Aap Implantate : 110% LOQTEQ® sales growth in Q3/2014 underscores claim to become a leading European trauma company more

aap Implantate AG sales revenues totalled EUR 7.8 million in the third quarter of 2014 (previous year, continuing operations: EUR 6.3 million), or a 23% increase on the previous year. EBITDA was EUR 0.8 million (previous year, continuing operations: EUR 0.6 million) and EBIT EUR 0.2 million (previous year, continuing operations: EUR 0.1 million). In the first nine months of financial year 2014, aap Group sales (continuing operations) totalled EUR 22.1 million (previous year: EUR 19.0 million) and EBITDA amounted to EUR 2.4 million (previous year: EUR 3.2 million).

Group (Continuing Operations)

Group (Continuing Operations)

On a like-for-like basis (excluding one-off effects of equity disposals and one-off costs in connection with strategic measures and project proceeds and costs incurred in connection with them) key figures for continuing operations in the third quarter and the first nine months of 2014 developed as follows:

Operating Performance: Continuing Operations (normalised*)

Operating Performance: Continuing Operations (normalised*)

As a result of the sale of EMCM B.V. on February 28, the sales figures for the first half-year include sales from EMCM for January and February totalling EUR 1.0 million. For the Group, including EMCM B.V. for two months in 2014 and nine months in 2013, the Company reports sales in the first nine months of financial year 2014 totalling EUR 23.0 million (previous year: EUR 28.4 million) and EBITDA amounting to EUR 2.4 million (previous year: EUR 5.3 million).

Group (Overall)

The following highlights indicate the progress made in the first nine months in implementing the Management Agenda for 2014:

• Financial targets achieved: Q3 sales of EUR 7.8 million at the upper end of the forecast made at the beginning of the quarter and EBITDA target exceeded at EUR 0.8 million
• Trauma sales in Q3/2014 totalling EUR 3.3 million (+48 %) generated mainly from existing customers, increasing by 29% in the first nine months on the previous year
• LOQTEQ® sales in Q3/2014 were 110% up on the previous year (EUR 1.1 million), increasing by 68% in the first nine months to EUR 5.3 million with growth mainly in the BRIC and SMIT countries
• Receipt of the notice of allowance from the US Patent and Trademark Office for core patent claims in respect of our LOQTEQ® system
• Silver technology: Further scheduled progress and keen interest shown by globally active medical technology enterprises
• A strong net liquidity position of EUR 10 million (31.12.2013: net debts of EUR 3.4 million)

We have talks and 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 first quarter of 2015 at the latest.
In the area of silver technology a next major milestone will be the beginning of extended animal experiments with a renowned US laboratory in the first quarter of 2015. Our aim is to be to secure CE approval of the first silver-coated implants by the end of 2015. In addition, we held talks on developing partnerships and licensing with globally active medical technology companies that have shown interest in aap ´s silver technology.
aap have held intensive talks with selected potential strategic parties and private equity investors on possible strategic options for aap Biomaterials GmbH (bone cements and mixing systems and biomaterials). Our strategic objective is to complete a transaction in the first quarter of 2015 at the latest and thereby to transform aap Implantate AG into a company that is active solely in the trauma sector.
For financial year 2014 sales revenue we foresee a target corridor of between € 30 million and € 34 million and for EBITDA of between € 2.0 million and € 4.5 million.

The strategic objective of transforming aap Implantate AG into a leading European trauma company remains intact.