DGAP-News

2020 financial statements: visible results under restructuring with significantly improved Recurring EBITDA (+28%) in challenging times of COVID-19 pandemic

DGAP-News: aap Implantate AG / Key word(s): Annual Results/Annual Report 2020 financial statements: visible results under restructuring with significantly improved Recurring EBITDA (+28%) in challenging times of COVID-19 pandemic 30.04.2021 / 17:33 The issuer is solely responsible for the content of this announcement. aap Implantate AG ("aap" or the "Company") achieved sales of EUR 9.3 million (FY/2019: EUR 11.7 million) in a financial year 2020 marked by COVID-19 and thus a figure in the upper half of the guidance of EUR 8.0 million to EUR 10.0 million. Furthermore, despite COVID-19 and extensive restructuring expenses, the Company realized an improved EBITDA of EUR -4.8 million (FY/2019: EUR -5.1 million), which was also in the upper half of the guidance of EUR -5.9 million to EUR -4.5 million raised in October 2020. Excluding one-time effects, Recurring EBITDA improved significantly by +28% to EUR -3.4 million in financial year 2020 (FY/2019: EUR -4.8 million), reflecting the visible results in restructuring despite the massive COVID-19-related sales decline.

2020 - Key results and progress

- Sales by region: Sales development in Germany (-21%) and in international business (-39%) significantly impacted by COVID-19

- USA: Dynamic sales growth (+41%) through expansion of customer base and contracts concluded with US-wide purchasing associations and networks

- Earnings: EBITDA improved to EUR -4.8 million (FY/2019: EUR -5.1 million) despite significant one-time effects from restructuring, refinancing and revision of QM system, particularly due to cost reduction; Recurring EBITDA improved significantly by +28% to EUR -3.4 million (FY/2019: EUR -4.8 million)

- Gross margin and costs: Improvement of gross margin to 84% (FY/2019: 80%) due to increased share of high-margin US sales in total sales and discontinuation of standard trauma portfolio; massive cost reduction due to significant decrease in personnel expenses (EUR -1.7 million) and other operating expenses (EUR -1.6 million)

- Cash flow and balance sheet: Improved EBITDA and positive working capital effects reduce operating financing requirement to EUR -3.7 million (FY/2019: EUR -5.8 million); balance sheet restructuring within equity with capital reduction and offsetting against accumulated deficit