aap Implantate AG: Q2 weaker than expected and adjustment of guidance for the financial year 2022 due to increased macroeconomic uncertainties in H2

aap Implantate AG / Key word(s): Change in Forecast/Quarter Results
aap Implantate AG: Q2 weaker than expected and adjustment of guidance for the financial year 2022 due to increased macroeconomic uncertainties in H2

28-Jul-2022 / 17:29 CET/CEST
Disclosure of an inside information acc. to Article 17 MAR of the Regulation (EU) No 596/2014, transmitted by DGAP - a service of EQS Group AG.
The issuer is solely responsible for the content of this announcement.

Publication of inside information pursuant to Art. 17 MAR

 The Management Board of aap Implantate AG ("aap" or the "Company") is issuing an update for the second quarter of 2022 and revising its guidance for the financial year 2022 after macroeconomic conditions have not improved in the second quarter of 2022 and the general market environment in the markets relevant for aap is no longer expected to recover significantly in the short term. The main reasons for this are the persisting pandemic COVID‑19 situation, related bottlenecks in hospitals and also the increasing but still too low mobility and the changed mobility behavior of the population, which is reflected in lower case numbers compared to the pre‑COVID‑19 level. In addition, the ongoing war in Ukraine, the dynamic pressure on global supply chains that can be observed, and the general inflationary environment are generally affecting business development, which is reflected, for example, in the noticeable delayed execution of new customer contracts despite a well‑filled pipeline or in the significantly reduced willingness of aap's existing distribution partners to invest in market expansion.

The company's previous outlook for the full year 2022 from early May took into account the challenges, but also the first signs of a possible recovery. Management now expects macroeconomic challenges to last longer and be more intense than previously anticipated.

Based on preliminary figures, aap achieved sales of around EUR 2.7 million in the second quarter of 2022, which together with the sales of the first quarter results in a sales value of around EUR 5.6 million for the first half of the year. This figure is slightly below the previous year's figure (H1/2021: EUR 6.0 million) and below the expected sales level for the first half of the year based on the original sales guidance for the full year 2022 of EUR 14.0 million to EUR 16.0 million and assuming a similar distribution of sales over the individual quarters as in the previous fiscal year. According to preliminary calculations, EBITDA for the second quarter is around EUR ‑0.2 million, which together with the figure for the first quarter results in EBITDA for the first half of the year of around EUR ‑0.7 million. EBITDA for the first half of the year is thus within the expected range based on the original guidance for the full year 2022 (EUR ‑1.7 million to EUR ‑0.5 million). EBITDA in the second quarter was positively influenced by non‑recurring effects (mainly income from the COVID 19 support program Überbrückungshilfe IV and the reversal of provisions and accruals) amounting to around EUR 0.3 million.

As the company no longer assumes the general market sentiment in the markets relevant for aap to recover significantly in the short term, it is updating its guidance for the financial year 2022. The Management Board now expects a sales level of EUR 11.5 million to EUR 13.5 million (previously: EUR 14.0 million to EUR 16.0 million) and EBITDA of EUR ‑2.0 million to EUR ‑1.1 million (previously: EUR ‑1.7 million to EUR ‑0.5 million) for the financial year 2022.





----------------------------------------------------------------------------------------------------------------------------------------------------------------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, manufactures and markets products for traumatology. In addition to the innovative anatomical plate system LOQTEQ®, the IP-protected portfolio includes 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 at international level 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. This involves sales both via distribution agents and as part of 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 https://www.aap.de.

Forward-looking statements
This release may contain forward-looking statements based on current expectations, beliefs and projections of the Management Board and currently available information. The forward-looking statements are not guarantees of future performance or results. 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. These factors include those discussed in aap's public reports. Forward-looking statements therefore speak only as of the date they are made. We assume no obligation to update the forward-looking statements made in this release or to conform them to future events or developments.



Contact:
aap Implantate AG; Marek Hahn; Member of the Management Board, CFO; Lorenzweg 5; D-12099 Berlin
Tel.: +49/30/750 19 - 134; Fax.: +49/30/750 19 - 290; m.hahn@aap.de

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