EQS-News: Half-year financial statements close with balanced EBITDA, Trauma with positive EBITDA

• Sales: H1/2024 increased by 10% to EUR 6.4 million compared to H1/2023; main growth driver EMEA region
• EBITDA: H1/2024 breaks even, Trauma achieves positive EBITDA

aap Implantate AG ("aap" or "Company") looks back on a pleasing first half-year. The Company was able to increase sales and EBITDA compared to the previous year and generate a positive EBITDA in the trauma business. The company's sales increased by 10% to EUR 6.4 million compared to the same period of the previous year (H1/2023: EUR 5.9 million). In terms of earnings, the company recorded an almost balanced EBITDA of EUR ‑0.0 million (H1/2023: EUR -1.0 million) in the first six months of 2024, which primarily reflects the growth in sales coupled with lower costs and effects from restructuring.

H1/2024 - Key financial figures*

EBITDA H1/2024

aap thus realized a significantly improved EBITDA of EUR ‑0.0 million in the first half of 2024 compared to the same period of the previous year (H1/2023: EUR ‑1.0 million). The following developments were decisive for the result:

• Strong sales growth (H1: +10 % compared to previous year),
• Stable high gross margin (> 87%),
• Decline in personnel costs (-12%) in the first six months compared to the same period of the previous year,
• Improvement in the margin and cost situation in the USA

Cash flow

aap's operating cash flow improved by 34% year-on-year in the first half of 2024 to EUR 1.0 million at‑ , mainly due to the improved operating result. Cash flow from investing activities showed an outflow of EUR 0.0 million in H1/2024, with investments in development projects accounting for EUR 22 thousand (H1/2023: EUR 59 thousand). In the area of financing activities, there was a cash inflow totaling EUR 0.5 million in the first half of 2024 (H1/2023: cash inflow of EUR 2.8 million), which was primarily due to the cash inflow from the capital increase in the net amount of EUR 1.0 million, taking out a shareholder loan of EUR 0.3 million, the repayment of financial liabilities and shareholder loans in the amount of EUR 0.6 million (H1/2023: EUR 0.5 million) and the payment of interest in the amount of EUR 133 thousand (H1/2023: EUR 80 thousand). As a result, cash and cash equivalents decreased to EUR 0.8 million at the end of the second quarter. Net debt (total cash and cash equivalents less all interest-bearing liabilities) amounted to EUR 1.2 million as at June 30, 2024 (December 31, 2023: EUR 1.8 million).

Outlook

Not included in the following forecast statements:

• A significant tightening of sanctions against Russia or a modified interpretation of existing sanctions for other markets,
• An expansion of the conflict situation outside Ukraine,
• Further significant additional increases in energy and commodity prices above the currently foreseeable level or restrictions on the company's ability to operate due to partial or complete cessation of gas and/or energy supplies as a result of the war in Ukraine, among other things,
• Financial risks due to recession-related measures in various markets and their impact on state finances in the healthcare sector.

In the second half of 2024, the focus will be on stabilizing aap's financial situation in order to finance the next stage of its activities in antibacterial implant technology, completing patient recruitment for the human clinical trial for the innovative antibacterial implant technology, starting the approval documentation and submitting applications to the EIC program and the upcoming MDR audit.

In terms of revenue, the Management Board expects revenue for the second half of 2024 to remain the same as in the first six months and expects to achieve the planned revenue level of between EUR 11.5 million and EUR 13.5 million for the 2024 financial year. Taking into account the full project costs for the further implementation of the human clinical trial for the antibacterial implant technology, the Management Board expects EBITDA for the 2024 financial year to be between EUR -2.5 million and EUR -1.4 million.

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aap Implantate AG (ISIN DE0005066609) - General Standard/Regulated Market - All German stock exchanges -

About aap Implantate AG

aap Implantate AG is a globally active medical technology company based in Berlin, Germany. The company develops, produces and markets products for traumatology. The IP-protected portfolio includes the innovative anatomical plate system LOQTEQ® and a wide range of cannulated screws. In addition, aap Implantate AG has an innovation pipeline with promising development projects such as antibacterial silver coating technology and magnesium-based implants. These technologies address critical problems in traumatology that have not yet been adequately solved. In Germany, aap Implantate AG sells its products directly to hospitals, purchasing groups and group clinics, while internationally it primarily uses a broad network of distributors in around 25 countries. In the USA, the company relies on a hybrid sales strategy through its subsidiary aap Implants Inc. Sales are conducted both through distribution agents and through partnerships with global orthopedic companies. The aap Implantate AG share is listed in the General Standard of the Frankfurt Stock Exchange (XETRA: AAQ.DE). For further information, please visit our website at www.aap.de.

There may be technical rounding differences in the figures presented in this press release that do not affect the overall statement. All key financial figures with reference to the balance sheet date of December 31, 2023 in the published consolidated interim report as at June 30, 2024 are preliminary and unaudited. The business figures for 2023 will be confirmed at a later date with the publication of the 2023 annual financial statements.  

Forward-looking statements

This release may contain forward-looking statements that are based on the current expectations, assumptions and forecasts of the Executive Board and information currently available to it. The forward-looking statements are not to be understood as guarantees of the future developments and results mentioned therein. Various known and unknown risks, uncertainties and other factors could lead to material differences between the actual results, financial situation, development or performance of the company and the estimates given here. These factors include those that aap has described in published reports. Forward-looking statements therefore speak only as of the date on which they are made. We assume no obligation to update the forward-looking statements made in this release or to adapt them to future events or developments.

If you have any questions, please contact: aap Implantate AG; Rubino Di Girolamo, Chairman of the Management Board/ CEO, Lorenzweg 5; 12099 Berlin

Phone: +49 (0)30 75019 - 170; Fax: +49 (0)30 75019 - 290; Email: [email protected]