Geratherm Medical AG

Earnings Release • May 20, 2021

Total shares issued

GERATHERM AT A GLANCE

Facts and figures	January March 2021	January March 2020	Change %
Sales revenues	6,660 kEUR	6,253 kEUR	6.5%
of which export share	5,210 kEUR	5,341 kEUR	-2.5%
Export ratio	78 %	85 %	-8.2%
Gross result for period under review (EBITDA)	1,051 kEUR	671 kEUR	56.7%
EBITDA margin	15.8 %	10.7 %	47.7%
Amortisation and depreciation	-375 kEUR	-299 kEUR	25.4%
Operating result (EBIT)	676 kEUR	372 kEUR	81.8%
EBIT margin	10.2 %	5.9 %	72.9%
Financial results	-31 kEUR	-24 kEUR	27.0%
Profit (loss) on ordinary business activities	645 kEUR	348 kEUR	85.6%
Net earnings of the parent company's shareholders in given period	422 kEUR	287 kEUR	46.9%
Long-term assets	14,794 kEUR	13,340 kEUR	10.9%
Short-term assets	22,143 kEUR	20,276 kEUR	9.2%
Balance sheet total	36,937 kEUR	33,616 kEUR	9.9%
Equity capital	20,911 kEUR	18,665 kEUR	12.0%
Return on equity	8.1 %	6.2 %	31.2%
Equity ratio	56.6 %	55.5 %	2.0%
Cash, cash equivalents and securities	9,361 kEUR	8,159 kEUR	14.7%
Net result per share for given period according to IFRS (EPS)**	EUR 0.09	EUR 0.06	50.0%
Net result per share for given period as per DVFA** (German Association for Financial Analyses and Asset Management)	EUR 0.09	EUR 0.06	50.0%
Number of employees at end of period	242	211	14.7%
Total shares issued **based on total shares issued	4,949,999 4,949,999	4,949,999 4,949,999	0.0% 0.0%

Business Performance from 1 January to 31 March 2021

• Sales revenues EUR 6.7 million +6.5 %
• Gross result for first quarter (EBITDA) EUR 1.051 million +56.7 %
• Operating result (EBIT) 676 kEUR +81.8 %
• EBIT margin 10.2 % (2020: 5.9 %)
• Results from ordinary activities 645 kEUR (2020: 348 kEUR).
• Earnings per share 9 EUR cents (2020: 6 EUR cents)

Dear Shareholders and Parties Interested in Geratherm Medical,

We managed the renewed lockdown in the first quarter of 2021 without any major disruptions. On the whole, we were able to increase sales by +6.5 % in the first three months, showing a considerably higher result. The positive earnings trend 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. This could be attributed here to the increased expenses for medical device approvals in accordance with MDR.

The gross result of the overall performance was EUR 4.577 million (2020: EUR 4.052 million). The gross margin on sales was 68.7 % (2020: 64.8 %). The gross earnings (EBITDA) increased by +56.7 % to EUR 1.051 million in the first three months of the business year. During the first quarter, the operating result EBIT was 676 kEUR (2020: 372 kEUR).

The result from ordinary business activities was 645 kEUR (2020: 348 kEUR). The shareholders' result after taxes for the first quarter amounted to 422 kEUR (2020: 287 kEUR) or EUR 0.09 per share (2020: EUR 0.06).

Facts and figures		I/21	IV/20	III/20	II/20	I/20
(in kEUR)	Sales	6,660	7,707	5,912	7,594	6,253
	EBITDA margin	15.8 %	16.8%	16.9%	18.2%	10.7%
	EBIT	676	899	686	1,082	372
	EPS (EUR)	0.09	0.10	0.10	0.15	0.06
	Cash flow	1,072	1,267	1,160	1,531	1,043

Sales development

The sales development by regions was not uniform in the first quarter of 2021 and was partly influenced by different lockdown intervals in the individual regions. In the first three months, we managed to increase Group sales by +6.5 % over the previous year.

There was a slight decrease in sales of -6.2 % on the European market. On the German market, we were able to register a very favourable increase in sales. Sales in Germany in the first three months were +59.0 % higher than in the same period of the previous year. After the coronavirus blockades were lifted for the most part in the Middle East, we were able to report a very favourable +263.9 % growth in sales. On the US market, sales posted in the first quarter fell slightly by -10.0 % compared to the same period last year. We recorded a greater drop in sales at a low level in South America, declining here by -41.6 %. After a very strong first quarter last year, we posted a -48.6 % decline in sales in the Other countries region.

Sales by regions 1/1 to 31/3/2021

Geratherm Medical's products are primarily marketed internationally. In the first quarter, 78.2 % (2020: 85.4 %) of Geratherm products were exported.

Sales by segments 1/1 to 31/3/2021

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 showed a slight increase of +1.0 % in sales. Shifts occurred between the individual product groups during the first quarter. Sales of blood pressure monitors were considerably stronger. With regard to clinical thermometers, we showed temporary declines in individual product groups compared to the same period last year. In the Women's Health product segment, we did register strong growth. All in all, you have the impression that products, which are not associated with the coronavirus, have significant ground to make up. The Healthcare Diagnostic segment accounted for 61.8 % 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 high demand for products that are needed for long-term COVID treatment. Sales posted by medical devices for measuring pulmonary function increased by +20.1 % in the first three months. The growth momentum is likely to continue in the new few quarters.

The development of sales in the Medical Warming Systems segment was positive during the period under review. All in all, we managed to increase sales by +27.2 % compared to the prior year. The growth in sales was primarily due to the favourable development posted by LMT Medical, which was able to boost its sales by +42.1 %. Our medical warming systems for operating rooms are currently still in the recertification process and thus could not contribute any significant boost to sales.

In the Cardio/Stroke segment, we managed to generate a slight jump in sales of +3.2 % in the first three months. Visiting clinics of hospitals was not very simply as a result of the strict hygiene measures. That in turn adversely affected operating activities.

Earnings situation

In the first three months of the 2021 business year, we were able to close with a significantly higher group result compared to the same quarter of the prior year. The improved earnings reported were influenced by a higher sales of +6.5 % and a higher gross profit of +13.0 %. Positive effects were provided by the considerably higher earnings reported by LMT Medical, Respiratory and apoplex medical. With an EBIT margin of 10.2 % (2020: 5.9 %) 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 68.7 % (2020: 64.8 %). The gross profit was EUR 4.577 million, an increase of 525 kEUR over the prior year level.

Personnel costs showed above-average development with a 13.2 % increase. The other operating expenses decreased by 7.4 % to EUR 1.350 million. The gross profit (EBITDA) was EUR 1.051 million, an increase of 56.7 %. The write-offs increased by +25.4 % to 375 kEUR due to investments.

The operating result (EBIT) increased by +81.8 % to 676 kEUR. The financial results amounted to -31 kEUR (2020: -24 kEUR). The result from ordinary business activities during the first three months amounted to 645 kEUR (2020: 348 kEUR).

Taxes on profit decreased by -26.3 % to 147 kEUR. A consolidated net profit for the first three months amounted to 498 kEUR (2020: 148 kEUR).

Taking income and expenses recognised in the equity capital into account resulted in another positive result, essentially due to write-ups of securities in the amount of 487 kEUR (2020: -664 kEUR). The consolidated statement of comprehensive income showed a surplus of 986 kEUR for the first quarter. Of this, 140 kEUR are assigned to minority interests such that the group comprehensive earnings for the shareholders of the parent company is 845 kEUR (2020: -685 kEUR).

The result per share for the first three months is EUR 0.09 (2020: EUR 0.06).

Net assets and financial situation

Geratherm Medical enjoys a favourable asset situation. The balance sheet total of EUR 36.9 million is essentially formed by equity capital in the amount of EUR 20.9 million. The equity-to-assets ratio as of the reporting date was 56.6 % (2020: 55.5 %). The return on equity amounted to 8.1 % (2020: 6.2 %).

As of 31 March 2021, the company had cash, cash equivalents and securities in the amount of EUR 9.4 million (2020: EUR 8.2 million). As a result, the company has a solid financial position in spite of the high investments made over the past two years.

The long-term assets amounted to EUR 14.8 million (2020: EUR 13.3 million). The slight jump is due to the increase in intangible assets.

The short-term assets increased slightly by +3.5 % to EUR 22.1 million.

Inventories increased by +18.6 % to EUR 8.7 million. The gain is due to the temporary increase in finished products and goods. The trade accounts receivable increased slightly by +4.2 % to EUR 3.3 million. All in all, the "Receivables and other assets" item increased by +7.4 % to EUR 4.1 million.

Geratherm holds securities in the amount of EUR 5.8 million. As of the reporting date, the valuation basis increased by 6.5 %. The cash and cash equivalents available as at 31 March 2021 amounted to EUR 3.6 million (2020: EUR 4.9 million).

The gross cash flow for the first three months of 2021 increased slightly to EUR 1.072 million (2020: EUR 1.043 million).

The cash flow from operations declined to -359 kEUR (2020: 721 kEUR). The cash flow from investments amounted to -564 kEUR (2020: -1,198 kEUR). The cash flow from financing activities was -372 kEUR (2020: EUR +263 kEUR).

Research and development

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

Staff

The Geratherm Group had a staff of 242 persons in total as of 31 March 2021 (2020: 211) with 230 employees in Germany.

Outlook

Geratherm Medical's business activities are international. In this context, the general underlying conditions in Germany due to COVID are only relevant to a certain extent. In our traditional export countries, we have faced and are still dealing with spontaneous lockdown orders.

That being said, Geratherm has gotten off a relatively good start in 2021. The production of clinical thermometers will be at full capacity for the most part till the end of the year and Geratherm products for measuring pulmonary function are expected to show a higher demand. We also expect additional sales developments in the second half of the business year from the approval of LMT products in China.

As a result of the ban to assemble or hold meetings due to coronavirus requirements, we have decided not to take any risks and will hold the annual general meeting virtually this year. It is scheduled to take place on 11 June 2021, at 2 PM. We have commissioned the Hamburg company UBJ with the organisation and implementation of the AGM, since the company has much experience in this field.

Geratal, May 2021

Executive Board

Dr. Gert Frank Christian Frick

Consolidated profit and loss statement from 1 January to 31 March 2021

	January- March 2021	January- March 2020	Change
	EUR	EUR
Sales revenues	6,660,350	6,253,273	6.5%
Change in inventory of finished products and work in process	311,118	-390,395	> 100.0%
Other capitalised own work	45,844	51,923	-11.7%
Other operating income	206,092	171,748	20.0%
	7,223,404	6,086,579	18.7%
Cost of materials
Cost of raw materials, consumables
and goods for resale	-2,312,794	-1,783,846	29.7%
Costs of purchased services	-333,518	-251,141	32.8%
	-2,646,312	-2,034,987	30.0%
Gross profit or loss	4,577,092	4,051,592	13.0%
Personnel costs Wages and salaries	-1,822,377	1,592,541	14.4%
Social security, pension and other benefits	-354,451	-330,178	7.4%
	-2,176,828	-1,922,719	13.2%
Other operating expenses	-1,349,588	-1,458,173	-7.4%
Gross result (EBITDA)	1,050,676	670,700	56.7%
Amortisation of intangible assets and depreciation of tangible assets	-374,905	-298,913	25.4%
Operating results	675,771	371,787	81.8%
Securities-related expenses	-315	-322	-2.2%
Other interest and similar income	373	463	-19.4%
Interests and similar expenses	-30,706	-24,272	26.5%
Financial results	-30,648	-24,131	27.0%
Profit (loss) on ordinary business activities	645,123	347,656	85.6%
Income taxes	-146,940	-199,283	-26.3%
Consolidated profit for the period	498,183	148,373	>100.0
Result of non-controlling shareholders	76,169	-138,834	> 100.0%
Profits of the parent company's shareholders	422,014	287,207	46.9%
Earnings per share (undiluted)	0.09	0.06	50.0%

Consolidated balance sheet as at 31		March 2021
Assets			31 March 2021

Assets	31 March 2021 EUR	31 December 2020 EUR	Change
A. Long-term assets
I. Intangible assets
1. Development costs	2,921,953	2,783,213	5.0%
2. Other intangible assets	304,329	296,006	2.8%
3. Goodwill	1	1	0.0%
	3,226,283	3,079,220	4.8%
II. Tangible assets 1. Land, land rights and buildings	5,194,164	5,238,519	-0.8%
2. Technical equipment and machinery	3,381,787	3,161,023	7.0%
3. Other equipment, factory and office equipment	333,626	330,048	1.1%
4. Construction in process	263,371	371,672	-29.1%
	9,172,948	9,101,262	0.8%
III. Rights of use	534,015	576,346	-7.3%
IV. Financial assets accounted on basis of equity method	296,609	296,609	0.0%
V. Other financial assets	1,470,150	1,420,401	3.5%
VI. Other long-term receivables	94,320	117,838	-20.0%
	14,794,325	14,591,676	1.4%
B. Short-term assets
I. Inventories
1. Raw materials and supplies	2,403,828	2,182,687	10.1%
2. Unfinished goods	1,248,756	1,160,668	7.6%
3. Finished goods and merchandise	5,012,211	3,961,995	26.5%
II. Receivables and other assets	8,664,795	7,305,350	18.6%
1. Trade receivables	3,338,509	3,205,412	4.2%
2. Receivables from current income taxes	80,173	62,075	29.2%
3. Receivables from other taxes	217,100	187,843	15.6%
4. Other assets	480,776	376,021	27.9%
	4,116,558	3,831,351	7.4%
III. Securities	5,761,333	5,407,190	6.5%
IV. Cash and cash equivalents	3,599,793	4,854,893	-25.9%
	22,142,479	21,398,784	3.5%
	36,936,804	35,990,460	2.6%
Equity and liabilities
A. Equity capital
I. Subscribed capital	4,949,999	4,949,999	0.0%
II. Capital reserve III. Other reserves	12,174,192 4,022,804	12,174,192 3,177,349	0.0% 26.6%
Assignable to the shareholders of the parent company	21,146,995	20,301,540	4.2%
Shareholders of minority interests	-236,007	-376,082	-37.2%
	20,910,988	19.925.458	4.9%
B. Non-current liabilities
1. Liabilities to banks	5,818,358	6,194,638	-6.1%
2. Accrued investment subsidies	1,205,341	1,233,669	-2.3%
3. Long-term leasing liabilities	250,443	331,372	-24.4%
4. Other long-term liabilities	425,150	424,492	0.2%
5. Deferred taxes	78,824	53,401	47.6%
	7,778,116	8,237,572	-5.6%
C. Current debts
1. Liabilities to banks	3,241,642	3,200,202	1.3%
2. Trade accounts payables	1,702,548	1,503,391	13.2%
3. Current provisions	33,400	32,400	3.1%
4. Short-term leasing liabilities	290,038	251,787	15.2%
5. Liabilities from current income taxes	65,815	84,576	-22.2%
6. Contractual liabilities	1,008,974	888,279	13.6%
7. Other tax liabilities	427,271	499,268	-14.4%
8. Other short-term liabilities	1,478,012	1,367,527	8.1%
	8,247,700	7,827,430	5.4%
	36,936,804	35,990,460	2.6%

Consolidated statement of cash flows from 1 January to 31 March 2021

	January- March 2021 kEUR	January- March 2020 kEUR
Consolidated profit for the period	498	148
Non-cash expenses and income of Geratherm do Brasil Ltda.	-44	-205
Other non-cash expenses	93	606
Interest earnings	0	0
Interest expenses	31	24
Increase in deferred taxes	25	5
Income tax expenditure	122	194
Depreciation of fixed assets	294	224
Amortisation of usage rights	81	75
Amortisation of public grants and subsidies	-28	-28
Gross cash flow	1,072	1,043
Decrease/ increase in inventories	-1,359	251
Increase/decrease in trade receivables and other assets	-245	-1,149
Increase/decrease in current liabilities and other liabilities	359	781
Cash inflow from interest	0	0
Cash outflow from interest	-31	-24
Cash outflow/inflow from taxes	-155	-181
Cash flow from operations	-359	721
Cash outflow for investments in intangible assets (without capitalised development costs) and tangible assets	-328	-711
Additions to capitalised development costs	-186	-190
Cash inflow from funding sources for investments	0	0
Acquisition of equity holdings	-50	0
Cash inflow based on financial assets	0	0
Cash outflow based on financial assets	0	-297
Cash flow from investments	-564	-1,198
Cash outflow for rental and lease liabilities	-81	-75
Dividend payments	0	0
Cash inflow from taking out loan liabilities	0	550
Cash outflow for repayment of loan liabilities	-291	-212
Decrease/ increase in long-term liabilities	0	0
Cash flow from financing activities	-372	263
Change in cash and cash equivalents	-1,295	-214
Cash and cash equivalents at beginning of reporting period	4,855	4,139
Exchange rate difference	40	24
Cash and cash equivalents at end of reporting period	3,600	3,949

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 2020	4,949,999	12,174,192	1,929,289	313,599	460,339	19,827,418	-646,636	19,180,782
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	287,207	287,207	-138,834	148,373
Unrealised profits and losses from valuation of securities	0	0	-1,294,108	0	0	-1,294,108	0	-1,294,108
Currency translation in the Group	0	0	0	321,720	0	321,720	308,394	630,114
Total consolidated income	0	0	-1,294,108	321,720	287,207	-685,181	169,560	-515,621
as of 31 March 2020	4,949,999	12,174,192	635,181	635,319	747,546	19,142,237	-477,076	18,665,161
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 March 2021	4,949,999	12,174,192	1,525,613	807,010	1,690,181	21,146,995	-236,007	20,910,988

Consolidated statement of comprehensive income as per IFRS for the period from 1 January to 31 March 2021

	1/1-31/3/2021 EUR	1/1-31/3/2020 EUR
Consolidated profit for the period Income and expenses directly recognised in equity, which are not reclassified to profit or loss:	498,183	148,373
Profits or losses from valuation of investments according to IFRS 9	0	0
Profits or losses from valuation of securities according to IFRS 9	354,143	-1,294,108
	354,143	-1,294,108
Income and expenses directly recognised in equity, which are reclassified to profit or loss under specific conditions:
Difference resulting from currency translation	133,204	630,114
	133,204	630,114
Other comprehensive income	487,347	-663,994
Comprehensive income	985,530	-515,621
of which assignable to shareholders of minority interest	140,075	169,560
of which assignable to shareholders of parent company	845,455	-685,181

Group segment report for the period from 1 January to 31 March 2021

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 income	-9	-17	-1	-3	0	0	-30
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
Based on product groups 2020	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	4,400	1,378	359	519	-403	0	6,253
Operating results	364	42	-240	131	107	-32	372
including:
Amortisation/depreciation of intangible and tangible assets	158	35	12	17	60	17	299
Interest income	-10	-13	-1	0	0	0	-24
Segment assets	13,667	4,681	3,546	2,426	0	9,296	33,616
Of which long-term assets	6,692	2,283	1,419	1,575	0	1,371	13,340
Segment debts	10,588	2,935	610	782	0	0	14,915

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

By region	Europe	South America	Germany	Middle East	USA	Other	Total
2020	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR	Jan.-Mar. kEUR
Sales revenues	3,967	320	1,281	194	400	494	6,656
Elimination of intragroup sales	0	-34	-369	0	0	0	-403
Sales revenues on third parties	3,967	286	912	194	400	494	6,253
Gross profit or loss	2,594	114	632	127	261	323	4,051
Operating results	399	-234	97	20	40	50	372
including:
Amortisation and depreciation of intangible and tangible assets	191	10	46	9	19	24	299
Amortisation of public grants and subsidies	19	0	4	1	2	2	28
Interest income	0	0	-24	0	0	0	-24
Acquisition costs of fixed assets for the period	0	0	901	0	0	0	901
Segment assets	0	917	32,612	0	87	0	33,616
Of which long-term assets	0	240	13,100	0	0	0	13,340

Notes on Interim Consolidated Financial Statements for the Period from 1 January 2021 to 31 March 2021

Accounting and valuation methods

The interim consolidated financial statements of Geratherm Medical AG as at 31 March 2021 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 2020 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, 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.

There are discretionary leeways with regard to the accrual of sales revenues from analytical services and the classification of leasing as finance lease in the Group. We make reference to the statements relating to sales revenues, the valuation principles relating to lease arrangements.

Consolidated group

Company	Share quota 31/3/2021	Share quota 31/12/2020
GME Rechte und Beteiligungen GmbH, Geschwenda, Germany	100.00%	100.00 %
apoplex medical technologies GmbH, Pirmasens, Germany	53.42%	53.42 %
Geratherm Respiratory GmbH, Bad Kissingen, Germany	65.27%	65.27 %
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, Geschwenda, 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 %

No changes occurred in the consolidation group as at 31 March 2021:

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 2021 (2020: EUR 4,949,999) and is divided into 4,949,999 (2020: 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 shares held by the company.

These interim consolidated financial statements as at 31 March 2021 were not audited or reviewed by the company's auditors.

Geratal, May 2021

Executive Board

Dr. Gert Frank Christian Frick

COMPANY CALENDAR 2021

Quarterly report Q1/2021	Mayü 20
Quarterly report Q2/2021	25 August
Quarterly report Q3/2021	24 November

Virtual Annual General Meeting 11 June

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