aap Implantate AG

Earnings Release • Dec 15, 2016

News Details

Ad-hoc | 15 December 2016 10:38

aap Implantate AG: aap updates forecast for financial year 2016 due to delays in sales development in various markets

aap Implantate AG / Key word(s): Change in Forecast/Profit Warning

15-Dec-2016 / 10:38 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR, transmitted by
DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

---

aap Implantate AG ("aap") announces that it will not achieve the previous
sales and EBITDA forecast for financial year 2016 for the continued
operation. The reasons for this adjustment are delays in the sales
development in various markets leading to a sales shift in financial year
2017.

Against the background of these developments aap adjusts its forecast for
financial year 2016 for the continued operation and now anticipates sales
between EUR 11.0 million and EUR 12.1 million as well as an EBITDA of EUR
-7.5 million to EUR -7.0 million. For the EBITDA of the group (continued
and discontinued operation including deconsolidation profit from the sale
of aap Biomaterials GmbH) the company anticipates a value of between EUR
16.5 million and EUR 17.0 million.

As already reported, EBITDA in financial year 2016 was additionally
burdened by one-time effects of different measures totaling EUR 0.6
million. In detail this is a special effect of the premature termination of
a long-term LOQTEQ(R) license agreement (EUR 0.3 million) as well as one-
time costs of implemented personnel measures (EUR 0.3 million). Both
measures will result in noticeable cost savings and thereby earnings
improvements of the company in the years to come.

With a view to the sales development in financial year 2016 an ambivalent
picture appears which was significantly impacted by two opposite effects.
On the one hand, China, which was despite halted growth a main sales market
in 2015, could not make a contribution towards sales in financial year 2016
(Sales FY/2015: about EUR 3.3 million). The negotiations about a
continuation of the distribution business have recently been concluded and
the cooperation will continue in 2017. As a consequence the business in
China will recover in the next year. On the other hand, aap achieved
substantial progress in connection with the aimed focus on established
markets such as North America and Europe in the year to date. The share of
sales attributable to North America and Europe increased in the nine-month
period 2016 compared to the corresponding period in the previous year by
about 50% to EUR 5.1 million (9M/2015: EUR 3.4 million). Overall, the
realized pleasing sales increases in North America and Europe in financial
year 2016 could however not compensate the missing sales contributions from
China. The Management Board currently sees in both markets a dynamic
development which is expected to continue in the coming months. North
America and Europe will stay the main growth drivers for the planned sales
development in financial year 2017 as well.

In the area of silver coating technology, aap has made progress in the
ongoing CE conformity assessment procedure in financial year 2016 as well,
and continues an intensive and constructive exchange with the notified
body. Simultaneously, the company is preparing the required documents for
an approval by the US Food and Drug Administration (FDA). On the basis of
the previous findings and the anticipated future developments the
Management Board aims at a CE approval and the closing of a license deal in
financial year 2017 which will have visible influence on financial figures.

Contact:
aap Implantate AG; Fabian Franke; Investor Relations; Lorenzweg 5; D-12099
Berlin Tel.: ++49/30/750 19 - 134; Fax.: ++49/30/750 19 - 290;
f.franke@aap.de

---

15-Dec-2016 CET/CEST The DGAP Distribution Services include Regulatory
Announcements, Financial/Corporate News and Press Releases.
Archive at www.dgap.de

---

Language: English
Company: aap Implantate AG
Lorenzweg 5
12099 Berlin
Germany
Phone: +49 (0) 30 75 01 90
Fax: +49 (0) 30 75 01 91 11
E-mail: info@aap.de
Internet: www.aap.de
ISIN: DE0005066609
WKN: 506660
Listed: Regulated Market in Frankfurt (Prime Standard); Regulated
Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover,
Munich, Stuttgart, Tradegate Exchange

 End of Announcement    DGAP News Service