GERATHERM AT A GLANCE

Facts and Figures	January September 2016	January September 2015	Change
Sales revenues	16,350 kEUR	15,914 kEUR	2.7 %
of which export share	13,841 kEUR	13,723 kEUR	0.9 %
Export ratio	85 %	86 %	-1.2 %
Gross result (EBITDA)	2,716 kEUR	2,726 kEUR	-0.4 %
EBITDA margin	16.6 %	17.1 %	-2.9 %
Amortisation or depreciation	-857 kEUR	-636 kEUR	34.9 %
Operating result (EBIT)	1,859 kEUR	2,090 kEUR	-11.1 %
EBIT margin	11.4 %	13.1 %	-13.0 %
Financial result	-63 kEUR	-13 kEUR	>100.0 %
Result of ordinary activities	1,796 kEUR	2,077 kEUR	-13.5 %
Net earnings of the parent company's shareholders in the period concerned	1,348 kEUR	1,831 kEUR	-26.3 %
Long-term assets	4,805 kEUR	4,107 kEUR	17.0 %

Short-term assets	21,994 kEUR	24,370 kEUR	-9.7 %
Balance sheet total	26,799 kEUR	28,477 kEUR	-5.9 %
Equity capital	19,692 kEUR	21,291 kEUR	-7.5 %
Return on equity	9.1 %	11.5 %	-20.4 %
Equity ratio Cash, cash equivalents and	73.5 %	74.8 %	-1.7 %
securities	10,379 kEUR	13,240 kEUR	-21.6 %

Earnings per share according to IFRS (EPS)*	0.27 EUR	0.37 EUR	-27.0 %
Earnings per share according to DVFA*	0.27 EUR	0.37 EUR	-27.0 %
Number of employees at end of period	207	167	24.0 %
Unit shares	4,949,999	4,949,999	-
* based on united shares in circulation	4,949,999	4,949,999	-

Business Performance from 1 January - 30 September 2016

Sales revenues EUR 16.4 million +2.7 %
Overall performance EUR 17.1 million +4.7 %
Gross result for first 9 months of year (EBITDA) 2,716 kEUR -0.4 %
Operating result (EBIT) 1,859 kEUR -11.1 %
Results from ordinary business activities 1,796 kEUR -13.5 %
Earnings after taxes (EAT) 1,348 kEUR -26.3 %

Dear Shareholders and Parties Interested in Geratherm Medical,

Geratherm Medical posted a sales growth of +2.7 % for the first nine months of the current business year. The third quarter performed weaker on a whole compared to the same quarter last year. Development in the Warming Systems segment, among others, had an adverse impact on performance. Our subsidiary LMT, which also belongs to this segment, was unable to bring any larger projects to account during the third quarter. That resulted in a shift of potential orders.

Compared to the slight growth in sales, the company managed to post an aboveaverage increase in the gross profit by +6.2 % to EUR 10.9 million. Based on an overall performance, that equates to a gross margin of 63.7 % (2015: 62.8 %).

The EBITDA margin of business operations was 16.6 % (2015: 17.1 %), while the EBIT margin of business operations amounted to 11.4 % (2015: 13.1 %),

The overall return totalled 8.2 % (2015: 10.0 %). The equity-to-assets ratio was 73.5 % with a return on equity of 9.1 % (2015: 11.5 %),

The third quarter performed weaker due to the sharp drop in sales in the Warming Systems segment compared to the same reference period last year. The sales for the past three months declined by -4.5 %. The overall performance decreased on a group level by -2.5 %.

Investments in new employees were made in almost all sectors, which increased personnel costs by 35.9 % over the prior year. Of the 40 new employees, 24 were assigned to the plant in Thuringia for the production of gallium-filled clinical thermometers, and 11 employees for the production of medical capillaries. The writeoffs increased considerably by +38.6 %. The operating result for the three-month period decreased by -49.2 % to 311 kEUR (2015: 611 kEUR).

The financial result was positive with +91 kEUR (2015: +169 kEUR). During the 3rd quarter, the result from ordinary activities amounted to 402 kEUR (2015: 781 kEUR). After deducting income tax, the company reported during the third quarter a consolidated profit of 258 kEUR (-57.2 %). Less the minority interests, the result after taxes amounts during the third quarter to 7 EUR cents per share (2015: 16 EUR cent).

Facts and Figures		III/16	II/16	I/16	IV/15	III/15
(in kEUR)	Sales	5,023	5,899	5,428	5,675	5,260
	EBITDA margin	12.1%	23.5%	13.3%	12.3%	15.7%
	EBIT	311	1,104	444	444	611
	EPS (EUR)	0.07	0.15	0.05	0.18	0.16
	Cash flow	600	1,184	756	620	1,006

Sales Development

The sales development of Geratherm Medical for the first nine months amounted to +2.7 % (EUR 16.4 million). The sales of Geratherm products varied greatly in the individual regions. We posted a healthy growth with a 30.1 % increase in the Middle Eastern markets. Sales on the German market, which reported an increase of 14.5 % exhibited a positive performance.

The South American market has stabilised. A -4.4 % drop in sales was reported here. Sales on the European market registered a slight increase of 2.7 % compared to the prior year.

We posted a weaker sales with with a -25.9 % drop on the US market. Besides a lower sales reported by our subsidiary LMT Medical, there was a temporary decrease in the purchase orders for gallium-filled thermometers.

The sales in Other countries enjoyed an above-average increase of +7.8 %. This group of countries essentially includes Africa and Asia.

Sales by regions 01/01 - 30/09/2016

Geratherm products are primarily sold internationally. The export share represented 84.7 % (2015: 86.2 %),

Sales by segments 01/01 - 30/09/2016

The Healthcare Diagnostic segment developed with a +6.2 % growth in sales in line with our expectations. The sales growth benefited from the strong demand for family planning products. The sales of digital clinical thermometers increased slightly by +7.4 % compared to the prior year.

The sales of blood pressure monitors decreased by -8.3 %. During the fourth quarter, we will be launching a new generation of blood pressure monitors on the market such that we expect a market-based stabilisation of this product group.

The Respiratory segment managed to expand its sales by +5.3 % compared to the same period last year. This segment is now the group's second largest sales pillar with a 18.8 % share of sales. We are anticipating a considerably healthier growth for the other quarters and have thus made corresponding investments in new employees. During the third quarter, we equipped the Lisbon University Hospital, among other facilities, with large-scale Geratherm devices. The purchase order for 25 Ergostik modules for a Novartis study focusing on heart failure, which will be delivered in the next few months, was also satisfying.

The Medical Warming Systems segment was our main concern with a -29.6 % drop in sales in the third quarter There were a number of factors that had a negative impact on business performance. LMT Medical's major purchase orders were deferred to the fourth quarter of 2016. With regard to the Unique Temp and Unique Resc product group we are currently in a recertification process, which should be concluded in November. This had a negative impact on the sales reported by the segment.

The Cardio/Stroke segment continued to develop favorably and was able to build on its growth. For the first nine months of this year, sales increased by +69.4 % to 825 kEUR compared to the same reference period last year.

Earnings Situation

The realised income decreased with a slight 11.1 % increase in sales on a ninemonth basis. This can be attributed to the weak third quarter which was considerably impacted by the performance of LMT Medical. Compared to the profit reported in the amount of 275 kEUR for the same reference quarter last year, a loss of -121 kEUR was posted in the third quarter. We anticipate being able to settle larger-scale projects in the fourth quarter such that LMT Medical's earnings situation will stablise again.

The gross margin of the overall performance did increase during the first nine months to 63.7 % (2015: 62.8 %). The reason for this is the increasing sales of highermargin products. The gross profit (EBITDA) was 2,716 kEUR (2015: 2,726 kEUR), while the EBITDA margin for the nine-month period amounted to 16.6 % (2015: 17.1 %). The write-offs increased by +34.9 % to 857 kEUR (2015: 636 kEUR).

The operating result (EBIT) decreased by 11.1 % to 1,859 kEUR (2015: 2,090 kEUR). The EBIT margin for the nine-month period amounted to 11.4 % (2015: 13.1 %).

The financial result of the Geratherm Group amounted to -63 kEUR (2015:-13 kEUR). Interests and similar earnings amounted to 292 kEUR (2015: 312 kEUR). Of which the interest burden of our Brazilian subsidiary amounted to 248 kEUR. The financial earnings from dividends and sales of securities amounted to 229 kEUR (2015: 302 kEUR). The earnings from the sales of securities increased considerably during the fourth quarter.

The Geratherm Group managed to generate a result from ordinary business activities of 1,796 kEUR (2,077 kEUR) for the first nine months of the current business year. That corresponds to a 13.5 % decrease. Income taxes weighed on the result with 407 kEUR (2015: 588 kEUR). The effective taxes amounted to 268 kEUR. The remaining amount of 139 kEUR accounted for the reduction of non-cash effective deferred tax assets due to the use of losses carried forward.

The consolidated net profit for the first nine months was 1,389 kEUR (2015: 1,489 kEUR), a decrease of 6.7 %. After considering the results attributable to minority interests, the shareholders of the parent company had for the first nine months a net income of 1,348 kEUR (2015: 1,831 kEUR), a decrease of 26.3 %. The result per share is 27 EUR cents (2015: 37 EUR cents).

Net Assets and Financial Situation

Geratherm Medical enjoys a stable asset situation. The balance sheet total of EUR 26.8 million is essentially formed by equity capital in the amount of EUR 19.7 million.

The equity-to-assets ratio as of the reporting date was 73.5 % (2015: 74.8 %). The return on equity amounted to 9.1 % (2015: 11.5 %). The overall return on investment capital is 8.2 %. As of 30 September 2016 the company had cash, cash equivalents and securities in the amount of EUR 10.4 million (2015: EUR 14.7 million). Thus, the company has a solid financial position.

The long-term assets amount to EUR 4.8 million (2015: EUR 4.9 million). The intangible assets decreased by -13.1 % to 524 kEUR due to the implemented amortisations.

The tangible assets reported in the amount of EUR 3.8 million remained almost the same with EUR 3.7 million compared to 2015.

The short-term assets decreased by 13.4 % to EUR 22.0 million. Inventories increased slightly by +5.8 % to EUR 7.2 million. The trade accounts receivable increased by +24.0 % to EUR 3.9 million.

The gross cash flow for the first nine months was 2,540 kEUR (2015: 2,636 kEUR). The cash flow from business operations was 270 kEUR (2015: 2,157 kEUR). The cash flow from investments amounted to -1,463 kEUR (2015: -752 kEUR).

Research and Development

Our research and development activities are currently focussed on the business segments Respiratory and Warming Systems. The research and development activities include individual projects that are planned for the long term. There have been no changes in this regard over the past few months.

Staff

The Geratherm Group had a staff of 207 persons in total as of 30 September 2016 (2015: 167) with 183 employees in Germany (2015: 151). The addition of 40 employees can be viewed in the context of the planned growth and acquisition of the medical capillary production (+11 employees).

An additional 14 employees were hired to accommodate the ramp-up of higher capacities for the production of gallium-filled thermometers. 6 additional employees were also hired for the Respiratory segment. apoplex medical's staff was also augmented by 4 new employees. As a result, we are laying the foundation for the company's planned growth.

Outlook

We anticipate that sales and earnings will continue to develop favourably for the fourth quarter of 2016. The possible settlement of large-scale projects by our subsidiary LMT Medical during the fourth quarter is expected to have a positive impact on consolidated profits. A considerably higher financial result should be realised by the end of year. The reasons for this lie in the liquidation of the shares held in Epigenomics and the planned takeover offer of CompuGroup Medical for the Agfa Gaevert-Group. Geratherm holds 700,000 shares of Agfa-Gaevert at a book value of EUR 3.54 per share.

Geschwenda, November 2016

Dr. Gert Frank Chief Executive Officer

Statement of comprehensive income for the period January 1, 2016 to September 30, 2016

	July-Sept. 2016 EUR	July-Sept. 2015 EUR	Change	Jan.-Sept. 2016 EUR	Jan.-Sept. 2015 EUR	Change
Sales revenue	5,023,026	5,259,891	-4.5%	16,349,894	15,914,252	2.7%
Change in stocks of finished and unfinished goods	139,805	-52,504	>100.0%	219,374	-157,733	>100.0%
Other own work capitalized	31,288	1,003	>100.0%	83,331	6,497	>100.0%
Other operating income	75,668	195,905	-61.4%	450,950	573,879	-21.4%
	5,269,787	5,404,295	-2.5%	17,103,549	16,336,895	4.7%
Material costs
Costs for consumables, supplies and goods and for specific products	-1,735,362	-1,942,351	-10.7%	-5,363,829	-5,724,315	-6.3%
Costs of purchased services	-242,649	-124,437	95.0%	-844,594	-356,513	>100.0%
	-1,978,011	-2,066,788	-4.3%	-6,208,423	-6,080,828	2.1%
Gross profit	3,291,776	3,337,507	-1.4%	10,895,126	10,256,067	6.2%
Personnel expenses
Wages and salaries	-1,315,184	-954,247	37.8%	-3,800,404	-2,953,736	28.7%
Social contributions and expenditures for pensions	-262,326	-206,175	27.2%	-808,887	-675,120	19.8%
	-1,577,510	-1,160,422	35.9%	-4,609,291	-3,628,856	27.0%

Depreciation of intangible assets and tangible fixed assets	-295,335	-213,154	38.6%	-857,343	-635,590	34.9%
Other operating expenditure	-1,108,250	-1,352,680	-18.1%	-3,569,685	-3,901,119	-8.5%
Operating results	310,681	611,251	-49.2%	1,858,807	2,090,502	-11.1%
Income from dividends	0	0	-	39,000	39,000	-
Income from sale of securities	175,962	262,650	-33.0%	189,609	262,650	-27.8%
Depreciation of securities	0	0	-	0	0	-
Expenses from securities	-655	-7,324	-91.1	-4,336	-10,091	-57.0%
Other interest and related income	1,943	2,362	-17.7%	5,081	7,640	-33.5%
Interests and similar expenses	-86,305	-88,422	-2.4%	-292,044	-312,368	-6.5%

Financial result	90,945	169,266	-46.3%	-62,690	-13,169	>100.0%
Result of normal business activity	401,626	780,517	-48.5%	1,796,117	2,077,333	-13.5%
Taxes on income and profit	-143,663	-178,231	-19.4%	-407,475	-588,568	-30.8%
Group net profit for the period	257,963	602,286	-57.2%	1,388,642	1,488,765	-6.7%
Result of non-controlling shareholders for the period	-102,258	-171,260	-40.3%	40,367	-341,758	-

Net earnings of the parent company`s shareholders in the period concerned	360,221	773,546	-53.4%	1,348,275	1,830,523	-26.3%
Gross result for first quarter of year (EBITDA)	606,016	824,405	-26.5%	2,716,150	2,726,092	-0.4%
Earnings per share undiluted	0.07	0.16	-56.3%	0.27	0.37	-27.0%

Statement of financial position as at the end of the period by September 30, 2016

Assets	30. September 2016 EUR	31. December 2015 EUR	Change
A. Long-term assets
I. Intangible assets
1. Development costs	167,538	161,491	3.7%
2. Other intangible assets	281,126	366,234	-23.2%
3. Goodwill	75,750	75,750	-
	524,414	603,475	-13.1%
II. Tangible assets
1. Land and buildings	1,220,239	1,021,961	19.4%
2. Plant and machinery	2,164,048	2,254,680	-4.0%
3. Other plants, operating and office equipment	330,947	311,484	6.2%
4. Assets under construction	48,754	134,412	-63,7%
	3,763,988	3,722,537	1.1%
III. Other assets	270,000	270,000	-
IV. Other long-term receivables	247,175	123,045	>100.0%
V. Deferred taxes	0	139,642	-
	4,805,577	4,858,699	-1.1%
B. Current assets
I. Inventories
1. Raw, auxiliary and operating materials	2,396,456	2,148,258	11.6%
2. Unfinished products	1,047,169	1,317,323	-20.5%
3. Finished products and goods	3,766,179	3,349,944	12.4%
	7,209,804	6,815,525	5.8%
II. Receivables and other assets
1. Trade accounts receivable	3,875,546	3,125,080	24.0%
2. Tax claims	157,124	303,731	-48.3%
3. Other assets	372,055	446,595	-16.7%
	4,404,725	3,875,406	13.7%
III. Securities	4,530,096	5,015,682	-9.7%
IV. Means of payment	5,849,280	9,682,703	-39.6%
	21,993,905	25,389,316	-13.4%
	26,799,482	30,248,015	-11.4%
Equity and Liabilities
A. Equity
I. Subscribed capital	4,949,999	4,949,999	-
II. Capital reserves	11,035,367	11,035,367	-
III. Other reserves	4,343,010	6,523,091	-33.4%
Attributable to parent company shareholders	20,328,376	22,508,457	-9.7%
Non-controlling shareholders	-636,637	-569,240	11.8%
	19,691,739	21,939,217	-10.2%
B. Non-current liabilities
1. Liabilities to banks	1,183,933	1,533,697	-22.8%
2. Accrued investment subsidies	392,864	474,221	-17.2%
3. Other long-term liabilities	923,954	791,228	16.8%
	2,500,751	2,799,146	-10.7%
C. Current liabilities
1. Amounts owed to credit institutions	1,372,932	1,144,682	19.9%
2. Advances received	230,592	305,790	-24.6%
3. Trade accounts payable	1,133,147	1,707,003	-33.6%
4. Tax liabilities	560,957	638,373	-12.1%
5. Other current liabilities	1,309,364	1,713,804	-23.6%
	4,606,992	5,509,652	-16.4%
	26,799,482	30,248,015	-11.4%

Statement of cash flow for the period January 1, 2016 to September 30, 2016

	January – Sept. 2016 kEUR	January – Sept. 2015 kEUR
Group net profit for the period	1,389	1,489
Other non-cash expenses	-91	5
Dividend income	-39	-39
Interest income	-5	-8
Interest paid	292	312
Decrease in deferred taxes	140	376
Expenditure from income taxes	268	212
Depreciation of fixed assets	857	636
Income from the sale of securities	-190	-263
Losses from securities trading	0	0
Depreciation of securities	0	0
Amortization of allowances and subsidies	-81	-84
Loss on disposal of fixed assets	0	0
Gross cash flow	2,540	2,636
Increase in inventories	-394	-132
Increase in trade receivables and other assets	-656	-400
Decrease/Increase in current and other liabilities	-487	348
Cash from dividends	39	39
Inflow from interest	5	8
Outflow from interest	-292	-312
Outflow of taxes	-485	-30
Cash flow from operations	270	2,157
Outflow for investment in fixed assets	-1,245	-319
Inflow from financial investments	829	612
Outflow for financial investments	-1,047	-1,045
Cash flow from investments	-1,463	-752
Cash inflow from non-controlling shareholders	0	2
Share acquisition of non-controlling shareholders	-100	0
Dividend distribution	-2,475	-1,238
Proceeds from the repayment of loans	2,343	964
Outflows for the repayment of loans	-2,465	-2,415
Increase in fixed liabilities	133	63
Cash flow from financing activities	-2,564	-2,624
Change in cash and cash equivalents	-3,757	-1,219

Cash and cash equivalents at the start of the reporting period	9,683	8,869
Effect of exchange rate changes on cash and cash equivalents	-77	258
Cash and cash equivalents at the end of the reporting period	5,849	7,908

Statement of changes in equity for the period by September 30, 2016

				Other reserves
	Subscribed capital	Capital reserves	Market valuation reserve	Currency conversion reserves	Accumulate d earnings	To be assigned to the shareholder s of the parent company	Non-con trolling interests	Equity capital
	EUR	EUR	EUR	EUR	EUR	EUR	EUR	EUR
As of January 1, 2015	4,949,999	11,035,367	659,054	16,963	4,047,646	20,709,029	-366,071	20,342,958
Interest-proportional increase in share capital of subsidiary Geratherm Medical do Brasil Ltda.	0	0	0	0	0	0	84,703	84,703
Purchase of shares in the subsidiary apoplex medical technologies GmbH by shareholders of minority interests	0	0	0	0	0	0	-83,334	-83,334
Dividend payment to shareholders	0	0	0	0	-1,237,500	-1,237,500	0	-1,237,500
Transaction with associates and shareholders	0	0	0	0	-1,237,500	-1,237,500	1,369	-1,236,131
Group period result	0	0	0	0	1,830,523	1,830,523	-341,758	1,488,765
Unrealized profits and losses from revaluation of securities	0	0	432,915	0	0	432,915	0	432,915
Currency translation in group	0	0	0	133,957	0	133,957	128,704	262,661
Total consolidated income	0	0	432,915	133,957	1,830,523	2,397,395	-213,054	2,184,341
As of September 30, 2015	4,949,999	11,035,367	1,091,969	150,920	4,640,669	21,868,924	-577,756	21,291,168
As of January 1, 2016	4,949,999	11,035,367	865,252	116,856	5.540,983	22,508,457	-569,240	21,939,217
Purchase of shares in the subsidiary Geratherm Respiratory GmbH von nicht beherrschenden Anteilseignern	0	0	0	0	-74,000	-74,000	-26,000	-100,000
Dividend payment to shareholders	0	0	0	0	-2,475,000	-2,475,000	0	-2,475,000
Transaction with associates and shareholders	0	0	0	0	-2,549,000	-2,549,000	-26,000	-2,575,000
Group period result	0	0	0	0	1,348,276	1,348,276	40,367	1,388,643
Unrealized profits and losses from revaluation of securities	0	0	-893,607	0	0	-893,607	0	-893,607
Currency translation in group	0	0	0	-85,750	0	-85,750	-81,764	-167,514
Total consolidated income	0	0	-893,607	-85,750	1,348,276	368,919	-41,397	327,522
As of September 30, 2016	4,949,999	11,035,367	-28,355	31,106	4.340,259	20,328,376	-636,637	19,691,739

Consolidated Statement of Comprehensive Income (IFRS) for the period from January 1, 2016 to September 30, 2016

	01.01.-30.09.2016 EUR	01.01.-30.09.2015 EUR
Net earnings of the parent company`s shareholders in the period concerned	1,388,643	1,488,765
Income and expenses directly included in equity capital Which are reclassified under specific conditions to profit or loss:
Profit and losses from the revaluation of securities	-893,607	432,915
Difference resulting from currency translation	-167,514	262,661
Income and expenses directly included in equity capital	-1,061,121	695,576
Total consolidated income	327,522	2,184,341
Of which for non-controlling shareholders	-41,397	-213,054
Of which for parent company shareholders	368,919	2,397,395

Segment Report for the period from January 1, 2016 to September 30, 2016

According to product segments	Healthcare Diagnostic	Respiratory	Med. Warming Systems	Cardio/ Stroke	Consolidation	Reconciliation	Total
2016	Jan.- Sept. kEUR	Jan.- Sept. kEUR	Jan.- Sept. kEUR	Jan.- Sept. kEUR	Jan.- Sept. kEUR	Jan.- Sept. kEUR	Jan.- Sept. kEUR
Segment revenues	12,204	2,714	2,080	825	-1,473	0	16,350
Operating results	1,872	152	-256	144	22	-75	1,859
of which:
Amortization of intangible assets and depreciation of tangible assets	618	27	87	18	-14	121	857
Segment assets	11,229	1,790	2,993	633	0	10,154	26,799
Segment liabilities	5,282	612	625	589	0	0	7,108

According to product segments	Healthcare Diagnostic	Respiratory	Med. Warming Systems	Cardio/ Stroke	Consolidation	Reconciliation	Total
2015	Jan.- Sept. kEUR	Jan.- Sept. kEUR	Jan.- Sept. kEUR	Jan.- Sept. kEUR	Jan.- Sept. kEUR	Jan.- Sept. kEUR	Jan.- Sept. kEUR
Segment revenues	11,097	2,661	2,183	488	-521	6	15,914
Operating results	1,526	270	306	21	-61	28	2,090
of which:
Amortization of intangible assets and depreciation of tangible assets	456	49	67	9	-2	57	636
Segment assets	10,028	2,080	2,946	400	0	12,815	28,269
Segment liabilities	5,203	685	775	523	0	0	7,186

According to regions	Europe	South America	Germany	Middle East	USA	Others	Total
2016	Jan.-Sept. kEUR	Jan.-Sept. kEUR	Jan.-Sept. kEUR	Jan.-Sept. kEUR	Jan.-Sept. kEUR	Jan.-Sept. kEUR	Jan.-Sept. kEUR
Sales revenue	8,511	1,656	3,451	1,445	1,722	1,038	17,823
Elimination of intercompany Sales	0	-76	-942	0	-455	0	-1,473
Sales revenue to third parties	8,511	1,580	2,509	1,445	1,267	1,038	16,350
Gross profit or loss	5,646	1,043	1,719	958	841	688	10,895
Operating results	920	254	280	156	137	112	1,859
of which:
Amortization/depreciation of intangible assets and tangible assets	487	7	148	83	73	59	857
Amortization of public grants and subsidies	47	0	14	8	7	5	81
Acquisition costs of fixed assets for the period	0	14	806	0	0	0	820
Segment assets	0	2,059	24,588	0	152	0	26,799

According to regions	Europe	South America	Germany	Middle East	USA	Others	Total
2015	Jan.-Sept. kEUR	Jan.-Sept. kEUR	Jan.-Sept. kEUR	Jan.-Sept. kEUR	Jan.-Sept. kEUR	Jan.-Sept. kEUR	Jan.-Sept. kEUR
Sales revenue	8,287	1,813	2,551	1,111	1,709	964	16,435
Elimination of intercompany Sales	0	-161	-360	0	0	0	-521
Sales revenue to third parties	8,287	1,652	2,191	1,111	1,709	964	15,914
Gross profit or loss	5,392	972	1,430	723	1,112	627	10,256
Operating results	1,502	-495	398	201	310	174	2,090
of which:
Amortization/depreciation of intangible assets and tangible assets	364	9	97	49	75	42	636
Amortization of public grants and subsidies	49	0	13	7	10	5	84
Acquisition costs of fixed assets for the period	0	1	184	0	0	0	185
Segment assets	0	1,720	26,549	0	0	0	28,269

Notes on Interim Consolidated Financial Statements for the Period from 1 January 2016 to 30 September 2016

Accounting and Valuation Methods

The interim consolidated financial statements of Geratherm Medical AG were prepared for the first nine months of the 2016 business year 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 2015 Business Year.

The valuation of assets and liabilities is based in part on estimates and/or assumptions about future developments. For instance, the statements on economic useful life for long-term assets are based on estimates and assumptions. In addition, the assessment of the intrinsic value of deferred taxation allocated to the losses carried forward and the impairment tests of the cash-generating units and the assets is based on the corporate planning, which of course involves uncertainties such that the actual values may deviate from the made assumptions and estimates in individual cases. Estimates and the underlying assumptions are regularly checked and evaluated with regard to possible impact on accounting.

Consolidated Group

The following changes occurred in the consolidation group as of 30 September 2016. Geratherm Medical AG took over further nominal capital shares of minority interests in Geratherm Respiratory GmbH at a purchase price of 100 kEUR. Thus, Geratherm's interest in Respiratory's share capital increased by 26 kEUR (+4%). The purchase price difference in the amount of 74 kEUR was shown as revenue reserve in equity capital of Geratherm.

	Share quota	Share quota
Company	30/9/2016	31/12/2015
GME Rechte und Beteiligungen GmbH, Geschwenda, Germany	100.00%	100.00%
apoplex medical technologies GmbH, Pirmasens, Germany	58.76%	58.76%
Geratherm Respiratory GmbH, Bad Kissingen, Germany	65.27%	61.27%
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 Subsidiary of LMT Lübeck	66.67 %	66.67 %
LMT Medical Systems Inc., Ohio, USA	100.00 %	100.00 %

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 as of 30 September 2016 to EUR 4,949,999 (2015: EUR 4,949,999) and is divided into 4,949,999 share certificates issued to the bearers (2015: 4,949,999). The subscribed capital has been paid in full. As of the reporting date there were no shares held by the company.