aap

Strong sales increase (+23%) and EBITDA growth (>100%) in Q2; growth driver LOQTEQ® and Biomaterials - Seite 2

Group (Total)

In million EUR	H1/2014*	H1/2013**	Change
Sales	15.2	19.6	-22%
EBITDA	1.6	4.2	-62%
EBIT	0.6	2.6	-81%
*EMCM B.V. included 01-02/2014 ** EMCM B.V. included 01-06/2013

The following highlights testify the progress over the past six months in implementing the Management Agenda for 2014:

• Trauma sales totalling EUR 3.0 million (+7%) in Q2/2014 were generated solely from existing customers and increased in H1/2014 by 21% compared with the previous year
• LOQTEQ® sales in Q2/2014 were 19% up on the previous year at EUR 1.9 million and 52% higher in H1/2014 at EUR 3.0 million
• Financial targets achieved: Q2/2014 sales at EUR 8.1 million and Q2/2014 EBITDA at EUR 1.5 million both at the upper end of the forecasts made at the beginning of the quarter
• Conclusion of a delivery contract for a PMMA bone cement
• Granting of a further US patent to expand the LOQTEQ® IP family
• Cold welding LOQTEQ®: First results of a study show that no instance of cold welding has yet been observed in connection with LOQTEQ® plates and screws
• Published comparative study of the LOQTEQ® osteotomy plate's fatigue strength revealed outstanding characteristics compared with the market leader
• Silver technology: Initial interim results of animal experiments indicate positive impact
• Strong net liquidity amounting to EUR 13.3 million (31.12.2013: EUR 3.4 million net debt)

Outlook 2014
We are at an advanced stage of negotiations with a number of US distribution partners on sales of our Trauma products in the United States. Our aim is to conclude one or more distribution agreements and to ship the first deliveries to our partners in the second half of 2014.

In the area of silver technology we await the final reports on the results of animal experiments. Based on the so far discovered positive trend, further promising results are anticipated. The findings, which form an important base to enter in negotiations for development partnerships as well as licence agreements, will be presented to globally active orthopaedics companies that have already shown interest in aaps silver technology.

aap and the assigned investment bank identified various potential strategic and financial interested parties and initial talks on different strategic options for aap Biomaterials GmbH (bone cements and mixing systems and biomaterials) are being conducted. The talks are to be further intensified in the third quarter of 2014.

The company anticipates third quarter 2014 sales of between EUR 7.0 million and EUR 8.0 million (Q3/2013 continued operations: EUR 6.3 million) and an EBITDA of between EUR 0 million and EUR 0.4 million (Q3/2013 continued operations: EUR 0.6 million).