Siegfried Annual Report 2009

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preconditioning the physical characteristics of active ingredients during the end production phase (by spray drying with mixing of additives) is how Siegfried can manage projects for innovative pharmaceutical clients. The needed expertise is now being ramped up for integration in various situations. We are also investing in the management of special class substances, such as the spray drying of active ingredients and a micro-reactor that were introduced and used successfully in a number of projects. A further example is a significant process optimization for a large pharmaceutical account in Switzerland. In addition to the already mentioned commercial systems, the pilot systems were also upgraded for highly active ingredients. Now a full range of substances up to sample sizes of 1μg can be safely handled. Upgrading of our formulation capabilities is also planned; and we already have access to our commercial formulation system in Malta. We also see great potential in this area by combining API and formulation, as foreseen by the new corporate strategy. The new strategic decisions led to a number of corresponding structural changes. Since maintaining two independent divisions was no longer part of our strategy, the Board of Directors and executive management chose a new Group management structure that was launched on March 1, 2010. While Dr. Rudolf Hanko (CEO), Michael Huesler (CFO), Hanspeter Brun (Head of HR), all continue in their previous responsibilities, Marianne Spaene was appointed Head of Business Development & Sales and Dr. Hubert Stueckler is responsible for Global Technical Operations. Peter Gehler assumed responsibility for the Corporate Center, which includes Communications, the legal department, Facility Management and the Chairman’s Office. The Development department is once again an independent unit and will be temporarily led by Dr. Rudolf Hanko. The new organization will enable Siegfried to clearly position the competencies of both Divisions as a unit – both in the market and internally with our processes. Our efforts, both internally and externally, will continue to focus on the most important customer segments. 4 Annual Report
From left to right: Markus Altwegg, Ph.D., President of the Board of Directors Rudolf Hanko, Ph.D., CEO Parallel to the new strategic direction, extensive efforts were made to keep the “Deliver” turnaround project on track. The chemical production department was split into three “focused factories” to better realize key efficiency gains; each factory now processes a specific type of customer contract. The new development lab building in Zofingen (built at a cost of CHF 17 million) brought the analytic teams together under a single management to reduce complexity and allow considerable synergies. Overhead costs were also markedly reduced and we even surpassed our cost-savings goal of CHF 9 million. An additional CHF 10 million in savings is planned for 2010 and will be visible in the financial results. In 2009, the Siegfried Actives Division increased both sales and output. Sales grew by 15% and a larger number of exclusive synthesis customers placed mid-sized to large orders. This is the first step toward reducing the average age of our product portfolio with active pharmaceutical ingredients and intermediates for new drugs at the beginning of their life cycle. These are products that just were, or are about to be launched on the market by the client. The improvements in the product portfolio are complemented by a qualitative and quantitative upgrade of our development pipeline, which currently features 40 exclusive synthesis projects. In the controlled substances market in the U.S., we continue to focus on the development of our opiate products, i.e. active pharmaceutical ingredients used in analgesics for pain therapy. After delays in the past years, an important contract was signed with a large U.S. account; initial deliveries are set for 2010. A second contract was signed at the start of 2010; the registration phase for this key account is being initiated as quickly as possible, with initial sales expected by the second half of 2011. Despite the positive outlook, we’ve taken a new financial accounting approach and depreciated CHF 9 million in activated opiate development costs. The generics business in 2009 was strongly influenced by the profound changes in the German market. However, the shortfall to 2008 was successively reduced during the year, Annual Report 5
Page 1 and 2: Siegfried Annual Report 2009
Page 4 and 5: Key numbers Siegfried Group 2009 20
Page 6 and 7: Letter from the Chairman & CEO Dear
Page 10 and 11: eaching 25% by the end of 2009. Pro
Page 12 and 13: election. Bernard Siegfried first j
Page 15 and 16: Roland Schuermann Head Chemical Ope
Page 17 and 18: 0. Foreword and general framework R
Page 19 and 20: Participation structure of Siegfrie
Page 21 and 22: 2. Capital structure 2.1 Capital Th
Page 23 and 24: Name Birthyear Position Entry Elect
Page 25 and 26: Bernard A. Siegfried, Ph.D., Honora
Page 27 and 28: Malcolm Perkins Malcolm Perkins (19
Page 29: 3.6 Executive management informatio
Page 32 and 33: Group Management From left to right
Page 34 and 35: 4.2 Portraits Dr. Rudolf Hanko, CEO
Page 36 and 37: Marianne Späne, President Siegfrie
Page 38 and 39: 4.3 Management Contracts Siegfried
Page 40 and 41: Shareholders with at least 250,000
Page 43 and 44: Dr. Tanja Westphal Manager Pharmace
Page 45 and 46: IntroductionSituation ‘Sustainabi
Page 47: 2009 Audits Site Inspections (Custo
Page 50 and 51: Compliance Introduction Siegfried i
Page 52 and 53: Our goal is to cultivate a quality
Page 54 and 55: External audits During 2009, nation
Page 56 and 57: the Siegfried teams pedaled the dis
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Energy consumption 2009 2008 2007 2
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Water consumption Water consumption
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Reclaimed solvents 2009 2008 2007 2
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Fines and non-monetary penalties Si
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Total workforce by region as of Dec
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Ken Zrebiec Director of Operations
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elated to the Deliver project. In a
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Consolidated income statement In 10
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Consolidated statement of changes i
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Reclassification of Balance sheet J
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exchange rates prevailing on the tr
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of discounted future cash flows. Va
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production overheads related to the
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Financial risk management Financial
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to 20.5% (2008: 17.7%) and 13.4% (2
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ealized, the obligation to eliminat
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2. Property, plant and equipment La
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4. Investments in associated compan
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6. Financial and other non-current
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8. Inventories In 1 000 CHF 2009 20
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13. Treasury shares Treasury shares
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19. Employee benefits and personnel
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The following table shows how the a
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CHF 1.2 million) were purchased fro
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In addition to sales of products ne
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Five-year overview 2005 - 2009, con
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Financial Statements Siegfried Hold
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Transparency Law Art. 663b and Art.
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Siegfried Group, in which the risks
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Stock market data 2009 2008 2007 20
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Publisher’s note This annual repo
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Siegfried Annual Report 2009

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