DGAP-Ad hoc: aap Implantate AG

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

DGAP-Ad-hoc: aap Implantate AG / Key word(s): Change in Forecast/Profit Warning aap Implantate AG: aap updates forecast for financial year 2016 due to delays in sales development in various markets

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.

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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

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

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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 ---------------------------------------------------------------------------

529981 15-Dec-2016 CET/CEST