FORM 6-K

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

Report of Foreign Private Issuer

Pursuant to Rule 13a–16 or 15d–16 of

the Securities Exchange Act of 1934
Commission file number 001-14264

For the month of June 2007

PFEIFFER VACUUM TECHNOLOGY AG

Berliner Strasse 43
D–35614 Asslar
Federal Republic of Germany
(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of form 20–F or Form 40–F.

Form 20–F þ		Form 40–F o

Indicate by check mark if the registrant is submitting the Form 6–K in paper as permitted by Regulation S–T Rule 101(b) (1):

Yes o		No þ

Indicate by check mark if the registrant is submitting the Form 6–K in paper as permitted by Regulation S–T Rule 101(b) (7):

Yes o		No þ

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3–2(b) under the Securities Exchange Act of 1934.

Yes o		No þ

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3–2(b): 82–                    

 

 

Half Year Financial Report / Second Quarter 2007

Contents

		Page
Pfeiffer Vacuum Overview			3
Pfeiffer Vacuum Share Performance			4
Consolidated Interim Management Report			5
Consolidated Interim Financial Statements			13
Consolidated Statements of Income			13
Consolidated Balance Sheets			14
Consolidated Statements of Shareholders’ Equity			15
Consolidated Statements of Cash flows			16
Notes to the Interim Financial Statements			17
Certification of the Legal Representatives			23
Signatures			24
Additional Information			25

Pfeiffer Vacuum Overview

						Q2 2007				Q2 2006				Change				Q1-Q2 2007				Q1-Q2 2006				Change
Results
Total sales			K €				44,035				42,027				4.8	%			90,752				85,689				5.9	%
Germany			K €				12,086				10,444				15.7	%			25,479				22,594				12.8	%
Other countries			K €				31,949				31,583				1.2	%			65,273				63,095				3.5	%
Operating profit			K €				11,291				10,325				9.4	%			23,508				21,020				11.8	%
Net income			K €				9,783				6,446				51.8	%			17,814				12,992				37.1	%
Return on sales			%				22.2				15.3								19.6				15.2
Operating cash flow			K €				11,918				6,135				94.3	%			19,072				11,380				67.6	%
Capital expenditures			K €				1,573				2,999				(47.5	)%			1,924				3,486				(44.8	)%
Earnings per share			€				1.09				0.73				49.3	%			1.99				1.48				34.5	%
Workforce
Workforce (average )							667				684				(2.5	)%			671				686				(2.2	)%
Germany							505				504				0.2	%			504				506				(0.4	)%
Other countries							162				180				(10.0	)%			167				180				(7.2	)%
Sales per employee			K €				66				61				8.2	%			135				125				8.0	%

						June 30, 2007				December 31, 2006				Change
Balance sheet
Total assets			K €				167,913				168,670				(0.4	)%
Cash and cash equivalents			K €				76,835				75,354				2.0	%
Number of shares issued							8,970,600				8,970,600				—
Shareholders’ equity			K €				133,145				138,972				(4.2	)%
Equity ratio			%				79.3				82.4				—

This half year financial report has been prepared in accordance with International Financial Reporting Standards (IFRS). Throughout this report, all percentages are calculated based on amounts in thousands €.

The half year financial report as of June 30, 2007 is unaudited.

Pfeiffer Vacuum Share Performance

The shares of Pfeiffer Vacuum Technology AG have been traded in New York since July 16, 1996, and in Frankfurt since April 15, 1998.

•		Deutsche Börse, Prime Standard, Frankfurt		Trading Symbol: PFV
•		International Securities Identification Number:		ISIN DE0006916604
•		Reuters Symbol:		PV.DE
•		New York Stock Exchange (NYSE), New York		Trading Symbol: PV
•		International Securities Identification Number:		ISIN US7170671025
•		Number of shares issued:		8,970,600 (including 127,076 treasury
				shares)
•		Free-float as of June 30, 2007:		100%
•		Market capitalization as of June 30, 2007:		€ 639.2 million

On the stock exchange in Frankfurt, the Pfeiffer Vacuum share price development was very positive during the first six months of 2007. On January 2, 2007, the shares opened at € 64.89 and closed at € 71.25 on June 29, 2007. This represents an increase by € 6.36 or 9.8%. They reached their low for the period of € 56.72 on February 28, 2007. The high for the period of
€ 78.00 was recorded on April 26, 2007. This was also the highest stock price ever recorded for Pfeiffer Vacuum shares.

The prices of Pfeiffer Vacuum ADRs on the NYSE, which are traded in U.S. dollars, reflect changes in the share price and changes in the exchange rate parity between the euro and the U.S. dollar over the course of the year 2007. On January 3, 2007, the ADRs opened at a price of US$ 88.33 and closed on June 29, 2007, at US$ 96.13. The highest price in the first six months was US$ 103.50 on April 30, 2007 and the low for period of US$ 78.06 was recorded on March 5, 2007.

In June 2007 for the ninth time in a row, Pfeiffer Vacuum paid a dividend to its shareholders. Amounting to
€ 2.50 per share or € 22.1 million in total, the shareholders agreed to a record level dividend. This emphasizes Pfeiffer Vacuum’s position as one of the highest dividend issuers in the TecDAX.

Consolidated Interim Management Report

Following € 85.7 million in the first six months of 2006, Pfeiffer Vacuum increased its sales by € 5.1 million or 5.9% to
€ 90.8 million in the first half year of 2007. Amounting to € 23.5 million and € 17.8 million, operating profit and net income were up significantly by 11.8% or 37.1%, respectively.

Overall Economic Environment and Industry Situation

With 4.9%, the growth rate of world economy in 2007 is expected to decrease slightly from the 2006 rate. This slow down of economic development is mainly due to the weakening economic situation in the U.S. and Asia (excluding Japan). While the U.S. economy grew by 3.3% in 2006, the increase in 2007 will be approximately 2.5%. This rate is equal to development of European economies where the growth rate is flat compared to the year 2006. In Germany, the business development is slightly below the rate in 2006 but still on a comfortable rank within Europe. The Asian region is still growing on a high level of approximately 8.6% which means a slight slow down as compared to 2006. There, especially the Indian and South-Korean business development recorded slight decreases. The Chinese economic growth rate stands stable on a two digit number.

The competitive situation and the competitive pressure in the vacuum industry remained on the previous year’s level. Additionally, the weakness of the U.S. dollar and the Japanese yen make it more and more difficult for European companies to achieve sales in these regions. Nevertheless, due to permanent enhancements and new developments of our products, we were able to increase our business in the first six months of 2007.

Business

Our business operations include the development, manufacture, sale and service of vacuum pumps, vacuum measurement, components and analysis equipment and instruments, as well as vacuum systems.

Sales

Presented below are net sales by segment, by region and by product for the periods ended June 30, 2007 and 2006. It should be noted with respect to net sales by segment that the sales shown in this presentation were allocated on the basis of the location that invoiced the sales. The segment-based presentation thus shows net sales by subsidiaries. Net sales by region, on the other hand, include all sales in a given region, regardless of which subsidiary within the Pfeiffer Vacuum Group actually invoiced the sales. Net sales by segment and by region can thus differ from one another to a greater or lesser extent. Net sales in the Asian

Consolidated Interim Management Report

segment, for example, differ from those shown for the Asian region, as the Asian segment includes only the sales of our two Asian subsidiaries in India and Korea. The presentation for the Asian region, on the other hand, additionally includes sales generated directly with Asian customers by the German company. Net sales in the U.S. region and the U.S. segment, on the other hand, are nearly identical, because virtually all sales in this region are handled by our American subsidiary.

Sales by Segment (Companies)

Pfeiffer Vacuum’s subsidiaries in the individual countries are independent legal entities with their own management which distribute the products and provide services. Accordingly, we identify our operating segments geographically. Due to the similarity of their economic characteristics, including nature of products sold, type of customers, method of product distribution and economic environment, we aggregate our European subsidiaries outside Germany into one reportable segment, “Europe (excluding Germany).”

Sales by Segment

		Three Months Ended								Six Months Ended
		June 30,								June 30,
K €		2007				2006				2007				2006
Net sales
Germany			22,452				18,110				44,340				37,319
Europe (excluding Germany)			10,565				12,373				23,353				24,922
United States			9,824				10,475				21,042				21,344
Asia			1,194				1,069				2,017				2,104
Total			44,035				42,027				90,752				85,689

In the first six months of 2007, sales only increased in the Germany segment. However, sales here increased significantly by € 7.0 million or 18.8% to € 44.3 million. The closing down of the sales companies in Belgium and the Netherlands and the related start-up of the sales region “Euregio” led to a sales movement from the segment “Europe (excluding Germany)” to “Germany”. Adjusted for these effects, the development in Europe, too, would have been positive. Especially Austria (+€ 1.5 million) and Sweden (+€ 0.5 million) contributed to this. The moderate sales decrease by € 0.3 million in the U.S. was mainly caused by a negative exchange rate effect of € 1.7 million. Expressed in U.S. dollars, sales increased by 1.7 million or 6.5% from 26.3 million to 28.0 million. In the first half year of 2007, sales in the Asian segment of € 2.0 million are slightly below the comparable period in 2006 (€ 2.1 million).

The Germany segment continues to be the segment with the highest share of total sales. Due to the effects discussed before, the percentage increased from 43.5% in the first half of 2006 to 48.9% in 2007. At the same time, the percentage of Europe (excluding Germany) decreased to 25.7% whereas the segments U.S. and Asia with 23.2% and 2.2% roughly stood at the previous year’s levels.

Consolidated Interim Management Report

Sales by Region

To provide additional information, we are also presenting sales by region in the following table. It includes all sales in a given region, regardless of which company in the Pfeiffer Vacuum Group actually generated these sales.

Sales by Region

		Three Months Ended								Six Months Ended
		June 30,								June 30,
K €		2007				2006				2007				2006
Net sales
Europe (excluding Germany)			13,962				12,565				28,385				25,375
Germany			12,086				10,444				25,479				22,594
United States			9,766				10,394				20,892				21,223
Asia			7,877				7,877				15,080				15,551
Rest of world			344				747				916				946
Total			44,035				42,027				90,752				85,689

Analysis of the sales by region shows the positive development in Germany and Europe (excluding Germany). In the first six months of 2007 and in Q2/2007 the growth rates were significantly two-digit. With 12.8% in the first half year of 2007, the sales growth rate in Germany was the highest within the group while sales in Europe (excluding Germany) in the same period of time increased by 11.9%. The weak U.S. dollar is the main reason for the slightly decreasing development in the U.S. because sales expressed in U.S. dollars increased significantly.

Sales by Product

Sales by Product

		Three Months Ended								Six Months Ended
		June 30,								June 30,
K €		2007				2006				2007				2006
Net sales
Turbopumps			19,628				18,509				41,058				38,162
Measurement/analysis equipment			10,959				9,735				21,871				21,605
Backing pumps			6,314				5,675				13,337				11,185
Service			6,226				6,006				12,550				11,861
Systems			757				1,976				1,634				2,607
Other			151				126				302				269
Total			44,035				42,027				90,752				85,689

Consolidated Interim Management Report

The table above shows that the sales increase by € 5.1 million or 5.9% was basically achieved by an expansion in all product groups. Only in the project driven systems business sales decreased from € 2.6 million in the first six months of 2006 to € 1.6 million in 2007. Turbopumps continue to have an overriding importance to us. In the first half year of 2007 sales generated with this product group amounted to € 41.1 million. This represents an increase by € 2.9 million or 7.6% as compared to 2006. Turbopumps generated 45.2% of our total sales (2006: 44.6%). Sales of measurement/analysis equipment increased by € 0.3 million to € 21.9 million by the end of June 2007. Significant sales increases were recorded in backing pumps (+€ 2.2 million or +19.2%) while service sales increased by € 0.7 million.

Order Intake and Order Backlog

Amounting to € 109.9 million, new orders for the first six months of 2007 are on an outstanding level. Compared to the first six months of 2006 (€ 86.8 million), this represents an increase by € 23.1 million or 26.6%. This enjoyable development is not limited to a single product group but can be seen throughout all product areas. The main reason for this increase is the big order received from the systems business. But for turbopumps as well, new orders increased by € 6.2 million to € 44.2 million in 2007. On June 30, 2007, the book-to- bill ratio, the quotient of new orders and sales amounted to 121.1%.

The already mentioned big order also impacts the orders on hand. They increased by € 14.1 million from € 30.6 million on June 30, 2006 to € 44.7 million on June 30, 2007. This gives us enough visibility for the upcoming months of 2007.

Contracts are only recorded as orders when they are based upon binding contracts. The value of orders on hand should not be used to predict future sales and order volumes.

Cost of Sales and Gross Profit

The cost of sales incurred in the six months ended June 30, 2007, totaled € 46.4 million. Following € 43.0 million in the previous year’s period, this represents an increase by € 3.4 million or 7.9%. In the second quarter, cost of sales comparably increased from € 21.5 million to € 23.0 million. The increase during the year and in the quarter is predominantly caused by the higher sales. At the same time, increased purchase prices and the product mix lead to cost of sales rising stronger than sales. Indeed, the gross profit increased from € 42.7 million to € 44.3 million in the first half year of 2007 and from € 20.6 million to € 21.0 million in the second quarter 2007, respectively. Yet, our gross margin (gross profit as percentage of sales) decreased from 49.8% in the first half-year 2006 to 48.8% in the current year’s period.

Consolidated Interim Management Report

Selling and Marketing Expenses

Selling and marketing expenses decreased significantly. They amount to € 10.5 million for the six months ended June 30, 2007, down € 1.0 million or 8.5% from the previous year’s level of € 11.5 million. In 2006 selling and marketing expenses included costs for various marketing measures that did not occur to that extend in 2007. Additionally, the new sales organization “Euregio” led to decreased selling and marketing expenses. Relative to sales, the ratio decreased from 13.4% in the first six months of 2006 to 11.6% in 2007.

General and Administrative Expenses

Totaling € 6.9 million in the first six months of 2007, general and administrative expenses increased by € 0.1 million from the previous year (€ 6.8 million). In the second quarter 2007 and 2006 the general and administrative expenses stood at the same level of € 3.0 million. Relative to sales, the ratio for the first six months 2007 decreased from 7.9% in 2006 to 7.6%.

Research and Development Expenses

Research and development expenses amounted to € 3.4 million in both, the first half-year of 2007 and the first half-year of 2007. As a result of higher sales, however, the expense ratio declined in the same periods from 3.9% in 2006 to 3.8% in 2007. In the second quarter, too, the research and development expenses were flat to the previous year (€ 1.7 million).

Operating Profit

As compared to the prior year the operating profit in the first six months of 2007 rose sharply by € 2.5 million or 11.8% from
€ 21.0 million to € 23.5 million. With € 11.3 million, the Company’s operating profit in the second quarter of 2007 was also up significantly from 2006 (+€ 1.0 million or 9.4%). The EBIT margin, the ratio between operating profit and sales, totaled 25.9% for the first six months of the year 2007, up 1.4 percentage points from prior year.

Consolidated Interim Management Report

Financial Result

Financial result comprises financial expenses, financial income and exchange rate gains or losses. In the first half year of 2007, financial result totaled € 3.9 million, as opposed to € 0.3 million for the comparable period in 2006. Gains on disposals of investment securities amounting to € 2.3 million realized in the second quarter of 2007 are the main reason for the increase in financial result.

Income Taxes

The Company’s effective tax rate was 35.0% for the first six months of 2007 and 39.0% for the first six months of 2006. The effective tax rate for the second quarter 2007 was 32.3% (second quarter 2006: 39.0%).

Net Income

Net income in the six months ended June 30, 2007 totaled € 17.8 million (2006: € 13.0 million). This represents an increase of outstanding € 4.8 million or 37.1%. In the second quarter 2007, net income of € 9.8 million was also up significantly from the prior year period (€ 6.4 million). The after tax return on sales was 19.6% in the first half year of 2007 and, thus, marks international top class results (2006: 15.2%).

Financial Position

The financial position of the Pfeiffer Vacuum Group continues to be characterized by cash and cash equivalents on the assets side of the balance sheet and by shareholders’ equity on the liabilities side. As compared to December 31, 2006, balance sheet total slightly decreased by € 0.8 million to € 167.9 million. On the asset side, the decrease in the balance sheet total was predominantly attributable to the € 5.4 million decrease in investment securities and the increase in inventories and cash and cash equivalents by € 1.6 million and € 1.5 million, respectively. The cash flow statement shows the development of liquid assets.

Total shareholders’ equity decreased by € 5.8 million to € 133.1 million. The main reason is the dividend payment of € 22.1 million in June 2007, which was partly offset by the net income of € 17.8 million for the six months period 2007. Besides, the customer deposits and the income tax liabilities increased by € 4.0 and € 2.2 million, respectively. The equity ratio decreased from 82.4% on December 31, 2006, to 79.3% on June 30, 2007. Our higher-than-average shareholders’ equity continues to enable us to finance our investments and operations without having to resort to bank debt.

Consolidated Interim Management Report

Cash Flow

Further on, we are able to generate required cash from operating activities to fund our day-to-day business and investment projects.

Following a cash flow from operating activities totaling € 11.4 million for the first six months of 2006, this number was significantly increased in 2007 and now stands at € 19.1 million. This is an increase by € 7.7 million which is predominantly attributable to the increased net income. Besides, the development of provisions had a positive effect of € 3.4 million on the cash flow from operating activities.

During the first six months of 2007 there was a cash inflow from investing activities in the amount of € 4.7 million. In the prior year period we recorded net cash used in investing activities totaling € 3.4 million. The main reason for this development was the cash received resulting from the disposal of investment securities (€ 6.5 million). Capital expenditures in 2007 totaled € 1.9 million (2006: € 3.5 million). In 2006, € 1.9 million were spent one-time to purchase factory halls.

The cash used in financing activities during the first half year of 2007 was only impacted by the dividend payment to the Pfeiffer Vacuum Technology AG shareholders amounting to € 22.1 million (2006: € 11.7 million). At the Annual Shareholders’ Meeting on May 31, 2007, a dividend for the year 2006 amounting to € 2.50 per share was resolved. The amount paid to the shareholders totaled € 22,108,810.00. In 2006, besides the dividend payment, the purchase of treasury shares led to an additional cash outflow of € 1.0 million. We also received payments of € 1.0 million in connection with the conversion of convertible bonds in 2006.

Workforce

As of June 30, 2007, the Company employed a workforce of 667 people, 505 of them in Germany and 162 in other countries.

Workforce

		Germany								Other Countries								Total
										June 30,
		2007				2006				2007				2006				2007				2006
Manufacturing and Service			273				272				48				55				321				327
Research and Development			75				74				—				—				75				74
Sales and Marketing			107				100				93				96				200				196
Administration			50				58				21				29				71				87
Total			505				504				162				180				667				684

Mainly due to the more efficient organizational structure in the sales region “Euregio” (North-West Germany, the Benelux countries), the number of employees decreased by 2.5%.

Consolidated Interim Management Report

Risk Report

During the first six months of the 2007 fiscal year, there were no changes in the risks as described in our Annual Report (Geschäftsbericht) and our Annual Report on Form 20-F for the year ended December 31, 2006. Both reports are available on our homepage at www.pfeiffer-vacuum.net.

Major Events in Fiscal 2007

Since the beginning of the 2007 fiscal year, there have not been any significant changes in the Company’s position or the industry environment.

Outlook

According to the latest forecasts, the world economic growth in 2007 is expected to lag slightly behind the 2006 rate. Correspondingly, we expect a growth rate in the vacuum industry paralleling or lagging slightly behind the 2006 development. Given our orders on hand and rising customer demand, we anticipate that our sales in 2007 will again grow faster than the market and will lie within the target corridor of € 195 to € 200 million as announced on this year’s Annual Shareholders’ Meeting. In total, we expect an EBIT margin for 2007 of at least 25%. Nevertheless, we cannot exclude negative impacts – due to the US dollar exchange rate or significant increases in commodity prices – in the next few months.

On July 6, 2007, the German Bundesrat, the upper house of the German parliament, agreed to the corporate tax reform. As there are no interest bearing liabilities within the Pfeiffer Vacuum Group, we expect tax relieves for the German group companies beginning in 2008. However, the deferred tax assets have to be adjusted for the new tax rates already in 2007. Accordingly, impairment losses from the deferred tax assets of approximately € 1.0 to € 1.2 million will have to be recorded in Q3/2007. This will result in a significantly increased effective tax rate for whole fiscal 2007 as compared to the first six months of 2007 (35.0%).

Consolidated Interim Financial Statements

Consolidated Statements of Income (unaudited)

		Three months ended								Six months ended
		June 30,								June 30,
K €		2007				2006				2007				2006
Net sales			44,035				42,027				90,752				85,689
Cost of sales			(23,017	)			(21,474	)			(46,436	)			(43,026	)
Gross profit			21,018				20,553				44,316				42,663
Selling and marketing expenses			(5,065	)			(5,491	)			(10,483	)			(11,459	)
General and administrative expenses			(2,960	)			(3,000	)			(6,905	)			(6,805	)
Research and development expenses			(1,702	)			(1,737	)			(3,420	)			(3,379	)
Operating profit			11,291				10,325				23,508				21,020
Financial expense			(10	)			(2	)			(13	)			(74	)
Financial income			3,011				371				3,716				752
Foreign exchange gain (loss)			168				(126	)			203				(399	)
Income before income taxes			14,460				10,568				27,414				21,299
Income taxes			(4,677	)			(4,122	)			(9,600	)			(8,307	)
Net income			9,783				6,446				17,814				12,992
Thereof attributable to:
Pfeiffer Vacuum Technology AG shareholders			9,648				6,379				17,641				12,880
Minority interests			135				67				173				112
Earnings per ordinary share and ADR (in €):
Basic			1.09				0.73				1.99				1.48
Diluted			1.09				0.73				1.99				1.48

See accompanying notes to the interim financial statements.

Interim Financial Statements

Consolidated Balance Sheets (unaudited)

		June 30,				December 31,
K €		2007				2006
ASSETS
Intangible assets			274				319
Property, plant and equipment			23,197				22,901
Investment properties			1,802				1,838
Investment securities			12,140				17,535
Prepaid pension cost			145				145
Deferred tax assets			5,639				5,585
Other non-current assets			1,829				1,822
Total non-current assets			45,026				50,145
Inventories			17,136				15,520
Trade accounts receivable			23,693				23,934
Other accounts receivable			2,565				1,801
Prepaid expenses			1,251				449
Investment securities			1,000				1,000
Other current assets			407				467
Cash and cash equivalents			76,835				75,354
Total current assets			122,887				118,525
Total assets			167,913				168,670
SHAREHOLDERS’ EQUITY AND LIABILITIES
Equity
Share capital			22,965				22,965
Additional paid-in capital			13,305				13,305
Retained earnings			99,801				104,269
Other equity components			(9	)			1,520
Treasury shares			(3,722	)			(3,722	)
Equity of Pfeiffer Vacuum Technology AG shareholders			132,340				138,337
Minority interests			805				635
Total equity			133,145				138,972
Deferred tax liabilities			322				308
Provisions for pensions			4,214				3,859
Total non-current liabilities			4,536				4,167
Trade accounts payable			4,065				4,428
Other accounts payable			1,744				2,571
Provisions			13,235				13,564
Income tax liabilities			5,626				3,420
Customer deposits			5,562				1,548
Total current liabilities			30,232				25,531
Total shareholders’ equity and liabilities			167,913				168,670

See accompanying notes to the interim financial statements.

Interim Financial Statements

Consolidated Statements of Shareholders’ Equity (unaudited)

		Equity of Pfeiffer Vacuum Technology AG Shareholders
						Additional
						Paid-in				Retained				Other Equity				Treasury								Minority
K €		Share Capital				Capital				Earnings				Components				Shares				Total				Interests				Total Equity
Balance on January 1, 2006			22,504				5,819				86,377				(833	)			(2.438	)			111,429				569				111,998
Currency changes			—				—				—				(1,074	)			—				(1,074	)			(27	)			(1,101	)
Net results from cash flow hedges			—				—				—				233				—				233				—				233
Earnings recorded directly in equity			—				—				—				(841	)			—				(841	)			(27	)			(868	)
Net income			—				—				12,880				—				—				12,880				112				12,992
Total earnings or the period			—				—				12,880				(841	)			—				12,039				85				12,124
Employee participation program			—				232				—				—				—				232				—				232
Dividend payment			—				—				(11,732	)			—				—				(11,732	)			—				(11,732	)
Share buyback			—				—				—				—				(1,035	)			(1,035	)			—				(1,035	)
Conversion of convertible bonds			120				1,896				—				—				—				2,016				—				2,016
Balance on June 30, 2006			22,624				7,947				87,525				(1,674	)			(3,473	)			112,949				654				113,603
Balance on January 1, 2007			22,965				13,305				104,269				1,520				(3,722	)			138,337				635				138,972
Currency changes			—				—				—				(353	)			—				(353	)			(3	)			(356	)
Net results from cash flow hedges			—				—				—				(80	)			—				(80	)			—				(80	)
Revaluation available-for-sale securities			—				—				—				(1,096	)			—				(1,096	)			—				(1,096	)
Earnings recorded directly in equity			—				—				—				(1,529	)			—				(1,529	)			(3	)			(1,532	)
Net income			—				—				17,641				—				—				17,641				173				17,814
Total earnings for the period			—				—				17,641				(1,529	)			—				16,112				170				16,282
Dividend payment			—				—				(22,109	)			—				—				(22,109	)							(22,109	)
Balance on June 30, 2007			22,965				13,305				99,801				(9	)			(3,722	)			132,340				805				133,145

See accompanying notes to the interim financial statements.

Interim Financial Statements

Consolidated Statements of Cash Flows (unaudited)

		Six months ended June 30,
K €		2007				2006
Cash flow from operating activities:
Net income			17,814				12.992
Depreciation and amortization			1,576				1,552
Gain on disposal of assets			(2,216	)			(6	)
Other non-cash income and expenses			695				385
Effects of changes in assets and liabilities:
Inventories			(2,165	)			(2,861	)
Receivables and other assets			(1,786	)			(1,717	)
Provisions including pension and income tax liabilities			2,302				(1,132	)
Payables, other liabilities			2,852				2,167
Net cash provided by operating activities			19,072				11,380
Cash flow from investing activities:
Proceeds from disposals of fixed assets			84				55
Capital expenditures			(1,924	)			(3,486	)
Proceeds from disposals of investment securities			6,544				—
Net cash provided by (used in) investing activities			4,704				(3,431	)
Cash flow from financing activities:
Dividend payment			(22,109	)			(11,732	)
Conversion of convertible bonds			—				1,037
Purchase of treasury stock			—				(1,035	)
Net cash used in financing activities			(22,109	)			(11,730	)
Effects of foreign exchange rate changes on cash and cash equivalents			(186	)			(524	)
Net increase (decrease) in cash and cash equivalents			1,481				(4,305	)
Cash and cash equivalents at beginning of period			75,354				61,651
Cash and cash equivalents at end of period			76,835				57,346

See accompanying notes to the interim financial statements.

Notes to the Interim Financial Statements (unaudited)

1. The Company and Basis of Presentation

The parent company within the Pfeiffer Vacuum Group (“the Company” or “Pfeiffer Vacuum”) is Pfeiffer Vacuum Technology AG, domiciled at Berliner Strasse 43, 35614 Asslar, Germany. Pfeiffer Vacuum Technology AG is a stock corporation organized under German law and recorded in the Register of Companies at the Local Court of Wetzlar under Number HRB 44. The Company is listed on the Deutsche Börse Stock Exchange in Frankfurt am Main, Germany, where it is included in the TecDAX index. Additionally, the Company’s American Depositary Receipts (ADRs) are traded on the New York Stock Exchange (NYSE) in the United States.

Pfeiffer Vacuum is one of the leading full-line vacuum technology manufacturers, offering custom solutions for a wide range of needs in connection with the generation, control and measurement of vacuum. The products developed and manufactured at the Company’s production facility in Asslar, Germany, include turbopumps, a range of backing pumps, such as rotary vane, Roots and dry pumps, complete pumping stations, as well as custom vacuum systems and components.

Pfeiffer Vacuum markets and distributes its products through its own network of sales companies and independent marketing agents. Moreover, there are service support centers in all major industrial locations throughout the world. The Company’s primary markets are located in Europe, the United States and Asia.

The Consolidated Financial Statements of Pfeiffer Vacuum Technology AG have been prepared in accordance with International Financial Reporting Standards (IFRS) and the interpretations of the International Financial Reporting Interpretations Committee (IFRIC) as applicable in the European Union (EU). This includes the International Accounting Standards (IAS), which continue to retain their validity, and the interpretations of the Standing Interpretations Committee (SIC).

Pfeiffer Vacuum prepares its Consolidated Interim Report (“Interim Report”) in euros (€). Unless otherwise indicated, the presentation is in thousands of euros (K €).

2. Accounting and Valuation Methods

In preparing this interim report as of June 30, 2007, IAS 34 “Interim Financial Reporting” was applied. In doing so, the same accounting and valuation methods as in the Consolidated Financial Statements for the fiscal year ended December 31, 2006 were used. Please refer to the detailed description of these methods in the Notes to the Consolidated Financial Statements 2006, which are available in the internet at www.pfeiffer-vacuum.net.

Notes to the Interim Financial Statements (unaudited)

In 2007 there were no changes in the consolidated companies. Nor are there any investments in jointly controlled entities or investments in associated companies or investments in companies controlled pursuant to the rules of SIC 12 “Special Purpose Entities.”

3. Property, Plant and Equipment

Property, plant and equipment comprise the following:

Property, Plant and Equipment

		June 30,				December 31,
K €		2007				2006
Land and buildings			15,088				15,560
Technical equipment and machinery			3,788				3,085
Other equipment, factory and office equipment			3,351				3,469
Construction in progress			970				787
Total property, plant and equipment			23,197				22,901

4. Investment Securities

The Company holds fixed-income securities in the total amount of € 6.0 million which are classified as held-to-maturity and therefore carried at amortized cost. Fixed-income securities in the amount of € 1.0 million are shown as current assets due to the maturity in 2007. The portfolio of equity securities is categorized as available-for-sale with changes in fair value being recorded directly in equity. In 2007, the fair value decreased by € 5.4 million to € 7.1 million because a part of the holdings was sold. The gains on disposals amounted to € 2.3 million and are shown in the financial income line.

5. Inventories

Inventories consist of the following:

Inventories

		June 30,				December 31,
K €		2007				2006
Raw materials			6,724				6,132
Work-in-process			5,053				4,590
Finished products			8,960				8,116
Reserves			(3,601	)			(3,318	)
Total inventories			17,136				15,520

The Company’s positive order situation connected with a high plant utilization led to increased inventories.

Notes to the Interim Financial Statements (unaudited)

6. Paid Dividends

At the Annual Shareholders’ Meeting on May 31, 2007, the shareholders resolved a dividend of € 2.50 per share. Thus, a total of € 22,108,810.00 was paid to the shareholders.

7. Other Equity Components

The other equity components which do not impact the income statement, developed as follows:

Other Equity Components

						Foreign
		Unrealized				Currency				Revaluation of
		Gains/Losses				Translation				Available-for-
K €		on Hedges				Adjustments				Sale Securities				Total
Balance on January 1, 2006			(196	)			(637	)			—				(833	)
Changes in fair value of cash flow hedges (net of tax)			233				—				—				233
Changes in foreign currency translation			—				(1,074	)			—				(1,074	)
Balance on June 30, 2006			37				(1,711	)			—				(1,674	)
Balance on January 1, 2007			259				(2.224	)			3.485				1.520
Changes in fair value of cash flow hedges (net of tax)			(80	)			—				—				(80	)
Changes in foreign currency translation			—				(353	)			—				(353	)
Revaluation of securities classified as available-for-sale (net of tax)			—				—				(1,096	)			(1,096	)
Balance on June 30, 2007			179				(2,577	)			2,389				(9	)

8. Treasury Shares

At the Annual Shareholders’ Meeting on May 31, 2007, the shareholders authorized Pfeiffer Vacuum to acquire treasury shares of the Company pursuant to § 71, Sub-para. 1, No. 8, German Stock Corporation Act. The Company is authorized to acquire treasury shares representing up to € 2,296,473.60 of the capital stock (897,060 shares equal to 10% of capital stock at time of resolution) through November 28, 2008. On June 30, 2007, treasury shares totaling approximately € 3.7 million were repurchased and consist of 127,076 ordinary shares valued at cost and repurchased within the scope previous authorizations.

Notes to the Interim Financial Statements (unaudited)

9. Pension Benefits and Similar Obligations

Pension expense for all plans included the following components:

Pension Expense for All Plans

		Three months ended								Six months ended
		June 30,								June 30,
K €		2007				2006				2007				2006
Service cost			211				295				423				591
Interest cost			574				559				1,149				1,120
Expected return on assets			(520	)			(477	)			(1,041	)			(955	)
Net pension cost			265				377				531				756

10. Warranty

Warranty provisions developed as follows:

Warranty Provisions

		Six months ended
		June 30,
K €		2007				2006
Balance on January 1			1,929				2,887
Currency changes			(14	)			(50	)
Additions			233				553
Utilization			(95	)			(262	)
Releases			(67	)			(300	)
Balance on June 30			1,986				2,828

11. Earnings per Ordinary and Diluted Share and ADR

The following table sets forth the computation of basic and diluted earnings per share and ADR:

Earnings * per Ordinary and Diluted Share and ADR

		Three months ended								Six months ended
		June 30,								June 30,
		2007				2006				2007				2006
Net income (in thousands €)			9,648				6,379				17,641				12,880
Weighted-average number of shares			8,843,524				8,698,203				8,843,524				8,694,363
Number of conversion rights			—				30,052				—				26,706
Adjusted weighted average number of shares			8,843,524				8,728,255				8,843,524				8,721,069
Earnings per share and ADR (in €):
Basic			1.09				0.73				1.99				1.48
Diluted			1.09				0.73				1.99				1.48

* Attributable to Pfeiffer Vacuum Technology AG shareholders

Notes to the Interim Financial Statements (unaudited)

12. Segment Information

Segment Reporting as of June 30, 2007

						Europe
						(excluding								Rest of				Others/
K €		Germany				Germany)				US				World				Eliminations				Total
Net sales			75,994				23,401				21,074				2,823				(32,540	)			90,752
Third party			44,340				23,353				21,042				2,017				—				90,752
Intercompany			31,654				48				32				806				(32,540	)			—
Operating profit			19,877				1,414				1,616				754				(153	)			23,508
Financial income			—				—				—				—				3,906				3,906
Income before income taxes			19,877				1,414				1,616				754				3,753				27,414
Segment assets			129,414				20,379				14,348				3,772				—				167,913
Segment liabilities			26,478				5,905				1,718				667				—				34,768
Capital expenditures:
Property, plant and equipment			1,608				154				24				62				—				1,848
Intangible assets			71				5				—				—				—				76
Depreciation*			1,285				119				30				21				—				1,455
Amortization			115				6				—				—				—				121

Segment Reporting as of June 30, 2006

						Europe
						(excluding								Rest of				Others/
K €		Germany				Germany)				US				World				Eliminations				Total
Net sales			69,096				25,209				21,385				2,597				(32,598	)			85,689
Third party			37,319				24,922				21,344				2,104				—				85,689
Intercompany			31,777				287				41				493				(32,598	)			—
Operating profit			17,643				1,713				1,242				500				(78	)			21,020
Financial income			—				—				—				—				279				279
Income before income taxes			17,643				1,713				1,242				500				201				21,299
Segment assets			94,796				19,934				23,512				3,258				—				141,500
Segment liabilities			19,878				5,836				1,629				554				—				27,897
Capital expenditures:
Property, plant and equipment			3,113				98				103				4				—				3,318
Intangible assets			162				6				—				—				—				168
Depreciation*			1,229				141				47				31				—				1,448
Amortization			93				11				—				—				—				104

* Including investment properties

Notes to the Interim Financial Statements (unaudited)

13. Income Tax Expense

Under German corporate tax law, taxes on income are composed of corporate taxes, trade taxes and an additional surtax.

The Company’s effective tax rate was 35.0% for the first six months of 2007 and 39.0% for the first six months of 2006. The effective tax rate for the second quarter 2007 was 32.3% (2006: 39.0%).

14. Management Board

In its meeting on March 26, 2007, the Supervisory Board of Pfeiffer Vacuum Technology AG appointed Dr. Matthias Wiemer as new Management Board member for the Company with effect from April 1, 2007.

After serving as chief executive officer for a long and successful time, Wolfgang Dondorf stepped down from the Management Board at his own request, effective June 30, 2007. The Supervisory Board appointed Manfred Bender as new chief executive officer.

15. Independent Auditor

At the Annual Shareholders’ Meeting on May 31, 2007, the Supervisory Board proposed and the Shareholders elected Ernst & Young AG, Wirtschaftsprüfungsgesellschaft/Steuerberatungsgesellschaft, Eschborn, Germany, as the independent auditor of both the accounts of the Company and the consolidated accounts for the 2007 fiscal year.

16. Major Related Party Transactions

Besides the transactions with the subsidiaries that are eliminated during the consolidation process and the regular compensation of Management Board members, no material transactions with related parties occurred in the first half year of 2007.

Certification of the Legal Representatives

We hereby certify that, to the best of our knowledge and in keeping with the principles of due group interim reporting, the consolidated interim financial statements provide a true and fair view of the Group’s net worth, financial position and results of operations, that the consolidated interim management report presents the course of business, including the results of operations and the group’s position, such as to provide a true and fair view and that the major opportunities and risks relating to the anticipated development of the group in the remaining financial year are described.

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

August 6, 2007

PFEIFFER VACUUM TECHNOLOGY AG

By: /s/ Manfred Bender

 

Manfred Bender

Chief Executive Officer

By: /s/ Dr. Matthias Wiemer

 

Dr. Matthias Wiemer

Member of the Management Board

Additional Information

Financial Calendar 2007

•

3rd Quarter 2007 (9-Months) Results Tuesday, November 6, 2007

Contacts

Investor Relations
Gudrun Geissler
Berliner Strasse 43
35614 Asslar
Germany
Phone: +49 (0) 6441 802-314
Fax:     +49 (0) 6441 802-365
mailto:Gudrun.Geissler@pfeiffer-vacuum.de
www.pfeiffer-vacuum.net

Public Relations
Sabine Trylat
Berliner Strasse 43
35614 Asslar
Germany
Phone: +49 (0) 6441 802-169
Fax:     +49 (0) 6441 802-883
mailto:Sabine.Trylat@pfeiffer-vacuum.de
www.pfeiffer-vacuum.net