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    ANNUAL REPORT 2014 TRANSITION


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    “Transition. The year 2014 was a transition year for Sanquin. It was not always easy. Despite of this, everyone has again shown tremendous commitment for which I would like to express my great appreciation. I would also like to thank the more than 370,000 donors for their generous and special gift, because it enabled us to provide a safe and high-quality blood supply in the Netherlands day after day. Sanquin is a great organisation with an excellent international reputation thanks to the dedication of all these people.” Maarten le Clercq Chairman of the Executive Board


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    At a glance 2014 418.7 net turnover in millions of euro 243 papers in international scientific journals 12 researchers defended 2,905 their thesis employees at 31-12-2014 12.6 average term of employment 371,088 donors 428,245 bags of red blood cells delivered to hospitals (in donor units)


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    AT A GLANCE Number of donations Turnover in the Netherlands and worldwide 0 200 400 600 800 1,000 2014 721,012 2013 755,833 2012 819,301 2011 885,836 Aphereses Whole-blood -1% +16% Turnover per division Whole blood donors per blood group In millions of euro In % 12.2 9.0 1.4 AB+ AB- B- 19.1 B+ 2 31 7 A- 7 O+ 36 136.3 418.7 240.7 312,206 total whole blood donors 32 A+ 12 O- Plasma products Blood bank Diagnostics Reagents Research Other


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    In this report Sanquin Annual Report 2014 | 3 IN THIS REPORT The blood supply in the Netherlands is one of the safest in the world 6 Savings and FUTURE-PROOF strategic Responsible, collaboration BLOOD SUPPLY BLOEDVOORZIENING careful financial 22 management Thebeste De best blood supply bloedvoorziening OUR AMBITIONS Sanquin is a knowledge-driven not-for-profit organisation that supplies life-saving products, focussing on the needs FOR PATIENTS Sanquin continues to of the care sector. Trough scientific research, be built by the people Solutions for patients we look for and find new solutions who work there for medical problems in the field of 18 transfusion medicine, haematology and immunology. New products and services thanks to ORGANISATION our ‘under-one-roof’ Investing in the formula organisation 10 INTERNATIONAL Growth and An independent actor in the self-sufficiency international pharmaceutical 14 and diagnostic fields Foreword 4 Our ambitions 6 Executive Board report 30 Supervisory Board report 34 Annual Accounts 2014 36 Independent auditor’s report 62


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    4 | Foreword Foreword Sanquin Annual Report 2014 | 5 FOREWORD The year can be described as a year of transition. The Plasma Products division expected an enormous expansion of its production. For various reasons, however, this did not materialise, With regard to patient diagnostics, we are investigating a possible partnership with six hospitals. By combining the knowledge-intensive and often expensive part of diagnostics and A TURBULENT YEAR which in turn had an impact on our turnover. We discussed the concentrating it in one location close to Sanquin, we will increase separation of risks between the public and private sections of in scale and be able to perform these diagnostics efficiently. Sanquin and a transition to legally separate sections with the Innovation in the trial package is assured as a result of the close Ministry of Health, Welfare and Sport. This discussion should be proximity of the Research division. completed in 2015. There was also a transition at management level: Aart van Os retired as chairman of the Executive Board on Investment in the organisation, a fourth area of concern, has 1 June, after which I temporarily stepped into his shoes. The been given shape in Sanquin’s leadership programme. Executives course I am taking does not diverge much from that of my at managerial level within the organisation attended a training to predecessor. We will maintain Sanquin’s strategy, although there learn how to best guide their co-workers. An internal campaign will be greater emphasis on compliance, the strict observance of was also set up to strengthen the perception of our core values the regulations, within the organisation. This observance is vital – result oriented, innovative, enterprising and cooperative – for our organisation, as compliance is our licence to operate. among all Sanquin staff. In this annual report, we will discuss 2014 on the basis of five themes. First, our ambition to deliver the best blood supply. Last but not least, working towards a future-proof and financially The Blood Bank was faced with a significant decline in the solid organisation has a high priority. The Reagents division demand for blood products. This had been foreseen, but the obtained a good operating result with an increase of more than “Compliance decline proved to be sharper than expected. Together with the disappointing growth in plasma products, this had a strong 30% compared to 2013, but the whole of Sanquin ended up in the red for the first time in its existence. We took various is our license negative effect on our results. In order to operate more efficiently, a major reorganisation was launched within the Blood Bank a few measures to control the costs. Two committees were established to scrutinise all expenditure for investments and personnel. to operate.” years ago, which was successfully completed in 2014. The Blood Bank has its affairs in order. This resulted in stopping the development of a new building and reducing the number of external staff being hired. Maarten le Clercq, The cost control measures obviously also had an effect on the Chairman of the Executive Board A second driving force is working on solutions for patients. personnel of Sanquin. Despite this, everyone again worked very Sanquin is a knowledge-driven institute with a wide range of hard over the past year, for which I would like to express my pharmaceutical services and products. Based on that identity, great appreciation. I would also like to thank the more than we continuously search for improvement and innovative new 370,000 donors for their generous and special gift, which solutions. The reporting year also shows some nice examples enabled us to provide a safe and high-quality blood supply in of this. One example is our research into the application of eye the Netherlands day after day. Sanquin is a great organisation drops made from donor blood for patients with extremely dry with an excellent international reputation thanks to the effort The year 2014 will go down in history as a difficult year for Foundation or damaged eyes. and involvement of all these people. Sanquin Blood Supply. Unfortunately this is the first time in the We want to be an independent actor in the international organisation’s existence that we have suffered a loss. However, it was pharmaceutical and diagnostic fields. It is prudent to moderate a thought-provoking year. Our organisation has been recalibrated, this ambition at this time, because we are not quite ready for this yet. Further professionalisation on various fronts is required as it were: we have readjusted our ambitions, introduced sweeping in order to accomplish the desired growth. The intensive cost-saving measures and implemented an important programme in Compliance Enhancement Programme, which started in 2014, Maarten le Clercq, the area of compliance. will therefore be continued in 2015. Chairman of the Executive Board


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    6 | Ambitions Blood supply Blood supply Ambitions Sanquin Annual Report 2014 | 7 BLOOD SUPPLY THE BEST BLOOD SUPPLY Despite the significant decline in the demand for blood products in 2014, the quality of the Dutch blood supply continued to be at a very high level. Sanquin was again able to satisfy the entire demand for blood products and supplied a total of some 430,000 units of red blood cells to Dutch hospitals. 2014 was also a year in which donors were given ample attention with their own conference and the appointment of the first Professor of Donor Medicine.


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    8 | Ambitions Blood supply Blood supply Ambitions Sanquin Annual Report 2014 | 9 BLOOD SUPPLY 90% of the complaints should be handled within four weeks. Spotlight First Professor of 280,000 blood donors Better complaints on the donor Donor Medicine fully characterised handling Attention to donor health and donor In March, Wim de Kort, Donor Affairs unit In the reporting year, Sanquin completed Saving time is also very important: the A satisfaction survey among donors in management still tends to be rather director in the Blood Bank division and a project started ten years ago at the characterised blood is directly available in 2013 resulted in points for improvement neglected in the world of transfusion head of Donor Studies in the Research request of the National Users Council: the the stock of hospital laboratories or in Sanquin’s complaints handling. medicine, where the emphasis is always division, took up the world’s first chair in creation of a donor database characterised Sanquin’s distribution centres. This saves According to some donors, complaints on the patient. However, more knowledge donor medicine. The chair is part of the for the presence or absence of 22 different many hours that can save lives in were not handled fast enough. In the year about the donor is vital, for the purpose department of Social Medicine in the blood group antigens (blood group emergency situations. Furthermore, under review, complaints handling was of, among other things, recruiting donors Academic Medical Centre (AMC). Sanquin antigens are found on the outside of red preventing complications in transfusions therefore centralised. All complaints now amongst minority groups (with different and AMC have been working together for blood cells and determine the blood will reduce the number of subsequent arrive at one point and are also handled blood groups), retaining donors and decades in the Landsteiner Laboratory in group). An extensive antigen profile of medical treatments and laboratory testing centrally. Sanquin aims to handle delivering more customisation in blood the fields of immunology, haematology 77 percent of all donors, around 280,000 required and therefore save costs. 90 percent of the complaints within four products. and transfusion medicine. With the Donor people, was created, in addition to the Internationally, Sanquin is far ahead of weeks. This percentage was not quite For this reason, Sanquin organised the medicine chair, Sanquin’s social medical ABO, RhD, RhCE and Kell blood groups. other blood supply organisations in the achieved at the end of 2014, but the goal very first European Conference on Donor and psychological research will be given This enables transfusion laboratories in world with this characterised database. is expected to be achieved in 2015. Health and Management (ECDHM) in an academic context. Wim de Kort Dutch hospitals to simply select Sanquin continues to carry out 800,000 The Hague at the beginning of considers the new chair to be great erythrocyte products with a specific characterisations per year on new donors September. Around 250 participants from recognition for the discipline, which will antigen profile for patients. in order to keep the database up-to-date 37 countries, both scientists and benefit donor care. “I see my task as It provides health benefits for patients, despite donor turnover. practitioners, discussed various subjects striking a balance between patient and because they will have a substantially relating to donors: the management of donor, stimulating donor research and lower risk of forming antibodies and the donor database, donor recruitment, introducing more coherence in this area. transfusion reactions. Additionally, this donor retention, blood collection and Better insight into donor recruitment, will benefit children in the case of donor health. selection and retention and the risks of pregnant patients. During the very successful three-day donation is urgently needed.” conference, various international contacts were established and arrangements were made about joint research into donors. “I am committed to striking a good balance It also set a tradition: in 2016 the conference will have a sequel in between patient and donor.” Cambridge (UK). Wim de Kort, Professor of Donor Medicine


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    10 | Ambitions For patients For patients Ambitions Sanquin Annual Report 2014 | 11 FOR PATIENTS SOLUTIONS FOR PATIENTS Innovative, enterprising, cooperative and result-oriented are the core values of Sanquin. These values are vitally important in the search for solutions for patients. Internal cooperation between staff in our research, diagnostics, blood supply and medicine production divisions enables us to develop new products. We are also keen to work with external partners. All our activities are aimed at achieving even better service and high-quality healthcare for patients all over the world.


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    12 | Ambitions For patients For patients Ambitions Sanquin Annual Report 2014 | 13 FOR PATIENTS Pioneering Eye serum The tissue centre of On the cover Promising cancer research from donors the Netherlands researcher Sanquin’s researchers have made a Eye drops to protect and restore the During the reporting year, Sanquin took In September, the research study During the Sanquin Science Day on pioneering discovery relating to a cornea of extremely dry and damaged the first step to establish a new business performed by Sanquin’s Daphne van 28 November, Lotte van de Stadt won completely new way in which immune eyes are often made from the blood of the unit: Tissues and Cells. The activities Geemen and her colleagues makes the Sanquin’s two-yearly PhD award. The cells can kill cancer cells. “This amazing patient concerned. These drops consist of covered by the Safety and Quality of Body cover of scientific journal ATVB researcher is training to become a new way has never been described before serum, the liquid remaining after the Material Act will be concentrated in this (Arteriosclerosis, Thrombosis, and Vascular rheumatologist and conducts research and offers starting points for developing blood has clotted. However, the unit: the Bone bank, the Umbilical Cord Biology). In their paper, the Sanquin at Sanquin and Reade, a centre for improved immune therapy against production of these autologous eye drops Blood Bank and the Groningen Stem Cell researchers present the data of the revalidation and rheumatology. In her cancer”, says Timo van den Berg, head of is quite invasive for patients. Sanquin Laboratory. The Amsterdam Laboratory for visualization of focal adhesions and the actin presentation, entitled The development of the Department of Blood Cell Research. therefore developed the idea of producing Cell Therapy (LCT) will join the unit at a cytoskeleton in human vasculature. auto-antibodies in pre-clinical rheumatoid “This is important because many cancers, the eye drops from donor blood. The first later stage. “The tissue chain in the arthritis, Van de Stadt shows how the especially metastasised forms, are still allogeneic eye drops were frozen in 2014 Netherlands is currently fragmented”, says Another piece of Sanquin research makes presence of autoantibodies helps predict being treated with radical treatment and a clinical study was launched among Managing Director of the new unit the cover of a scientific journal, this time rheumatoid arthritis. This can prevent or methods such as chemotherapy with the a group of patients at Radboud university Daphne Thijssen. “Centralisation of all the Haematologica in October 2014. It is postpone the onset of the disease. associated adverse reactions.” Van den medical centre. The aim is to find out tissue-related activities in one organisation a graphic summary of a paper by Sabrina Berg’s department performs research in whether allogeneic eye drops are as offers better assurance of production Zeddies and her colleagues. The paper cooperation with researchers from other effective and safe as the autologous quality and safety, saves costs due to more describes a new important role of institutions, including the Dutch Cancer products and thus a good alternative. efficient operations and will lead to more transcription factor MEIS1, a gene that Institute. The post-doctoral researcher If the research results are positive, Sanquin product innovation.” According to controls the functioning of certain other Hanke Matlung and postgraduate student can include the allogeneic eye drops in its Thijssen, Sanquin is the organisation of genes. This transcription factor is required Xi Wen Zhao are making the biggest product range. Various ophthalmologists choice to undertake this centralisation for the production of red blood cells and contribution on behalf of Sanquin. In July have already indicated that they see uses because of its size and the similarities with blood platelets. Xi Wen Zhao received her PhD for this for this new product. the Blood Bank process. “We want to be research from the University of the tissue centre of the Netherlands. In Amsterdam. Meanwhile, Sanquin is 2014, the LCT obtained a GMP certificate undertaking follow-up research with an external partner into how to enhance and marketing authorisation for the production of advanced therapy medicinal “This amazing discovery offers starting points to the clearance of cancer cells by the immune system. products and exploratory talks were also held with the Bislife tissue bank in Leiden develop an improved therapy against cancer.” and the Heart Valve Bank Rotterdam about incorporation into the Tissues & Cells Unit. Timo van den Berg, head of the Department of Blood Cell Research


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    14 | Ambitions International International Ambitions Sanquin Annual Report 2014 | 15 INTERNATIONAAL AN INDEPENDENT ACTOR IN THE INTERNATIONAL PHARMACEUTICAL AND DIAGNOSTIC FIELDS Due to various setbacks, Sanquin did not manage to grow as fast as it had envisaged in 2014. For example, the processing of plasma for the American pharmaceutical company Baxter was postponed. During an inspection, the FDA noted that improvements were still needed in various areas of our production processes. However, there were also positive developments in this area: Sanquin established special departments to boost innovation and new orders and obtained an important accreditation.


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    16 | Ambitions International International Ambitions Sanquin Jaarverslag 2014 | 17 INTERNATIONAL Diagnostics accredited Medicines for New units for Sanquin in according to the latest standards American patients strategic course the media Sanquin’s diagnostic laboratory is the first laboratory of this size In 2013, the American Food and Drug Administration (FDA) Sanquin would like to carry out more As an organisation with an important in the Netherlands to be accredited according to the latest warned Sanquin that several important steps were still required in orders from third parties in order to create social task, Sanquin regularly triggers quality standard for medical laboratories (ISO 15189-2012). order to have Sanquin’s quality processes comply with FDA rules. a firm foundation for the production of reactions and critical questions from This international standard specifies the requirements for quality These regulations differ from those of the European control medicines from plasma for the Dutch society. Wasn’t Sanquin taking on too and competence in medical laboratories. Several existing quality institutions, which are already met by Sanquin. Compliance with market. Cost effective production of these much with its ambition to enter the standards have been combined under the standard and the FDA regulations is necessary because Sanquin also supplies medicines requires a certain scale size. By American market? That’s the question requirements have also become more stringent. medicines from American plasma to the American market. fractionating plasma for third parties as a asked by the Volkskrant newspaper In this laboratory, donor blood will be screened for the presence In order to ensure that staff members accurately observe all Contract Manufacturing Organisation in a prominent article on Saturday of viruses. Sanquin also tests patient samples submitted by regulations and the necessary adjustments are made, Sanquin (CMO) we can optimally use the 22 November. Sanquin does not recognise hospitals and general practitioner laboratories from all over the started a Compliance Enhancement Programme (CEP) in 2014. production facility and keep the cost of itself in the portrayed picture. Sufficient Netherlands. Sanquin was already accredited according to the This programme focuses on a change in mentality among staff, Dutch medicines lower. In line with this scale in the production of plasma CCKL Practice Guideline, ISO 17025 for General Testing better internal communication regarding the regulations of Good strategy we also want to develop more medicines is in fact required to be able Laboratories and ISO 15189 (version 2007) for Medical Manufacturing Practices and improvement of systems and new medicines ourselves. In order to to continue providing this service in the Laboratories. processes where possible, among other things. properly streamline these ambitions, three Netherlands too. This means that the The Council for Accreditation awarded the label after intensive Many efforts were made throughout the year to resolve all new units will be established. The CMO Food and Drug Administration (FDA), inspections of the Sanquin labs in Amsterdam, Dordrecht and bottlenecks highlighted earlier by the FDA inspectors. In November, unit coordinates international activities for among others, inspects how Sanquin Groningen. “We are very proud of this new accreditation”, says the FDA again inspected the Sanquin facility in the Netherlands and external clients. The Supply Chain prepares the medicines for America. Quality Manager Stephanie Ágoston. “It took more than a year of the subsidiary CAF-DCF in Belgium. Many issues were resolved, but Management unit will make sure that all Regulations and the associated inspection preparation. At the same time, it is a matter-of-course for us to be some new points for improvement emerged in both facilities, separate steps in the production chain of method by the FDA are different from in the lead in terms of safety and quality. We want the very best meaning that the warning letter still applies. However, the medicines are properly linked. The task of those of European inspection agencies. for our clients and therefore for Dutch patients.” production of Cinryze for American patients can continue. That is the Research & Development unit is to Sanquin satisfies the Dutch inspection the conclusion of a visit by Sanquin to the FDA on 27 April 2015. develop new products in the areas of standards, but modifications are required haematology, immunology and if it is to meet American standards. Sanquin transfusion medicine. is working hard to achieve this and is supported by its international partners. “We want the best of the best for our clients and therefore for Dutch patients.” Stephanie Ágoston, Quality Manager


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    18 | Ambitions Organisation Organisation Ambitions Sanquin Annual Report 2014 | 19 ORGANISATION INVESTMENTS IN THE ORGANISATION The customer focus of an organisation is largely determined by its staff. Sanquin therefore devotes a great deal of attention to its human capital. The emphasis in the reporting year was on management. In order to manage staff properly, managers must also have self-knowledge. A leadership programme helps them to increase this knowledge. In addition, Sanquin put the results of the staff survey conducted in 2013 into practice.


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    20 | Ambitions Organisation Organisation Ambitions Sanquin Annual Report 2014 | 21 ORGANISATION Leadership Follow-up on Healthy staff Compliance Together programme staff survey Enhancement Sanquin Program (CEP) In order to achieve Sanquin’s ambitions, Once every few years, Sanquin conducts Sanquin wants to provide its staff with a Following the warning letter that was In order to involve staff in the organisation a different style of management is a staff satisfaction survey. The 2013 survey safe working environment. People working received from the FDA after the last and promote pride in its work, Sanquin required in the organisation. This new showed that Sanquin scores less well than with blood run the risk of infection from quality inspection at Plasma Products, a launched the internal communication style is ruled less by daily issues and more other organisations with regard to viruses and bacteria, for example as a Compliance Enhancement Program (CEP) campaign ‘Together Sanquin’. With by a long-term vision in which staff can communication and appreciation. These result of an accident with a needle. New was started with accompanying changes posters, meetings, a dedicated website take their own responsibility. Together are aspects which have a great impact on staff are therefore given the opportunity to in culture to ensure strict adherence to and other means, the campaign addresses with the Hay Group management how staff experience their work. In the be vaccinated against hepatitis B. In 2014, (inter)national legislation in the organisation-wide themes, such as consulting firm, Sanquin developed a reporting year, various working parties around 100 staff were vaccinated. production of plasma medicines. The strategy, innovation and appreciation for leadership programme for all managers. embarked on concrete points of action: All staff are also entitled to the annual flu CEP program was set up with six quality each other. Staff can send paper or digital “Our managers have to deal with many • Every month, a colleague or team is jab. In 2014, 187 staff took this injection. systems, which make it possible to trace, Facebook likes to give a complement, changes,” says Laura von Ende, who is proclaimed Staff member of the Month. identify, modify and solve the issues for example. involved in the leadership programme Staff members who have set an mentioned by the FDA and to formalise as a Human Resource Development example, fulfilled a leading role or who and document them. A communication consultant. “Our new strategic course have made a difference with something plan was launched on 26 February 2014 requires a certain organisational climate big or small, are placed in the limelight. and a system was implemented in order and a particular style of management. Anyone may nominate a colleague. to measure, report and monitor progress. We want to help managers adapt as well • Managers are advised to have an open Overarching and ongoing procedures, as possible. In the programme, we link office hour once a week to increase their processes and work orders were the strategic themes and challenges of accessibility to their team. developed and calibrated and at the end Sanquin to the manager’s personal • ‘Tips and tops’ are introduced as an item of 2014 there was a lot of work going into development. We review the various styles in various work meetings. At this item, cementing these into the culture of the of leadership and the managers’ natural staff members can discuss what is going organisation. The ultimate goal is to “Our managers have to leadership style and we discuss which style well and what can be improved. achieve a CGMP-compliant system that is most suited to which situation.” The • In order to emphasise that initiatives are includes current legislation and has the deal with many changes.” managers draw up a plan of development appreciated and important, any member approval of the FDA. for themselves in which they record their of staff who has a good idea that Laura von Ende, HR Consultant own learning points. transcends departmental boundaries may present this personally to the management team of the unit, division or Sanquin.


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    22 | Ambitions Future-proof Future-proof Ambitions Sanquin Annual Report 2014 | 23 FUTURE-PROOF A FUTURE-PROOF AND FINANCIALLY SOLID ORGANISATION Sanquin’s strategy, revised in 2013, was further embedded in the organisation in 2014. The strategy is based on three pillars: innovation, efficiency and organisation. During the reporting year, various measures were taken to improve the organisation’s efficiency and to establish a firm financial base for the long term. This required a reorganisation of various business units, partnering with external parties where necessary and controlling costs.


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    24 | Ambitions Future-proof Future-proof Ambitions Sanquin Annual Report 2014 | 25 FUTURE-PROOF Strategic alliance Diagnostics Savings at the Blood Bank Reorganisation Reducing costs of Facilities Services The prices of diagnostic services in the Netherlands are under The major reorganisation of the Blood Bank division that was Sanquin’s Facilities Services is mirroring Due to the combination of unforeseen circumstances, pressure. Hospitals are carefully monitoring their costs and started in 2012 was largely completed by late 2014. The reorgan- the changes in the organisation. In 2014, Sanquin’s operating result was lower than expected in limiting requests for diagnostic determinations. Sanquin has isation was initiated following a request from the Minister of the four regional Facilities Services were the first half of 2014. The reduced growth in the therefore joined six hospitals that are already discussing a Health, Welfare and Sport to Sanquin to improve the efficiency therefore combined into one national production of plasma medicines was an important possible alliance of their laboratories: Flevo Hospital in Almere, and cost effectiveness of its operations. Furthermore, mid-way Facilities Services to support all parts of factor, as was the unexpected rapid decline in the MC Zuiderzee in Lelystad, OLVG Hospital, Boven IJ Hospital, through this process it became clear that even greater savings Sanquin. This makes it possible to demand for blood products. The reorganisation of Saint Lucas Andreas Hospital and Slotervaart Hospital in were required as a result of the declining demand for blood negotiate large national contracts with the Facilities Services got under way at a later stage, Amsterdam. The seven organisations are currently exploring products. suppliers at lower rates and with better which meant that the effect of the expected cost the possibility of creating one central laboratory together. The Processing and Quality Control departments in Groningen services. Transport falling outside the savings came later. Finally, the number of hired Masja de Haas, Cluster Manager of Immunohaematological and Rotterdam were combined with the Nijmegen and regular routing was outsourced to external external staff within Sanquin had an impact on the Diagnostics: “A dynamic laboratory needs to have a good Amsterdam locations. The number of distribution locations was companies. Furthermore, a single national costs. For various reasons, the number of external mixture of routine diagnostics, complex diagnostics and test reduced from eleven to seven: five sites were closed and one new hotline was set up to handle all queries, staff increased substantially in recent years. development. The diagnostic packages offered by the seven site was opened in Deventer. This reduction in the number of while the six local warehouses were Sanquin took several measures to address the poor alliance partners complement each other well. By combining square metres produced substantial cost savings. replaced by one big national warehouse financial situation. Where possible, investments were the knowledge-intensive and often expensive diagnostics and The reduction in the number of FTEs also had an impact on supplying the whole of the Netherlands. delayed and the recruitment of new staff and renewal concentrating it in a single location near Sanquin, we increase the savings. 139 staff members were declared ‘pre-redundant’. As a result of these adaptations, Sanquin of contracts was frozen. The use of external staff was in scale and are able to perform these diagnostics more 35 of them found another job within Sanquin and 7 staff saves 20 percent on the costs of Facilities limited. Cost reduction will be an ongoing part of efficiently. Innovation in the trial package is assured due to the members were assisted to find a job outside Sanquin. The other Services, amounting to some 4 to Sanquin’s operations in order to remain financially close proximity of the Research division.” Under the Blood Supply staff members left the organisation in accordance with the 5 million euros per year. solid and healthy. Act, Sanquin is responsible for donor screening and will continue agreements of the social plan. “I had hoped that more of to carry out this task. The patient diagnostics performed by the these139 staff members could have remained with Sanquin”, Diagnostics division would be transferred to the central says Jeroen de Wit, director of the Blood Bank and vice chairman laboratory, including 155 FTEs. The new laboratory should be of the Executive Board. “But I also understand the practical operational by the end of 2016. obstacles when moving to another place within Sanquin, such as a partner with a job and selling your house.” The total staff of the Blood Bank was reduced by 25 percent. “By combining diagnostics we will increase in scale and be able to carry out the work efficiently.” Masja de Haas, Diagnostics Manager


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    26 | Ambitions Future-proof Future-proof Ambitions Sanquin Annual Report 2014 | 27 Financial results Key financial developments in 2014 Other expenses increased by 27% to € 133.4 million. This is primarily due to higher accommodation costs and higher IT FUTURE-PROOF In 2014, Sanquin increased its revenue to € 460.2 million (2013: Total revenues rose to € 460.2 million (2013: € 431.0 million). costs. This resulted in a drop in EBITDA margin from 11.7% € 431.0 million). The Plasma Products Division experienced a This includes other revenues and the movement in stocks. in 2013 to 4.0% in 2014. significant increase in revenues that is partially offset by the Blood The underlying turnover in 2014 rose by 6.4% to € 418.7 million Bank’s decline in turnover. The operating result for 2014 is (2013: € 393.4 million). This turnover development can be In 2014, depreciation rose by 8.7% to € 27.4 million. significantly negative (negative € 23.0 million) compared to a specified as follows: Total operating expenses in 2014 increased by 19% to € 483.3 positive € 25.1 million operating result in 2013. This is primarily million (2013: € 405.9 million). This increase exceeds the due to the significant expenditures required to implement the Turnover specification increase in revenues (6.8%). Thus, the operating result dropped quality measures in the Plasma Products Division in response to to negative € 23.0 million (2013: positive € 25.1 million). the warning letter issued by the FDA. In addition, partly as a (x € millions) € % result of the quality problems, turnover was lower than expected Financial income and expenses amount to € 1.7 million (2013: due to the delays encountered in scaling up CMO production for Per division € 0.7 million). Financial expenses also include the result of The balance sheet total is € 495.7 million (2013: € 511.4 million). Baxter. In part due to these conditions, net profits in 2014 dropped Plasma products 240.7 +17 participating interests in the amount of negative € 0.8 million Total working capital amounts to € 125.2 million (2013: € 112.6 to negative € 16.6 million (2013: positive € 16.9 million). Blood Bank 136.3 -/-5 (2013: negative € 0.3 million). This result was caused by million). As a percentage of revenues, working capital is 27% Diagnostic Services 19.1 -/-7 downgrading in the value of the equity interest in Xenikos BV. (2013: 26%). In summary the profit and loss account is as follows: Reagents 12.2 -/-1 It is assumed that this participation, with Sanquin performing Research 9.0 +22 product and process development, will continue to make a loss The stocks and the short-term debts within the working capital Other activities 1.4 -/-247 because of the research and development costs for a new are virtually the same. The accounts receivable balance (total (x € millions) 2014 2013 Change experimental medicine. receivables) increased in 2014, due to the previously mentioned Total 418.7 tax claim. € € € % In 2014, tax income amounting to € 7.3 million was recognised Revenues 460.2 431.0 29.2 6.8 because the tax expense recognised in 2013 can be reclaimed The capital employed decreased to € 369.6 million (2013: Costs of raw materials due to the loss reported in 2014. € 381.8 million). The return on capital employed at the end (x € millions) € % and consumables 138.3 110.2 28.1 25.5 of the financial year was -/- 4.5% (2013: 6.6%), based on the Staff costs 184.2 164.2 20.0 12.2 This means the net profit over the 2014 financial year was operating result. Geographic Gross margins 137.7 156.5 -18.8 -/-12.2 negative € 16.6 million (2013: positive € 16.9 million). Netherlands 227.7 -/-1 Other operating In summary, Sanquin’s balance sheet is as follows: Equity at the end of the financial year was € 299.5 million 133.4 106.2 27.2 25.6 Abroad 191.0 +16 expenses (2013: € 316.0 million). EBITDA 4.3 50.4 -/-2.3 -/-4.4 Total 418.7 Depreciation 27.4 25.2 2.2 8.7 (x € millions) 2014 2013 Solvency at the end of the financial year was 64% (2013: 66%). Operating result -/-23.0 25.1 -/-48.2 -/-192.0 Fixed assets 208.7 195.3 Net liquidity (balance of cash positions and long-term loans) at Financial income and expenses -/-1.7 -/-0.7 -/-1.0 -/-142.9 The growth in turnover in Plasma Products is due entirely to Stocks 160.9 159.5 the end of the financial year was negative € 2.2 million Taxes 7.3 -/-7.1 14.4 202.8 contract manufacturing activities. The drop in Blood Bank Receivables 90.3 82.7 (2013: positive € 42.7 million). Share of third parties 0.8 -/-0.5 1.3 260.0 turnover is due to a decrease in the sale of short shelf-life blood Liquid assets 35.8 73.9 Net profit -/-16.6 16.9 -/-33.5 -/-198.2 products to hospitals. Turnover in Diagnostic Services has Total assets 495.7 511.4 The net cash flow from operating activities was negative dropped slightly. Turnover in the Reagents Division has remained Provisions 13.8 15.0 € 3.9 million (2013: positive € 47.9 million). The operating essentially unchanged. External revenues from Research have Long-term debts 38.0 31.3 cash flow for working capital was 16% higher, amounting to increased thanks to a greater number of third party grants. Short-term debts 126.1 129.6 € 26.1 million (2013: € 22.6 million). The cash flow including Group equity 317.8 335.5 movements in working capital was negative € 12.7 million The gross margin (revenues minus cost of materials and staff) (2013: positive € 7.9 million). The free cash flow was negative as a percentage of turnover amounts to 30.0% (2013: 36.3%). € 40.9 million (2013: negative € 0.6 million). This is because the The increase in staff costs (by 12% to € 184.2 million) and available cash flow is not sufficient to finance the investments. material costs (by 26% to € 138.3 million) is primarily due to the expansion of production and investments in the Plasma Products quality organisation.


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    28 | Ambitions Future-proof Future-proof Ambitions Sanquin Annual Report 2014 | 29 Prospects 2015 In 2015, Sanquin expects to see a continued increase in turnover as a result of further growth in contract manufacturing activities of Plasma Producten. Further essential investments in the quality organisation to make the production FDA-compliant will continue to place strain on profit margins. Sanquin is expected to be able to make the essential investments in maintenance in 2015 without additional external financing. Employees have been working hard throughout the year to Following thorough preparations, the Executive Board decided tackle the bottlenecks that were previously detected by the FDA as of 24 April 2015, as a first step in the risk-shedding process, inspectors. The FDA will make another inspection visit in to release the Plasma Products Division and move it to a private November to the Sanquin factory in the Netherlands and the limited company (b.v.) under the Foundation Sanquin Blood subsidiary CAF-DCF in Belgium. Many issues have been resolved, Supply. This decision could be made following the advice from but new points for improvement have been detected at both the Industrial Council, which involved intense and very facilities, meaning that the warning letter still applies. However, constructive consultations. The Plasma Products Division will the production of Cinryze for American patients can continue. be split into “Sanquin Plasma Products bv”, with Foundation That is the conclusion of a visit by Sanquin to the FDA on Sanquin Blood Supply as 100% shareholder. 27 April 2015. In an operational sense, the BV can continue to cooperate The meeting was intended to give the FDA insight into the with other divisions, group staff and group services of Sanquin, progress that we are making on improvements of compliance meaning that none of the cooperative synergy will be lost. in the production of medicines for the USA. The FDA invited us The executive under the articles of association of the BV will because questions had been raised about the rate at which the be formed by Jeroen de Wit, also a member of the Executive improvements in quality awareness were taking place. During Board of the Foundation. The tasks and authority of the current this constructive meeting, the FDA voiced its confidence in the Management Team of Plasma Products will not change. progress. We achieved this by presenting a package of measures. A decision on further implementation of the risk-shedding It was agreed that Quantic, a party trusted by both the FDA and is expected mid 2015. Sanquin, will monitor the production, quality control and release in Amsterdam and Brussels for the time being. Sanquin will also maintain monthly contact with the FDA to discuss the progress. The FDA has stated that it is convinced that both Sanquin and Shire are committed.


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    30 | Report Executive Board Report from the Executive Board Sanquin Annual Report 2014 | 31 REPORT Membership EXECUTIVE BOARD Sanquin’s legal structure In 2014 the Executive Board consisted of: In 2012, the Minister of Health Welfare and Sport indicated to • Mr A. van Os (chairman until 1 June 2014) the President of the House of Representatives that she wanted • Mr H.M. le Clercq (chairman from 1 June 2014) Sanquin to ‘implement measures to ensure the Blood Bank’s From left to right: Mr R.A.W. van Lier (member), Mr O. Dijkstra (secretary), • Mr H.J.C. de Wit, (vice chairman) equity is not risk-bearing for the company’s private activities, and Mr H.J.C. de Wit (vice chairman), Mr le Clercq (chairman from 1 June 2014) • Professor R.A.W. van Lier (member) vice versa’. In the middle of 2013, Sanquin proposed a desired • Mr O. Dijkstra (secretary) structure change to the minister in order to meet both the minister’s request and its own wishes regarding the further Meetings development of Sanquin. Sanquin and the Ministry of Health, The Executive Board met fifty-one times in 2014. At the request Welfare and Sport also met regularly in 2014 to discuss the of the Board, members of the management team and core staff structure and especially the positioning of Sanquin’s legal may be invited to the meetings. All decisions are recorded in lists responsibilities within the intended structure. The minister has of resolutions and minutes. The Executive Board adheres to the indicated that she wishes to retain the hybrid structure, with pub- Sanquin Corporate Governance Code and the Governance lic and market activities combined under one roof. Following Regulations, which outline rules and conduct for good thorough preparation, the Executive Board has decided as of management, effective oversight and transparent accountability. 24 April 2015, to split off the Plasma Products Division as a first step in the risk-shedding process and to transfer this division to Current events a private limited company (BV) under the Foundation Sanquin During the reporting year, the Executive Board paid a great deal Blood Supply. A decision is expected to be made in the middle of of attention to the following topics of key strategic importance 2015 to ensure further implementation of the separation of risks. for the organisation’s future. Reorganisation of the Blood Bank division Financial situation The Minister of Health, Welfare and Sport imposed cost cutting Revenue increased by 7%, but this is insufficient to compensate measures on all healthcare actors. In line with these cost cutting for Sanquin’s increasing expenditure in recent years. A loss of measures, the Minister demanded that the Blood Bank also € 16.5 million is reported over 2014. Sanquin’s financial situation increases its efficiency by 6%. Sanquin achieved this target in has deteriorated, making it essential to reduce costs. In the 2011 through 2014 through the reorganisation of the blood middle of 2014, the Executive Board took measures to reduce bank 2015 and other measures as part of the outlet reduction. the overall staffing costs and other expenditure. The level of For a number of years, the demand for blood products has been investments was also reduced. Limiting the costs will be declining. This trend continued in 2014. Reasons for this a continuous part of Sanquin’s operations. It will enable Sanquin persistent drop include the improvement in stock management to remain financially solid and healthy. and logistics, implementation of the CBO Blood Transfusion guideline, increased cost awareness among our customers, improved surgical techniques and fewer medical interventions. Sanquin appreciates the frugal use of blood in the Netherlands. The Blood Bank has therefore increased the efficiency and reduced the costs, among other things by making further staff adjustments, in order to prevent an increase in the price of blood products with a short shelf-life.


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    32 | Report from the Executive Board Report from the Executive Board Sanquin Annual Report 2014 | 33 Contract Manufacturing decided to strengthen the management of the Plasma Overview of additional positions Since the end of 2013, Sanquin has been collaborating with the Products division with an interim divisional director for The following overview shows the most important other positions held by members biopharmaceutical company Shire, the successor of the American the location in Amsterdam. of the Executive Board of Sanquin. These additional positions have been approved pharmaceutical company ViroPharma. Sanquin has been by the Supervisory Board. producing the plasma medicine Cinryze from American plasma Alliance of Diagnostics in cooperation with ViroPharma since 2008 as a contract Sanquin wants to establish a common laboratory together manufacturing organisation. This partnership now supplies with six hospitals in the Amsterdam and Flevoland regions Mr H.M. le Clercq a very effective medicinal product, which had been available in which four specialisms are represented: clinical chemistry, Chief position: for a long time to patients with hereditary angio-oedema in immunohaematology, medical microbiology and pathology. Chairman of the Executive Board (from 1 June 2014) the Netherlands, all over the world. Shire is involved in the If the plans are implemented, the patient diagnostics performed improvements in the area of Compliance. by the Diagnostics division will be transferred to the common Other positions: laboratory. The initiative for collaboration was motivated by Member of the Supervisory Board Spaarne Hospital, Member of the Supervisory Board ‘t Lange In 2012, Sanquin signed a contract with US pharmaceutical the conviction that in future a high-quality diagnostic service Land Hospital, Member of the Supervisory Board, Royal Tropical Institute, Member of the company Baxter. In 2013 and 2014, the production capacity can only be offered cost-efficiently by pooling know-how and Supervisory Board Rheumatism Fund, Treasurer Erfocentrum (Dutch Genetic Centre) for processing Baxter’s plasma was increased. The validation of infrastructure. As a result of this initiative, it is possible to processes and the set-up of the production lines took more time maintain a wide range of top diagnostics, know-how and than initially expected. In 2015, the fractionation of plasma innovation in the interaction with the Research division. Mr H.J.C. de Wit will start, in order to increase the production of albumin and This reflects the mission and vision of Sanquin. Chief position: immunoglobulins which are used, among other things, for Vice chairman of the Executive Board the treatment of burns and diseases where the defence against ICT transition infections or the body’s own cells is disrupted. A large upgrade of the Windows environment was completed Other positions: in 2014. A large number of IT workstations were also transferred Member of the Executive Board CVBA CAF/DCF in Brussels (from 16 May), Board member, Compliance to the web-based Citrix environment. This resulted in a further Committee of Experts on Blood Transfusion of the EDQM (European Directorate on the Quality of In the autumn of 2013, Sanquin received a warning letter from standardisation and simplification of the IT environment, allowing Medicines) of the Council of Europe; Board member, IDTM foundation, Board member, Tekke the US Food and Drug Administration (FDA) pointing out the for more efficient maintenance and management in future. Huizinga Fund Foundation, Member of a communication platform for medical advisors at Fresenius, bottlenecks in the production process of medicines for the A start was also made in 2014 with the migration of ICT under EMEA customer panel member at Caridian BCT, Member of the Advisory Board, TRIP American market. A Compliance Enhancement Programme was a new contract with Centric for the management of the ICT launched to improve compliance with US regulations. During the infrastructure. This migration will be completed in 2015. autumn of 2014, the FDA carried out a re-inspection at Sanquin. Professor R.A.W. van Lier According to the FDA, many issues have been resolved, but new Tissue activities Chief position: points for improvement have also been detected, meaning that In the long term, Sanquin aims to create a coordinated tissue Member of the Executive Board the warning letter still applies. However, production of Cinryze supply in which the tissue activities within the Netherlands will for American patients can continue. be combined wherever possible and incorporated in Sanquin. Other positions: The various cell and tissue activities within Sanquin currently take Professor of experimental immunology, University of Amsterdam, Board member, Immunovalley Management of the Plasma Products division place in the Umbilical Cord Blood Bank, the Bone Bank, the Foundation, Vice president, EFIS (European Federation of Immunological Societies), Secretary, At the end of November 2013, the Executive Board decided to Stem Cell Laboratory in Groningen and the Laboratory for scientific advisory council MS Research, Member of the scientific advisory council, Netherlands Lung change the management structure of the Plasma Products Cell Therapy. Sanquin wants to combine these activities and Foundation, Member of the scientific advisory council, Landsteiner Foundation for Blood division to respond to the division’s challenges and growth incorporate them in the new Tissues and Cells business unit. Transfusion Research, Member of the scientific and medical advisory council, Immunobank NV strategy. This strategy consists of strengthening the contract manufacturing activities, the further internationalisation of The Executive Board looks back on a turbulent reporting year, products, the gradual establishment of a pipeline of new recognises the existing challenges and, above all, looks to A. van Os products and strengthening the required compliance. Three Sanquin’s future with confidence. Chief position: functions were added to the existing Management team in Chairman of the Executive Board 2014: Supply Chain Management, Contract Manufacturing (until 1 June 2014) Organisation, Research and Development. In order to devote the Amsterdam, May 2015 necessary attention to the activities of the Plasma Products division Other positions: in both the Netherlands and Belgium, the Executive Board Executive Board Member of the Board, CAF, Brussels (until 16 May 2014) Director of LSBR (until 1 June 2014)


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    34 | Report Supervisory Board Report Supervisory Board Sanquin Annual Report 2014 | 35 REPORT Progress developments in Plasma Products division The Board discussed the developments regarding the collaboration and contract negotiations with the strategic Leiden and surroundings Foundation, Chairman, Medipark B.V. Stockholders Foundation , Member of the Board, Leiden Bio Science Park Foundation, Member of the Governing Board, SUPERVISORY BOARD collaborative partners of Sanquin in Amsterdam and subsidiary Leiden University Fund, Member of the Board, Bontius CAF-DCF in Belgium. Foundation, Chairman of the Supervisory Board, Ipse de Bruggen Foundation, Member of the Supervisory Board, Veer Foundation Diagnostics alliance The Board approved the Executive Board’s intention to place Ms K.T.V. Bergstein, MBA Membership Current events the activities relating to patient diagnostics into a new common Appointed 1 September 2012, stepping down 1 September In 2014, the members of the Supervisory Board were: The Supervisory Board paid a great deal of attention to the laboratory yet to be established in which Sanquin will participate 2016, eligible for reappointment. • Professor F.C. Breedveld (chairman) following topics during the reporting year: as shareholder together with six hospitals in Amsterdam, Lelystad Chief position: • Ms K. Bergstein, (vice chairperson and chairperson audit and Almere. Member of the Executive Board, ASR Nederland N.V. committee) Chairman of the Executive Board Other positions: • Mr M.J.W. Bontje Aart van Os stepped down as chairman of the Executive Board Tissue activities Member of the Supervisory Board, University of Utrecht, Member • Professor C.G. Figdor of the Sanquin Blood Supply Foundation on 1 June 2014. His The Supervisory Board took note of the intention to establish of the Supervisory Board, Arboned • Mr A.K. Lahr (member audit committee) departure was agreed in consultation with the Supervisory Board a Tissues business unit and the possible acquisition of a Dutch • Mr. O. Dijkstra (secretary) of Sanquin. The Supervisory Board decided on this measure due tissue institute. Mr M.J.W. Bontje to the lack of chemistry within the Executive Board. The Appointed 1 June 2013, stepping down 1 June 2017, The Board monitors the Executive Board’s policies and the Supervisory Board is looking for a new chairperson. Maarten le Evaluation eligible for reappointment. general course of affairs at Sanquin. Furthermore, the Board Clercq joined the Executive Board on 1 June 2014 to temporarily The Supervisory Board evaluated its own functioning in writing, Chief position: advises on strategy and Sanquin activities and is responsible take over the role of chairman. and noted that its members are sufficiently independent. The Owner, Bontje Advies en Management for approving key proposals from the Executive Board. In its decision-making structure within the Supervisory Board is Other positions: activities, the Board observes the Sanquin Corporate Governance Financial situation designed in such a way that conflicts of interest are avoided. Chairman, InEen, Chairman of the Supervisory Board, Breburg, Code that stipulates the rules and procedures for good The Supervisory Board discussed the acute and more structural The Board performs interim evaluations of the functioning of Vice chairman of the Supervisory Board, Rivas, Board member, governance, effective supervision and clear accountability. measures that will be introduced to limit the costs and keep the the Executive Board. Foundation Wie Beter Eet Wordt Sneller Beter (‘He who eats The Supervisory Board membership is such that the statutory cash flow at the required level. better will recover faster’), Chairman, St. Pand Hospice requirements of experience and expertise are amply fulfilled. Quality, safety and availability of blood products in 2014 were Nieuwegein, Chairman of the Supervisory Board Ophthal- Structural changes once again made possible thanks to the strong involvement mological Medical Centre Zaandam, Member of the Supervisory Meetings The Board was informed on several occasions about the details and efforts of donors. The Supervisory Board is deeply grateful Board, Facial Plastics, Member of the Supervisory Board, In 2014, the Board held nine meetings, four of which were of a different legal structure for Sanquin and the discussions to them and to all Sanquin employees for their efforts in 2014 Woman and Clinics regularly planned meetings. Members of the Board also about this with the Ministry of Health, Welfare and Sport. and the way in which they achieved Sanquin’s goals together. maintain individual contact with Sanquin management and staff. Professor C.G. Figdor On 23 October, the Chairman of the Board met the Sanquin Strategy Appointed 1 June 2013, stepping down 1 June 2017, Works Council to discuss the general course of affairs within the The Board met with the Executive Board and division directors Amsterdam, May 2015 eligible for reappointment. organisation. to discuss the divisional strategies that were reformulated in Chief position: Financial reports, the 2013 annual report, the 2013 annual 2013, as well as their implementation in the organisation. Supervisory Board Professor of Immunology, Radboud University Medical Centre accounts and the accountant’s report were discussed and Nijmegen approved in the presence of the external accountant. The Board FDA warning letter Other positions: approved the policy plan, the 2015 budget and Mid-term Plan. The Board was extensively informed about the effects of Overview of additional positions Member, Health Council of the Netherlands, Member, Scientific As is customary, the Board also discussed the risk inventory corrective actions and investments required in connection with The overview below includes the most important additional Council Kika, Member Advisory Board NKI, Initiator Scientific drafted by the Executive Board and the corresponding the warning letter received by Sanquin from the American Food positions held by members of the Supervisory Board. Interchange Radboud University management measures. and Drug Administration (FDA) in 2013. The Board appoints an audit committee, consisting of the Professor dr. F.C. Breedveld Mr A.K. Lahr members Bergstein and Lahr, to monitor the provision of Progress reorganisation of the Blood Bank division Chairman of the Supervisory Board as of July 2013, appointed in Appointed 1 July 2013, stepping down 1 July 2017, financial information, the internal risk management and The Board took note of the measures taken by Sanquin to September 2010, stepping down in September 2018, not eligible eligible for reappointment. control systems, and follow-up on recommendations made guarantee the quality of the blood supply. for reappointment. Chief position: by the external accountant. The audit committee met four Chief position: CEO, Fasttrack company times in 2014. Chair of the Executive Board, Leiden University Medical Centre Other positions: Other positions: Member investment committee, Social Impact Ventures NL, Chairman, Curium Foundation, Chairman, Thrombosis Service Consultant with various companies


  • Page 22

    36 | Annual Accounts Annual Accounts Sanquin Annual Report 2014 | 37 ANNUAL ACCOUNTS 2014 Consolidated Annual Accounts 2014 Consolidated Balance Sheet as at 31 December 2014 (before profit appropriation) Consolidated Profit and Loss Account for 2014 31 December 2014 31 December 2013 2014 2013 (€ 000’s) Ref. € € € € (€ 000’s) Ref. € € € € Assets Net turnover 17 418,705 393,375 Fixed assets Change in stocks of finished products and work in progress 20,488 27,306 Tangible fixed assets 6 204,936 195,332 Other operating income 21,043 10,346 Financial fixed assets 7 3,750 0 Total operating income 460,236 431,027 208,686 195,332 Costs of raw materials and consumables 138,296 110,249 Current assets Wages and salaries 18 152,812 136,115 Stocks 8 160,945 159,464 Social security charges incl. pension 18 31,370 28,116 Receivables 9 90,339 82,697 Depreciation of tangible fixed assets 22 27,363 25,244 Liquid assets 10 35,785 73,942 Other operating expenses 23 133,416 106,184 287,069 316,103 Total operating expenses 483,257 405,908 495,755 511,435 Operating result -23,021 25,119 Revenue from financial fixed assets 25 -814 -264 Liabilities Interest income 25 341 955 Group capital Interest expenses 25 -1,239 -1,337 Equity 11 299,467 316,009 Share of third parties 12 18,372 19,483 Result from ordinary business operations before taxes -24,733 24,473 Tax on result from ordinary business operations 26 7,345 -7,071 317,839 335,492 Share of third parties 846 -472 Provisions 13 13,812 15,025 Result after taxes -16,542 16,930 Long-term debts 14 38,008 31,273 Short-term debts 15 126,096 129,645 495,755 511,435


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    38 | Annual Accounts Annual Accounts Sanquin Annual Report 2014 | 39 Consolidated Cash Flow Statement 2014 Notes to the consolidated balance sheet and profit and loss account 2014 2013 1. General notes 1.3 Business Location (€ 000’s) Ref. € € € € Sanquin is domiciled at Plesmanlaan 125, 1066 CX Cash flow from operating activities 1.1 Activities in Amsterdam. Operating result -23,021 25,119 Sanquin’s activities involve the preparation and supply of long Adjustments for: and short shelf-life blood products in the Netherlands as well as 1.4 Estimates Depreciation of tangible fixed assets 22 27,363 25,244 contract diagnostic services for third parties. Sanquin also In order to be able to apply the principles and rules for drawing Change in provisions 13 -1,213 -2,641 performs subsidised and contract research and provides up the annual accounts, the management of Sanquin Blood 26,150 22,603 education in cooperation with the University of Amsterdam. Supply Foundation must reach a judgement on certain matters In Belgium, long shelf-life blood products are prepared and and make estimates that could be essential for the amounts Change in operating capital: supplied by subsidiary CAF. In Finland, Sanquin Oy provides included in the annual accounts. If necessary for providing the Increase of Stocks 8 -1,481 -26,871 the marketing of the long shelf-life blood products for the insight required by Article 2:362 (1) of the Dutch Civil Code, Increase of Receivables 9 -7,642 -216 local market. the nature of these judgements and estimates, including the Increase of Short-term debts 15 -3,549 34,949 corresponding assumptions, is included in the notes to the -12,672 7,862 Sanquin Blood Supply Foundation has its main office at particular items of the annual accounts. Cash flow from business operations -9,543 55,584 Plesmanlaan 125, 1066 CK in Amsterdam and is registered Other movements in consolidation -814 -268 with the Chamber of Commerce in Amsterdam under number 1.5 Consolidation Interest received 25 341 955 41217565. The consolidation includes the financial data of Sanquin Blood Corporation tax 27 7,345 -7,071 Supply Foundation, its group companies and other legal entities Interest paid 25 -1,239 -1,337 1.2 Continuity in which it can exercise dominant control or over which it has 5,633 -7,721 Sanquin Blood Supply’s equity as at 31 December 2014 was central management. Group companies are legal entities in € 299.5 million. Liquid assets decreased from € 73.9 million which Sanquin Blood Supply Foundation can directly or indirectly Cash flow from operating activities -3,910 47,863 to € 35.8 million during the reporting year. In addition to the exercise dominant control because it has the majority of voting Cash flow from investing activities available liquid assets, Sanquin uses loans from banks (for CAF rights or can control the financial and operational activities in Investments in tangible fixed assets 6 -36,960 -47,248 subsidiary), the CMO partner Baxter and the Landsteiner some other way. Potential voting rights that can be exercised Cash flow from investing activities -36,960 -47,248 Foundation for Blood Transfusion Research (LSBR) to finance directly on the balance sheet date are also taken into account here. its operations. -40,870 615 The group companies and other legal entities in which it Cash flow from financing activities Based on the forecasted result and the expected investments, can exercise dominant control or over which it has central Receipts from long-term debts 4,136 16,700 Sanquin is projecting a negative cash flow for 2015. On the basis management are included in the consolidation 100%. The share Repayments of long-term debts 14 -1,423 -20,733 of plans and initiatives for 2015, Sanquin expects to be able to of third parties in the group equity and in the group’s result is Cash flow from financing activities 2,713 -4,033 close 2015 with a positive liquid asset balance: reported separately. • Continued growth in the CMO activities of Plasma Products Net cash flow -38,157 -3,420 based on investments made in 2013 and 2014; Intercompany transactions, intercompany results and receivables Increase/(decrease) of cash 10 -38,157 -3,420 • Further cost reduction measures, particularly in relation to and debts between the group companies and other legal entities hiring third parties; included in the consolidation are eliminated. Unrealised losses on • Further restriction of the investments programme; intercompany transactions are also eliminated unless there is an The development of cash is as follows: • Financing of the compliance programme related to the FDA impairment. Accounting principles of group companies and 2014 2013 together with Shire; other legal entities included in the consolidation have been (€ 000’s) € € € € • Continuation of the LSBR loan. adapted where necessary to achieve consistency with the Balance as at 1 January 73,942 77,362 accounting principles used for the Group. Change during the financial year -38,157 -3,420 In the event of any setbacks, Sanquin can call on an available Balance as at 31 December 35,785 73,942 bank credit facility. The following companies are included in the consolidation: The accounting principles applied in the present annual accounts • Sanquin Blood Supply Foundation, Amsterdam, therefore assume the company’s continuity. The Netherlands • CAF-DCF CVBA, Brussels, Belgium (50.01%) • Sanquin Oy, Helsinki, Finland (100%) • Euroclone BV, Amsterdam, The Netherlands (100%)


  • Page 24

    40 | Annual Accounts Annual Accounts Sanquin Annual Report 2014 | 41 1.6 Application of Article 2:402 of the Dutch Civil Code 2.3 Foreign currency Other fixed assets are valued at the lower of acquisition price/ 3.2.3 Securities Since Sanquin Blood Supply Foundation’s 2014 profit and loss Functional currency manufacturing cost, including directly attributable costs, net of The securities included under financial fixed assets that are account is included in the consolidated annual accounts, limited The items in the annual accounts of the group companies are straight-line depreciation during the expected future useful life, intended to serve permanently for the conduct of the company’s notes to the balance sheet and profit and loss account are valued taking into account the currency of the economic environ- or value in use. The manufacturing cost consists of the activities are valued at the lower of acquisition price or market included in the stand alone annual accounts. ment in which the group company mainly conducts its business purchasing costs of raw materials and consumables and costs value. Reductions in the value of these securities are included activities (the functional currency). The consolidated annual that can be directly allocated to the manufacture, including at the expense of the profit and loss account. 1.7 Affiliated parties accounts are presented in euros, the functional and presentation installation costs. Software implementation costs are directly All legal entities over which dominant control, joint control or currency of Sanquin. deducted from the result. 3.2.4 Other receivables significant influence can be exercised are designated as affiliated The other receivables included under financial fixed assets include parties. Legal entities that can exercise dominant control are also Transactions, receivables and liabilities There is no obligation to restore the asset at the end of its use. loans that will be held until the maturity date. These receivables designated as affiliated parties. The members of the Executive Transactions in foreign currencies during the reporting period No provision for major maintenance has been formed for the are valued at repayment value. Impairments are deducted from Board under the articles of association, other key officers in are included in the annual accounts at the exchange rate in future costs of major maintenance to the company buildings. the repayment value and reported directly in the profit and Sanquin’s management and those closely related are also effect on the transaction date. The costs are reported directly in the result. loss account. affiliated parties. Monetary assets and liabilities denominated in foreign currencies 3.2 Financial fixed assets 3.3 Impairment of fixed assets Significant transactions with affiliated parties are explained to are converted at the exchange rate in effect on the balance sheet 3.2.1 Participating interests The Foundation determines on every balance sheet date whether the extent these have been entered into not at arm’s length. The date. The exchange rate differences arising from settlement Participating interests in group companies and other a fixed asset may be subject to impairment. If there are nature and size of the transaction are explained in this case and and conversion are added to or deducted from the profit and participating interests where significant influence can be indications that this is the case, the realisable value of the asset is other information necessary to provide insight is also given. loss account. exercised are valued according to the net asset value method. determined. An impairment applies if the book value of an asset Significant influence is assumed if 20% or more of the voting is higher than the realisable value; the realisable value is usually 1.8 Cash flow statement Non-monetary assets that are valued at acquisition price in a rights can be exercised. equal to the direct realisable value in the event of sale. The cash flow statement was prepared according to the indirect foreign currency are converted at the exchange rate in effect method. Cash and cash equivalents in the cash flow statement on the transaction date. The net asset value is calculated according to the policies that 3.4 Stocks consist of liquid assets. Cash flows in foreign currencies are apply for these annual accounts. 3.4.1 Raw materials and consumables and semi-manufactures translated at average exchange rates. Exchange rate differences 2.4 Leasing The raw materials include plasma and auxiliary materials. relating to liquid assets are shown separately in the cash flow Sanquin Blood Supply Foundation may have lease contracts If the valuation of a participating interest is negative according These stocks are stated at the lower of cost price or market value. statement. Income and expenditure arising from interest, whereby a large part of the advantages and disadvantages to the net asset value, it is valued at zero. A provision is created A provision for obsolescent stock is deducted from the value of dividends received and tax on profits are included in cash flow associated with ownership are not enjoyed or suffered by the if and insofar as Sanquin Blood Supply Foundation wholly or the stock where necessary. from operating activities. Transactions that involve no influx or Foundation. These lease contracts are reported as operational partially guarantees the participating interest’s debts in this outflow of cash or cash equivalents are not included in the cash leases. Obligations under an operational lease are included on situation, or has the firm intention of enabling the participating The semi-manufactures, including the production in progress flow statement. a straight-line basis in the profit and loss account for the term interest to pay its debts. as at the balance sheet date, are stated at the lower of direct cost of the contract, taking into account compensations received plus a mark-up for direct manufacturing costs or market value. 2. General Accounting Principles from the lessor. The first valuation of acquired participating interests is based A provision for obsolescent stock is deducted from the value of on the fair value of the identifiable assets and liabilities at the the stock where necessary. 2.1 General 3. Accounting principles for the valuation of moment of acquisition. For the next valuation, the policies The consolidated annual accounts have been drawn up in assets and liabilities that apply to these annual accounts are used, with the value 3.4.2 Finished products and goods for resale accordance with the statutory provisions of Title 9, Book 2 of produced at the time of first valuation used as a basis. The stock of finished products is stated at the lower of raw the Dutch Civil Code and the authoritative statements from the 3.1 Tangible fixed assets materials costs plus directly attributable manufacturing costs Annual Reporting Guidelines published by the Dutch Accounting Company buildings and sites are valued at acquisition price Participating interests in which no significant influence can be or market value. A provision for obsolescent stock is deducted Standards Board. The annual accounts are drawn up in euros. plus additional costs or manufacturing cost net of straight-line exercised are valued at acquisition price. If there is a permanent from the value of the stock where necessary. Assets and liabilities are generally stated at acquisition price depreciation during their estimated useful economic lives. reduction in value, the participating interest is stated at this lower or manufacturing cost. If no specific basis is reported for the No depreciation is charged on land. value; downward revaluation takes place at the expense of the Goods for resale are stated at the lower of acquisition price or valuation, valuation takes place at acquisition price. References profit and loss account. market value. A provision for obsolescent stock is deducted from are included in the balance sheet, profit and loss account and Fixed assets in progress are not depreciated until the asset is the value of the stock where necessary. cash flow statement. These references refer to the notes. taken into use. 3.2.2 Receivables from participating interests The receivables included under financial fixed assets are stated 3.5 Receivables 2.2 Comparison to previous year Impairments expected on the balance sheet date are taken into at the fair value of the amount provided less any provisions Upon first inclusion receivables are stated at the fair value of the The accounting principles used are unchanged with respect account. See Section 3.3 with regard to the determination as deemed necessary. consideration received in return. Trade receivables are stated at to the previous financial year. to whether a tangible fixed asset is subject to an impairment. amortised cost price after first inclusion. If the receipt of the


  • Page 25

    42 | Annual Accounts Annual Accounts Sanquin Annual Report 2014 | 43 receivable is deferred on grounds of an agreed extension to a Deferred taxes are reported for temporary differences concerning direct cost. This also includes, if applicable, the devaluation of in the profit and loss account. Pension schemes of subsidiaries payment term, the fair value is determined with reference to the group companies, participating interests and joint ventures, stocks to a lower market value and any provisions created for abroad, which are organised and function similarly to the Dutch present value of the expected receipts and interest income based unless Sanquin is able to determine at what moment the obsolescent stock. pension system, are also included according to the obligation on the effective interest rate is added to the profit and loss temporary difference will expire and it is unlikely that the approach. For foreign pension schemes that are not similar, a account. Provisions for bad debt are deducted from the book temporary difference will expire in the foreseeable future. 4.5 Other operating income best estimate is made of the obligation existing as at the balance value of the receivable. Deferred taxes are stated at nominal value. Other operating income includes subsidy income. Subsidies are sheet date, based on an actuarial valuation method generally reported in the profit and loss account as income in the year in accepted in the Netherlands. 3.6 Liquid assets 3.9 Long-term debts which the subsidised costs are incurred. The income is reported Liquid assets consist of cash, bank balances and call deposits with Long-term debts are stated at fair value at the time of first when it is likely that it will be received and Sanquin Blood Supply 4.7 Depreciation of tangible fixed assets a term of less than twelve months. Current account debts at valuation. Transaction costs that can be allocated to the Foundation can demonstrate the conditions for receipt. Tangible fixed assets are depreciated over the expected future banks are included under debts to credit institutions in short-term acquisition of the debts are directly included in the profit and loss useful life from the moment they are taken into use. No debts. Liquid assets are stated at face value. account. After first inclusion, debts are stated at the repayment 4.6 Employee benefits depreciation is charged on land. If a change is made to the value in effect at that moment. The portion of the long-term 4.6.1 General estimate of the economic useful life, the future depreciation 3.7 Share of third parties debts that will be repaid in the coming financial year is included The result is determined as the difference between the realisable is adjusted. Book gains and losses from the incidental sale Share of third parties as part of the group equity is stated at the under the short-term debts. value of the performance delivered and the costs and other of tangible fixed assets are included under depreciation. amount of the net interest in the particular group companies. charges for the year. The results on transactions are reported 4. Accounting principles for determining in the year in which they are realised. 4.8 Financial income and expenses 3.8 Provisions the result Interest received and interest paid are time-weighted, taking 3.8.1 General 4.6.2 Regularly payable benefits into account the effective interest rate for the particular assets Provisions are formed for legally enforceable or actual liabilities 4.1 General Wages, salaries, social security charges and pension contributions and liabilities. that exist on the balance sheet date and which will most likely The result is determined as the difference between the realisable are, on grounds of the employment conditions, included in require the outflow of funds the size of which can be reliably value of the performance delivered and the costs and other the profit and loss account to the extent they are payable to 4.9 Tax on result from ordinary business operations estimated. charges for the year. The results on transactions are reported in employees. The tax on the result is calculated on the result before tax in the the year in which they are realised; losses can be realised as soon profit and loss account, taking into account the exempt profit The provisions are stated at the best estimate of the amounts that as they are foreseeable. 4.6.3 Pensions components and investment and other facilities. The principle will be needed to settle the liabilities as at the balance sheet date. Sanquin utilises Pensioenfonds Zorg & Welzijn (pension fund for applied by Sanquin in this respect is that the liability for tax only The provisions are stated at the face value of the expenditures 4.2 Revenue recognition the healthcare and social welfare sector) for the pension scheme applies to the commercial section of the organisation. that are expected to be necessary to settle the liabilities, unless Sale of goods in the Netherlands. Eligible employees are entitled at retirement stated otherwise. Revenue from the sale of goods is included as soon as all age to a pension based on the average wage earned calculated 5. Financial Instruments and Risk Management significant rights and risks related to the ownership of the goods over the years that the employee accrued pension at the Zorg 3.8.2 Employee provisions pass to the purchaser. & Welzijn industry pension fund for the healthcare and social 5.1 Market risk The employee provisions consist of obligations relating to welfare sectors. 5.1.1 General existing redundancy arrangements, reorganisation costs, reserved Provision of services Sanquin Blood Supply Foundation is exposed to various financial pension contributions and contributions to be compensated, Revenues from the provision of services are included if and The obligations arising from the employees’ rights are placed at risks: price risk (including exchange rate risk, market risk and long-service bonuses and continued payment in the event of insofar as the particular services have actually been performed. the industry pension fund for the healthcare and social welfare interest-rate and cash flow risk), credit risk and liquidity risk. The long-term illness. sectors. Sanquin pays contributions to this pension scheme; half size of these risks in the daily operations is not such that financial Exchange differences of the contribution is financed by the employer and the other instruments are used to hedge the risks. Financial risks are 3.8.3 Deferred tax assets and liabilities Exchange differences that take place in the settlement of half by the employee. The pension rights are indexed annually, managed centrally by the Group Control department on the Deferred tax assets and liabilities are included for temporary monetary items are included in the profit and loss account in the if and insofar as the pension fund’s funding ratio (the pension basis of policy adopted by the Executive Board. differences between the value of the assets and liabilities period in which they occur. fund’s capital divided by its financial obligations) permits this. according to tax regulations on the one hand and the book 5.1.2 Price risk values followed in these annual accounts on the other. Deferred 4.3 Net turnover As at 31 December 2014, the pension fund’s funding ratio was Sanquin Blood Supply Foundation is exposed to risks relating tax assets and liabilities are calculated at the tax rates in effect at Net turnover includes the revenues from the supply of goods and 102% (source: website www.pfzw.nl dated 23 January 2015). to raw material and energy prices. This risk is managed by the end of the reporting year, or at the rates that are to apply in services less discounts etc. and less taxes levied on the turnover The pension fund must have a funding ratio of at least 105% to reducing the dependency on suppliers as much as possible, coming years, to the extent these have already been set by law. and after elimination of transactions within the group. avoid affiliated institutions having to make extra contributions centralising procurement where possible and making or having to implement special increases in the contributions. long-term price agreements with suppliers wherever possible. Deferred tax assets due to offsettable differences and available 4.4 Costs of raw materials and consumables Sanquin has no obligation to pay additional contributions in the The starting point when entering into procurement relationships losses to be carried forward are included to the extent it is likely The raw materials and consumables are raw materials that are event of a shortfall in the fund, other than the effect of higher is to agree on price increases that fall within the margins of the that future taxable profit will be available against which losses used and are directly attributable to the net turnover, as well as future premiums. Sanquin has therefore only reported the government regulation for price compensation for budgets in can be offset and netting possibilities can be utilised. the costs of manufacturing at cost, or, for goods for resale, the contributions owed to the end of the financial year as a charge the healthcare sector.


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    44 | Annual Accounts Annual Accounts Sanquin Annual Report 2014 | 45 5.1.3 Currency risk 5.2 Credit risk Notes to the balance sheet Sanquin Blood Supply mainly operates in the European Union. Sanquin Blood Supply Foundation has no significant If significant long-term supply obligations are entered into, such concentrations of credit risk. Short shelf-life blood products are 6. Tangible fixed assets as the supply of Cinryze for the US market, price agreements are, sold to Dutch hospitals. Long shelf-life blood products are only The changes in the tangible fixed assets can be specified as follows: in principle, made in euros, even if the supply is to countries sold to customers that satisfy the Foundation’s creditworthiness outside the European Union. test. Products are sold on the basis of credit terms of 14 to 60 Land and buildings Machines and Other fixed Fixed operating Total installations operating assets assets in progress The remaining transactions in foreign currency are relatively days. Additional securities, such as prepayments and guarantees, (€ 000’s) € € € € € limited and any residual risks from these transactions are may be requested for large supplies, or credit insurance may be therefore not hedged. concluded. Balance as at 1 January 2014 Acquisition prices or manufacturing costs 137,963 184,321 27,672 40,454 390,410 5.1.4 Interest-rate and cash flow risk 5.3 Liquidity risk Accumulated depreciation -45,891 -126,842 -22,346 1 -195,078 Sanquin Blood Supply Foundation is exposed to interest-rate risk Sanquin Blood Supply Foundation uses several banks in order Book values 92,072 57,479 5,326 40,455 195,332 on the interest-bearing receivables (in particular those under to have access to a number of credit facilities. Further securities Changes financial fixed assets and liquid assets) and interest-bearing are provided to the bank for available credit facilities as necessary. Investments 3,153 12,568 1,527 19,720 36,968 long-term and short-term debts (including debts to credit No specific bank covenants apply to date. Changes 1,150 8,862 84 -10,096 0 institutions). Divestments -8,319 -2,744 -5,172 0 -16,235 Change in depreciation -1 1 0 0 For receivables and liabilities with variable interest-rate Depreciation -9,113 -15,897 -2,353 0 -27,363 agreements, the Foundation is exposed to risk in relation to Depreciation of divestments 8,319 2,744 5,172 0 16,235 future cash flows; in relation to fixed-interest receivables and Balance -4,810 5,531 -740 9,624 9,605 liabilities, the Foundation is exposed to risks concerning the market value. Balance as at 31 December 2014 Acquisition prices or manufacturing costs 133,947 203,007 24,111 50,078 411,143 No financial derivatives for interest-rate risks are contracted in Accumulated depreciation -46,685 -139,996 -19,527 1 -206,207 connection with these receivables and liabilities. Book values 87,262 63,011 4,584 50,079 204,936 Depreciation rates 0%-10% 10%-20% 20%-33% 0% Investments in projects that are still in progress as at the balance The 2014 investments in tangible fixed assets that exceeded sheet date are reported in the column ‘Fixed operating assets € 1.0 million were: in progress’. After completion, these projects are reported as Investments in tangible ‘Land and buildings’, ‘Machines and installations’ or ‘Other fixed fixed assets operating assets’. The corresponding debit in ‘Fixed operating (x € million) assets in progress’ is visible as a negative item under Installations for Baxter for CMO production 7.9 ‘Investments’. Renovation of building U for Research 5.9 Acquisition of ICT transition hardware 2.2 The assets are at the free disposal of the Foundation, with the Expansion/consolidation of warehouses 2.1 exception of the production facilities which are financed with New vacuum freeze dryer for Plasma Products 1.4 the loan provided by Baxter (see Note 14, Long-term debts Upgrade Plasma Products filling line 1.3 for additional information). The current value of the fixed assets does not deviate significantly from the book value.


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    46 | Annual Accounts Annual Accounts Sanquin Annual Report 2014 | 47 7. Financial fixed assets 8. Stocks Taxes and social security contributions 11. Group equity Changes in the financial fixed assets can be specified as follows: 31-12-2014 31-12-2013 (€ 000’s) € € 31-12-2014 31-12-2013 The equity is further explained in the notes to the balance sheet Deelnemingen Totaal Raw materials and consumables 103,237 110,080 (€ 000’s) € € in the stand alone annual accounts. (€ 000’s) and semi-manufactures Turnover tax 6,185 6,216 € € Finished products and goods for resale 44,906 39,364 12. Share of third parties Balance as at 1 January 2014 0 0 Social security charges 629 595 Contract manufacturing work in 12,802 10,020 Investments 3,750 3,750 6,814 6,811 progress Changes in the share of third parties were as follows: Result of participating interests 0 0 160,945 159,464 Divestments 0 0 Other receivables, prepayments and accrued income 31-12-2014 31-12-2013 Balance as at 31 December 2014 3,750 3,750 Stocks stayed virtually the same relative to 2013. (€ 000’s) € € 31-12-2014 31-12-2013 Balance as at 1 January 19,483 19,281 Participating interests In valuing the stocks, a provision for obsolescence has been taken (x € 1,000,-) € € Result for the financial year -1,102 202 Sanquin in 2012 acquired a financial interest in Xenikos BV in into account in the amount of € 7.6 million (2013: € 23.4 million). Security deposits 34 176 Balance as at 31 December 18,381 19,483 Nijmegen. Xenikos is a biotech company that is developing a Prepaid expenses 2,970 2,775 T-Guard® experimental drug. T-Guard® is a drug for treating The stocks are at the free disposal of the Foundation. An exception Amounts to be received 6,675 9,191 serious rejections in patients following a transplant involving to this is the work in progress involving contract manufacturing for 9,679 12,142 13. Provisions donor blood stem cells: Graft-Versus-Host Disease (GVHD). third parties. In this situation Sanquin’s contract party itself provides the plasma or intermediate products for fractionation. This plasma No securities have been provided to other parties with regard to 31-12-2014 31-12-2013 Sanquin’s equity interest is 37.44%. Due to Xenikos’ negative and the intermediate and end products created from it remain the the receivables. (€ 000’s) € € equity, the interest in Xenikos was fully written down as at property of the contract party throughout the entire production Employee provisions 7,276 8,609 31 December 2014. process. The value added by Sanquin as at the balance sheet date 10. Liquid assets Deferred tax liabilities 5,759 5,503 is reported as the work in progress. Other provisions 777 913 Sanquin is obliged to invest an additional € 0.7 million in Xenikos’ The item liquid assets in the cash flow statement can be specified 13,812 15,025 share capital on the basis of future milestones in the development 9. Receivables as follows: process of a new drug. Sanquin made an additional investment of 31-12-2014 31-12-2013 31-12-2014 31-12-2013 € 0.7 million in Xenikos’ share capital on this basis at the (€ 000’s) € € (€ 000’s) € € beginning of 2015. In addition, Sanquin has issued a security Trade receivables 74,438 63,744 Cash 35 78 deposit for Xenikos’ obligation arising from an innovation credit Taxes and social security contributions 6,814 6,811 Bank balances 26,465 14,787 granted to Xenikos in the amount of € 1.9 million. Other receivables, prepayments and 9,087 12,142 Deposits 9,285 59,077 accrued income 35,785 73,942 Sanquin acquired a participating interest in Vitaleech Bioscience 90,339 82,697 NV in Rotterdam back in 2000. Sanquin’s equity interest is 11%. The deposits all have a remaining term of less than one year. Vitaleech is developing a substance to fight gum inflammation. All receivables have a remaining term of less than one year. Sanquin acquired most of the shares in the years 2000 to 2005 as compensation for products and services it supplied for Vitaleech’s Trade receivables research. Because of uncertainty about the future profitability of 31-12-2014 31-12-2013 the company, the interest has been fully written down. (€ 000’s) € € Trade receivables 74,976 64,473 A € 3.75 million loan provided to the Slotervaart Medical Centre Debit: provision for doubtful debts -538 -729 (MCS) is included under the financial fixed assets. MCS is a joint 74,438 63,744 initiative of Sanquin, NKI-AVL, Slotervaartziekenhuis and Verpleeghuis Slotervaart van Cordaan, that operates the joint access roads and parking facilities. The loan was granted for the construction of a new parking garage completed in 2014 for use by the staff and visitors of the four institutions. The term of the loan is 10 years and will be paid off on a straight-line basis over a period of 10 years. The loan’s interest rate is 4%.


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    48 | Annual Accounts Annual Accounts Sanquin Annual Report 2014 | 49 Changes in the provisions are as follows: Debts to credit institutions 16. Off-balance-sheet assets and commitments Employee provisions Deferred taxes Other provisions Total This involves four loans from credit institutions for investments in (€ 000’s) € € € € the Belgian production facilities. An amount of € 0.7 million was As at the balance sheet date, Sanquin has entered into Balance as at 1 January 2014 8,609 5,503 913 15,025 repaid in 2014. In addition, an additional amount of € 7.5 million investment commitments totalling € 41.8 million. These are Allocation 2,829 256 0 3,085 was recognised in 2014. The remaining term of the loans is investments in new construction to expand the Plasma Products Withdrawals -4,034 0 -136 -4,170 6-10 years with interest rates ranging from 2.0% to 3.7%. and Research divisions and the process equipment for the Release -128 0 0 -128 CAF provided the lenders with securities in the form of mortgage preparation of plasma products and laboratory equipment. Balance as at 31 December 2014 7,276 5,759 777 13,812 rights and pledge rights to CAF’s assets for these loans. Approximately half of the investment commitments have a term of less than one year and the other half have been entered into 15. Short-term debts for a term of up to 5 years. The employee provisions consist of obligations relating to A provision for deferred taxes has been created for the 31-12-2014 31-12-2013 Sanquin rents donor centres at many locations. The annual rental existing redundancy arrangements, reorganisation costs, reserved differences between the valuation for tax purposes and (€ 000’s) € € obligation related to this is € 2.3 million. The various leases have pension contributions and contributions to be compensated, the corporate valuation of balance sheet items of CAF-DCF Repayment obligations 21,423 20,733 terms of between 1 and 5 years. long-service bonuses and continued payment in the event of that result in a future obligation to pay corporation tax. Debts to suppliers and trade credit 47,167 50,523 long-term illness. The withdrawal of € 4.0 million from the Research amounts received in advance 10,745 8,803 In particular for the vehicle fleet, lease contracts have been employee provisions is due to the redundancy payments made The other provisions have been created for current claims Salaries and holiday allowance 19,586 17,515 concluded with an annual financial obligation in the amount to departing employees on the basis of the Social Plan in the and legal disputes. Taxes and social security contributions 1,198 14,092 of € 0.5 million. The lease contracts have a maximum term of context of the 2015 Blood Bank reorganisation. The release from Pension contributions 1,551 1,240 5 years. the employee provisions is also related to the provision for the The provisions can largely be regarded as long term Other liabilities, accruals and deferred 24,426 16,739 A number of contracting parties have been provided with bank 2015 Blood Bank reorganisation and is due to the higher than (longer than one year). income guarantees totalling € 0.8 million. In addition, Sanquin has expected natural attrition of personnel. More people than Balance as at 31 December 126,096 129,645 issued a security deposit for the Xenikos participating interest’s expected have accepted a job elsewhere within Sanquin as obligation arising from an innovation credit granted to Xenikos a result of which fewer people than expected are availing in the amount of € 1.9 million. themselves of the facilities available under the Social Plan. The short-term debts on balance decreased by € 3.5 million. A € 20.0 million loan from the Landsteiner Foundation for Blood Transfusion Research (LSBR) is included under the repayment 14. Long-term debts obligations. The original term of this loan was up to September 2014. Negotiations are underway with the LSBR’s Board Repayment value Repayment Remaining term Remaining term concerning an extension of this loan. The interest rate on the as at 2014 obligation 2015 > 1 year > 5 year outstanding amount is 4.75%. No securities have been provided (€ 000’s) € € € € for this loan. Loans 45,858 20,000 25,858 0 Debts to credit institutions 13,573 1,423 12,150 0 The short-term debts all have a remaining term of less than Balance as at 31 December 59,431 21,423 38,008 0 one year. Repayment obligations due within 12 months from the end Loans of the financial year as explained above are included in the This concerns a loan from Baxter in the amount of € 25.9 million short-term debts. to finance the process installations for the contract manufacturing operations carried out for Baxter. This loan runs to the end of The valuation of the long-term debts at repayment value 2024 and the outstanding amount is interest-free. Securities have approximates the amortised cost price of the debts. been provided for this loan in relation to the specific process installations that are being installed for the contract manufacturing In addition to the reported loans, Sanquin has negotiated activities carried out for Baxter. The loan is being repaid by a credit facility of a maximum of 20 million with a credit granting a discount on the agreed rate for contract manufacturing. institution. No use was made of this facility in 2014.


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    50 | Annual Accounts Annual Accounts Sanquin Annual Report 2014 | 51 Notes to the profit and loss account 21. Remuneration of the Supervisory Board 23. Other operating expenses 17. Net turnover 19. Average number of employees The payment to the Supervisory Board was € 29 (2013: € 30) 2014 2013 and can be specified as follows: (€ 000’s) € € The net turnover can be broken down by geographic area as During the year 2014, the company employed 2,859 people Other personnel expenses 12,846 12,326 follows: on average, based on full-time employment (2013: 2,676). 2014 2013 Accommodation expenses 26,950 22,248 244 of these employees were working abroad (2013: 232). (€ 000’s) € € Donor expenses 3,450 2,817 2014 2013 F.C. Breedveld* 15 11 Transport expenses 5,802 4,007 (€ 000’s) € € 20. Remuneration of the Executive Board Mw. K.T.V. Bergstein 0 0 General expenses 84,368 68,911 Netherlands 227,740 229,102 M.J.W. Bontje 7 4 133,416 106,184 Abroad 190,965 164,273 The total remuneration of the Executive Board, including pension C.G. Figdor 0 0 418,705 393,375 contributions, was € 835. Of this € 346 was related to the Blood A.K. Lahr 7 4 Bank’s activities and € 489 was related to Sanquin’s private J.H. Schraven (to 1-7-2013) 0 7 2014 2013 activities. In 2013, the total remuneration of the Executive Board B. Löwenberg (to 1-7-2013)* 0 4 (€ 000’s) € € The net turnover can also be broken down as follows by main was € 759. The breakdown is as follows: * For some members of the Supervisory Board, Sanquin pays the remuneration directly to a General expenses category: charity or the employer. Maintenance costs 13,978 11,869 Remuneration Pension Costs of publicity 3,505 4,431 Contributions 2014 2013 A statement of the remuneration of the members of the Travel, accommodation and 3,623 3,611 (€ 000’s) € € 2014 (€ 000’s) € € Supervisory Board pursuant to the Senior Officials in the Public representation expenses Blood Bank turnover 136,310 143,854 H.M. le Clercq 75 0 and Semi-Public Sector (Standards for Remuneration) Act (WNT) Office costs 1,318 1,384 Plasma Products turnover 240,700 205,887 A. van Os 220 15 is included in the Appendix Remuneration of Senior Officials to Communication costs 3,912 3,678 Diagnostic Services turnover 19,092 20,516 H.J.C. de Wit 260 27 these Annual Accounts. IT costs 25,015 19,071 R.A.W. van Lier 216 22 Consulting/auditing fees 12,085 5,954 Reagents turnover 12,248 12,326 Research turnover 8,999 7,440 2013 22. Depreciation of tangible fixed assets Costs of external services 9,457 6,804 Turnover from other activities 1,356 3,352 Insurance and Taxes 2,640 2,982 A. van Os 215 23 2014 2013 Other expenses 8,835 5,002 418,705 393,375 H.J.C. de Wit 259 27 (€ 000’s) € € 84,368 68,911 R.A.W. van Lier 213 22 Tangible fixed assets (Section 6) 27,363 25,244 18. Wages and salaries 27,363 25,244 In addition, the Foundation incurred staff costs related to a 2014 2013 former member of the Executive Board who is still employed by (€ 000’s) € € Sanquin. The breakdown is as follows: Wages and salaries 152,812 136,115 Social security charges 20,867 18,230 Remuneration Pension Contributions Pension charges 10,503 9,886 2014 (€ 000’s) € € 184,182 164,231 T.J.F. Buunen 197 7 2013 The costs for wages, salaries, social charges and pension T.J.F. Buunen 276 31 contributions increased by € 19.9 million in 2014. The key cause is the increase in the workforce at the Plasma Products Division related to the increase in turnover and the increased focus on A statement of the remuneration of the members of the quality-related aspects. Executive Board pursuant to the Senior Officials in the Public and Semi-Public Sector (Standards for Remuneration) Act (WNT) is included in the Appendix Remuneration of Senior Officials to these Annual Accounts.


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    52 | Annual Accounts Annual Accounts Sanquin Annual Report 2014 | 53 24. Auditor’s fees 26. Costs of research and development Stand Alone Annual Accounts 2014 The following amounts in auditor’s fees for the services of The research and development costs charged to the result Balance sheet as at 31 December 2014 (prior to profit appropriation) PricewaterhouseCoopers Accountants N.V. were charged for 2014 amounted to € 32.5 million (2013: € 28.0 million). to the result: 31 December 2014 31 December 2013 27. Tax on result from ordinary business (€ 000’s) Ref. € € € € 2014 2013 operations Assets (€ 000’s) € € Fixed assets Audit of the annual accounts 268 320 Sanquin Blood Supply Foundation is a non-profit organisation. Tangible fixed assets 179,613 170,079 Other audit activities 15 14 With regard to the Foundation’s commercial activities, Financial fixed assets 29 22,478 19,761 Tax advice 0 0 agreements up to and including 2012 were made with the tax authorities on the determination of the taxable amount and the 202,091 189,840 Other non-audit services 0 0 corporation tax owed on this. The regular corporation tax regime Current assets 283 334 applies to Sanquin as of 2013. The tax on the result is therefore Stocks 131,396 130,308 calculated on the result before tax in the profit and loss account. Receivables 30 68,793 66,204 The fees above relate exclusively to the work performed at the The principle applied by Sanquin in this respect is that the liability Liquid assets 31 30,086 71,683 company and the companies included in the consolidation by for tax only applies to the commercial section of the organisation. 230,275 268,195 audit organisations and independent external auditors as referred The Dutch Tax and Customs Administration has not yet approved to in Section 1 (1) of the Audit Firms (Supervision) Act (Wet this principle. Due to the loss incurred in 2014, the tax expense 432,366 458,035 toezicht accountantsorganisaties). reported in 2013 was reversed. Because the scope of the Liabilities corporation tax levy is as yet uncertain, the actual tax expense 32 Equity 25. Financial income and expenses over 2013 and 2014 may deviate from the tax expense reported Foundation capital 1,957 1,957 in the annual accounts. Designated reserve 33 7,976 7,976 2014 2013 Other reserves 306,076 289,146 (€ 000’s) € € Result for the financial year -16,542 16,930 Revenue from financial fixed assets -814 -264 Interest income 341 955 299,467 316,009 Interest expenses -1,239 -1,337 Provisions 34 7,582 8,974 -1,712 -646 Long-term debts 35 25,858 25,200 Short-term debts 36 99,459 107,852 432,366 458,035


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    54 | Annual Accounts Annual Accounts Sanquin Annual Report 2014 | 55 Profit and loss account for 2014 Notes to the balance sheet and profit and loss account 31 December 2014 31 December 2013 28. General List of participating interests (€ 000’s) € € € € The participating interests held directly by Sanquin Blood Supply Net turnover 363,738 342,412 The stand alone annual accounts have been drawn up in Foundation are: Change in stocks of finished products and work in progress 19,633 27,111 accordance with the statutory provisions of Title 9, Book 2 of Other operating income 20,034 9,659 the Dutch Civil Code and the authoritative statements from the Fully consolidated Annual Reporting Guidelines published by the Dutch Accounting (included in the consolidated annual accounts) Total operating income 403,405 379,182 Standards Board. Share in issued Costs of raw materials and consumables 122,309 97,752 capital Wages and salaries 139,193 122,921 as % The stand alone annual accounts only contain the annual accounts Social security charges incl. pension 26,396 23,292 under the Articles of Association of the Sanquin Blood Supply CAF-DCF cbva, Brussels 50.01 Depreciation of tangible fixed assets 23,163 20,051 Foundation. In relation to the consolidated annual accounts, the Sanquin Oy, Helsinki 100.00 Other operating expenses 113,250 91,624 revenues and costs of the majority participations in these annual Euroclone BV, Amsterdam 100.00 accounts have not been included in the profit and loss account. Total operating expenses 424,311 355,640 Instead the results of the participating interests are recognised as Other capital interests that do not qualify as participating Operating result -20,906 23,542 a separate item in the profit and loss account. interests Revenue from tangible fixed assets 0 0 Share in issued Revenue from financial fixed assets 0 0 capital The same accounting principles apply for the stand alone Interest income 331 941 as % annual accounts as for the consolidated annual accounts. Interest expenses -1,014 -1,086 Participating interests in group companies are valued according Vitaleech BV, Rotterdam 11.00 to net asset value in line with Section 3.2.1 of the consolidated Xenikos BV, Nijmegen 37.44 Result from ordinary business operations before taxes -21,589 23,397 annual accounts. Tax on result from ordinary business operations 6,707 -6,723 A € 3.75 million loan provided to the Slotervaart Medical Centre Result of participating interests -1,660 256 See the notes to the consolidated balance sheet and profit and (MCS) is included under the financial fixed assets. MCS is a joint Result after taxes -16,542 16,930 loss account for the accounting principles for the valuation of assets initiative of Sanquin, NKI-AVL, Slotervaartziekenhuis and and liabilities and for the determination of the result. Verpleeghuis Slotervaart van Cordaan, that operates the joint access roads and parking facilities. The loan was granted for the 29. Financial fixed assets construction of a new parking garage completed in 2014 for use by the staff and visitors of the four institutions. The term of the Changes in the financial fixed assets can be specified as follows: loan is 10 years and will be paid off on a straight-line basis over a period of 10 years. The loan’s interest rate is 4%. Participating Total interests 30. Receivables in group companies (€ 000’s) 31-12-2014 31-12-2013 € € Balance as at 1 January 2014 19,761 19,761 (€ 000’s) € € Investments Debtors 55,877 49,847 Result of participating interests -1,660 -1,660 Taxes and social security contributions 5,217 6,125 Write-down 627 627 Other receivables, prepayments and 7,699 10,232 accrued income Loans 3,750 3,750 68,793 66,204 Balance as at 31 December 2014 22,478 22,478


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    56 | Annual Accounts Annual Accounts Sanquin Annual Report 2014 | 57 31. Liquid assets 36. Short-term debts 31-12-2014 31-12-2013 31-12-2014 31-12-2013 (€ 000’s) € € (€ 000’s) € € Cash 36 78 Salaries and holiday allowance 17,082 15,083 Bank balances 25,715 14,128 Debts to suppliers and trade credit 35,334 41,391 Deposits 4,335 57,477 Taxes and social security contributions 776 13,984 30,086 71,683 Pension contributions 1,463 1,190 Research amounts received in advance 10,745 8,803 Repayment obligations 20,000 20,000 32. Equity Other liabilities, accruals and deferred 14,059 7,401 income Foundation Designated Other Result for the Total 99,459 107,852 capital reserve reserves financial year (€ 000’s) € € € € € Balance as at 1 January 2014 1,957 7,976 289,146 16,930 316,009 37. Average number of employees Changes Result for the current financial year 0 0 0 -16,542 -16,542 During the year 2014, the company employed 2,615 people Profit appropriation 0 0 16,930 -16,930 0 on average, based on full-time employment (2013: 2,444). Other changes in the reserves 0 0 0 0 0 Balance as at 31 December 2014 1,957 7,976 306,076 -16,542 299,467 38. Affiliated parties The transactions between Sanquin Blood Supply Foundation 33. Designated reserves 34. Provisions and its affiliated parties - CAF-DCF, Sanquin Oy and Euroclone - primarily involve plasma fractionation that Sanquin and CAF-DCF The designated reserves relate to the Reserve for Research and 31-12-2014 31-12-2013 perform for each other. The prices charged on for these activities the Reserve for International Cooperation. (€ 000’s) € € are in line with the market. Employee provisions 7,582 8,974 The Reserve for Research was originally created from the positive 7,582 8,974 operating balances of the former Dr Karl Landsteiner Research Amsterdam, 28 May 2015 Foundation, which was absorbed by Sanquin in the merger. The employee provisions consist of obligations relating to existing redundancy arrangements, reorganisation costs, Sanquin Blood Supply Foundation A new designated reserve for International Cooperation was reserved pension contributions and contributions to be created in 2013 to ensure that the funds received for this compensated, long-service bonuses and continued payment Executive Board purpose would remain available for development projects. in the event of long-term illness. M. le Clercq MSc (Chairman) H.J.C. de Wit DPharm The provisions can largely be regarded as long term (longer Prof. R.A.W. van Lier MD PhD than one year). Supervisory Board Prof. F.C. Breedveld MD PhD (Chairman) 35. Long-term debts Ms K.T.V. Bergstein MSc MBA M.J.W. Bontje Repayment value Repayment Remaining term Remaining term Prof. C.G. Figdor PhD as at 31-12-2014 obligation 2015 > 1 year > 5 year A.K. Lahr MSc (€ 000’s) € € € € Loans 45,858 20,000 25,858 0 Debts to credit institutions 0 0 0 0 45,858 20,000 25,858 0


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    58 | Annual Accounts Annual Accounts Sanquin Annual Report 2014 | 59 Other information Remuneration of a former member of the Executive Board Remuneration of the members of the Supervisory Board Proposal for profit appropriation 2014 2013 2014 2013 2014 2013 Name: H.J.C. de Wit Name: A. van Os Name: F.C. Breedveld The Executive Board has decided to include the result after tax Position: Vice-chairman of the Executive Board Position: Former Chairman of the Executive Board Position: Chairman of the Supervisory Board of € 16.5 million in the general reserve. Term of employment 1 January to 1 January to Term of employment 1 January to 1 January to Term of employment 1 January to 1 January to 31 December 31 December 31 August 31 December 31 December 31 December Events after the balance sheet date Working hours 36 hours 36 hours Working hours 36 hours 36 hours Working hours N/A N/A Remuneration 240,262 238,687 Remuneration 214,748 207,452 Remuneration* 14,521 10,891 There were no events after the balance sheet to be reported. Taxable fixed and variable expense Taxable fixed and variable expense Taxable fixed and variable expense allowance 19,920 19,920 allowance 5,000 7,500 allowance 0 0 Provisions for remuneration payable Provisions for remuneration payable Social security contributions 0 0 Senior Officials in the Public and Semi-Public over time 27,163 26,610 over time 15,424 22,663 Provisions for remuneration payable Sector (Standards for Remuneration) Act (WNT) Total remuneration as defined Total remuneration as defined over time 0 0 in the WNT 287,345 285,217 in the WNT 235,172 237,615 Total remuneration as defined The remuneration of Sanquin’s senior officials is reported in the WNT 14,521 10,891 pursuant to the Senior Officials in the Public and Semi-Public Rationale for exceeding the remuneration standard: The Rationale for exceeding the remuneration standard: The Rationale for exceeding the Sector (Standards for Remuneration) Act (WNT). Only members employment contract with Mr De Wit was negotiated before the employment contract with Mr Van Os was negotiated before the remuneration standard: N/A N/A of the Executive Board and the Supervisory Board are considered WNT came into effect. No standard applied with respect to the WNT came into effect. No standard applied with respect to the * Mr Breedveld’s remuneration is transferred to his employer. senior officials as defined in the WNT. This section reports the remuneration of directors at that time. The contractual agree- remuneration of directors at that time. The contractual agree- 2014 2013 information related to the members and past members of the ments formulated at the time are being respected. The statutory ments formulated at the time are being respected. In accordance Name: K.T.V. Bergstein Executive Board. The standard figures for the purpose of the transition rule includes a provision for exceeding the remuneration with the WNT, the remuneration in 2014 includes a severance Position: Member of the Supervisory Board WNT for members of the Sanquin Executive Board are set at standard and this is therefore permitted under the WNT. payment of € 75,000 in relation to the termination of the Term of employment 1 January to 1 September to 230,474, and for members of the Supervisory Board at 5% of employment contract.The statutory transition rule includes a 31 December 31 December the maximum remuneration or 11,524, with the exception of 2014 2013 provision for exceeding the remuneration standard and this is Working hours N/A N/A the chairman, for whom the standard figure is set at 7.5% of therefore permitted under the WNT. Remuneration* 0 0 Name: R.A.W. van Lier the maximum remuneration, or 17,286. Position: Member of the Executive Board Taxable fixed and variable expense Term of employment 1 January to 1 January to 2014 2013 allowance 0 0 Remuneration of the members of the Executive Board 31 December 31 December Social security contributions 0 0 Name: T.J.F. Buunen Working hours 36 hours 36 hours Provisions for remuneration payable Position: Former Chairman of the Executive Board Remuneration 203,204 200,773 over time 0 0 2014 2013 Term of employment 1 January to 19 1 January to 31 March December Total remuneration as defined Taxable fixed and variable expense Name: H.M. le Clercq in the WNT 0 0 allowance 12,500 12,500 Working hours 36 hours 36 hours Position: Chairman of the Executive Board Rationale for exceeding the Provisions for remuneration payable Remuneration 196,857 276,260 Term of employment 1 June to remuneration standard: N/A N/A over time 22,472 22,011 31 December Taxable fixed and variable expense * In 2014, Ms Bergstein waived her remuneration. Total remuneration as defined Working hours 24 hours allowance 0 0 in the WNT 238,176 235,284 Remuneration 74,962 Provisions for remuneration payable over time 6,852 30,874 Taxable fixed and variable expense Rationale for exceeding the remuneration standard: The Total remuneration as defined allowance 0 employment contract with Mr Van Lier was negotiated before the in the WNT 203,709 307,134 Provisions for remuneration payable WNT came into effect. No standard applied with respect to the over time 0 remuneration of directors at that time. The contractual agree- Rationale for exceeding the remuneration standard: The Total remuneration as defined in the WNT 74,962 ments formulated at the time are being respected. The statutory employment contract with Mr Buunen was negotiated before transition rule includes a provision for exceeding the remuneration the WNT came into effect. No standard applied with respect standard and this is therefore permitted under the WNT. to the remuneration of directors at that time. The contractual agreements formulated at the time are being respected. The remuneration in 2014 concerns a settlement for leave days not taken as of the date of termination of the employment, and also includes an anniversary benefit in connection with Mr Buunen’s 25 years of service. The statutory transition rule includes a provision for exceeding the remuneration standard and this is therefore permitted under the WNT.


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    60 | Annual Accounts Annual Accounts Sanquin Annual Report 2014 | 61 Remuneration of other employees subject to the WNT 2014 2013 2014 2013 2014 2013 2014 Name: M.J.W. Bontje Name: A.K. Lahr Name: B. Löwenberg Position: Manager Blood Bank Position: Member of the Supervisory Board Position: Member of the Supervisory Board Position: Lid Raad van Toezicht Term of employment 1 January to Term of employment 1 January to 1 June to Term of employment 1 January to 1 July to Term of employment 1 January to 31 October 31 December 31 December 31 December 31 December 30 June Working hours 36 hours Working hours N/A N/A Working hours N/A N/A Working hours N/A Remuneration 271,743 Remuneration 7,260 4,235 Remuneration 7,260 3,630 Remuneration* 3,630 Taxable fixed and variable expense allowance 0 Taxable fixed and variable expense Taxable fixed and variable expense Taxable fixed and variable expense Provisions for remuneration payable over time 4,424 allowance 0 0 allowance 0 0 allowance 0 Total remuneration as defined in the WNT 276,167 Social security contributions 0 0 Social security contributions 0 0 Social security contributions Provisions for remuneration payable Provisions for remuneration payable Provisions for remuneration payable Rationale for exceeding the remuneration standard: In 2014, over time 0 0 over time 0 0 over time this employee received a severance payment pursuant to the Total remuneration as defined Total remuneration as defined Total remuneration as defined in the WNT 7,260 4,235 in the WNT 7,260 3,630 in the WNT 3,630 provisions of the Social Plan in relation to the termination of Rationale for exceeding Rationale for exceeding Rationale for exceeding long-term employment in the context of the reorganisation the remuneration standard: N/A N/A the remuneration standard: N/A N/A the remuneration standard: N/A of the Blood Bank’s activities. * Mr Löwenberg’s remuneration is transferred to his employer. 2014 2014 2013 2014 2013 Position: Manager Blood Bank Name: C.G. Figdor Name: J.H. Schraven Term of employment 1 January to Position: Member of the Supervisory Board Position: Chairman of the Supervisory Board 31 July Term of employment 1 January to 1 July to Term of employment 1 January to Working hours 36 hours 31 December 31 December 30 June Remuneration 223,971 Working hours N/A N/A Working hours N/A Taxable fixed and variable expense allowance 0 Remuneration* 0 0 Remuneration 7,260 Social security contributions 0 Taxable fixed and variable expense Taxable fixed and variable expense Provisions for remuneration payable over time 8,846 allowance 0 0 allowance 0 Total remuneration as defined in the WNT 232,817 Social security contributions 0 0 Social security contributions 0 Provisions for remuneration payable Provisions for remuneration payable Rationale for exceeding the remuneration standard: In 2014, over time 0 0 over time 0 this employee received a severance payment pursuant to the Total remuneration as defined Total remuneration as defined in the WNT 0 0 provisions of the Social Plan in relation to the termination of in the WNT 7,260 Rationale for exceeding long-term employment in the context of the reorganisation Rationale for exceeding the remuneration standard: N/A N/A the remuneration standard: N/A of the Blood Bank’s activities. * In 2014, Prof Figdor waived his remuneration.


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    62 | Annual Accounts Independent auditor’s report To: the Executive Board and Supervisory Board of Sanquin Blood Supply Foundation Report on the financial statements An audit also includes evaluating the appropriateness of We have audited the accompanying financial statements 2014 accounting policies used and the reasonableness of accounting of Sanquin Blood Supply Foundation, Amsterdam, which estimates made by the Executive Board, as well as evaluating comprise the consolidated and company balance sheet as at the overall presentation of the financial statements. 31 December 2014, the consolidated and company profit and loss account for the year then ended and the notes, comprising We believe that the audit evidence we have obtained is sufficient a summary of accounting policies and other explanatory and appropriate to provide a basis for our audit opinion. information. Opinion Executive Board’s responsibility In our opinion, the financial statements give a true and fair view The Executive Board is responsible for the preparation and fair of the financial position of Sanquin Blood Supply Foundation as presentation of these financial statements in accordance with at 31 December 2014, and of its result for the year then ended Part 9 of Book 2 of the Dutch Civil Code and with the rules of in accordance with Part 9 of Book 2 of the Dutch Civil Code and and following the Dutch Standards for Remuneration of Senior the rules of and following the WNT. Officials in the Public and Semi-Public Sector Act (WNT), and for the preparation of the Report of the Executive Board in Report on other legal and regulatory accordance with Part 9 of Book 2 of the Dutch Civil Code. requirements Furthermore, the Executive Board is responsible for such internal Pursuant to the legal requirement under Section 2: 393 sub 5 control as it determines is necessary to enable the preparation at e and f of the Dutch Civil Code, we have no deficiencies to of the financial statements free from material misstatement, report as a result of our examination whether the Executive whether due to fraud or error. Board’s report, to the extent we can assess, has been prepared in accordance with Part 9 of Book 2 of this Code, and whether Auditor’s responsibility the information as required under Section 2: 392 sub 1 at b-h Our responsibility is to express an opinion on these financial has been annexed. Further we report that the Executive Board’s statements based on our audit. We conducted our audit in report, to the extent we can assess, is consistent with the accordance with Dutch law, including the Dutch Standards financial statements as required by Section 2: 391 sub 4 of on Auditing and the audit protocol WNT. This requires that the Dutch Civil Code. we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. Amsterdam, 9 June 2015 An audit involves performing procedures to obtain audit PricewaterhouseCoopers Accountants N.V. evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud Original has been signed by A.J.M. Loogman RA or error. In making those risk assessments, the auditor considers internal control relevant to the company’s preparation, fair presentation of the financial statements and compliance with the WNT-requirements in respect of financial legitimation in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the company’s internal control.


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    Sanquin Plesmanlaan 125, 1066 CX Amsterdam, The Netherlands PO Box 9892, 1006 AN Amsterdam, The Netherlands Telefoon +31 20 - 512 30 00, Fax +31 20 - 512 33 03 www.sanquin.nl


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    Sanquin ANNUAL REPORT 2014


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