Quarterly Report • May 14, 2016
Quarterly Report
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| Sales and result1) | 01/01-03/31/2016 | 01/01-03/31/2015 | Change |
|---|---|---|---|
| Sales (KEUR) | 2,518 | 2,940 | -14 % |
| EBITDA (KEUR) | -2,171 | -1,760 | -23 % |
| EBIT (KEUR) | -2,654 | -2,166 | -23 % |
| Cash-EBT2) (KEUR) | -2,927 | -2,623 | -12 % |
| Net result (KEUR) | -2,732 | -1.787 | -53 % |
| Cash flow and investments3) | 01/01-03/31/2016 | 01/01-03/31/2015 | Change |
| Operative Cash flow (KEUR) | -2,705 | 50 | >-100 % |
| Investing activities in intangible assets (KEUR) | -405 | -590 | 31 % |
| Investing activities in tangible assets (KEUR) | -570 | -378 | -51 % |
| Total investing activities (KEUR) | -975 | -968 | -1 % |
| Value development1) | 03/31/2016 | 12/31/2015 | Change |
| Intangible assets (KEUR) | 10,804 | 10,441 | 3 % |
| Tangible assets (KEUR) | 8,211 | 7,675 | 7 % |
| Working Capital (KEUR) | 13,369 | 11,427 | 17 % |
| Working capital ratio4) (sales) | 0.9 | 1.3 | -31 % |
| Non-current assets (KEUR) | 19,856 | 19,203 | 3 % |
| Current assets (KEUR) | 33,252 | 35,743 | -7 % |
| Capital structure1) | 03/31/2016 | 12/31/2015 | Change |
| Total assets (KEUR) | 53,108 | 54,946 | -3 % |
| Shareholders' equity (KEUR) | 37,973 | 40,307 | -6 % |
| Equity ratio | 72 % | 73 % | -3 % |
| Share5) | 01/01-03/31/2016 | 01/01-03/31/2015 | Change |
| Total amount of shares 09/30 (million pieces) | 30.73 | 30.67 | 0 % |
| Closing price 09/30 (EUR/Share) | 1.57 | 2.70 | -42 % |
| Market Capitalization 09/30 (million EUR) | 48.24 | 82.78 | -42 % |
| Average Price (EUR/Share) | 1.28 | 2.63 | -51 % |
| High (EUR/Share) | 1.67 | 2.82 | -41 % |
| Low (EUR/Share) | 1.09 | 2.33 | -53 % |
| Ø Daily turnover (KEUR) | 45.2 | 77.5 | -42 % |
| Employees group1) | 03/31/2016 | 12/31/2015 | Change |
| Employees (Headcount) | 175 | 179 | -2 % |
| Employees (FTE) | 161 | 159 | 1 % |
1) Figures relate to the continued operation.
2) EBT excluding capitalized development services and depreciation thereof.
3) Figures relate to the group.
4) Sales of the last four quarters.
5) XETR closing prices.
Note: In the figures, as shown in the quarterly report, technical rounding differences could exist, which have no impact on the entire statement.
| Selected Figures | U2 |
|---|---|
| Foreword by the Management Board | 2 |
| The Share | 4 |
| Interim Group Management Report | 6 |
| • Business and General Conditions • . 8 |
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| • Economic Report • . 7 |
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| Earnings Position | 8 |
| Asset Position | 10 |
| Financial Position | 11 |
| • Risk and Opportunity Report • | 12 |
| • Outlook • | 12 |
| Interim Consolidated Financial Statements | 13 |
| • Consolidated Statement of Cash Flows •. 13 |
|
| • Consolidated Balance Sheet •. 14 |
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| • Consolidated Statement of Comprehensive Income •. 16 |
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| • Consolidated Statement of Changes in Equity • 18 |
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| • Notes to the Interim Consolidated Financial Statements • | 19 |
| Company Calendar | 24 |
Ladies and Gentlemen, Dear Shareholders, Employees, and Business Partners,
The first quarter of 2016 was a very exciting quarter during which we managed to achieve major milestones in the implementation of our strategy.
With sales of the aap group of EUR 5.1 million in the reporting period and EBITDA of EUR -1.9 million, we achieved our forecast from February. The continued operation with our trauma products contributed EUR 2.5 million to sales. In light of the negative overall economic development in BRICS and SMIT countries last year and our target to return to the growth path in 2016, we have taken and implemented various measures: We have focused more strongly on established markets, strengthened our business with experienced sales managers who previously worked for globally leading companies, and have already started numerous sales activities on these markets. Overall, we expect the measures to take effect in the second half of 2016, which should then be reflected in a tangibly more dynamic sales development. It is pleasing here that, among other things, our US subsidiary contributed EUR 0.2 million to sales in the first quarter of 2016 after posting no noteworthy sales in the 2015 fiscal year. This is in particular important against the background that there are now regularly procedures with our LO-QTEQ® products and we thereby have direct access to hospitals or via our distributors.
A further highlight in the first quarter was the submission of the design dossier for the performance of the CE conformity assessment procedure for the first silver coated implant to a notified body at the end of January 2016. With our silver coating technology we are addressing one of the critical problems in surgery that haven't yet been resolved adequately: the reduction of the risk of infection when using metal implants. In this context, the documents submitted will now be reviewed
in the second quarter and an interactive exchange will begin with the notified body.
In addition, we made further progress in the completion of our LOQTEQ® portfolio in the first quarter and, among other things, developed implants for the lower extremities and launched the periprosthetic treatment system.
A major objective of our strategy is to transform aap into a pure player in trauma with IP-protected innovative technologies. In this context, we reported at the end of March 2016 the conclusion of a share purchase agreement for the sale of our aap Biomaterials GmbH subsidiary. Based on an assumed enterprise value of aap Biomaterials GmbH of EUR 36 million, we concluded the transaction on beneficial terms on our second attempt. Thus, aap will receive proceeds of about EUR 36.6 million. After deduction of the estimated transaction costs the net inflow amounts to around EUR 35 million. We will use a part of the proceeds to finance further growth and to distribute part of them to our shareholders. In this context aap evaluates different options without having taken a measure into closer consideration or decided on it. For example the set up of a share buyback program in the current financial year and/or a dividend payment in financial year 2017 based on the annual financial statements 2016 seem to be conceivable.
On the basis of the "new" aap as a pure player in trauma, we now need to adjust the cost structure of the company to the reduced company size. We have already drawn up a corresponding action plan and will implement it consistently from the second quarter of 2016 onwards. Our aim is to achieve an annualized savings effect of EUR 2.0 million.
Our targets set for 2016 include, in particular, the return to the growth path with planned sales growth for our trauma products of 20% with a simultaneous adjustment of the cost structure. In addition, a major objective of our further strategic alignment is to unlock the inherent value of our three IP-protected platform technologies LOQTEQ®, silver coating and magnesium. To this end, we are currently collaborating with a leading corporate finance company and are developing and assessing various value generation options.
There is still an exciting time ahead of us over the coming nine months in order to achieve the targets set for 2016. We are confident that we can achieve these targets during this fiscal year on the basis of the taken and planned measures. Last but not least, we look forward to welcoming as many of our shareholders as possible at our annual general meeting in Berlin on June 17, 2016.
Bruke Seyoum Alemu Chairman of the Management Board /CEO
Marek Hahn
Member of the Management Board / CFO
General information about aap's share
| International Securities Identification | DE0005066609 |
|---|---|
| Number (ISIN) | |
| Securities Identification Number (WKN) | 506 660 |
| Listing | All German stock |
| exchanges, XETRA | |
| Stock Symbol | AAQ |
| Market Segment | Prime Standard |
| (since 16 May 2003) | |
| Indices | CDAX |
| Prime All Share Index | |
| Technology All Share | |
| Index | |
| Prime Sector | Pharma & Healthcare |
| Capital Stock (03/31/2016) | EUR 330,725,756 |
| Number of Bearer Shares (03/31/2016) | 30,725,756 |
| Authorized Capital (03/31/2016) | EUR 30,725,756 |
Key figures* of aap's share
| 1st quarter | ||
|---|---|---|
| 2016 | 2015 | |
| Closing price 03/31 (EUR/Share) | 1.57 | 2.70 |
| Market Capitalization 03/31 (million EUR) | 48.24 | 82.78** |
| Average Price (EUR/Share) | 1.28 | 2.63 |
| High (EUR/Share) | 1.67 | 2.82 |
| Low (EUR/Share) | 1.09 | 2.33 |
| Ø Daily turnover (KEUR) | 45.2 | 77.5 |
* Figures relate to XETRA closing prices of the day.
** As of 03/31/2015 the number of bearer shares amounted to 30,670,056.
The start of the new year on the international stock exchanges was predominantly characterized by a high degree of volatility. Over the first few weeks of the reporting period, market sentiment was dominated by falling commodity prices and uncertainty regarding the situation in the Middle East, which partly resulted in significant share price decreases. During the remainder of the first quarter, a noticeable upward trend with increasing share prices set in, particularly since the predominantly negative forecasts for the further development of the world economy proved unfounded.
The aap share was initially unable to evade the negative trend at the beginning of the first quarter. The share price came under pressure based on the XETRA closing price of EUR 1.33 on January 4, 2016, and it reached a quarterly low of EUR 1.09 on February 9, 2016. The share price was subsequently on the rise for a short time, before moving mainly sideways over the following few weeks. In response to the notification about the
signed share purchase agreement for the sale of aap Biomaterials GmbH, there was a significant price jump on March 22, 2016, with the quarterly high of EUR 1.67 reached the following day. The closing price of the first quarter was EUR 1.57 on March 31, 2015. Overall, the aap share was up 18% during the reporting period, thereby outperforming both its benchmark indices and the peer group.
Indices Share Price Comparison Q1 | 2016
Peer Group Share Price Comparison Q1 | 2016
| Research Company | Analyst | Recommen dation |
Target Price |
Date |
|---|---|---|---|---|
| Warburg Research GmbH |
Harald Hof |
Buy | 2.10 EUR | 02/23/ 2016 |
| Edison Investment Research GmbH |
Hans Bostrom |
- | 2.96 EUR | 08/24/ 2015 |
All research reports by the analysis firms are available at
As part of its investor relations work, aap placed great emphasis on continuous and transparent communication with its stakeholders also in the first quarter of 2016. Here, the Management Board met and spoke a lot with existing and potential new investors, and held intensive discussions about the equity story and expectations for the current year.
The main focus of the second quarter of 2016 is in particular the 7th DVFA "Frühjahrskonferenz" in Frankfurt am Main.
Investor Relations app download
In the first quarter of 2016 there were no changes in the shareholder structure of aap, which thereby continues to be characterized by a large number of long-term orientated investors. The free float was approximately 46.61% on March 31, 2016.
The following table shows all shareholdings
* Based on own calculations.
The table below shows the direct and indirect shareholdings of all members of the Company's Supervisory Board and Management Board as of March 31, 2016:
| Shares | Options | |
|---|---|---|
| Supervisory Board Members | ||
| Biense Visser | 275,196 | 150,000 |
| Ronald Meersschaert | 0 | 0 |
| Rubino Di Girolamo | 1,626,157 | 0 |
| Members of the Management Board | ||
| Bruke Seyoum Alemu | 160,000 | 204,000 |
| Marek Hahn | 56,000 | 186,000 |
In the consolidated financial statements, aap Implantate AG and all of its companies have been consolidated using the full consolidation method, in which the parent company aap Implantate AG directly or indirectly holds the majority of voting rights through consolidated subsidiaries.
| Shareholding in % | |
|---|---|
| aap Implantate AG | |
| Berlin | Parent company |
| aap Biomaterials GmbH | |
| Dieburg | 100 |
| aap Implants Inc. | |
| Dover, Delaware, USA | 100 |
| MAGIC Implants GmbH | |
| Berlin | 100 |
| aap Joints GmbH | |
| Berlin | 33 |
| AEQUOS Endoprothetik GmbH | |
| Munich | 4.57 |
In the first quarter of 2016, all development and manufacturing activities relating to medical biomaterials, as well as bone cements and cementing techniques, were subsumed in aap Biomaterials GmbH. The company is based in Dieburg, near Frankfurt am Main. On March 22, 2016, a notarized share purchase agreement was signed with a leading European private equity firm for the sale of 100% of the company shares in aap Biomaterials GmbH. The transaction was closed on May 11, 2016.
aap Implants Inc. is the distribution company of aap Implantate AG for the US market. The company is based in Dover, Delaware, USA. All orders are logistically handled via a service provider in Atlanta, Georgia, USA.
MAGIC Implants GmbH is a shelf company in which all potential development and, if applicable, marketing activities in the area of magnesium technology should be bundled. The company is based in Berlin.
After the sale of 67% of the shares in June 2013, in the first quarter of 2016, there was a 33% stake in aap Joints GmbH. In aap Joints GmbH, all the orthopedic activities (knees, hips, and shoulders) are bundled together with the C~Ment® line. The company is based in Berlin. Through a notarized contract dated September 21, 2015, it was agreed that the remaining 33% shareholding in aap Joints GmbH will be sold if eight products get successfully re-certified. To date, seven of the re-certifications have already been completed.
There is a 4.57% stake in AEQUOS Endoprothetik GmbH that has no decisive influence on the operating and financial policies. The company is based in Munich.
Most products are sold under the brand name "aap". While products in German-speaking countries are sold directly to hospitals, buying syndicates and hospital groups, the company uses of a broad network of distributors in more than 60 countries at the international level. In regional terms, the most important sales markets, in addition to the DACH region and other European markets, are the USA and the BRICS and SMIT countries. In addition, in the first quarter of 2016, aap served global orthopedics companies via its subsidiary aap Biomaterials GmbH. Here sales via OEM and private label cooperations dominated.
In the first quarter of 2016, as part of its marketing and sales activities, aap was inter alia present at the 41st Arab Health in Dubai. With 130,000 visitors from 163 countries and 4,000 exhibitors from 70 countries, the event is the largest health sector exhibition in the Middle East and Asia. Furthermore, aap pre-
sented its product portfolio at the annual congress of the American Academy of Orthopaedic Surgeons (AAOS) in Orlando, Florida. The AAOS congress is particularly aimed at orthopaedic surgeons and other healthcare professionals, and alongside its educational events, it also includes a vast industrial exhibition that is growing ever larger in stature on the international stage. In addition to this, the basic osteosynthesis trauma course that aap ran for the eighth time in Berlin alongside its Spanish distributor should be highlighted. The event was well attended, with more than 30 doctors and about ten of the distributor's employees.
In the trauma business, the primary focus of research and development activities during the first quarter of 2016 was on the planned completion of the LOQTEQ® portfolio. Here, the company concentrated partly on developing implants for extremities. There are various plate market launches planned for the rest of the current financial year. There was also a focus on the launch of the patented periprosthetic treatment system. The anatomic fit, functionality and stability of the new CEmarked system were tested in extensive workshops and mechanical testing and convinced with good results. The implants were then passed on to a number of selected hospitals for a first-using phase prior to the worldwide launch, which is planned until the end of the year.
In the area of silver coating technology, the focus during the first quarter of 2016 was on the successful completion of the approval relevant work and the intended CE marking. In January, aap submitted the design dossier for the CE conformity assessment procedure for the antibacterial silver coating technology to a notified body leading in the field of medical products. The conformity assessment procedure is initially undertaken for a silver-coated LOQTEQ® plate. In case of a successful conformity assessment, the company plans to extend the approval to further trauma products. Furthermore, the first steps towards an approval process with the US Food and Drug Administration (FDA) have been taken.
In the magnesium technology area, the primary focus over the reporting period was on analyzing the opportunities to source various raw materials. aap is also continuing to evaluate various opportunities for cooperation with external companies.
As at the reporting date of March 31, 2016, a total of 177 employees were employed in the continued operation (December 31, 2015: 179 employees). In the discontinued operation the number of employees amounted to 67 as at March 31, 2016 (March 31, 2015: 67 employees).
Preliminary remarks on the presentation of the consolidated statement of income
On March 22, 2016, aap Implantate AG signed a notarized share purchase agreement with a leading European private equity firm regarding the sale of 100% of the company's shares in its subsidiary aap Biomaterials GmbH, based in Dieburg. The operation sold within the transaction consists of aap Biomaterials GmbH, which is specialized in the development, production and marketing of bone cements, mixing systems and related accessories, and aap Implantate AG's distribution business in this area. In 2015, the operation sold recorded sales of EUR 15.7 million.
Based on this transaction and the fulfillment of the requirements of IFRS 5 in November 2015, the disposed operation was first presented as a discontinued operation in the consolidated financial statements of December 31, 2015.
The consolidated statement of income of the group is therefore splitted into two parts: continued operation and discontinued operation. The continued operation includes the activities bundled in aap Implantate AG, Berlin, aap Implants Inc., Dover, Delaware, USA, and MAGIC Implants GmbH, Berlin. The discontinued operation for the first quarter of 2016 and 2015 includes aap Biomaterials GmbH, Dieburg and the distribution business
of aap Implantate AG in bone cements, mixing systems and related accessories. The closing of the transaction is subject to the market standard conditions precedent, which were not met by the reporting date 03/31/2016.
Unless otherwise stated, all remarks regarding the asset, financial and earnings position refer to the continued operation.
Sales development and total operating performance
The sales of the continued operation were down 14% in the first quarter of 2016 as compared to the same period in the previous year, falling from EUR 2.9 million to EUR 2.5 million. Here, sales from trauma products (implants and trauma-complementary biomaterials) dropped from EUR 2.6 million to EUR 2.2 million. It must be noted in this context that initial sales invoiced to a new Iranian distributor in the amount of EUR 0.7 million were included in the first quarter of 2015 which were reversed in the course of preparing the 2015 annual financial statements due to non-fulfilled contractual obligations. When factoring out this effect, sales from trauma products grew from EUR 1.9 million in the first quarter of the previous year to EUR 2.2 million in the reporting period. It is pleasing that our US subsidiary contributed EUR 0.2 million to sales in the first quarter of 2016 after virtually no noteworthy sales in fiscal year 2015.
In response to the business development of the past quarters, aap has expanded its sales organization considerably. For instance, the sales team was strengthened with several executives with extensive experience and proven track records in the industry based on many years of service with renowned international medical technology companies. We expect that these and the already initiated sales measures will have an effect from the second half of 2016, which should then be reflected in a tangibly more dynamic sales development from our trauma products.
Supply sales in the non-core area of Recon (hip, knee and shoulder as well as the C~Ment® line) remained unchanged in the first quarter of 2016 as compared to the same period in the previous year at EUR 0.3 million.
Sales in the discontinued operation fell from EUR 4.2 million in the first quarter of 2015 to EUR 2.5 million in the reporting period. This is due to a pure quarterly fluctuation that primarily results from the order behavior of major customers for bone cements and mixing systems.
The total operating performance includes sales revenues and inventory changes as well as own and development work capitalized. With lower sales revenues, the total operating performance of the continued operation remained unchanged in the first quarter of 2016 at EUR 3.7 million. The reason for this is the temporary increase in stock due to the pre-production for larger orders in the second quarter of 2016 as well as the necessary safety stock of new LOQTEQ® products, which were launched in recent months.
In accordance with IFRS, aap, as a development-intensive company, capitalizes not only internally produced capital goods but also expenses of its own projects and development projects for which approval and economically successful sales are highly likely. In the continued operation, aap capitalized EUR 0.4 million in the first quarter of 2016 (Q1/2015: EUR 0.5 million) of own and development services. The largest additions in this regard concern the development of our silver coating technology and the expansion of our LOQTEQ® system by additional plating systems for certain indication regions and functions.
For the discontinued operation, total operating performance is down in the first quarter of 2016 as compared to the same period in the previous year, falling EUR 1.5 million to EUR 2.9 million, which is due above all to the strong fall in sales in the face of slightly lower capitalized own and development services and a larger change in stock.
Other operating income in the continued operation fell from EUR 0.2 million in the first quarter of 2015 to EUR 0.1 million in the reporting period. The decline results from non-recurring effects in the first quarter of 2015: One-off income from currency conversion as a result of appropriating a significant USD
amount was realized and higher fees for services to subsidiaries collected.
In the discontinued operation, other operating income fell in the first quarter of 2016 from EUR 0.3 million in the same period in the previous year to EUR 0.1 million, again mainly due to one-off income from currency conversion.
The cost of materials ratio (with regard to sales revenue and changes in inventories) in the continued operation improved from 51% to 46% in the first quarter of 2016. Also material expenses fell slightly from EUR 1.6 million to EUR 1.5 million. The action plan implemented at the beginning of the year aims, among other things, to lower manufacturing costs sustainably. In this regard, a reduction in the share of external services and an increase in in-house manufacturing is essential to achieving an improvement in margins. In this context, further progress has already been recorded: For example, the proportion of third-party services in the cost of materials during the first quarter of 2016 improved to 24% compared to the same period of the previous year (Q1/2015: 23%).
The cost of materials ratio in the discontinued operation increased from 30% in the first quarter of 2015 to 44% in the first quarter of 2016. This rise is based primarily on a changed product mix/sales structure with higher material expenses and higher project proceeds without corresponding material expenditure which were included in the first quarter of 2015.
Personnel expenses in the continued operation rose in the first quarter of 2016 from EUR 2.1 million in the same period in the previous year to EUR 2.3 million due to the higher average number of employees. In the fourth quarter of 2015 and the first quarter of 2016 aap expanded its sales organization in a targeted manner in order to achieve the planned sales growth for 2016. The personnel expense ratio (with regard to total operating performance) increased to 62% in the first quarter of 2016 as a result of the higher personnel expenses with a stable total operating performance (Q1/2015: 57%).
As at the reporting date of March 31, 2016, a total of 177 employees were employed in the continued operation (December 31, 2015: 179 employees).
In the discontinued operation, personnel expenses in the first quarter of 2016 were unchanged at EUR 0.9 million as compared to the same period in the previous year. As at March 31, 2016, 67 employees were working in the discontinued operation (March 31, 2015: 67 employees).
The other operating expenses of the continued operation increased over the reporting period compared to the same period in the previous year by EUR 0.2 million to EUR 2.1 million. The main reasons for the increase are the additional advance costs in connection with the establishment of the US business, higher hiring costs in particular for the acquisition of experienced sales employees and the temporary and rented use of a machine. Overall, the other operating expenses ratio in the continued operation (with regard to total operating performance) increased in the first quarter of 2016 as compared to the same period in the previous year from 52% to 57%. Some of the other operating expenses are passed on via group allocation to the discontinued operation. However, it must be noted that the cost structure in the continued operation also includes central administration costs, which will need to be adjusted down to an adequate degree for the remaining company part after completion of the sale of aap Biomaterials GmbH.
In the discontinued operation, other operating expenses fell slightly in the first quarter of 2016 by EUR 29 thousand as compared to the same period in the previous year.
aap thereby achieved in the continued operation EBITDA of EUR -2.2 million in the first quarter of 2016 (Q1/2015: EUR - 1.8 million). The decline in EBITDA resulted, in particular, from the fall in other operating income due to special effects in the previous year, the rise in other operating expenses as a result of the advance costs for sales in the US as well as expenses for hiring staff and higher personnel costs due to the slightly higher average number of personnel.
EBITDA in the discontinued operation fell significantly in the first quarter of 2016 as compared to the same period in the previous year from EUR 2.0 million to EUR 0.3 million, above all due to the substantially lower sales revenues and decreased other operating income due to special effects in the previous year at a constant overall cost level.
Based on the comprehensive investments in machinery and systems with a view to building up capacity in the 2014 and 2015 fiscal years, in the continued operation scheduled depreciation increased from EUR 0.4 to EUR 0.5 in the first quarter of 2016 as compared with the same period in the previous year.
Due to the suspension of depreciation in application of IFRS 5, depreciation fell in the discontinued operation from EUR 0.2 million in the first quarter of 2015 to EUR 0.0 million in the reporting period.
EBIT in the continued operation stood at EUR -2.7 million in the first quarter of 2016 (Q1/2015: EUR -2.2 million) and in the discontinued operation at EUR 0.3 million (Q1/2015: EUR 1.7 million).
The financial result changed only slightly both in the continued operation and the discontinued operation and has only a very marginal impact on the key performance indicators as in the first quarter of 2015.
The result from joint ventures and affiliates rose in the continued operation from EUR -34 thousand in the first quarter of 2015 to EUR -5 thousand in the first quarter of 2016 and is attributable entirely to aap Joints GmbH.
Overall, aap achieved in the continued operation a net result of EUR -2.7 million for the first quarter of 2016 (Q1/2015: EUR -1.8 million) and in the discontinued operation of EUR 0.3 million (Q1/2015: EUR 1.3 million).
In connection with the planned sale of aap Biomaterials GmbH, as at March 31, 2016, assets in the amount of EUR 13.7 million and liabilities in the amount of EUR 2.2 million are held for sale.
The aap group's balance sheet changed only slightly as compared to December 31, 2015. As such, the balance sheet total decreased from EUR 54.9 million by 3% to EUR 53.1 million as at March 31, 2016.
The increase in non-current assets results from the investments in development projects and property. Capitalized development costs increased compared to the reporting date as at December 31, 2015, in particular due to the development activities in the area of the silver coating technology and the planned enhancement of the LOQTEQ® portfolio by EUR 0.4 million. The proportion of intangible assets to total assets now stands at 20%, thereby increasing slightly on the year-end (December 31, 2015: 19 %). The rise in tangible assets results from purchased machines at the year end 2015 which have been only bought in the first quarter of 2016 and for which final payments have been performed.
Current assets fell from EUR 35.7 million to EUR 33.3 million as at March 31, 2016. Here, inventories rose slightly by EUR 0.6 million from EUR 9.7 million to EUR 10.3 million, which reflects the temporary inventories increase due to pre-production for larger orders in the second quarter of 2016 and the creation of backup inventories for the new LOQTEQ® products, which were launched in recent months. Accounts receivable rose slightly from EUR 5.8 million to EUR 6.1 million as at March 31, 2016.
The level of cash and cash equivalents dropped as at March 31, 2016 to EUR 1.6 million (December 31, 2015: EUR 4.9 million).
Based on the net result of EUR -2.7 million, equity decreased as at March 31, 2016 to EUR 38.0 million (December 31, 2015:
EUR 40.3 million). With total assets of EUR 53.1 million as at March 31, 2016 (December 31, 2015: EUR 54.9 million), the equity ratio was 72% (December 31, 2015: 73%).
Financial liabilities rose after payment of the planned settlement payments in the amount of EUR 0.3 million due to the taking up of a short-term loan in the amount of EUR 1.2 million from EUR 3.3 million to EUR 4.2 million as at March 31, 2016. Accounts payable saw a contrary performance and fell as at March 31, 2016 from EUR 4.1 million to EUR 3.1 million.
Starting from a negative net result of EUR -2.7 million, the operating cash flow of the aap group in the first quarter of 2016 was down on the same period of the previous year to EUR -2.5 million (Q1/2015: EUR 0.1 million). The main changes in the quarter-on-quarter comparison can be summarized as follows:
Cash flow from investing activities was at EUR -0.9 million in the first quarter of 2016 (Q1/2015: EUR -1.0 million). aap invested EUR 0.6 million in machinery and systems in order to increase production capacities in the trauma business with EUR 0.3 million relating to investments in the previous year leading to an outflow of funds only in 2016. In addition, EUR 0.4 million was invested in capitalized development projects and in particular in the innovative silver coating technology and LO-QTEQ® technology.
The main effects in financing activities can be summarized as follows:
This resulted in cash inflow of EUR 0.9 million from financing activities during the first quarter of 2016 (Q1/2015: EUR 1.7 million).
Cash and cash equivalents (including EUR 1.4 million made up by the discontinued operation) fell as at the reporting date to EUR 3.0 million (December 31, 2015: EUR 5.7 million). The net credit balance (the sum of cash and cash equivalents minus all interest-bearing liabilities, including the discontinued operation) as at March 31, 2016 was EUR 1.7 million (December 31, 2015: Net credit balance of EUR 0.9 million).
The aap group had access to contractually guaranteed credit lines totaling EUR 4.5 million as at March 31, 2016 (December 31, 2015: EUR 4.5 million), of which EUR 1.2 million had been drawn on as at the reporting date (December 31, 2015: not utilized). Furthermore, aap held usable liquidity (sum of cash and cash equivalents and available undrawn credit lines) of EUR 6.3 million as of March 31, 2016 (December 31, 2015: EUR 10.2 million).
The risk and opportunity situation of aap Implantate AG has not materially changed since the end of 2015. There are still no risks that would threaten the company´s continued existence. All existing risks and opportunities as well the structure and set-up of our risk and opportunity management are comprehensively presented in our consolidated annual financial report 2015.
In the second quarter of 2016 aap aims to achieve further progress in its strategy implementation. The Management Board will be focussing on the following topics:
To accelerate value-based innovations aap will be taking forward in a targeted manner the further expansion of the LO-QTEQ® portfolio for certain indication areas respectively functionalities. In the area of silver coating technology an active interaction with the approval authorities is to be pursued for the approval process under way.
The company wants to enhance market access by means of two approaches: Firstly, sales activities in the established markets in Western Europe as well as in the United States are to be expanded further. Secondly, further endeavours are to be undertaken to stabilize sales in growth markets such as the BRICS and SMIT countries.
Following the successful divestment of aap Biomaterials GmbH, aap will in the second quarter also be concentrating on optimizing operational efficiency with a focus on adjusting the cost structure to the company's new size holding.
According to preliminary calculations, the completion of the aap Biomaterials GmbH transaction will result in a positive onetime overall effect on the earnings level of about EUR 19.6 million in the second quarter of 2016.
Thus the Management Board confirms its forecast for the entire year of 2016: The company anticipates for the EDITDA of the Group (continued and discontinued operation) incl. deconsolidation gain a value of between EUR 14.1 million and EUR 15.7 million. For the continued operation sales between EUR 13.0 million and EUR 15.0 million and an EBITDA between EUR -5.5 million and EUR -3.9 million are expected.
For the second quarter of 2016, aap is expecting for the continued operation sales to range between EUR 2.5 million and EUR 3.5 million and an EBITDA of EUR -2.0 million to EUR -1.5 million.
Bruke Seyoum Alemu Chairman of the Management Board /CEO
Marek Hahn
Member of the Management Board / CFO
| (KEUR) | 2016 | 2015 |
|---|---|---|
| 01/01/2016 - 03/31/2016 | 01/01/2015 - 03/31/2015 | |
| • Net income (after tax) from continued operations | -2,732 | -1,788 |
| • Net income (after tax) from discontinued operations | 354 | 1,332 |
| Net income after tax | -2,378 | -456 |
| Changes in working capital | -1,219 | 40 |
| • Stock options expenses without effect on payments | 38 | 0 |
| thereof: • Cash settlement | 0 | 0 |
| • Stock option expenses | 38 | 0 |
| • Depreciation and impairment loss fixed assets | 483 | 630 |
| • Changes in provisions | 71 | 145 |
| • Gains / loss from retirement of financial assets | 0 | 0 |
| • Gains / loss from disposal of subsidiary | 0 | 0 |
| • Gains / loss from disposal of fixed assets | 0 | 0 |
| • Share of net profit / loss of investments | 5 | 34 |
| • Interest rate expenses / income | 5 | 30 |
| • Interest tax expenses / income | 7 | -47 |
| • Changes in other assets | 25 | -346 |
| • Changes in other liabilities | 259 | 349 |
| • Income tax payments | -0 | -329 |
| Cash flow from operating activities | -2,705 | 50 |
| • Outgoing payments from investing activities | -975 | -968 |
| • Grants | 0 | 55 |
| • Interest received | 23 | 5 |
| Cash flow from investing activities | -953 | -908 |
| • Incoming payments from equity injection | 0 | 0 |
| • Inflow from loans | 1,220 | 2,003 |
| • Redemption of loans | -251 | -249 |
| • Redemption of finance leases | -43 | -17 |
| • Interest paid | -28 | -32 |
| Cash flow from financing activities | 898 | 1,705 |
| Changes of cash fund due to exchange rate effects | 37 | -1 |
| • Increase / Decrease in cash & cash equivalents | -2,723 | 846 |
| • Cash & cash equivalents at beginning of period | 5,721 | 12,136 |
| Cash & cash equivalentsat end of period | 2,997 | 12,981 |
| thereof account for the discontinued operation | 1,408 | 1,811 |
| ASSETS (KEUR) | 2016 | 2015 |
|---|---|---|
| 03/31/2016 | 12/31/2015 | |
| Non-current assets | 19,856 | 19,203 |
| • Intangible assets | 10,804 | 10,441 |
| • Goodwill | 0 | 0 |
| • Capitalized services | 10,651 | 10,293 |
| • Other intangible assets | 153 | 148 |
| • Tangible assets | 8,211 | 7,675 |
| • Accounts receivable (trade debtors) | 93 | 310 |
| • At-Equity financial assets | 0 | 0 |
| • Financial assets | 192 | 192 |
| • Deferred taxes | 556 | 585 |
| Current assets | 33,252 | 35,743 |
| • Inventories | 10,331 | 9,703 |
| • Accounts receivable (trade debtors) | 6,040 | 5,516 |
| • Other financial assets | 365 | 725 |
| • Other assets | 442 | 202 |
| • Cash and cash equivalents | 1,590 | 4,941 |
| • Asset classified as held for sale | 14,484 | 14,656 |
| Total assets | 53,108 | 54,946 |
| LIABILITIES AND SHAREHOLDERS' EQUITY (KEUR) | 2016 | 2015 |
|---|---|---|
| 03/31/2016 | 12/31/2015 | |
| Shareholders´equity | 37,973 | 40,307 |
| • Subscribed capital | 30,726 | 30,670 |
| • Contributions to implement the capital increase resolved | 106 | 162 |
| • Capital reserve | 17,653 | 17,615 |
| • Revenue reserve | 228 | 228 |
| • Other reserve | 490 | 490 |
| • Consolidated balance sheet profit / loss | -11,272 | -8,864 |
| • Currency differences | 42 | 6 |
| Non-current liabilities (above 1 year) | 3,490 | 3,406 |
| • Financial liabilities | 0 | 0 |
| • Other financial liabilities | 1,420 | 1,340 |
| • Deferred taxes | 1,172 | 1,140 |
| • Provisions | 17 | 22 |
| • Other liabilities | 881 | 904 |
| Current liabilities (up to 1 year) | 11,645 | 11,233 |
| • Financial liabilities | 4,229 | 3,260 |
| • Trade accounts payable | 3,095 | 4,102 |
| • Other financial liabilities | 1,114 | 940 |
| • Provisions | 353 | 276 |
| • Tax liabilities | 0 | 0 |
| • Other liabilities | 613 | 504 |
| • Liabilities directly associated with assets classified as held for sale |
2,241 | 2,151 |
| Total liabilities and sharholders' equity | 53,108 | 54,946 |
| INCOME STATEMENT (KEUR) | Continued operation | |||
|---|---|---|---|---|
| 2016 | 2015 | |||
| 01/01/2016 - 03/31/2016 | 01/01/2015 - 03/31/2015 | |||
| • Sales | 2,518 | 2,940 | ||
| • Changes in inventories of finished goods and work in progress |
819 | 262 | ||
| • Other own work capitalized | 389 | 533 | ||
| Total revenue | 3,726 | 3,735 | ||
| • Other operating income | 87 | 201 | ||
| • Cost of purchased materials and services | -1,539 | -1,621 | ||
| • Personnel expenses | -2,305 | -2,116 | ||
| • Other operating expenses | -2,137 | -1,955 | ||
| • Other taxes | -3 | -4 | ||
| EBITDA | -2,171 | -1,760 | ||
| • Depreciation of tangible assets and intangible assets | -483 | -406 | ||
| EBIT | -2,654 | -2,166 | ||
| • Financial result | -13 | -11 | ||
| • Income / Expenses from joint ventures and associates | -5 | -34 | ||
| EBT | -2,672 | -2,210 | ||
| • Income tax | -60 | 423 | ||
| Net result / Total comprehensive income | -2,732 | -1,787 | ||
| • Minority interest | 0 | 0 | ||
| Net result / Total comprehensive income | -2,732 | -1,787 | ||
| Assets which can be reclassified in income statement: | ||||
| • Differences from currency translation | ||||
| Other net result / Other comprehensive income | -2,732 | -1,787 | ||
| • Net income per share (undiluted) in EUR | -0.09 | -0.06 | ||
| • Net income per share (diluted) in EUR | -0.09 | -0.06 | ||
| • Weighted average shares outstanding (undiluted) in thousand pieces |
30,832 | 30,670 | ||
| • Weighted average shares outstanding (diluted) in thousand pieces |
30,971 | 31,357 |
| Discontinued operation | Group Total | ||
|---|---|---|---|
| 2016 | 2015 | 2016 | 2015 |
| 01/01/2016 - 03/31/2016 | 01/01/2015 - 03/31/2015 | 01/01/2016 - 03/31/2016 | 01/01/2015 - 03/31/2015 |
| 2,546 | 4,194 | 5,064 | 7,134 |
| 354 | 162 | 1,173 | 424 |
| 15 | 57 | 404 | 590 |
| 2,915 | 4,413 | 6,641 | 8,148 |
| 61 | 270 | 148 | 471 |
| -1,289 | -1,314 | -2,828 | -2,935 |
| -866 | -862 | -3,171 | -2,977 |
| -526 | -555 | -2,664 | -2,510 |
| -1 | -1 | -4 | -5 |
| 293 | 1,952 | -1,878 | 192 |
| 0 | -224 | -483 | -629 |
| 293 | 1,729 | -2,361 | -437 |
| 8 | -19 | -5 | -30 |
| 0 | 0 | -5 | -34 |
| 302 | 1,710 | -2,371 | -500 |
| 24 | -376 | -35 | 48 |
| 326 | 1,334 | -2,406 | -453 |
| 0 | 0 | ||
| 326 | 1,334 | -2,406 | -453 |
| 0 | 0 | ||
| 326 | 1,334 | -2,406 | -453 |
| 0.01 | 0.04 | -0.08 | -0.01 |
| 0.01 | 0.04 | -0.08 | -0.01 |
| 30,832 | 30,670 | 30,832 | 30,670 |
| 30,971 | 31,670 | 30,971 | 31,357 |
| reserves | Revenue | Non-cash changes in equity | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (TEUR) | Subscribed capital |
Initial capital payments made for capital increase |
Capital reserve |
Legal reserves |
Other revenue reserves |
Reserve for available-for-sale assets |
Other revenue reserves |
Difference from currency translation |
Total |
Balance sheet result* |
Total |
| Status 01/01/2016 | 30,670 | 162 | 17,615 | 42 | 187 | 490 | 0 | 6 | 496 | -8,865 | 40,307 |
| 0 | |||||||||||
| Increase in shares Stock options |
56 | -56 | 38 | 0 0 |
0 38 |
||||||
| Income of the group as of 12/31/2015 |
0 | 0 | -2,406 | -2,406 | |||||||
| Currency diff. | 35 | 35 | 35 | ||||||||
| Other comprehensive income |
0 | 0 | 0 | ||||||||
| Total comprehensive income |
35 | 35 | -2,406 | -2,371 | |||||||
| Status 03/31/2016 | 30,726 | 106 | 17,653 | 42 | 187 | 490 | 0 | 42 | 531 | -11,272 | 37,974 |
| Status 01/01/2015 | 30,670 | 0 | 17,609 | 42 | 186 | 490 | 0 | 0 | 490 | -3,573 | 45,424 |
| Increase in shares | 0 | 0 | 0 | ||||||||
| Stock options | 0 | 0 | |||||||||
| Valuation of available for-sale assets |
0 | 0 | |||||||||
| Raising ownership shares in subsidiaries |
0 | ||||||||||
| Income of the group as of 12/31/2014 |
-456 | -456 | |||||||||
| Other comprehensive income |
0 | ||||||||||
| Total comprehensive income |
(-456) | (-456) | |||||||||
| Status 03/31/2015 | 30,670 | 0 | 17,609 | 42 | 186 | 490 | 0 | 0 | 490 | -4,029 | 44,968 |
The unaudited interim financial statements as at March 31, 2016 have been prepared in accordance with the International Financial Reporting Standards (IFRS) as adopted by the EU. The same accounting policies are applied in the interim financial statements as in the consolidated financial statements for fiscal year 2015. For more information, please refer to the consolidated financial statements of December 31, 2015, which form the basis for these interim financial statements.
During the preparation of consolidated financial statements for interim reporting in accordance with IAS 34, the Management Board is required to make judgements and estimates as well as assumptions that affect the application of accounting principles within the group and the approach, recognition and measurement of assets and liabilities, income and expenses. The actual amounts may differ from these estimates.
The consolidated interim financial statements account for all current transactions and deferrals that the Management Board deems necessary for an accurate presentation of the interim results. The Management Board is confident that the information and comments presented convey a true and fair view of the assets, financial and earnings position.
2. New and amended standards and their application No new or revised standards which may be relevant for the group were mandatory with effect as at 01/01/2016. The changes have no impact on the assets, financial and earnings position of the group.
Until March 31, 2016, no changes had been made to the consolidation entity of the aap group.
On September 21, 2015 it was agreed in a notarized contract that the remaining shareholding of 33% in aap Joints GmbH will be sold in the event of the successful recertification of eight products. In the first quarter of 2016, the recertification of the eight products was not fully completed.
On March 22, 2016, a notarized share purchase agreement was signed with a leading European private equity firm for the sale of 100% of the company shares in aap Biomaterials GmbH. Based on this transaction and the fulfillment of the requirements of IFRS 5 in November 2015, the disposed operation was first presented as a discontinued operation in the consolidated financial statements of December 31, 2015. The operation disposed in the transaction (discontinued operation) consists of aap Biomaterials GmbH and aap's distribution business in the field of bone cements, mixing systems and related accessories. The closing of the transaction is subject to the market standard conditions precedent, which were not met by the reporting date of March 31, 2016. The transaction was completed on May 11, 2016.
The Group-wide share-based remuneration system for the employees of aap Implantate AG and its affiliated companies was reported separately in the consolidated financial statements as at December 31, 2015. For further information please refer to the consolidated financial statements.
532,500 options were exercisable as of March 31, 2016.
The significant terms and conditions of the programs in force during the period under review are summarized in the following overview:
| Significant terms of the valid option programs | |||||
|---|---|---|---|---|---|
| 2010 2012, 2013, 2014, 2015 |
|||||
| Subscription right |
Each option grants the beneficiaries the right to subscribe to one no-par value bearer share in aap Implantate AG upon payment of the exercise price |
||||
| The pecuniary benefit is limited to four times the exercise price | |||||
| Authorized individuals |
• Employees and Management Board members of the company • Employees and executives in affiliated companies in accordance with Sections 15 et seqq. of the German Companies Act (AktG) |
• Employees of the company • Employees of affiliated companies in accordance with Sections 15 et seqq. of the German Companies Act (AktG) • Management Board members of the company (only in option program 2015) |
|||
| Issue period | until 12/19/2011 | 2012: until 12/19/2014, 2013: until 12/19/2015 2014: until 12/18/2016, 2015: until 12/19/2017 |
|||
| Waiting period | 4 years from date of issue | ||||
| Term | 8 years from the date of issue | ||||
| Exercise periods |
Within four weeks, beginning on the second trading day of the Frankfurt Stock Exchange • After the company's Annual General Meeting • After the date on which the management has made the annual financial statements, the half-year financial statements or the interim re port for the first or third quarter of the company's fiscal year available to the public at the stock exchange |
||||
| Exercise price |
The average closing price of the aap share in electronic trading (XETRA or a successor system) on the Frankfurt Stock Exchange on the five trading days preceding the first day of the purchase period, at least according to the lowest issue price in accordance with Sec. 9 para. 1 AktG |
||||
| Performance target |
Option programs 2010, 2012, 2013 and 2014: (Average) closing auction price of the aap share in XETRA trading (or a comparable successor system) on the Frankfurt Stock Exchange on the last trading day prior to the date on which the subscription right is exercised exceeds the exercise price by at least 10 % |
||||
| Option program 2015: The closing price of the aap share in electronic trading (XETRA or a successor system) on the Frankfurt Stock Ex change on the last trading day prior to the date on which the subscription right is exercised is at least EUR 3.50 |
|||||
| Fulfilment | The company can choose whether to fulfil the obligation by issuing equity instruments or cash settlements |
All stock options within the stock option programs were issued in two or more tranches. In the past, realized compensations have been settled in cash. On 12/19/2014, the Management Board decided that, with immediate effect, additional options can only be exercised through the acquisition of equity instruments. Due to the legal requirements, only the options granted to the former chairman of the Management Board and the current chairman of the Supervisory Board are settled in cash. The stock options exercised by him were compensated by cash settlement. His stock options that may be exercised in the future are valued at the reporting date using the fair value of the future pay-off obligation and recorded as a provision.
As at the reporting date, the following option programs have not yet been exercised or fully exercised:
| Option program |
Granting date per tranche |
Number of options granted |
Expiration date |
Exercise price in EUR |
Fair value on the grant date in EUR |
|---|---|---|---|---|---|
| 2010 | 07/29/2010 | 360,000 | 07/28/2018 | 1.29 | 0.58 |
| 2010 | 11/17/2010 | 505,000 | 11/16/2018 | 1.17 | 0.501 |
| 2010 | 07/15/2011 | 481,600 | 07/14/2019 | 1.03 | 0.40 |
| 2010 | 11/15/2011 | 55,000 | 11/14/2019 | 1.00 | 0.39 |
| 2012 | 07/25/2012 | 65,000 | 07/24/2020 | 1.00 | 0.51 |
| 2012 | 11/28/2012 | 180,000 | 11/27/2020 | 1.30 | 0.63 |
| 2012 | 07/03/2013 | 65,000 | 07/02/2021 | 1.27 | 0.64 |
| 2012 | 11/25/2013 | 5,000 | 11/24/2021 | 1.78 | 1.02 |
| 2013 | 07/03/2013 | 165,000 | 07/02/2021 | 1.27 | 0.64 |
| 2013 | 11/25/2013 | 135,000 | 11/24/2021 | 1.78 | 1.02 |
| 2013 | 07/01/2015 | 49,000 | 06/30/2023 | 2.51 | 1.02 |
| 2013 | 12/02/2015 | 26,500 | 12/01/2023 | 1.53 | 0.67 |
| 2014 | 07/01/2015 | 155,000 | 06/30/2023 | 2.51 | 1.02 |
| 2014 | 12/02/2015 | 133,500 | 12/01/2023 | 1.53 | 0.67 |
| 2015 | 07/01/2015 | 90,000 | 06/30/2023 | 2.51 | 1.00 |
The following table illustrates the quantity and weighted average exercise prices (WAEPs) and the development of the stock options during the reporting period:
| 2016 | 2015 | ||||
|---|---|---|---|---|---|
| Quantity | WAEP in EUR |
Quantity | WAEP in EUR |
||
| Pending as of 01/01 |
1,453,500 | 1.32 | 1,344,600 | 1.20 | |
| Granted | 0 | 0.00 | 454,000 | 1.62 | |
| Expired / waived / forfeited |
0 | 0.00 | -123,000 | 1.53 | |
| Exercised | 0 | 0.00 | -222,100 | 1.11 | |
| Pending as of 03/31 |
1,453,500 | 1.32 | |||
| Pending as of 12/31 |
1,453,500 | 1.32 | |||
| of which exercisable |
532,500 | 532,500 |
The range of exercise prices for the stock options outstanding as at 03/31/2016 ranged from EUR 1.00 to EUR 2.51 (previous year: EUR 1.00 to EUR 1.78). The stock options outstanding at the end of the reporting period have a weighted average remaining term of 5.1 years (previous year: 4.9 years). The expenses shown in the reporting period from share-based remuneration settled with equity instruments amounted to KEUR 63 (2015 total: KEUR 110), of which KEUR 32 for programs to be settled through equity instruments and KEUR 31 for programs to be settled in cash in order to increase the provision, as the right to select the way of exercise of the company for fulfilling by equity instruments actually no longer exists with respect to the Supervisory Board.
The following table shows the financial instruments held by the group as at March 31, 2016. Additional information on financial instruments can be found in the consolidated financial statements as at December 31, 2015.
| Valuation categories in accor dance with IAS 39 |
Book value 03/31/2016 |
Amortized costs |
Fair value without impac ting on income |
Valuation acc. to IAS 17 |
Fair value 03/31/2016 |
|
|---|---|---|---|---|---|---|
| Assets | KEUR | KEUR | KEUR | KEUR | KEUR | |
| Financial assets | AfS | 192 | 192 | 0 | ||
| Accounts receivable | LaR | 6,133 | 6,133 | 6,133 | ||
| Receivables from service contracts | – | 0 | 0 | |||
| Other financial assets | LaR | 365 | 365 | 365 | ||
| Cash and cash equivalents | LaR | 1,590 | 1,590 | 1,590 | ||
| Liabilities | KEUR | KEUR | KEUR | KEUR | KEUR | |
| Financial liabilities | FLAC | 4,229 | 4,229 | 4,229 | ||
| Accounts payable | FLAC | 3,095 | 3,095 | 3,095 | ||
| Development orders with debit balances | – | 0 | 0 | |||
| Capital lease obligations | - | 1,878 | 1,878 | |||
| Other financial liabilities | FLAC | 655 | 655 | 655 | ||
| Valuation categories in accor dance with IAS 39 |
Book value 03/31/2015 |
Amortized costs |
Fair value wit hout impacting on income |
Valuation acc. to IAS 17 |
Fair value 03/31/2015 |
|
| Assets | KEUR | KEUR | KEUR | KEUR | KEUR | |
| Financial assets | AfS | 192 | 192 | 0 | ||
| Accounts receivable | LaR | 9,085 | 9,085 | 9,085 | ||
| Receivables from service contracts | – | 77 | 77 | |||
| Other financial assets | LaR | 842 | 842 | 842 | ||
| Cash and cash equivalents | LaR | 13,010 | 13,010 | 13,010 | ||
| Liabilities | KEUR | KEUR | KEUR | KEUR | KEUR | |
| Financial liabilities | FLAC | 6,008 | 6,008 | 6,008 | ||
| Accounts payable | FLAC | 2,477 | 2,477 | 2,477 | ||
| Development orders with debit balances | ||||||
| Capital lease obligations | – | 173 | 173 |
of which aggregated by valuation categories in accordance with IAS 39 for the continued operation:
| Valuation categories acc. to IAS 39 |
Book value 03/31/2016 |
Amortized costs |
Fair value without impac ting on income |
Fair value 03/31/2016 |
|
|---|---|---|---|---|---|
| KEUR | KEUR | KEUR | KEUR | ||
| Financial assets available for sale | AfS | 192 | 192 | 0 | |
| Loans and receivables (including cash and cash equivalents) |
LaR | 8,087 | 8,087 | 8,087 | |
| Total financial assets | 8,280 | 8,280 | 0 | 8,087 | |
| Liabilities held at amortized costs | FLAC | 7,980 | 7,980 | 7,980 | |
| Total financial liabilities | 7,980 | 7,980 | 7,980 | ||
| Valuation categories acc. to IAS 39 |
Book value 03/31/2015 |
Amortized costs |
Fair value without impac ting on income |
Fair value 03/31/2015 |
|
| KEUR | KEUR | KEUR | KEUR | ||
| Financial assets available for sale | AfS | 192 | 192 | 0 | |
| Loans and receivables (including cash and cash equivalents) |
LaR | 22,937 | 22,937 | 22,937 | |
| Total financial assets | 23,129 | 23,129 | 22,937 |
Liabilities held at amortized costs FLAC 9,773 9,773 9,773 Total financial liabilities 9,773 9,773 9,773
The aap group holds only primary financial instruments. The volume of primary financial instruments is shown in the balance sheet. The financial asset amount represents the maximum default risk. Where default risks are apparent, they are reflected as value adjustments. The fair values of cash and cash equivalents, current receivables, accounts payable, other current financial liabilities and financial debts correspond to their book values, in particular due to the short maturity of such financial instruments.
Non-current receivables with remaining terms of more than one year are valued on the basis of various parameters such as interest rates, individual creditworthiness of the customer and the risk characteristics of the financing transaction. Accordingly, the book values of these receivables less the shown value adjustments are approximately equivalent to their cash values.
The fair value of non-current liabilities to banks and non-current finance lease liabilities are measured by discounting the expected future cash flows at interest market rates which are usual for similar financial liabilities with comparable maturities.
The financial assets available for sale relate to shares in AEQUOS Endoprothetik GmbH, which were recognized at fair value as at June 30, 2014 without effect on net income. The information required to determine fair value was not available as at the reporting date of December 31, 2015. The shareholding was therefore valued at its amortized costs in the quarterly financial statements as at March 31, 2016 due to a lack of an active market and the fact that the fair value cannot be reliably assessed.
6. Relationships with related companies and individuals Relations with related companies and individuals are shown as groups of people.
| Individuals and companies with significant influence on the group |
Associated companies | Individuals in key positions within the group |
|
|---|---|---|---|
| 03/31/2016 | KEUR | KEUR | KEUR |
| Proceeds from sales of goods and services | 0 | 361 | 0 |
| Purchases of goods and services | 0 | 0 | 0 |
| Accounts receivable / other receivables | 0 | 527 | 0 |
| Accounts payable / other liabilities | 0 | 0 | 100 |
| Interest income | 0 | 0 | 0 |
| Interest rate | 6.5 % | ||
| Loan and interest receivables | 0 | 0 | 0 |
| Interest expenses | 0 | 0 | 0 |
| Interest rate | |||
| Loan obligations | 0 | 0 | 0 |
| Individuals and companies with significant influence on the group |
Associated companies | Individuals in key positions within the group |
|
|---|---|---|---|
| 03/31/2015 | KEUR | KEUR | KEUR |
| Proceeds from sales of goods and services | 0 | 381 | 0 |
| Purchases of goods and services | 0 | 0 | 0 |
| Accounts receivable / other receivables | 0 | 490 | 0 |
| Accounts payable / other liabilities | 0 | 0 | 60 |
| Interest income | 0 | 2 | 0 |
| Interest rate | 6.5 % | ||
| Loan receivables | 0 | 112 | 0 |
| Interest expenses | 0 | 0 | 0 |
| Interest rate | |||
| Loan obligations | 0 | 0 | 0 |
All transactions do not fundamentally differ from trade relationships with third parties.
On March 22, 2016 a notarized share purchase agreement was signed with a leading European private equity firm for the sale of 100% of the company shares in aap Biomaterials GmbH. The transaction was completed on May 11, 2016.
The Management Board of aap Implantate AG released the consolidated interim financial statements for the first quarter of 2016 on May 13, 2016 for submission to the Supervisory Board and subsequent publication.
2016
• June 17, 2016 Annual General Meeting Berlin
• August 12, 2016 Interim report 2nd quarter 2016
• November 14, 2016 Interim report 3rd quarter 2016
German Equity Forum 2016 (Analyst Meeting) Frankfurt am Main
This report contains forward-looking statements based on current experience, estimates and projections of the management board and currently available information. They are not guarantees of future performance. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual future results, financial situation, development or performance of the company and the estimates given here. Many factors could cause the actual results, performance or achievements of aap to be materially different from those that may be expressed or implied by such statements. These factors include those discussed in aap's public reports. Forward-looking statements therefore speak only as of the date they are made. aap does not assume any obligation to update the forward-looking statements contained in this release or to conform them to future events or developments.
© aap Implantate AG Lorenzweg 5 • 12099 Berlin • Germany
Phone +49 30 75019 -133 Fax +49 30 75019 -290
[email protected]
aap Implantate AG Lorenzweg 5 • 12099 Berlin • Germany Phone +49 30 75019-133 Fax +49 30 75019-290
Investor Relations app download [email protected] • www.aap.de
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