REBITDA, EBIT AND RECURRENT NET PROFIT INCREASE DOUBLE
DIGIT AND FASTER THAN TURNOVER
STRONG PERFORMANCE BY FAGRON, ARSEUS MEDICAL & CORILUS
Key points 2010:
• Turnover growth of 8.4% to € 424.1 million
• REBITDA increases 14.7% to € 60.4 million
• EBIT increases 17.9% to € 36.0 million
• Recurrent net profit per share increases 21.0% to € 0.98
• Dividend proposal 2010: € 0.44 per share, 22% higher than in 2009
• Outlook for 2011: Turnover growth of between 8% and 12%, organic turnover
growth of between 3% and 6% and a REBITDA that is expected to grow faster than
turnover
Ger van Jeveren, CEO of Arseus: ‘2010 was once again an excellent year for Arseus. As a result of
the continuing professionalisation of the organisation and the widely communicated cost awareness,
the recurrent EBITDA, the EBIT and net profit grew faster than turnover in 2010.
In the operational field, a firm foundation was laid in 2o1o for the future growth of Arseus and its four
divisions. With acquisitions in the US and Brazil, Fagron became the global market leader in
pharmaceutical compounding. The operational and financial developments at Arseus Medical were
impressive. Corilus introduced its software with success in new markets. This is a confirmation of the
quality of the organisation as well as the software of Corilus. With the successful restructuring and the
cost-saving programme, Arseus Dental has laid a foundation for growth in 2011.
In line with forecasts announced earlier, we expect turnover growth in 2011 of between 8% and 12%,
organic growth of between 3% and 6% and a REBITDA that grows faster than turnover.’

Income statement (x 1,000 euros) H2 2010 H2 2009 2010 2009 Change
Net sales 219,378 201,142 424,056 391,315 8.4%
Gross margin 103,908 95,806 201,845 185,914 8.6%
As % of net sales 47.4% 47.6% 47.6% 47.5%
Operating costs -72,102 -68,559 -141,434 -133,246 6.1%
As % of net sales 32.9% 34.1% 33.4% 34.1%
EBITDA before corporate costs and nonrecurrent
result
31,807 27,247 60,412 52,668 14.7%
As % of net sales 14.5% 13.5% 14.2% 13.5%
Corporate costs -2,860 -2,993 -5,725 -5,655 1.2%
EBITDA before non-recurrent result 28,948 24,255 54,687 47,013 16.3%
As % of net sales 13.2% 12.1% 12.9% 12.0%
Non-recurrent result -2,637 -2,681 -5,998 -4,488 33.6%
EBITDA 26,311 21,574 48,689 42,525 14.5%
As % of net sales 12.0% 10.7% 11.5% 10.9%
Depreciation and amortisation -6,841 -6,341 -12,672 -11,983 5.8%
EBIT 19,469 15,233 36,017 30,542 17.9%
As % of net sales 8.9% 7.6% 8.5% 7.8%
Financial result, excluding revaluation of financial
derivatives
-3,384 -3,064 -6,342 -6,085 4.2%
Revaluation of financial derivatives 1,405 -6 382 -1,351 -128.3%
Profit before taxes 17,489 12,164 30,056 23,107 30.1%
Taxes -3,246 -1,920 -5,257 -3,468 51.6%
Settlement of dispute with fiscal administration -2,320 -2,320
Net profit 11,924 10,243 22,479 19,639 14.5%
Recurrent net profit2 15,148 12,414 29,311 24,516 19.6%
Net profit per share (in euro) 0.40 0.34 0.75 0.65 15.4%
Recurrent net profit per share (in euro) 0.51 0.41 0.98 0.81 21.0%
Average number of shares 29,889,716 30,221,206 29,995,199 30,214,757
Balance sheet (x 1,000 euros) 31-12-‘10 31-12-‘09
Intangible assets 284,498 229,455
Property, plant and equipment 48,862 38,631
Deferred tax assets 20,785 19,205
Other non current assets 1,665 2,241
Operational working capital 71,517 63,336
Other working capital -39,572 -28,827
Equity 208,122 196,352
Provisions 4,251 4,222
Financial instruments 4,931 5,312
Deferred tax liabilities 4,363 4,232
Net financial debt 166,089 113,923
2 Recurrent net profit is defined as the profit before non-recurrent items and the revaluation of financial derivatives, after taxes
based at the group’s effective tax rate.

Income statement
Consolidated turnover in 2010 amounted to € 424.1 million, an increase of 8.4% compared with
2009. Organic growth was 2.7%. More detailed information on the development of turnover is given in
the press release dated 10 January 2011, which can be found at www.arseus.com.
Gross margin grew 8.6% to € 201.8 million. Compared with 2009, gross margin as a percentage of
turnover was 0.1 percentage point higher at 47.6%, despite a significant decrease at Arseus Dental.
Operating costs as a percentage of turnover decreased by 0.7 percentage points in 2010 to 33.4%.
This percentage was 1.2 percentage points lower in the second semester of 2010 than in the same
period of 2009.
REBITDA3 grew faster than turnover, by 14.7% to € 60.4 million.
Corporate costs increased by only 1.2%, despite the turnover growth of 8.4%. This is a clear sign that
the cost-saving programme was also successful here. Corporate costs were more than 4% lower in the
second semester of the year.
The non-recurrent result was € 6.0 million negative, consisting mainly of restructuring costs at
Arseus Dental, where the workforce was reduced by 75 FTEs in 2010. As in 2009, an additional
provision of € 0.75 million has been made owing to a 2002 conflict with a customer regarding the
payment of delivered products. With this additional provision, this case is now closed.
EBITDA increased in 2010 by 14.5% to € 48.7 million. The operating margin (EBITDA as a
percentage of turnover) increased from 10.9% in 2009 to 11.5% in 2010.
Depreciation and amortisation amounted to € 12.7 million, an increase compared with 2009 of
€ 0.7 million.
EBIT amounted to € 36.0 million, an increase of 17.9% in comparison with 2009. Despite the increase
in non-recurrent costs, EBIT increased substantially faster than turnover.
The financial result, excluding the revaluation of financial derivatives, amounted to € 6.3 million
negative, an increase of 4.2% compared with 2009, mainly reflecting an increase in the net financial
debt, while interest rates were lower.
The revaluation of financial derivatives amounted to € 0.4 million. This positive revaluation
reflects a rising trend in the interest base. This interest-rate hedge does not qualify for hedge accounting in accordance with IAS 39. As a non-cash item, it had been deducted from the financial
result and is shown separately in the income statement.
The effective tax rate, as a percentage of the profit before taxes, amounted to 17.5% in 2010.
In the prospectus and the annual reports for 2007, 2008 and 2009, Arseus reported that Corilus
Wallonië (a subsidiairy of Arseus) was involved in a dispute with the Belgian tax authority regarding
the fiscal treatment of the 2003 to 2007 financial years. The total tax demands for these years amount
to approximately € 11.2 million. In early 2011, Corilus contracted a settlement of the dispute with the
tax authority for a total sum of € 2.3 million. Because Corilus had already made past payments
totalling € 2.5 million, it will receive € 0.3 million, including interest, from the Belgian tax authority.
Net profit increased 14.5% to € 22.5 million in 2010, despite the non-recurrent tax of € 2.3 million.
Recurrent net profit amounted to € 29.3 million, an increase of 19.6% in comparison with 2009.
Recurrent net profit per share amounted to € 0.98.
Balance sheet
The main changes at balance-sheet level can be summarised as follows.
Intangible assets increased by € 55.0 million, mainly due to the recognition of goodwill relating to
acquisitions of the American Gallipot, the Brazilian DEG and the Belgian Devroe Instruments and the
R&D activities of Corilus and Arseus Dental.
Property, plant and equipment increased € 10.2 million, partly through the construction of a new
head office and distribution centre for Fagron Netherlands and the installation of a pick robot in its
central warehouse
Operational working capital4 increased 12.9% to € 71.5 million. This increase is caused by the
acquisitions made by Arseus in 2010. Without the impact of the acquisitions, the operational working
capital would have decreased in 2010.
Net financial debt5 increased in 2010 by € 52.2 million to 166.1 million. The increase is attributable
to investments, the acquisitions of Gallipot, DEG and two local dental dealers in France and the
payment for a compounding pharmacy acquired in the Netherlands at year-end 2009. At year-end
2010, the net financial debt/annualised REBITDA ratio was 2.49, fully in compliance with the
covenant under the credit facility, which sets a maximum ratio of 3.25.

4 The operational working capital is defined as the sum of stock and trade receivables less the trade payables.
5 The net financial debt is the sum of long-term and short-term financial borrowings (excluding financial instruments) less cash
and cash equivalents.

The net operational capex6 amounted to € 19.2 million, representing 4.5% of turnover in 2010. The
main component is an investment of € 7.9 million in a new head office and distribution centre for
Fagron Netherlands. The capex also comprises investments in R&D, IT and a pick robot for Fagron
Netherlands. If an abstraction is made of the investment in the new head office and distribution centre
for Fagron Netherlands, the net operational capex decreased 30%, in comparison with 2009, to 2.7%
of annual turnover.

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