Aap Implantate : updates forecast for financial year 2016 due to delays in sales development in various markets more

aapupdates forecast for financial year 2016 due to delays in sales development in various markets

aapImplantate AG ('aap') announces that it will not achieve the previous sales and EBITDA forecast for financial year 2016 for the continued operation. The reasons for this adjustment are delays in the sales development in various markets leading to a sales shift in financial year 2017.

Against the background of these developments aapadjusts its forecast for financial year 2016 for the continued operation and now anticipates sales between EUR 11.0 million and EUR 12.1 million as well as an EBITDA of EUR -7.5 million to EUR -7.0 million. For the EBITDA of the group (continued and discontinued operation including deconsolidation profit from the sale of aapBiomaterials GmbH) the company anticipates a value of between EUR 16.5 million and EUR 17.0 million.

As already reported, EBITDA in financial year 2016 was additionally burdened by one-time effects of different measures totaling EUR 0.6 million. In detail this is a special effect of the premature termination of a long-term LOQTEQ® license agreement (EUR 0.3 million) as well as one-time costs of implemented personnel measures (EUR 0.3 million). Both measures will result in noticeable cost savings and thereby earnings improvements of the company in the years to come.

With a view to the sales development in financial year 2016 an ambivalent picture appears which was significantly impacted by two opposite effects. On the one hand, China, which was despite halted growth a main sales market in 2015, could not make a contribution towards sales in financial year 2016 (Sales FY/2015: about EUR 3.3 million). The negotiations about a continuation of the distribution business have recently been concluded and the cooperation will continue in 2017. As a consequence the business in China will recover in the next year. On the other hand, aapachieved substantial progress in connection with the aimed focus on established markets such as North America and Europe in the year to date. The share of sales attributable to North America and Europe increased in the nine-month period 2016 compared to the corresponding period in the previous year by about 50% to EUR 5.1 million (9M/2015: EUR 3.4 million). Overall, the realized pleasing sales increases in North America and Europe in financial year 2016 could however not compensate the missing sales contributions from China. The Management Board currently sees in both markets a dynamic development which is expected to continue in the coming months. North America and Europe will stay the main growth drivers for the planned sales development in financial year 2017 as well.

In the area of silver coating technology, aaphas made progress in the ongoing CE conformity assessment procedure in financial year 2016 as well, and continues an intensive and constructive exchange with the notified body. Simultaneously, the company is preparing the required documents for an approval by the US Food and Drug Administration (FDA). On the basis of the previous findings and the anticipated future developments the Management Board aims at a CE approval and the closing of a license deal in financial year 2017 which will have visible influence on financial figures.

This release contains 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 aapto 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. aapdoes not assume any obligation to update the forward-looking statements contained in this release or to conform them to future events or developments