Geratherm Medical AG

Earnings Release • May 25, 2022

GERATHERM AT A GLANCE

Facts and figures	January March 2022	January March 2021	Change %
Sales revenues	6,412 kEUR	6,660 kEUR	-3.7
of which export share	5,080 kEUR	5,210 kEUR	-2.5
Export ratio	79 %	78 %	1.3
Gross result for period under review (EBITDA)	1,132 kEUR	1,051 kEUR	7.8
EBITDA margin	17.7 %	15.8 %	12.0
Amortisation and depreciation	-415 kEUR	-375 kEUR	10.8
Operating result (EBIT)	717 kEUR	676 kEUR	6.1
EBIT margin	11.2 %	10.2 %	9.8
Financial results	-72 kEUR	-31 kEUR	>100.0
Profit (loss) on ordinary activities	645 kEUR	645 kEUR	0.0
Net earnings of the parent company's shareholders in given period	436 kEUR	422 kEUR	3.3
Long-term assets	15,342 kEUR	14,794 kEUR	3.7
Short-term assets	20,049 kEUR	22,143 kEUR	-9.5
Balance sheet total	35,391 kEUR	36,937 kEUR	-4.2
Equity capital	18,533 kEUR	20,911 kEUR	-11.4
Return on equity	9.4 %	8.1 %	16.6
Equity ratio	52.4 %	56.6 %	-7.4
Cash, cash equivalents and securities	5,793 kEUR	9,361 kEUR	-38.1
Net result per share for given period according to IFRS (EPS)**	EUR 0.09	EUR 0.09	0.0
Net result per share for given period as per DVFA** (German Association for Financial Analyses and Asset Management)	EUR 0.09	EUR 0.09	0.0
Number of employees at end of period	216	242	-10.7
Total shares issued	4,949,999	4,949,999	0.0
**based on total shares issued	4,949,999	4,949,999	0.0

Business performance from 1 January to 31 March 2022

• Sales revenues EUR 6.4 million -3.7 %
• Gross result for first quarter (EBITDA) EUR 1.132 million +7.8 %
• Operating result (EBIT) 717 kEUR +6.1 %
• EBIT margin 11.2 % (2021: 10.2 %)
• Results from ordinary activities 645 kEUR (2021: 645 kEUR).
• Earnings per share 9 EUR cent (2021: 9 EUR cents)

Dear Shareholders and Parties Interested in Geratherm Medical,

We successfully concluded the first quarter of 2022 in spite of the overall underlying economic challenges. Although sales did slide slightly by -3.7 % in the first three months, the operating result did rise by 6.1 %. The positive earnings performance was supported primarily by the better performance posted by the subsidiaries Respiratory, apoplex and LMT. The earnings posted at the location in Thuringia slid in the first three months.

The gross result of the overall performance was EUR 4.518 million (2021: EUR 4.577 million). The gross margin on sales was 70.5 % (2021: 68.7 %). The gross earnings (EBITDA) increased +7.8 % to EUR 1.132 million in the first three months of the financial year. During the first quarter, the operating result EBIT was 717 kEUR (2021: 676 kEUR).

The results from ordinary business activities amounted to 645 kEUR (2021: EUR 645 million). The shareholders' result after taxes for the first quarter was 436 kEUR (2021: 422 kEUR) or EUR 0.09 per share (2021: EUR 0.09).

Facts and figures		I/22	IV/21	III/21	II/21	I/21
(in kEUR)	Sales	6,412	5,795	5,744	5,741	6,660
	EBITDA margin	17.7 %	-9.5 %	19.6 %	11.8 %	15.8 %
	EBIT	717	-1,152	761	305	676
	EPS (EUR)	0.09	-0.19	0.08	0.04	0.09
	Cash flow	821	-384	1,190	456	1,072

Sales development

The sales development by regions was not uniform in the first quarter of 2022 and was influenced in part by different lockdown intervals in the individual regions. In the first three months, Group sales decreased by -3.7 % over the previous year.

There was a -11.7 % drop in sales on the European market. On the German market, we registered a decrease in sales. Sales in Germany in the first three months were -8.1 % lower than in the same period of the previous year. In the Middle East, we posted a - 45.3% drop in sales as a result of postponed orders. On the US market, sales posted in the first quarter showed a very strong growth by more than +100.0 %, compared to the same period last year. We experienced a burgeoning market in South America. Here, sales showed a favorable increase of +35.3 %. In the Other countries region, sales managed to stabilise and increased by +6.7 %.

Sales by regions 1/1 to 31/3/2022

Geratherm Medical's products are primarily marketed internationally. In the first quarter, 79.2 % (2021: 78.2 %) of Geratherm products were exported.

Sales by segments 1/1 to 31/3/2022

In the Healthcare Diagnostic segment, where we primarily market clinical thermometers, blood pressure monitors and women's health products to pharmacies and drugstores world-wide, we registered a decline in sales of -13.2 %. In the first quarter, sales for all product groups, with the exception of Incubator Systems and Cardio/Stroke, decreased slightly, which is probably due to the general uncertainty involving the current global economic situation. The Healthcare Diagnostic segment accounted for 55.7 % of the total sales generated by the Geratherm Group.

In the Respiratory segment, where we offer sensors and products for monitoring pulmonary functions, we currently have a healthy demand for products that are needed for long-term COVID treatment. Although the sales posted by medical devices for measuring pulmonary function decreased by -4.6 % in the first three months, we do expect growth to return in the next few quarters, since we are currently having problems everywhere on the procurement market, which is delaying the delivery of products.

The development of sales in the Incubator Systems segment (formerly: Medical Warming Systems) was once again positive during the period under review. The growth in sales was due to the favourable development posted by LMT Medical, which was able to boost its sales by +60.7 %.

In the Cardio/Stroke segment, we managed to generate a slight jump in sales of 15.1 % in the first three months. Visiting hospitals or clinics was not very simple as a result of the strict hygiene measures, which adversely affected operating activities.

Earnings situation

In the first three months of the 2022 financial year, we were able to close with a slightly higher Group result compared to the same quarter of the prior year. Sales of -3.7 % with a gross profit of -1.3 % were about on the same level as the same period last year. Positive effects were provided by the considerably higher earnings reported by LMT Medical, and the initiated cost savings. With an EBIT margin of 11.2 % (2021: 10.2 %), the sales and earnings reported in the first quarter were in line with our expectations.

The gross profit margin of sales during the first three months amounted to 70.5 % (2021: 68.7 %). The gross profit was at about the same level as in the previous year at EUR 4.518 million, representing a minus of 59 kEUR.

In spite of constantly rising labour costs, the development of personnel expenses remained stable with an increase of +0.6 %. The other operating expenses could be reduced significantly by -11.4 % to EUR 1.196 million thanks to savings. The gross profit (EBITDA) was EUR 1.132 million, an increase of 7.8 %. The write-offs increased by +10.8 % to 415 kEUR due to investments.

The operating result (EBIT) increased by +6.1 % to 717 kEUR. The financial results amounted to -72 kEUR (2021: -31 kEUR). The result from ordinary business activities during the first three months were unchanged at the amount of 645 kEUR (2021: 645 kEUR).

Taxes on profit decreased by -5.7 % to 139 kEUR. A consolidated net profit for the first three months amounted to 507 kEUR (2021: 498 kEUR).

Taking income and expenses recognised in the equity capital into account resulted in another negative result, essentially due to currency translations in the amount of - 422 kEUR (2021: +487 kEUR). The consolidated statement of comprehensive income showed a surplus of 85 kEUR for the first quarter. Of this, -144 kEUR are assigned to minority interests such that the group comprehensive earnings for the shareholders of the parent company is 228 kEUR (2021: 845 kEUR).

The result per share for the first three months is EUR 0.09 (2021: EUR 0.09).

Net assets and financial situation

Geratherm Medical enjoys a favourable asset situation. The balance sheet total of EUR 35.4 million is essentially formed by equity capital in the amount of EUR 18.5 million. The equity-to-assets ratio as of the reporting date was 52.4 % (2021: 56.6 %). The return on equity amounted to 9.4 % (2021: 8.1 %).

As of 31 March 2022, the company had cash, cash equivalents and securities in the amount of EUR 5.8 million (2021: EUR 9.4 million). As a result, the company has a solid financial position in spite of the high investments made over the past few years.

The long-term assets amounted to EUR 15.3 million (2021: EUR 14.8 million). The slight jump is due to the increase in intangible assets.

The short-term assets decreased by -9.5 % to EUR 20.0 million. Inventories increased by +1.9 % to EUR 8.7 million. The gain is due to the temporary increase in works in progress. The trade accounts receivable increased by +23.4 % to EUR 3.9 million. All in all, the "Receivables and other assets" item increased by +20.7 % to EUR 5.6 million.

Geratherm holds securities in the amount of EUR 4.2 million. As of the reporting date, the valuation basis increased by 0.2 %. The cash and cash equivalents available as at 31 March 2022 amounted to EUR 1.6 million (2021: EUR 2.2 million).

The gross cash flow for the first three months of 2022 reduced to 821 kEUR (2021: EUR 1.072 million).

The cash flow from operations improved to +163 kEUR (2021: -359 kEUR). The cash flow from investments amounted to -749 kEUR (2021: -564 kEUR). The cash flow from financing activities was -111 kEUR (2021: -372 kEUR).

Research and development

Our research and development activities are currently concentrated in Geratherm Respiratory, Incubator Systems and Cardio/Stroke.

Staff

The Geratherm Group had a staff of 216 persons in total as of 31 March 2022 (2021: 242) with 204 employees in Germany.

Outlook

Geratherm Medical AG's activities are very international. In our traditional export countries, we have continued to struggle with the different lockdown regulations.

The war in Ukraine and the resulting global economic problems such as energy prices, inflation and increasing costs will continue to affect us in 2022.

While we have gotten off to a good start in 2022 as expected, we have to carefully manage further development due to the unpredictable war. The production of clinical thermometers is currently working at full capacity and will be set up for the future with several new, ultra-modern production facilities over the course of the year.

Geratherm products for measuring pulmonary function should register a stable demand. apoplex products in the Cardio/Stroke segment should continue to post very good development in 2022.

As a result of the ongoing uncertainty due to coronavirus requirements, we have also decided not to take any risks and will hold the annual general meeting virtually this year. This will take place on 26 August 2022. The Hamburg-based company UBJ has been commissioned with carrying out and organising the annual general meeting.

Geratal, May 2022

Christian Frick Chief Executive Officer

Consolidated profit and loss statement from 1 January to 31 March 2022

	January- March	January- March	Change
	2022 EUR	2021 EUR	in %
Sales revenues	6,411,707	6,660,350	-3.7
Change in inventory of finished products and work in process	212,936	311,118	-31.6
Other capitalised own work	96,696	45,844	>100.0
Other operating income	153,466	206,092	-25.5
	6,874,805	7,223,404	-4.8
Cost of materials
Cost of raw materials, consumables
and goods for resale	-1,904,109	-2,312,794	-17.7
Costs of purchased services	-452,308	-333,518	35.6
	-2,356,417	-2,646,312	-11.0
Gross profit or loss	4,518,388	4,577,092	-1.3
Personnel expenses
Wages and salaries	-1,809,155	-1,822,377	-0.7
Social security, pension and other benefits	-380,318	-354,451	7.3
	-2,189,473	-2,176,828	0.6
Other operating expenses	-1,196,349	-1,349,588	-11.4
Gross profit (EBITDA)	1,132,566	1,050,676	7.8
Amortisation of intangible assets and depreciation of tangible assets	-415,249	-374,905	10.8
Operating results	717,317	675,771	6.1
Securities-related expenses	-80	-315	-74.6
Other interest and similar income	317	373	-15.0
Interests and similar expenses	-72,371	-30,706	>100.0
Financial results	-72,134	-30,648	>100.0
Profit (loss) on ordinary activities	645,183	645,123	0.0
Income taxes	-138,577	-146,940	-5.7
Consolidated profit for the period	506,606	498,183	1.7
Result of non-controlling shareholders	70,876	76,169	-6.9
Profits of the parent company's shareholders	435,730	422,014	3.3
Earnings per share (undiluted)	0.09	0.09	0.0

Consolidated balance sheet as at 31 March 2022 Assets 31 March 2022

Assets	31 March 2022 EUR	31 December 2021 EUR	Change in %
A. Long-term assets
I. Intangible assets
1. Development costs	3,020,610	2,993,567	0.9
2. Other intangible assets	1,037,504	1,073,600	-3.4
3. Goodwill	90,432	90,433	0.0
	4,148,546	4,157,600	-0.2
II. Tangible assets
1. Land, land rights and buildings	5,090,755	5,144,613	-1.0
2. Technical equipment and machinery	2,937,988	3,049,051	-3.6
3. Other equipment, factory and office equipment 4. Construction in process	303,684 903,911	303,545 310,182	0.0 >100.0
	9,236,338	8,807,391	4.9
III. Rights of use	478,290	514,331	-7.0
IV. Other financial assets	1,370,150	1,370,150	0.0
V. Other long-term receivables	105,883	99,216	6.7
VI. Deferred taxes	2,251	0	-
	15,341,458	14,948,688	2.6
B. Short-term assets
I. Inventories
1. Raw materials and supplies	2,195,948	2,010,257	9.2
2. Unfinished goods	1,378,846	1,222,856	12.8
3. Finished goods and merchandise	5,125,904	5,306,967	-3.4
II. Receivables and other assets	8,700,698	8,540,080	1.9
1. Trade receivables	3,921,164	3,176,815	23.4
2. Receivables from current income taxes	843,182	759,095	11.1
3. Receivables from other taxes	251,300	147,713	70.1
4. Other assets	539,871	517,850	4.3
	5,555,517	4,601,473	20.7
III. Securities	4,214,744	4,206,085	0.2
IV. Cash and cash equivalents	1,578,163	2,264,089	-30.3
	20,049,122	19,611,727	2.2
	35,390,580	34,560,415	2.4
Equity and liabilities
A. Equity capital
I. Subscribed capital	4,949,999	4,949,999	0.0
II. Capital reserves	12,203,077	12,203,077	0.0
III. Other reserves	1,438,896	1,369,052	5.1
Assignable to the shareholders of the parent company Shareholders of minority interests	18,591,972 -59,311	18,522,128 109,228	0.4 >100.0
	18,532,661	18,631,356	-0.5
B. Non-current liabilities
1. Liabilities to banks	5,673,633	5,493,281	3.3
2. Accrued investment subsidies	1,261,550	1,289,432	-2.2
3. Long-term leasing liabilities	211,332	245,046	-13.8
4. Other long-term liabilities	410,497	459,400	-10.6
5. Deferred taxes	0	14,033	-
	7,557,012	7,501,192	0.7
C. Current debts
1. Liabilities to banks 2. Trade accounts payables	3,029,186 1,523,407	2,844,914 1,430,128	6.5 6.5
3. Current provisions	42,189	42,189	0.0
4. Short-term leasing liabilities	277,866	278,513	-0.2
5. Liabilities from current income taxes	83,849	51,672	62.3
6. Contractual liabilities	1,714,636	1,759,206	-2.5
7. Other tax liabilities	618,947	483,503	28.0
8. Other short-term liabilities	2,010,827	1,537,742	30.8
	9,300,907	8,427,867	10.4
	35,390,580	34,560,415	2.4

Consolidated statement of cash flows from 1 January to 31 March 2022

	January- March 2022 kEUR	January- March 2021 kEUR
Consolidated profit for the period	507	498
Non-cash expenses and income of Geratherm do Brasil Ltda.	157	-44
Other non-cash expenses	-441	93
Interest earnings	0	0
Interest expenses	72	31
Change in deferred taxes	-16	25
Income tax expenditure	155	122
Depreciation of fixed assets	329	294
Amortisation of usage rights	86	81
Amortisation of public grants and subsidies	-28	-28
Gross cash flow	821	1,072
Increase in inventories	-160	-1,359
Increase in trade receivables and other assets	-870	-245
Increase in current liabilities and other liabilities	657	359
Cash inflow from interest	0	0
Cash outflow from interest	-72	-31
Cash outflow for taxes	-213	-155
Cash flow from operations	163	-359
Cash outflow for investments in intangible assets (without capitalised development costs) and tangible assets	-652	-328
Additions to capitalised development costs	-97	-186
Cash inflow from funding sources for investments	0	0
Acquisition of equity holdings	0	-50
Cash inflow based on financial assets	0	0
Cash outflow based on financial assets	0	0
Cash flow from investments	-749	-564
Cash outflow for rental and lease liabilities	-87	-81
Share acquisition from shareholders of minority interests	-183	0
Dividend payments	0	0
Cash inflow from taking out loan liabilities	530	0
Cash outflow for repayment of loan liabilities	-322	-291
Decrease in long-term liabilities	-49	0
Cash flow from financing activities	-111	-372
Change in cash and cash equivalents	-697	-1,295
Cash and cash equivalents at beginning of reporting period	2,264	4,855
Exchange rate difference	11	40
Cash and cash equivalents at end of reporting period	1,578	3,600

Consolidated statement of change to the shareholders' equity as at 31 March 2021

				Other reserves
	Sub scribed capital	Capital reserve	Market valuation reserve	Currency conversion reserve	Accumulat ed earnings	Assignable to the shareholders of the parent company	Non control ling interests	Equity capital
	EUR	EUR	EUR	EUR	EUR	EUR	EUR	EUR
as of 1 January 2021	4,949,999	12,174,192	1,171,470	737,712	1,268,167	20,301,540	-376,082	19,925,458
Dividend paid to shareholders	0	0	0	0	0	0	0	0
Transactions with shareholders and member partners	0	0	0	0	0	0	0	0
Consolidated earnings in period concerned	0	0	0	0	422,014	422,014	76,169	498,183
Unrealised profits and losses from valuation of securities	0	0	354,143	0	0	354,143	0	354,143
Currency translation in the Group	0	0	0	69,298	0	69,298	63,906	133,204
Total consolidated income	0	0	354,143	69,298	422,014	845,455	140,075	985,530
as of 31/3/2021	4,949,999	12,174,192	1,525,613	807,010	1,690,181	21,146,995	-236,007	20,910,988
as of 1 January 2022	4,949,999	12,203,077	1,269,560	734,697	-635,205	18,522,128	109,228	18,631,356
Purchase of shares in the subsidiary apoplex technologies GmbH from shareholders of minority interests without change in control	0	0	0	0	-158,293	-158,293	-24,930	-183,223
Dividend paid to shareholders	0	0	0	0	0	0	0	0
Transactions with shareholders and member partners	0	0	0	0	-158,293	-158,293	-24,930	-183,223
Consolidated earnings in period concerned	0	0	0	0	435,730	435,730	70,875	506,605
Unrealised profits and losses from valuation of securities	0	0	8,659	0	0	8,659	0	8,659
Currency translation in the Group	0	0	0	-216,252	0	-216,252	-214,484	-430,736
Total consolidated income	0	0	8,659	-216,252	435,730	228,137	-143,609	84,528
as of 31 March 2022	4,949,999	12,203,077	1,278,219	518,445	-357,768	18,591,972	-59,311	18,532,661

Consolidated statement of comprehensive income as per IFRS for the period from 1 January to 31 March 2022

	1/1 - 31/3/2022 EUR	1/1 - 31/3/2021 EUR
Consolidated profit for the period Income and expenses directly recognised in equity,	506,605	498,183
which are not reclassified to profit or loss:
Profits or losses from valuation of securities according to IFRS 9	8,659	354,143
	8,659	354,143
Income and expenses directly recognised in equity, which are reclassified to profit or loss under specific conditions:
Difference resulting from currency translation	-430,736	133,204
	-430,736	133,204
Other income	-422,077	487,347
Overall result	84,528	985,530
of which assignable to shareholders of minority interest	-143,609	140,075
of which assignable to shareholders of parent company	228,137	845,455

Group segment report for the period from 1 January to 31 March 2022

By product groups	Healthcare Diagnostic	Respiratory	Incubator Systems	Cardio/ Stroke	Consolidation	Reconciliation	Total
2022	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR
Segment sales	4,062	1,297	728	679	-346	-8	6,412
Operating results	416	108	132	175	-78	-36	717
including:
Amortisation/ depreci ation of intangible and tangible assets	159	37	76	53	64	26	415
Interest expenses	-53	-16	-1	-3	0	0	-73
Tax expenses	95	25	24	6	0	0	150
Segment assets	16,421	4,795	3,390	4,528	0	6,255	35,389
Of which long-term assets	7,205	2,469	1,353	3,043	0	1,270	15,340
Segment debts	10,121	2,933	1,515	2,289	0	0	16,858
By product groups 2021	Healthcare Diagnostic Jan.-Mar. kEUR	Respiratory Jan.-Mar. kEUR	Medical Warming Systems Jan.-Mar. kEUR	Cardio/ Stroke Jan.-Mar. kEUR	Consolidation Jan.-Mar. kEUR	Reconciliation Jan.-Mar. kEUR	Total Jan.-Mar. kEUR
Segment sales	4,562	1,454	459	595	-410	0	6,660
Operating results	580	146	-114	180	-75	-41	676
including:
Amortisation/ depreci ation of intangible and tangible assets	163	39	69	34	35	35	375
Interest expenses	-10	-17	-1	-3	0	0	-31
Tax expenses	-118	-17	-12	0	0	0	-147
Segment assets	15,100	4,854	3,442	3,397	0	10,144	36,937
Of which long-term assets	6,986	2,513	1,595	2,230	0	1,470	14,794
Segment debts	10,676	2,976	765	1,609	0	0	16,026

By region	Europe	South America	Germany	Middle East	USA	Other	Total
2022	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR
Sales revenues	3,289	242	1,662	386	908	271	6,758
Elimination of intragroup sales	0	-16	-330	0	0	0	-346
Sales revenues on third parties	3,289	226	1,332	386	908	271	6,412
Gross profit or loss	2,289	149	991	269	632	188	4,518
Operating results	352	46	152	41	97	29	717
including:
Amortisation and depreciation of intangible and tangible assets	212	11	92	25	58	17	415
Amortisation of public grants and subsidies	15	0	6	2	4	1	28
Interest income	0	-33	-39	0	0	0	-72
Acquisition costs of fixed assets for the period	0	0	749	0	0	0	749
Segment assets	0	731	34,431	0	229	0	35,391
Of which long-term assets	0	156	15,171	0	15	0	15,342

By region	Europe	South America	Germany	Middle East	USA	Other	Total
2021	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR
Sales revenues	3,723	176	1,851	706	360	254	7,070
Elimination of intragroup sales	0	-9	-401	0	0	0	-410
Sales revenues on third parties	3,723	167	1,450	706	360	254	6,660
Gross profit or loss	2,560	82	1,027	486	247	175	4,577
Operating results	430	-79	172	82	42	29	676
including:
Amortisation and depreciation of intangible and tangible assets	209	9	84	39	20	14	375
Amortisation of public grants and subsidies	16	0	6	3	2	1	28
Interest income	0	0	-30	0	0	0	-30
Acquisition costs of fixed assets for the period	0	0	513	0	0	0	513
Segment assets	0	475	36,333	0	129	0	36,937
Of which long-term assets	0	161	14,633	0	0	0	14,794

Notes on Interim Consolidated Financial Statements for the Period from 1 January to 31 March 2022

Accounting and valuation methods

The interim consolidated financial statements of Geratherm Medical AG as at 31 March 2022 were prepared in accordance with the rules of the International Financial Reporting Standards (IFRS) valid on the date of the financial statements and in consideration of the guidance provided by the International Financial Reporting Interpretations Committee (IFRIC), as is mandatory in the European Union.

The accounting, evaluation and consolidation principles were maintained, as shown in the Notes to Consolidated Financial Statements for 2021 Fiscal Year. The valuation of assets and liabilities is based in part on estimates and/or assumptions about future developments. The estimates are based on past experience and other knowledge of the business transactions which are to be accounted for. For instance, the assessment of capitalisation requirements for development projects, the statements on economic useful lives for long-term intangible and tangible assets are based in particular on estimates and assumptions. In addition, the assessment of assets of the "hold and sell" category, which are not traded on an active market and are intangible assets that are not ready for use, is based on the corporate planning, which of course involves uncertainties such that the actual values may deviate in individual cases from the made assumptions and estimates. There are also estimates and assumptions relating to the contractual term of the leased office and storage space of subsidiaries. Estimates and the underlying assumptions are regularly checked and evaluated with regard to possible impact on accounting. There are also estimates relating to the loan obligations of the Brazilian subsidiary, which is currently in bankruptcy protection under Brazilian law. Estimates are also made when evaluating the valuation allowance due to the expected credit losses on trade accounts receivable and contractual assets as well as the recognition of deferred tax assets in relation to the availability and future taxable results, against which deductible temporary differences and tax losses carried forward can be used.

Consolidated Group

The changes occurred in the consolidation group as of 31 March 2022:

	Share quota	Share quota
Company	31/3/2022	31/12/2021
GME Rechte und Beteiligungen GmbH, Geratal, Germany	100.00 %	100.00 %
apoplex medical technologies GmbH, Pirmasens, Germany	57.08 %	53.42 %
Subsidiary: apoplex medical technologies Spain SL Barcelona, Spain	57.57 %	57.57 %
Geratherm Respiratory GmbH, Bad Kissingen, Germany	67.58 %	67.58 %
Geratherm Medical do Brasil Ltda., Sao Paulo, Brazil	51.00 %	51.00 %
Sensor Systems GmbH, Steinbach Hallenberg, Germany	100.00 %	100.00 %
Capillary Solutions GmbH, Geratal, Germany	100.00 %	100.00 %
LMT Medical Systems GmbH, Lübeck, Germany	80.00 %	80.00 %
Subsidiary of LMT Lübeck
LMT Medical Systems Inc., Ohio, USA	100.00 %	100.00 %

With the notarised purchase agreement from 2 March 2022, Geratherm Medical AG took over additional nominal capital shares of minority interests in apoplex medical technologies GmbH at a purchase price of 183 kEUR. As a result, the participation in the nominal capital of apoplex medical technologies GmbH increased by +3.66 % (25 kEUR). The purchase price difference in the amount of 158 kEUR was shown as revenue reserve in equity capital of the Group.

Equity capital

The development of the equity capital is shown in the consolidated statement of change to the shareholders' equity. The subscribed capital of Geratherm Medical AG amounted all in all to EUR 4,949,999 as at 31 March 2022 (2021: EUR 4,949,999) and is divided into 4,949,999 (2021: 4,949,999) share certificates issued to the bearers. The subscribed capital has been paid in full. As of the reporting date, there were no own shares held by the company.

These interim consolidated financial statements as at 31 March 2022 were not audited or reviewed by the company's auditors.

Geratal, May 2022

Christian Frick Chief Executive Officer

COMPANY CALENDAR 2022

Quarterly report Q1/2022	Mayü 25
Quarterly report Q2/2022	24 August
Quarterly report Q3/2022	23 November

Virtual Annual General Meeting 26 August

Geratherm Medical AG

Fahrenheitstraße 1 99331 Geratal Phone: +49 36205 980 Fax.: +49 36205/98 115 e-mail: info@geratherm.com Internet: www.geratherm.com