DGAP-Adhoc: aap Implantate AG adjusts outlook for financial year 2018

aap Implantate AG ("aap") announces that based on the figures available for the first nine months of 2018 and its plans for the fourth quarter of 2018 as well as due to one-time costs in connection with the step-up strategy implementation it is adjusting its sales and EBITDA forecast for financial year 2018.
 

According to preliminary figures, total sales in the third quarter of 2018 and in the nine-month period increased on the same periods in the previous year to EUR 2.7 million (Q3/2017: EUR 2.6 million) and EUR 8.2 million (9M/2017: EUR 8.0 million) respectively, while trauma sales grew by 7% to EUR 2.8 million and by 6% to EUR 8.2 million respectively. EBITDA in the third quarter of 2018 stood at EUR -1.5 million and for the first nine months at EUR -4.6 million. Both key figures, sales and EBITDA, were therefore in the third quarter of 2018 within the forecast published in August.
 

Despite the reported growth so far an adjustment of the forecast for the full year is necessary. The background is primarily the sales development in North America falling short of expectations. Regarding aap's activities in this region, the company could not sign further contracts with global partners in the current financial year and distribution business was temporarily burdened by the loss of certain distributors. This shortfall in sales could not be offset on a short-term basis elsewhere. In contrast, aap reports for the nine-month period of 2018 a positive development with double-digit growth rates both in Germany (+12% to EUR 2.1 million) and in its international business (+28% to EUR 4.5 million).
 

EBITDA adjustment is a consequence of the above-mentioned sales development and one-time costs for strategic measures. These non-recurring out of budget expenses for the step-up strategy implementation to develop aap into a sustainably growing pure player in trauma, will burden EBITDA in the fourth quarter and subsequent months.
 

Against the background of these developments aap is adjusting its outlook for the financial year 2018 and now anticipates sales between EUR 10.0 million and EUR 11.7 million (previous forecast: EUR 13 million to EUR 15 million) and EBITDA of EUR -6.9 million and EUR -5.9 million (previous forecast: EUR -5 million and EUR -3.4 million).
 

In response to the current development of the distribution business in North America the company has strengthened its sales team. In addition, aap has in recent months already signed 12 new contracts with distributors that should be reflected in corresponding sales dynamics in coming quarters. Furthermore, aap is currently in talks with global partners on some projects whereby the realization is likely expected to be shifted to financial year 2019.
 

The figures contained in this release for the third quarter of 2018 and the first nine months are preliminary and subject to change until final publication. aap plans to publish the final figures for the third quarter of 2018 and the first nine months on 14 November 2018 in a quarterly statement.
 

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aap Implantate AG (ISIN DE0005066609) - Prime Standard/Regulated Market - All German stock markets -

About aap Implantate AG
aap Implantate AG is a globally operating medical device company headquartered in Berlin, Germany. The company develops, manufactures and markets trauma products for orthopaedics. The IP protected portfolio includes besides the innovative anatomical plating system LOQTEQ(R) and trauma complementary biomaterials a wide range of cannulated screws as well as standard plates and screws. Furthermore, aap Implantate AG has an innovation pipeline with promising development projects as the antibacterial silver coating technology and magnesium based implants. These technologies address critical problems in surgery that haven't yet been resolved adequately. In German-speaking Europe aap Implantate AG directly sells its products to hospitals, buying syndicates and hospital groups while it uses a broad network of distributors in more than 25 countries at the international level. aap Implantate AG's stock is listed in the Prime Standard segment of Frankfurt Stock Exchange (XETRA: AAQ.DE). For more information, please visit www.aap.de, or download the Company's investor relations app from the Apple's App Store or Google Play.

Forward-looking statement
This release may contain 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.

For inquiries please 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