.0 54.6
YoY growth 7.0% 7.0% 7.0% 10.0% 10.0% 10.0% 10.0% 7.0% 5.0% 3.0%
EBIT 0.8 1.2 1.5 1.8 2.3 3.0 3.1 3.0 2.7 2.7
EBIT margin 3.0% 3.9% 4.5% 5.0% 6.0% 7.0% 6.5% 6.0% 5.0% 5.0%
Income tax on EBIT (cash tax rate) 0.0 0.0 0.0 0.0 -0.2 -0.8 -0.8 -0.8 -0.7 -0.7
Depreciation and amortisation 1.4 1.5 1.6 1.8 1.9 2.1 2.4 2.5 2.7 2.7
Change in long-term provisions 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Change in net working capital -0.8 -0.5 -0.6 -0.9 -1.0 -1.2 -1.3 -1.1 -0.9 -0.7
Net capital expenditure -1.4 -1.5 -1.6 -1.8 -1.9 -2.1 -2.4 -2.5 -2.7 -2.7
Free cash flow 0.0 0.7 0.9 0.8 1.1 1.1 1.0 1.2 1.1 1.4
Present values 0.0 0.6 0.8 0.6 0.7 0.7 0.6 0.6 0.5 0.6 8.2
Present value Phase 1 1.4 Risk free rate 3.50% Target equity ratio 60.0%
Present value Phase 2 4.3 Equity risk premium 6.00% Beta (fundamental) 1.45
Present value Phase 3 8.2 Debt risk premium 3.00% WACC 9.27%
Total present value 13.9 Tax shield 25.0% Terminal growth 2.0%
+ Excess cash 1.1
- Financial debt -2.1
1.0% 1.5% 2.0% 2.5% 3.0%
Fair value of equity 12.9
WACC
8.3% 2.61 2.74 2.89 3.07 3.28
8.8% 2.40 2.51 2.64 2.79 2.96
Number of shares (m) 5.3 9.3% 2.22 2.32 2.42 2.54 2.68
9.8% 2.06 2.14 2.23 2.33 2.45
Fair value per share (EUR) 2.42 10.3% 1.92 1.99 2.07 2.15 2.25
Sensitivity analysis
Terminal growth (Phase 3)
DCF model leads to a
fair value of EUR 2.42
Phase 1 according to
detailed estimates
Phase 2 characterised
by 10% sales growth
per year at the
beginning and then
decreasing
Phase 3: Terminal
value growth at 2%

Alphaform AG


Company profile
Alphaform AG offers solutions and services for contract manufacturing of complex
components and the production of small batch sizes. The company was founded in
1996 and derived from a spin-off of EOS GmbH. Initial business activities comprised
prototype planning and manufacturing as well as the production of small batches.
Since 1 December 2008 a medical technology segment has been added to the
business activities due to the acquisition of MediMet GmbH. Most of Alphaforms
clients are located in the medical and automotive industry but the company has also
customers in the aerospace, household appliance and telecommunication industry.
Alphaform mainly performs its sales activities with customers from Germany and
other European countries, especially Great Britain, Switzerland, Italy, Scandinavian
countries and Turkey. Relevant sales markets can be divided into two areas: on the
one hand contract manufacturing services using additive manufacturing technologies
(3D printing) and on the other hand contract manufacturing for medical technology.

Company structure
Founded in 1996, Alphaform Group is represented in Germany with three locations.
The headquarter of the parent company Alphaform AG is located in Feldkirchen near
Munich. Primary operative focus is on rapid prototyping and metal coating, especially
for the automotive industry.
In November 2008, Alphaform acquired MediMet Precision Casting and Implants
Technology GmbH (henceforth MediMet) based in Stade / Lower Saxony. MediMet is
specialized in the production of implants and medical instruments.
Alphaform Claho GmbH is a service company for engineering, rapid tooling, tool
series and thermoplastic injection molding for small series. The company was
founded as Claho engineering GmbH in 1997 and belongs to Alphaform since the
beginning of 2001. The company is based in Eschenlohe and acts supportively for
MediMet through the production of small series and different manufacturing
technologies.
Further subsidiaries are located in Rusko, Finland, and Newbury, England. Both
subsidiaries are mainly active in the field of rapid prototyping and production of small
batches. At the end of 2009 the latest subsidiary was established in Stockholm,
Sweden and commenced operations in 2010. The following illustration provides an
overview of the companys organizational structure:

Company structure

Source: Alphaform AG, CBS Research AG
Alphaform-RPI Oy
Rusko I Finland
Alphaform-Claho GmbH
Eschenlohe I Germany
Alphaform Ltd.
Newbury I UK
MediMet Precision Casting and
Implants Technology GmbH
Stade-Wiepenkathen I Germany
Feldkirchen I Germany
100%
100%
100%
100%
Alphaform Sweden AB
Stockholm I Sweden
100%
Alphaform AG engages in
the process of additive
manufacturing of
complex prototypes,
tools, single components
and small series
Alphaform group
consists of five
companies

Alphaform AG


Company history

Management team
Management board

Dr. Thomas Vetter, CEO
Thomas Vetter qualified as an electrical engineer and holds a PhD from the
Technical University of Darmstadt. He began his career in the plastics processing
industry. He worked at Carl Schenck AG, and later at Rieter Holding AG. While he
worked for Sarnamotive Europe Division he was appointed to the management
board. Before he joined Alphaform in early 2008, he was General Manager at
Johnson Controls, one of the world's largest automotive suppliers.

Markus Axtner
Markus Axtner works as managing director at Alphaform AG and is responsible for
production and development (rapid prototyping and plastics). He had previously been
employed by Raylase GmbH as deputy development manager.
1996
Founded in Feldkirchen near Munich as a spin-off of the laser specialist EOS GmbH
2006
Disposal of Alphaform-OHP GmbH, Weilburg
Disposal of business operations Alphaform-Spacecast GmbH, Aachen
Opening of a production facility in Newbury, England
2001
Purchase of Claho engineering GmbH, Grainau
1998
European leader in the field of rapid prototyping
2000
Purchase of Rapid Product Innovations Oy in Rusko, Finland
Establishment of London office
1999
Purchase of metal foundry Spacecast GmbH in Herzogenrath near Aachen
Buy-out of the OHP GmbH Mannesmann VDO
Change of company name to Alphaform Enabling Technologies & Services
2003
Admission to the Prime Standard of the Frankfurt Stock Exchange
2010
Opening of the new Metal Competence Centre at the site Eschenlohe
2009
Repositioning as a contract manufacturer specializing in medical technology
Milestones Year
2008
Acquisition of MediMet GmbH

Alphaform AG


Andreas Wiemann
Andreas Wiemann is managing director of MediMet GmbH since the beginning of
July 2012. His fields of activity include process optimization and efficiency
programmes. Prior he worked for the federal association of German foundry industry
and managed the departments for non-ferrous metal and business administration.

Oliver Rebele
Oliver Rebele is managing director of Alphaform-Claho GmbH. He is responsible for
production, sales and advancement of the Eschenlohe site. Before joining Alphaform
he had been employed by Heidenauer Formen- und Werkzeug Gmbh and
Druckgusswerk Mssner GmbH.

Supervisory Board
Matti Paasila (Chairman of the board)
Since 2009 Matti Paasila is the chairman of the Alphaform supervisory board.
Furthermore he is a member of the supervisory board at the Swiss consulting firm
CfOExpert AG, the Finnish automation vendors Cencorp Oyj (Chairman) and the
Finnish recycling specialist EcoStream Oy.

Falk Strascheg
Since 2006 Falk Strascheg is the deputy chairman of the Alphaform supervisory
board. Additionally he is Managing Partner of Extorel Treuhand
Beteiligungsgesellschaft mbH. Other held supervisory board mandates include the
Kraillinger laser sintering specialist EOS Holding AG (Chairman), the Munich-based
specialist publisher Going Public Media AG (Vice Chair), the Norwegian
manufacturer Polymer Microbeads AS and the PEH Wertpapier AG in Oberursel.

Dr. Hans Langer
In 2006, Dr. Hans Langer became a member of the supervisory board of Alphaform.
Other supervisory board positions held by him are the Munich SCANLAB GmbH
(Chairman), the British Laser Sintering company 3T RPD Ltd. (Board Chair), the
British company First Surface Coating Ltd., the Norwegian manufacturer Polymer
Microbeads AS (Board Chair) and the Raylase AG in Wessling.

Shareholder structure
Shareholder structure of Alphaform AG

32.6%
35.5%
2.4%
4.5%
7.4%
8.8%
8.8%
Free Float
Supervisory board and
families
Management
Other management
Axxion
Multiadvisor Sicav
IPConcept Fund
Management

Alphaform AG


Business Model
Alphaform AG designs, develops, manufactures prototypes (Additive
Manufacturing) and offers series production for different industries (e.g. orthopaedic
and automotive sector) in Europe. The main business comprises the manufacturing
of medical implants, medical instruments and trauma products which result in a
collaboration of both subsidiaries Alphaform Claho (Rapid Tooling) and MediMet.
Furthermore, the company provides various services ranging from the production and
assembly of plastic-, carbon-, or metal-based design and functional models, through
the manufacturing of pre-production models and components, to the production of
small series components to the automotive sector. Alphaform also serves customers
in aerospace, electronics, plant construction, household appliances, engineering, and
telecommunications industries.

Additive manufacturing, rapid prototyping, rapid
tooling
The term "additive manufacturing" (AM) signifies manufacturing technologies which
are able to build parts of a structure layer by layer directly from a computer model.
Similarly to today's paper printer, in the near future parts of plastic or metal can be
produced directly by pressing a button from the computer. Additive manufacturing
processes allow the production of components with no product-specific means (e.g.
molds) and without geometric constraints. These production processes meet the
flexibility and customizability of prototype production across all industries for future
market needs and may enhance the competitiveness.
But for large quantities AM is still too expensive. There are two reasons: First, the
machines are relatively slow, since the components are built up gradually from up to
100 micrometer thin layers. In addition, the materials are usually very expensive. But
especially with smaller series AM offers cost advantages: It saves time and cost of
molds, furthermore a clever design can reduce the number of items and the
installation costs.

Process of additive manufacturing

Rapid Prototyping (RP)
This technology is using a layer construction method with different Laser methods to
develop prototypes which can be used by the customer as a test product. Finished
3D-CAD Model
STL Model
Repeated layer
manufacturing
Component
Lower building
platform
Layer coating
Slicing
Scanning mirror
Laserbeam
Layers
Plattform
and piston
Laser
Solified Layers
3D printer
Alphaform is a
specialist for rapid
prototyping, rapid
tooling and series
production
Structures are built
layer by layer by a 3D
printer
But AM has still some
disadvantages
Production of
prototypes

Alphaform AG


models are formed from the curing of powder or liquid resin. Main customers are from
the automotive, racing and the consumer goods industry.

Rapid Manufacturing (RM)
Today, not only single prototypes, but small batches are produced directly and
without tools. Used materials in the generative process are polyamide, stainless- and
hot-work steel and titanium and nickel alloy. The more functions are incorporated in a
component or the more complex the geometry of the product is, the more efficient it
can be produced by RM.

Rapid Tooling
Rapid Tooling refers to all processes for the production of tools and molds for
prototypes and also for prefabrication and series production. Rapid tooling CAD
(computer-aided design) data often cant be used directly in the production process:
they must be reviewed again for technical reasons (e.g. drafts, shrinkage factors).

Business segments
Alphaforms business is divided into three divisions. The division "Rapid Prototyping"
uses layer construction methods, which in turn are executed by different laser
procedures, to developed prototypes of various products and designs. Afterwards
they can be used by the customers as test products.
The division Rapid Tooling comprises all processes for producing molds and tools.
Similar techniques as in rapid prototyping are used in rapid tooling.
In the division precision casting implants, instruments and trauma products are
offered to customers in various stages of the production progress: as a largely
unprocessed casting, machined part (blank or fully polished) and precision laser-
printed final product.

Business segments and provided technologies

Products and Services
Rapid Tooling and Rapid Prototyping
Both business segments Rapid Tooling and Rapid Prototyping include the
manufacturing of prototypes and small batches for various industries.
In addition Alphaform offers several supporting services: individual counseling
services include support with concepts and choice of production methods and
materials. Engineering services offer support with digitalization of design models
Division Rapid Prototyping and Rapid Tooling Precision casting
Layer construction Moulding methods Surface finishing Medical manufacturing
Technologies
Stereolithography (SLA)
Selective laser sintering
(SLS)
PolyJet method (3D
printer)
3DP MAX
Injection moulding
CNC machining
Vacuum casting
Reaction injection
moulding (RIM)
Laminating process
Lacquering
Metal Coating
Chrome vapour deposition
coating
Vacuum arc melting
casting
Centrifugal casting under
protective gas
atmosphere
Heat treatment
Automotive
Architecture
Medical technology
Comsumer goods
Science
Energy
Motorsport
Art
Engineering
Aviation and aerospace
Orthopaedic industry
Other medical
Application
area
Production of small
batches
Production of tools
Alphaform is divided
into three business
segments
Production and
services are offered
within these segments

Alphaform AG


and modification of geometries and tools. Technical services contain training of
employees, optimization and maintenance for steroelithographie machineries, laser
calibration and software testing.

Manufacturing processes used in the two segments are:

Layer construction
Stereolithography (SLA)
For the production of designer components, data control models, functional
models and rapid manufacturing
With SLA, components of a model are constructed layer by layer in a tank with
liquid epoxy resins and, step by step, a 3D product emerges. At Alphaform 15
different materials are used. A computer-controlled laser exposes the contours of
the model and hardens them.
Selective laser sintering (SLS)
For the production of functional prototypes and rapid manufacturing
With SLS, models are constructed layer by layer in a thermal process.
Polyamide powder is selectively melted by a laser and solidified by cooling.
PolyJet method (3D printer)
For the production of designer parts and 2K parts
In this printing process, geometrical shapes of the model are built layer by layer
by the mixing of two materials. This can be produced either in a homogeneous
material blend or with local varying areas, the so-called 2K parts (two different
types of plastics are combined in a process to form a complex shaped part).
3DP MAX
For the production of light models, designer dummies, complex geometrical
shapes with thicker walls and reverse engineering
In this printing method, geometrical shapes are constructed layer by layer by the
coat application of a particle material (PMMA), which selectively solidifies with
the aid of a binder.

Moulding methods
Injection moulding
For the quick production of prototypes and small series
In an injection moulding machine, the plastic material is plasticized in an injection
unit and subsequently injected into an in-mould. The cavity of the mould
determines the shape and surface structure of the component. The material for
series production can already be used for the prototype.
CNC machining
For the manufacture of tools and finishing of components
Free-forming surfaces in dimension and shape and tools can be made from
plastic or metal
Vacuum casting
For the production of designer components, function prototypes and small series
production
The foundation of this method is the silicon cast. This original mould is filled with
liquid polyurethane in a vacuum chamber. Final machining (finishing) of the
component takes place after the hardening. Vacuum casting is a quick and
economical possibility to produce a very small series.
Reaction injection moulding (RIM)
For the production of designer components, functional prototypes and small
series production
In the RIM method, also called low pressure injection moulding, a type of
polyurethane is filled in an enclosed plastic mould under storage condition.

Alphaform AG


Laminating process
For the production of large functional prototypes in very small quantities
In lamination, a fibre-reinforced plastic part is manually made. In the process
only a one-sided tool is required as mould, in which fibre glass mats are laid and
infiltrated with epoxy synthetic resins. This laminate is built in various layers
according to the required wall thickness. The plastics used give a high stability to
parts.

Surface finishing
Lacquering
For finishing of designer components and small series
The paint coat of the components can be executed as functional coat
(antimicrobial, conductive, impact resistant.) or as designer lacquering (soft
touch paint, translucent paint, etc.)
Metal Coating
for coating a component with a copper-nickel alloy,
reinforcing components strength to use in functional testing
Chrome vapour deposition coating
For obtaining optical effects
In this procedure, a thin aluminum layer is applied. A characteristic chrome finish
emerges, which can be additionally varied: tinted clear or matte, light or dark.

Product samples

Alphaforms Medical division
Business activities of Alphaform Medical division are subsumed under the segment
precision casting. Medical division provides implants, instruments and trauma
products in each stage of its manufacturing process. The offered process begins with
the production of prototypes (support with CAD development) and the production
design, then tool making and machining of the work piece (using the appropriate
manufacturing process), post-processing (editing using CNC machines, surface
treatment), marking and shipping. The products which are made of metal or plastic
materials are produced in small batches. MediMet offers the entire value chain for the
production ("one stop shopping") of orthopaedic technology and other medical
implants.
To maintain the quality standards, the castings are subjected to a final quality control
according to ISO 13485. Alphaform's facilities are able to conduct material analyzes,
testing of the mechanical properties, X-ray examination, crack testing and structural
examination.
Snowboard binding
Selective laser
sintering (SLS)
Headrest
Lacquering
PolyJet method
(3D printer)
Wind tunnel model
Metal Coating
Stereolithography
Rear lamp
Chrome vapour
deposition coating
Knee joint
Centrifugal casting
under protective
gas atmosphere
Selective laser
sintering (SLS)
Terminal
Lacquering
Vacuum casting
One stop shopping
covers the entire value
chain of implant
production

Alphaform AG


Value-added chain of Alphaforms Medical division

Manufacturing processes used in Alphaforms Medical division are:

Investment casting under protective gas atmosphere
For manufacture of joint implants and instruments
Enhanced by the use of a protective gas during the inductive melting process,
this classical method of investment casting or lost wax guarantees that the
components of the alloy are unaltered. This ensures a consistently high quality of
all castings.
Vacuum arc melting casting
For making joint implants for allergic patients
This method is mainly used for the melting of titanium. Due to its high
biocompatibility and low weight, titanium is increasingly used in the medical
sector.
Centrifugal casting under protective gas atmosphere
For manufacture of bone clamps and bone screws
This inductive method is especially suited for making complicated small parts.
Here, the molten metal is flung into a prepared mould through centrifugal force
under protective gas.
Heat treatment
The highly stressed cobalt-chrome-molybdenum alloys, stainless steel alloys and
titanium alloys are subjected to a heat treatment after casting.
Machining
For turning, cutting, milling, polishing and grinding

Revenue distribution
In the two business segments Rapid Prototyping (55% of total sales) and Precision
Casting (34% of total sales) about 89% of total sales are generated. The revenue
share of the Rapid Tooling segment amounted to 11% in FY 2011.

Revenue distribution in 2011 by :

Concept Pre-Production
Product
Manufacturing
Post-
production
Integrated
Services
Prototyping Casting
Forging
Laser
sintering
Laser
marking
Cleaning
Package
Shipping
Tooling
Validation
Turning
Cutting
Milling
Polishing
Grinding
36.5%
38.8%
24.7%
Industries
Automotive
Medical
Non-Automotive
47.5%
7.1%
9.5%
13.0%
22.9%
Geography
Germany Finland
UK Rest of Europe
Outside Europe
55.3%
10.5%
34.2%
Segments
Rapid Prototyping
Rapid Tooling
Precision Casting
Three business
segments

Alphaform AG


Approximately 36% of Alphaformss revenues are generated within the automotive
industry. 39% of the revenues resulted from businesses within medical industry
(machining and precision casting) and the remaining 25% is generated with
companies from other industries (e.g. energy, consumer products, aerospace).

By geography, Germany is the main market for Alphaform with a share of
approximately 47% in fiscal year 2011, followed by European countries with 30% and
non-European countries with a share of 23%.

Customers
Sales of Alphaform are focused on the major premium automotive manufacturers and
suppliers (well-known manufacturers include Porsche, Audi, BMW and Daimler).
Alphaforms Medical division customer list includes Stryker, Biomet and smith &
nephew. These customers are market leaders in the orthopaedic industry.

Example of customers of Alphaform


Automotive and
medical industry as
core sales markets
Germany is the main
market
Well-known costumer
base

Alphaform AG


Strategy
The focus of Alphaforms strategy is based on further growth in terms of geography
and alternative industries and the dissemination and establishment of additive
manufacturing. Proposed guiding principles are:

Expansion in the most attractive sectors: medical technology,
automotive, consumer and industrials

Medical technology sector
Further development and market share gains in the orthopaedic market
through subsidiary MediMet.
Development of new production processes through the combined
expertise in additive manufacturing from Alphaform Claho and MediMet.
Focus on the production of more complex structures (e.g. spinal and
trauma implants).
Exploration of additional materials in the field of medical technology: in
particular titanium (and cement-free implants).
Expansion in this industry will also reduce the proportion of short-term
projects in the area of rapid prototyping.
Automotive sector
There is a high demand for new developments and prototypes in the
area of electric and hybrid vehicles (due to increased demands on
emission reduction and lightweight of vehicles).
Additive manufacturing will play a crucial role for research and
development in the automotive industry.
Further development of existing technologies will reduce the time from
concept to market launch.
Consumer and Industrials
The company seeks the expansion of RP applications in rapid
prototyping and the development of RM applications for niche markets,
leading to objective of mass customization.

Mergers and acquisitions
Alphaform is seeking acquisition opportunities with preference to sound
technological know-how and established market access to medical
technology and volume/ batch production.

Extension in the field rapid manufacturing
In the coming years the increasing standard production by means of additive
manufacturing (rapid manufacturing) will offer strong growth opportunities
for Alphaform. An ever increasing number of industries are deploying rapid
manufacturing for the implementation of customized small production runs.
Thus, Alphaform will expand its business in the field of rapid manufacturing.
With a combination of modern manufacturing technologies, medical
licensing and direct customer access, Alphaform is able to take complex
components and products made of plastic and metal through to the series
production stage and manufacture them in short production runs.

Geographic expansion
Expansion of business activities particularly in Northern Europe
(Expansion of business in Sweden though Alphaforms indirect
subsidiary).

Alphaform AG


Competitive Landscape
The relevant Rapid Prototyping/Rapid Manufacturing market has a fragmented global
competitive landscape, most of the companies are not listed public. With about 7%
market share, Alphaform is one of the leading service providers in Europe. In the
Medical Contract Manufacturing segment, the competitive landscape is characterized
by small, mid to large global companies.

Short overview of major competitors of Alphaform in the Medical Contract
Manufacturing segment:

Accellent Holdings Corp. was founded in 2005 and is based in Wilmington,
Massachusetts. The company, through its subsidiary, offers design and engineering
services, including product design engineering, design for manufacturability,
analytical engineering, rapid prototyping, pilot production and provides outsourced
precision manufacturing and engineering services to the medical device industry.

Greatbatch Inc. was founded in 1970 and designs and manufactures medical
devices and components, as well as provides technology solutions. The company
operates its business in two segments, Greatbatch Medical and Electrochem
Solutions. The Medical segment designs and manufactures medical devices and
components primarily for the cardiac rhythm management (CRM), neuromodulation,
vascular access, and orthopaedic markets. In the Electrochem Solutions segment
Greatbatch provides pacemaker batteries, implantable cardiovascular defibrillator
batteries, and batteries for commercial applications.

Paragon Medical Inc. was founded in 1991 and is headquartered in Pierceton,
Indiana. The company designs, validates, and manufactures custom and standard
cases and trays, surgical instrumentation, and implantable components for the
medical device marketplace worldwide. The companys cases and trays are primarily
made of metals and polymers. The company also offers branding, design for
manufacturing, dryness verification, inventory management, logistics, project
management, prototyping, RFID, sterilization validation and testing services.

Sandvik AB was founded in 1862 and operates as an engineering company in
tooling, materials technology, and mining and construction industries worldwide. The
company offers tools for metal cutting, machinery and tools for rock excavation,
stainless materials, special alloys, metallic and ceramic resistance materials, as well
as process systems. The company has operations in approximately 130 countries. In
the Tooling segment the company provides tools and tooling systems for cutting
operations, as well as wear parts and components in cemented carbide. In the Mining
and Construction segment the company offers equipment, tools, service and
technical solutions for mineral exploration, mining and processing of rock and
minerals in the mining and construction industries. In the Materials Technology
segment the company offers high-value-added products based on advanced metallic
materials, process equipment based on steel belts, production of orthopaedic
implants and instruments, and systems to generate, control, measure or protect
against heat.

SAS Maurice MARLE was founded in 1964 and is based in Odival, France. It
engages in the forging of orthopaedic implants. It offers orthopaedic implants, such
as prostheses for the hip, shoulder, knee, spine, cupules, tibial plates, ancillary
instruments, including bone scrapers and socket holders. The company also provides
products for aeronautics, sports and leisure, motor racing applications, titanium alloy,
nickel based alloy, light alloy, stainless alloy and alloyed steel engine parts.

Alphaform AG


Symmetry Medical Inc. was founded in 1976 and is a leading provider of implants,
related instruments and cases to orthopaedic device manufacturers. The company
also designs, develops and produces these products for companies in the dental,
osteobiologic, endoscopy and other segments of the medical device market, as well
as providing specialized products and services to the aerospace market.

Short overview of major competitors of Alphaform in the Rapid Prototyping/
Rapid Manufacturing segment:

3D Systems Corporation was founded in 1986 and is headquartered in Rock Hill,
South Carolina. It engages in the design, development, manufacture, marketing, and
servicing of 3D printers and related products, print materials and services. Its
subsidiary Z Corporation provides 3D printing and 3D scanning solutions for
productive designers and engineers. Its products include high-definition 3D printers to
produce physical 3D models from digital data in color, portable 3D laser scanners
that digitize 3D surfaces in real time, and prototyping systems to evaluate product
designs prior to production, and to create concept models to enable communication
and refine designs. 3D Systems serves e.g. manufacturers of automotive, aerospace,
computer, electronic, defense, consumer, energy and healthcare products.

ARRK Corporation was founded in 1948 and is headquartered in Osaka, Japan.
The company provides various services related to the development of new products,
including manufacturing and marketing industrial design models. Furthermore ARRK
provides planning, designing, and engineering new products; engineering and
manufacturing a range of tooling products; production and marketing small-lot
moldings; and planning, designing, engineering, manufacturing, and marketing other
models and related businesses. ARRK produces sample models for major
companies in the automobile manufacturing and electronics industries.

Materialise NV, was founded in 1990 and is based in Leuven, Belgium. It has
subsidiaries in Europe, Asia, and the United States. The company, through its
subsidiaries, provides prototyping, software, medical and dental solutions in Belgium
and internationally.

Stratasys Inc. was founded in 1989 and is headquartered in Eden Prairie,
Minnesota. It engages in the development, manufacture, marketing and servicing of
3D printers, rapid prototyping systems and related consumable materials for office-
based rapid prototyping and direct digital manufacturing markets. The companys
products are used by design and manufacturing organizations in aerospace,
architecture, automotive, business machines, consumer products, defense, direct
digital manufacturing of custom parts, electronics, jewelry, medical systems and
dental markets.

Alphaform AG


Market environment
Orthopaedic Industry
In 2011 orthopeadic industry remained under pressure due to accelerating pricing
degradation and a more difficult regulatory environment. Revenues increased by 5%
yoy to USD 43.1bn (2010: USD 41.0bn). Although growth in some submarkets as
trauma, extremities and sports medicine remains strong or robust (between 5.4% yoy
and 9.9% yoy), sales growth from hips, knees and spine declined to a low single digit
range (~3% yoy). Regarding historical development, orthopaedic market has shown a
continuous and strong growth over the last decade (from USD 13.5bn in 2000 to USD
43.1bn in 2011) by posting a compound annual growth rate of 11.1%.

Estimated orthopaedic market growth

Source: CBS Research AG, William Blair & Company, Orthoworld Inc.
Orthopaedic companies trying to counteract decreasing market growth through cost
savings by aggressively pursued acquisitions or outsourcing of production. Other
orthopaedic companies are considering further diversification and relationships with
non-traditional partners (including payers, pharma and other large medical device
companies) and products/technologies that focus on repair and prevention.
Additionally many manufacturers are pushing pricing pressures down to their
suppliers.

Important factors for further growth within the orthopaedic industry in the next years
are an aging population (in the western world), an increasing obesity rate as well as
people wishing to remain active at an advanced age and therefore more sport and
activity related injuries. Thus the orthopaedic industry is expected to grow further in
the mid- and long-term. The emerging markets also play an important role in terms of
market growth. Especially the Chinese, Indian and Brazilian markets are expected to
grow by 15% - 25% over the next decade. Given Alphaforms exposure to the
orthopaedic sector, the company will benefit from this development.

13.5
15.3
17.7
20.6
23.9
27.0
29.9
33.5
36.9
39.1
41.0
43.1
11%
13%
16% 16% 16%
13%
11%
12%
10%
6%
5% 5%
0.00%
5.00%
10.00%
15.00%
20.00%
0
5
10
15
20
25
30
35
40
45
50
Orthopaedic market in USD bn Growth rates
15.3%
19.5%
20.9%
9.4%
13.6%
21.4%
Worldwide orthopaedic market by segments
Hips
Knees
Spine
Dental Implants
Trauma
Other
CAGR 11.1%
Revenues reached USD
43.1bn in 2011
Strategies of
orthopaedic
companies
Market growth factors
are an aging
population, obesity and
sport injuries

Alphaform AG


Population aging is progressing rapidly in many industrialized countries, but also
developing countries with declining fertility rates are experiencing rapid increases in
their proportion of elderly people. According to UN estimates world population aged
over 65 will grow from 417m (6.9%) in 2000 to 1.45bn (15.6%) in 2050.
Looking at the worldwide population in terms of obesity and overweight, more than
1.4bn adults (20 and older) and more than 40m children under the age of five were
overweight in 2008 (WHO estimates). This figure has more than doubled since 1980.
All in all this development will offer interesting opportunities in the long term.

World population growth rates in terms of aging and obesity

Source: CBS Research AG, WHO, OECD, UN Population Division
Revenues from contract manufacturing are profiting as well from continuous growth
within the orthopaedic market. Worldwide contract manufacturing revenues had
increased by 6% yoy in 2010 (2009: -4.4% yoy). The compound annual growth rate
corresponds to 7.3% (CAGR: period 2005 - 2011).

Contract manufacturing market in USD bn

Source: CBS Research AG, Avicenne 2011
The global orthopaedic implants market had an approximately volume of USD 24.7bn
in 2009. The market is expected to touch the USD 30.5bn mark in 2012. By 2016
market volume is forecasted to grow to USD 41.8bn (CAGR 2009-2016: 7.8%). The
drivers for the orthopaedic implants market will be the aging population, technological
advancements in implant designs and materials which are resulting in improved
durability and younger patients undergoing surgery in the future.

7%
6%
9%
8%
11%
13%
15%
0%
2%
4%
6%
8%
10%
12%
14%
16%
1980 1985 1990 1995 2000 2005 2010
Percentage of obese population in OECD countries
131
232
418
825
1,454
5.2%
5.7%
6.9%
10.4%
15.6%
0.0%
2.0%
4.0%
6.0%
8.0%
10.0%
12.0%
14.0%
16.0%
18.0%
0
200
400
600
800
1,000
1,200
1,400
1,600
1950 1975 2000 2025 2050
Population aged over 65 in m.
Percentage of world population
0.7
0.8
0.9
1.0
0.9
0.9
0.3
0.3
0.4
0.4
0.4
0.4
1.0
1.1
1.2
1.3
1.4
1.5
0.000
0.500
1.000
1.500
2.000
2.500
3.000
2005 2006 2007 2008 2009 2010
Implants
Cases&trays
Instruments
Progressively growing
obesity rates and
proportion of elderly
people
Contract manufacturing
revenues amounted to
USD 23.8bn
Global orthopaedic
implants market will
grow further

Alphaform AG


Additive manufacturing market
Prototyping was among the earliest applications of additive manufacturing (AM)
technologies and remains one of the most powerful tools for product development. As
material quality, surface finish, and dimensional accuracy have improved, AM models
have been increasingly used for functional prototyping and for fit and assembly
testing. AM parts are also being used as patterns for tooling and metal casting
processes. The demand for products and services from providers of AM equipment,
materials, and services has shown a positive development over the last 24 years.
The compound annual growth rate (CAGR) of worldwide revenues produced by all
products and services over this period is an impressive 26.4%. The CAGR over the
past eleven years was 10 %.

The global market for additive manufacturing (consisting of all products and services
worldwide) grew by 29.4% to USD 1.714bn (PY: USD 1.325bn) in 2011. The USD
1.714bn volume is comprised of revenues generated in the primary additive
manufacturing market which consists of all products and services directly associated
with AM processes worldwide. Products include AM systems, system upgrades,
materials, and aftermarket products, such as third-party software and lasers.
Services include revenues generated from parts produced on AM systems by service
providers, system maintenance contracts, training, seminars, conferences,
expositions, advertising, publications, contract research and consulting. Global
revenues from AM systems and materials amounted to USD 834.0m in 2011, an
increase of 28.0% from USD 651.6m in 2010. This market segment grew by 22.9%
yoy in 2010 after declining by 13.1% yoy in 2009. Furthermore, additive
manufacturing services grew by 30.7% yoy to USD 879.5m in 2011. In turn this
market segment grew by 25.3% yoy to USD 672.9m in 2010, but declined by 6.2%
yoy in 2009.

Overview and forecast of worldwide additive manufacturing market (in USD bn)

Source: Wohlers report, Alphaform AG, CBS Research AG
According to Wohlers the additive manufacturing industry is expected to continue
strong double digit growth over the next several years. The AM industry is forecast to
reach USD 2.0bn in 2012. Sales of AM products and services will reach worldwide
USD 3.7bn by 2015 and USD 4bn in 2016. Assuming the industry is not affected by
larger influences, such as another global economic recession or natural disasters,
AM market volume is expected to surpass the USD 6.5bn mark by 2019.
0.6 0.6 0.5 0.5
0.7
0.8
1.0
1.2 1.2
1.1
1.3
1.7
2.0
3.7
4.0
6.5
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2015E 2016E 2019E
Overview and forecast of worldwide car sales by core market
(in m units)

Alphaform AG


Automotive
The sales trend on the automotive market
After the worldwide car sales (passenger cars and other light vehicles) had increased
by 13.3% in 2010 (2009: -3.0% yoy) there was an increase of 4.3% to 75.46m units in
2011 according to LMC Automotive (formerly JD Power). This development is
especially owed to China, the worlds largest car market (share of 24%) that
generated a sales increase of 4.6% to 18.00m units. In the US (share of 17%),
12.75m units were sold and, thus, 10.3% more cars, 1.19m units respectively, than in
2010. Comparatively, the Western European market (share of 19%) developed
clearly weaker (-0.6% to 14.34m units) due to fiscal measures in some countries (for
example, VAT increase in Great Britain). However, the development was quite
differentiated in the Western European countries (Great Britain: -4.4%; Spain:
-17.7%; Italy: -11.0%; France: -2.1%; Germany: +8.8%).

Worldwide automobile market trend
*
in 2011 (change yoy in %)

Source: LMC Automotive 2012, CBS Research AG

In the first nine months of 2012 worldwide car sales increased by 6.3% to 61.03m
(PY: 57.39m) units. This development is especially owed to USA (+14.6% yoy to
10.88m units), Japan (+38.4% yoy to 4.19m units), Eastern Europe (+6.6% yoy to
3.62m units) and other regions (+9.3% yoy to 12.66m units). On the other hand
Western Europe sales development (-8.4% yoy to 10.14m units) was very weak.

IHS Global Insight forecasts that global light vehicle sales will grow a further 4% in
2012 to nearly 78.7m units. For 2013 IHS forecasts an increase to approximately
82.1m units. LMC Automotive believes global sales will reach 81.0m units in 2012,
which would outpace 2011's record level of 76.8m units by 5.5%. In 2013, global
light-vehicle sales are expected to increase to nearly 85.0m units. With the economic
outlook for 2012 and 2013 looking ever gloomier, LMC Automotive forecasts for
Western Europe for this year a drop of around 7.7% to 11.83m units and for 2013 a
drop of around 0.5% to 11.78m units. Approximately 14.4m vehicles will be sold in
the US in 2012. Looking ahead to 2013, a higher level of uncertainty is impacting
overall volume growth, but the forecast remains at 15.0m units for total light-vehicles.
10.3%
2.0%
8.1%
-0.6%
22.7%
-15.6%
1.8%
7.7%
4.6%
5.3%
4.3%
USA Canada Mexico Western
Europe
Eastern
Europe
Japan Korea Brasil/
Argentina
China Other Global
*Passenger cars and light vehicles
Global car sales up by
4.3% in 2011
Sales increase of 6.3%
in the first nine months
2012
FY 2012E: global sales
growth of 4% - 6%

Alphaform AG


Overview and forecast of worldwide car sales by core markets (in m
units)

Source: IHS Global Insight 2012, CBS Research AG
IHS Global Insight expects that sales will rise to 103.1m units in 2018. This
corresponds to a compound annual growth rate of 4.5% (CAGR: period 2011 - 2018).
In the long term, China will remain the automotive industrys most important single
market. Global Insight forecasts that 29.1m cars (2011: 17.6m) will be sold in China
in 2018. Next to China, the expected global growth is mainly realized by North
America, Asia (including India) and Russia.

According to PricewaterhouseCoopers (PwC) global light vehicle production will rise
from 74.6m units in 2011 to 101.8m units in 2016.

Overview and forecast of worldwide light vehicle production by core
markets (in m units)

Source: PWC, DRR AG, CBS Research AG

15.3
18.4 19.5
14.4
13.8
15.4
17.6
22.8
29.1 4.1
4.6
4.4
3.0
4.1
6.1
4.0
4.6
6.0
5.5
6.4
8.0
11.7
12.7
14.6
2011 2014E 2018E
(in m units)
Rest of the world
South America
Eastern Europe (incl. Russia)
India
Japan
China (incl. HK)
Western Europe
North America
75.6
87.4
103.1
17.3
19.3 20.4 21.5 22.7 23.7
19.9
19.3
20.5
21.9
22.7
23.6
19.6
21.7
23.0
24.2
24.9
25.7
15.3
16.9
19.5
22.2
24.4
25.9
2.5
2.4
2.6
2.7
2.8
2.9
2011 2012E 2013E 2014E 2015E 2016E
(in m units)
Other
China
Asia (without China)
Europe
America
74.6
86.0
97.5
92.5
101.8
79.6

Alphaform AG


Growth will come from BRIC states especially China with a high potential
In 2010, light-vehicle sales in emerging markets comprised 51% of global sales.
According to LMC Automotive the share of emerging markets is expected to increase
steadily to 60% in 2015. Sales in China in 2015 are projected to total 29.0m units,
with the US following with just 16.5m units. By 2020, global sales are projected to
total 125.0m units. Of this total, the BRIC countries are expected to account for
57.7m light vehicle sales (46% of the global total). Moreover, each of these countries
has high potential for exports, so their combined production should account for an
even greater percentage of global output in 2020.

According to a report by PwC, the automotive industry will have continuing strong
growth perspectives in the future, especially in China. Even though the economic
development in China should slow down, the demand for individual mobility, and
thus, for cars, should further increase. In 2017, about 28m vehicles shall be sold in
China. Unlike the car markets in Western Europe or the US, China is far from having
a saturated demand for cars for the time being. A calculation example displays how
large the sales potential in China still is: the car density in Germany is about 500 cars
per 1,000 people. To reach these figures, Chinas streets would have to
accommodate about 700m units - instead of currently 59m.

The worldwide premium segment is expected to grow further
According to IHS Global Insight the global premium segment will grow further in the
next years with a compound annual growth rate of 5.1% (CAGR: period 2011 - 2020).

Overview and forecast of worldwide premium segment by core markets

Source: IHS Global Insight, BMW AG, CBS Research AG

Emerging markets will
grow further
China market is not
saturated

Alphaform AG


More car models and derivatives are needed to approach more customers
The forecasted light vehicle sales can only be realized by more car models and
derivatives to approach more customers. Therefore, the variety is further forwarded
by the OEM to meet country- and customer-specific needs. OEMs like BMW, Audi,
Daimler and others prepare to increase its car models and derivatives in the next
years. Given Alphaforms exposure to the OEM (e.g. BMW, Mercedes-Benz) sector,
the company will benefit from this development. The following illustrations provide an
overview of the companys car models and derivatives development and outlook.

Current models and lifecycle overview of BMW Group

Source: BMW AG, CBS Research AG
BMW plans to develop 10 to 12 compact models based on its new front-wheel-drive
platform. According to Mercedes-Benz the company plans to implement at least 10
additional model series by 2015.

Portfolio extension of Mercedes-Benz

Source: Daimler AG, CBS Research AG

Alphaform AG


Financials
9M (1 January 2012 30 September 2012) results
According to preliminary key figures (reported on 5 November 2012) consolidated
revenues rose by 6.0% to EUR 20.84m (PY: EUR 19.66m). EBITDA increased in 9M
2012 to EUR 1.68m (PY: EUR 0.99m). Furthermore, in the first nine months of FY
2012 EBIT amounted to EUR 0.70m (PY: EUR 0.05m). Additionally, net income
improved from EUR -0.19m in 9M 2011 to EUR +0.52m in 9M 2012.

Cash flow statement
For the first nine months of FY 2012, cash flow from the operating activities
amounted to EUR +0.5m and thus improved significantly compared to 9M 2011 (EUR
-0.9m). The main reason for the improved cash flow compared to the previous year
period was a higher operating result and more efficient working capital management.

Outlook
For FY 2012E the management expects a revenue slightly above previous year level
and a positive net result.

Historical financial development of the last
quarters
During the period 1Q 2011-3Q 2012 the company increased top line growth on year-
over-year basis (except 3Q 2012 compared to 3Q 2011, figures stayed almost stable)
and managed to improve EBITDA and EBIT figures. During 4Q 2011 EBIT
development was mainly influenced by extraordinary expense resulting from a write-
down of the carrying amount of the subsidiary MediMet GmbH.

Development of important key figures on group level from 1Q 2011 to
3Q 2012


5.8
7.0
6.9
6.7
6.8
7.3
6.8
0.0
0.5
0.4
0.0
0.5 0.6 0.5
-0.3
0.2
0.1
-1.3
0.2
0.3
0.2
-2.0
-1.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
Q1 2011 Q2 2011 Q3 2011 Q4 2011 Q1 2012 Q2 2012 Q3 2012
Sales EBITDA EBIT
in EURm
Improved financial
figures in 9M 2012

Alphaform AG


Financial forecast
Sales in fiscal year 2012E
For the current fiscal year (31 December 2012) we expect sales of approximately
EUR 28.2m (+7.0% yoy).

Despite the difficult economic environment in Europe we expect that this weak
environment should be compensated by sustained growth in North America and Asia.
For 2013E we expect a sales increase of about 7.0% to EUR 30.1m.

For fiscal year 2014E we estimate an increase in sales of approximately 7.0% to
EUR 32.2m because of improving market conditions in Europe and the continuing
economic growth in the BRIC countries and North America.

Overview and forecast of important financial figures from 2008 to
2014E

Development of EBIT-margins, net income and dividend payout
Owing to the positive sales development we believe EBIT-margin to be at +3.0%
(2011: -4.9%) for fiscal year 2012E. For fiscal year 2013E and 2014E, we anticipate
an improvement of EBIT margins.
Assuming a tax rate of 0% due to enough loss carried forward, net income is
expected to be at EUR 0.5m in fiscal year 2012E. For fiscal year 2013E and 2014E,
we estimate net income of EUR 0.9m and EUR 1.1m.

In our view, Alphaform will not pay a dividend per share for FY 2012E. For 2013E
and 2014E we expect no dividend payments, too.

21.4
19.4
20.7
26.3
28.2
30.1
32.2
1.3
-1.4
0.6
1.0
2.3
2.7
3.1
-0.5
-3.8
-1.5
-1.3
0.8 1.2 1.5
-10.0
-5.0
0.0
5.0
10.0
15.0
20.0
25.0
30.0
35.0
2008 2009 2010 2011 2012E 2013E 2014E
Sales EBITDA EBIT
in EURm
Sales forecast 2012E:
EUR 28.2m
No expected dividend
per share for 2012E

Alphaform AG


Balance sheet outlook

Development of Assets
By 30 June 2012, total assets amounted to EUR 20.5m. The biggest positions are
goodwill (26% of total assets) and property, plant and equipment (22% of total
assets). As at 31 December 2012 we estimate property, plant and equipment position
of EUR 4.6m. By the end of its 2012 fiscal year we expect cash and cash equivalents
to be at EUR 1.2m. Current assets may increase due to higher inventories and
accounts receivable, resulting from the increase in sales, to EUR 10.6m.
In the coming years we assume higher inventories, accounts receivables and cash
and cash equivalents due to the positive sales development.

Development of Equity & Liabilities
At the end of June 2012, equity amounted to EUR 12.6m which corresponds to an
equity ratio of 61.7%. We assume an increase to EUR 12.8m by 31 December 2012
with an equity ratio of 61.6%, due to good operating development. Based on
Alphaforms promising perspectives for the future, we expect an equity ratio of above
60%. Total liabilities were at EUR 7.9m as at 30 June 2012. By the end of 2012 we
estimate total liabilities at EUR 8.0m.

Cash flow outlook
Cash flow from operating activities was EUR 1.7m in FY 2011 and EUR 0.5m in 9M
2012. For the current fiscal year we assume operating cash flow to be approximately
EUR 1.3m. For FY 2013E we expect an increase to EUR 2.2m. Free cash flow is
expected to be in 2012 approximately EUR -0.1m (PY: EUR 1.2m).

Cash and cash
equivalents at the end
of 2012 forecast: EUR
1.2m
Equity ratio by 30 June
2012: 61.7%
Positive operating
cash flow from
operating activities

Alphaform AG


Appendix
Financials

Alphaform AG
Profit and loss account
(31 December) IFRS EURm 2008 2009 2010 2011 2012E 2013E 2014E
Sales 21.4 19.4 20.7 26.3 28.2 30.1 32.2
YoY growth -3.2% -9.2% 6.8% 26.8% 7.0% 7.0% 7.0%
Change in inventories 0.1 0.1 0.6 0.0 0.0 0.0 0.0
Other work performed 0.0 0.0 0.1 0.0 0.0 0.0 0.0
Total output 21.6 19.5 21.4 26.3 28.2 30.1 32.2
Material expenses -8.0 -6.9 -7.5 -9.2 -9.6 -10.2 -10.8
Staff expenses -7.5 -9.2 -8.9 -10.7 -11.1 -11.6 -12.4
Other operating income 0.4 0.5 1.0 0.5 0.7 0.8 0.8
Other operating expenses -5.2 -5.3 -5.5 -5.9 -5.9 -6.3 -6.8
EBITDA 1.3 -1.4 0.6 1.0 2.3 2.7 3.1
Amortization, depreciation and impairment -1.8 -2.3 -2.1 -2.2 -1.4 -1.5 -1.6
EBIT -0.5 -3.8 -1.5 -1.3 0.8 1.2 1.5
in % of sales -2.3% -19.4% -7.1% -4.9% 3.0% 3.9% 4.5%
Net financial result 0.4 -0.3 -0.3 -0.3 -0.3 -0.3 -0.4
EBT -0.1 -4.1 -1.8 -1.6 0.5 0.8 1.1
in % of sales -0.4% -20.8% -8.7% -6.0% 1.9% 2.8% 3.4%
Income taxes -0.6 0.3 0.3 0.0 0.0 0.0 0.0
Net income including minorities -0.7 -3.8 -1.5 -1.6 0.6 0.9 1.1
Minority interests 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Net income attributable to shareholders -0.7 -3.8 -1.6 -1.6 0.5 0.9 1.1
in % of sales -3.1% -19.5% -7.6% -6.0% 1.9% 2.9% 3.5%
Shares outstanding (in millions) 5.3 5.3 5.3 5.3 5.3 5.3 5.3
Earnings per share (EUR) -0.12 -0.71 -0.29 -0.30 0.10 0.16 0.21
Dividend per share (EUR) 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Source: CBS Research AG, Alphaf ormAG

Alphaform AG


Alphaform AG
Balance Sheet
IFRS EURm 2008 2009 2010 2011 2012E 2013E 2014E
Assets
Noncurrent assets 13.9 15.8 13.7 10.2 10.2 10.2 10.1
as % of total assets 50.5% 59.4% 55.9% 49.5% 48.8% 45.2% 41.7%
Property, plant and equipment 6.0 5.2 5.4 4.5 4.6 4.8 4.9
Intangible assets 7.9 7.2 6.3 5.2 5.1 4.9 4.7
Others 0.0 3.4 2.0 0.5 0.5 0.5 0.5
Current assets 13.6 10.8 10.8 10.3 10.6 12.3 14.2
as % of total assets 49.5% 40.6% 44.1% 50.5% 51.2% 54.8% 58.3%
Inventories 3.7 3.2 3.7 4.0 4.3 4.6 4.9
Receivables and other assets 4.7 3.9 4.9 4.3 5.1 5.5 5.9
Cash and cash equivalents 5.2 3.7 2.2 2.1 1.2 2.3 3.4
Total Assets 27.5 26.6 24.5 20.5 20.8 22.5 24.4
Shareholders equity and liabilities
Shareholders equity 19.2 15.4 13.8 12.3 12.8 13.7 14.8
as % of total equity and liabilities 69.8% 57.8% 56.4% 59.8% 61.6% 60.9% 60.8%
Subscribed capital 5.3 5.3 5.3 5.3 5.3 5.3 5.3
Capital reserves 11.3 11.3 11.3 11.3 11.3 11.3 11.3
Accumulated profit/loss 2.5 -1.3 -2.8 -4.4 -3.8 -3.0 -1.8
Accumulated other comprehensive loss 0.1 0.0 0.0 0.0 0.0 0.0 0.0
Minority interests 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Noncurrent liabilities 2.5 5.1 3.6 1.9 1.6 1.9 2.0
Long-term financial debt 0.1 4.1 3.1 1.6 1.3 1.5 1.7
Finance lease obligations 0.0 0.1 0.4 0.3 0.3 0.4 0.4
Liabilities from MediMet purchase 1.9 0.7 0.0 0.0 0.0 0.0 0.0
Others 0.6 0.3 0.0 0.0 0.0 0.0 0.0
Current liabilities 5.8 6.1 7.2 6.3 6.4 6.9 7.5
Trade accounts payable 2.2 2.1 2.6 2.7 3.0 3.1 3.3
Current financial debt 0.7 0.9 1.7 0.8 0.9 0.9 1.0
Others 2.9 3.2 2.8 2.8 2.5 2.8 3.2
Total equity and liabilities 27.5 26.6 24.5 20.5 20.8 22.5 24.4

Alphaform AG


Alphaform AG
Cash flow statement
IFRS EURm 2008 2009 2010 2011 2012E 2013E 2014E
Net income/loss -0.7 -3.8 -1.5 -1.6 0.6 0.9 1.1
Depreciation and amortisation 1.8 2.3 2.1 2.2 1.4 1.5 1.6
Deferred taxes 0.5 -0.3 -0.3 0.0 0.0 0.0 0.0
Bad debt allowances 0.2 0.2 -0.1 0.1 0.0 0.0 0.0
Currency translation differences 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Gain/loss on disposal of property, plant and equipment 0.2 0.2 0.3 0.3 0.2 0.2 0.2
Movements in working capital: -0.3 0.5 -0.6 0.7 -0.8 -0.4 -0.4
Change in inventories -1.2 0.5 -0.5 -0.3 -0.3 -0.3 -0.3
Change in trade and other receivables -0.8 0.8 -1.1 1.9 -0.8 -0.4 -0.4
Change in trade accounts payable 0.4 -0.1 0.5 0.2 0.3 0.1 0.2
Change in Payments received on account of orders 0.0 -0.1 0.0 0.0 0.0 0.0 0.0
Change in provisions -0.1 0.2 -0.1 0.2 0.3 0.3 0.4
Change in other positions 1.4 -0.7 0.6 -1.2 -0.3 -0.2 -0.2
Cash flow from operating activities 1.9 -0.8 -0.2 1.7 1.3 2.2 2.6
Capital expenditures for intangibles assets and PPE -10.9 -1.7 -2.7 -0.6 -1.4 -1.5 -1.6
Acquisitions of subsidiaries -5.2 -0.7 0.0 0.0 0.0 0.0 0.0
Others 8.8 -3.3 1.4 0.0 0.0 0.0 0.0
Cash flow from investing activities -7.3 -5.7 -1.2 -0.5 -1.4 -1.5 -1.6
Proceeds from capital increase 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Purchase of treasury stock 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Increase/Decrease in debt position -0.4 4.1 -0.4 -2.7 -0.2 0.3 0.2
Dividends paid -0.8 0.0 0.0 0.0 0.0 0.0 0.0
Cash flow from financing activities -1.2 4.1 -0.4 -2.7 -0.2 0.3 0.2
Net increase (decrease) in cash&cash equivalents for period -6.7 -2.4 -1.8 -1.5 -0.3 1.0 1.2
Cash at the beginning of the period from discontinuing operations 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Restricted cash 0.0 0.0 0.0 2.1 0.0 0.0 0.0
Cash, cash equivalents and short term investments at beginning of period 11.9 5.2 2.8 1.0 1.6 1.2 2.3
Cash and cash equivalents at the end of the period 5.2 2.8 1.0 1.6 1.2 2.3 3.4
of which cash and cash equivalents as reported in the balance sheet 5.2 3.7 2.2 2.1 1.2 2.3 3.4
of which bank borrowings repayable on demand 0.0 -0.9 -1.2 -0.5 0.0 0.0 0.0

Alphaform AG


Research

Schillerstrasse 27 - 29
60313 Frankfurt am Main

Phone: +49 (0)69 977 8456-0

Roger Peeters +49 (0)69 -977 8456- 12
Member of the Board Roger.Peeters@cbseydlerresearch.ag

Martin Decot +49 (0)69 -977 8456- 13 Igor Kim +49 (0)69 -977 8456- 15
Martin.Decot@cbseydlerresearch.ag Igor.Kim@cbseydlerresearch.ag
Anna von Klopmann +49 (0)69 -977 8456- 10 Gennadij Kremer +49 (0)69 977 8456- 23
Anna.Klopmann@cbseydlerresearch.ag Gennadij.Kremer@cbseydlerresearch.ag

Daniel Kukalj +49 (0)69 977 8456- 21 Ralf Marinoni +49 (0)69 -977 8456- 17
Daniel.Kukalj@cbseydlerresearch.ag Ralf.Marinoni@cbseydlerresearch.ag
Manuel Martin +49 (0)69 -977 8456- 16 Felix Parmantier +49 (0)69 -977 8456- 22
Manuel.Martin@cbseydlerresearch.ag Felix.Parmantier@cbseydlerresearch.ag
Marcus Silbe +49 (0)69 -977 8456- 14 Veysel Taze +49 (0)69 -977 8456- 18
Marcus.Silbe@cbseydlerresearch.ag Veysel.Taze@cbseydlerresearch.ag

Ivo Vii +49 (0)69 -977 8456- 19
Ivo.Visic@cbseydlerresearch.ag

Institutional Sales

Schillerstrasse 27 29

Phone: +49 (0)69 9 20 54-400

Raimar Bock +49 (0)69 -9 20 54-115
Head of Sales Raimar.Bock@cbseydler.com

Rdiger Eich +49 (0)69 -9 20 54-119 Sule Erkan +49 (0)69 -9 20 54-107
(Germany, Switzerland) Ruediger.Eich@cbseydler.com (Sales-Support) Sule.Erkan@cbseydler.com

Dr. James Jackson +49 (0)69 -9 20 54-113 Klaus Korzilius +49 (0)69 -9 20 54-114
(UK) James.Jackson@cbseydler.com (Benelux, Germany) Klaus.Korzilius@cbseydler.com

Stefan Krewinkel +49 (0)69 -9 20 54-118 Markus Laifle +49 (0)69 -9 20 54-120
(Execution, UK) Stefan.Krewinkel@cbseydler.com (Execution) Markus.Laifle@cbseydler.com

Michael Laufenberg +49 (0)69 -9 20 54-112 Bruno de Lencquesaing +49 (0)69 -9 20 54-116
(Germany) Michael.Laufenberg@cbseydler.com (Benelux, France) Bruno.deLencquesaing@cbseydler.com

Angela Leser +49 (0)69 -9 20 54-111 Carsten Pfersdorf +49 (0)69 -9 20 54-168
(Fixed Income) Angela.Leser@cbseydler.com (Sales Trading) Carsten.Pfersdorf@cbseydler.com

Carsten Schlegel +49 (0)69 -9 20 54-137 Christopher Seedorf +49 (0)69 -9 20 54-110
(Sales Trading) Carsten.Schlegel@cbseydler.com (Sales-Support) Christopher.Seedorf@cbseydler.com

Janine Theobald +49 (0)69 -9 20 54-106 Bas-Jan Walhof +49 (0)69 -9 20 54-105
(Austria, Germany) Janine.Theobald@cbseydler.com (Benelux) Bas-Jan.Walhof@cbseydler.com

Alphaform AG


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(Wertpapierhandelsgesetz) in combination with the provisions on financial analysis
(Finanzanalyseverordnung FinAnV)

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individually called the author). None of Close Brothers Seydler Research AG, Close Brothers Seydler Bank AG or
its cooperation partners, the Company or its shareholders has independently veri fied any of the information given in
this document.
Section 34b of the German Securities Trading Act in combination with the FinAnV requires an enterprise preparing a
security analysis to point out possible conflicts of interest with respect to the company that is the subject of the
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Close Brothers Seydler Research AG uses a 3-level absolute share rating system. The ratings pertain to a time
horizon of up to 12 months:

BUY: The expected performance of the share price is above +10%.
HOLD: The expected performance of the share price is between 0% and +10%.
SELL: The expected performance of the share price is below 0%.

Recommendation history over the last 12 months for the company analysed in this report:

Date Recommendation Price at change date Price target
6 November 2012 BUY (Initial Coverage) EUR 1.95 EUR 2.30

Risk-scaling System:
Close Brothers Seydler Research AG uses a 3-level risk-scaling system. The ratings pertain to a time horizon of up
to 12 months:

LOW: The volatility is expected to be lower than the volatility of the benchmark
MEDIUM: The volatility is expected to be equal to the volati lity of the benchmark
HIGH: The volatility is expected to be higher than the volatility of the benchmark

The following valuation methods are used when valuing companies: Multiplier models (price/earnings, price/cash
flow, price/book value, EV/Sales, EV/EBIT, EV/EBITA, EV/EBITDA), peer group comparisons, historical valuation

Alphaform AG


approaches, discounting models (DCF, DDM), break-up value approaches or asset valuation approaches. The
valuation models are dependent upon macroeconomic measures such as interest, curr encies, raw materials and
assumptions concerning the economy. In addition, market moods influence the valuation of companies.
The figures taken from the income statement, the cash flow statement and the balance sheet upon which the
evaluation of companies is based are estimates referring to given dates and therefore subject to risks.
These may change at any time without prior notice.

The opinions and forecasts contained in this report are those of the author alone. Material sources of information for
preparing this report are publications in domestic and foreign media such as information services (including but not
limited to Reuters, VWD, Bloomberg, DPA-AFX), business press (including but not limited to Brsenzeitung,
Handelsblatt, Frankfurter Allgemeine Zeitung, Financial Times), professional publications, published statistics, rating
agencies as well as publications of the analysed issuers. Furthermore, discussions were held with the management
for the purpose of preparing the analysis. Potentially parts of the analysis have been provided to the issuer prior to
going to press; no significant changes were made afterwards, however. Any information in this report is based on
data considered to be reliable, but no representations or guarantees are made by the author with regard to the
accuracy or completeness of the data. The opinions and estimates contained herein constitute our best judgment at
this date and time, and are subject to change without notice. Possible errors or incompleteness of the information do
not constitute grounds for liability, neither with regard to indirect nor to direct or consequential damages. The views
presented on the covered company accurately reflect the personal views of the author. All employees of the author's
company who are involved with the preparation and/or the offering of financial analyzes are subject to internal
compliance regulations.
The report is for information purposes, it is not intended to be and should not be construed as a recommendation,
offer or solicitation to acquire, or dispose of, any of the securities mentioned in this report. Any reference to past
performance should not be taken as indication of future performance. The author does not accept any liability
whatsoever for any direct or consequential loss arising from any use of material contained in this report. The report
is confidential and it is submitted to selected recipients only. The report is prepared for professional investors only
and it is not intended for private investors. Consequently, it should not be distributed to any such persons. Also, the
report may be communicated electronically before physical copies are available. It may not be reproduced (in whole
or in part) to any other investment firm or any other individual person without the prior written approval from the
author. The author is not registered in the United Kingdom nor with any U.S. regulatory body.

It has not been determined in advance whether and in what intervals this report will be updated. Unless otherwise
stated current prices refer to the closing price of the previous trading day. Any reference to past performance should
not be taken as indication of future performance. The author maintains the right to change his opinions without
notice, i.e. the opinions given reflect the authors judgment on the date of this report.

This analysis is intended to provide information to assist institutional investors in making their own investment
decisions, not to provide investment advice to any specific investor.
By accepting this report the recipient accepts that the above restrictions are binding. German law shall be applicable
and court of jurisdiction for all disputes shall be Frankfurt am Main (Germany).

This report should be made available in the United States solely to investors t hat are (i) "major US institutional
investors" (within the meaning of SEC Rule 15a-6 and applicable interpretations relating thereto) that are also
"qualified institutional buyers" (QIBs) within the meaning of SEC Rule 144A promulgated by the United States
Securities and Exchange Commission pursuant to the Securities Act of 1933, as amended (the "Securities Act") or
(ii) investors that are not "US Persons" within the meaning of Regulation S under the Securities Act and applicable
interpretations relating thereto. The offer or sale of certain securities in the United States may be made to QIBs in
reliance on Rule 144A. Such securities may include those offered and sold outside the United States in transactions
intended to be exempt from registration pursuant to Regulation S. This report does not constitute in any way an offer
or a solicitation of interest in any securities to be offered or sold pursuant to Regulation S. Any such securities may
not be offered or sold to US Persons at this time and may be resold to US Persons only if such securities are
registered under the Securities Act of 1933, as amended, and applicable state securities laws, or pursuant to an
exemption from registration.
This publication is for distribution in or from the United Kingdom only to persons who are authorised persons or
exempted persons within the meaning of the Financial Services and Markets Act 2000 of the United Kingdom or any
order made there under or to investment professionals as defined in Section 19 of the Financial Services and
Markets Act 2000 (Financial Promotion) Order 2005 and is not intended to be distributed or passed on, directly or
indirectly, to any other class of persons.
This publication is for distribution in Canada only to pension funds, mutual funds, banks, asset managers and
insurance companies.
The distribution of this publication in other jurisdictions may be restricted by law, and persons into whose possession
this publication comes should inform themselves about, and observe, any such restrictions. In par ticular this
publication may not be sent into or distributed, directly or indirectly, in Japan or to any resident thereof.

Responsible Supervisory Authority:
Bundesanstalt fr Finanzdienstleistungsaufsicht (BaFin, Federal Financial Supervisory Authority)
Graurheindorferstrae 108

Alphaform AG


53117 Bonn

and

Lurgiallee 12
60439 Frankfurt

Schillerstrasse 27 - 29
Tel.: 0049 - (0)69 - 97 78 45 60

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