Geratherm Medical : Half-yearly report 2021

Business Performance from January 1 to June 30, 2021

• Demand for Geratherm clinical thermometers has normalised internationally
• Segments: Health Care Diagnostic -20.1 %, Respiratory +20.5 %, Cardio/Stroke +27.6 %
• Sales revenues EUR 12.4 million, -10.4 %, Q2 EUR 5.7 million
• Gross result for period under review (EBITDA) EUR 1.729 million -15.7 %, QII 679 kEUR
• Operating result (EBIT) 981 kEUR, -32.5 %, Q2 305 kEUR
• EBIT margin 7.9 %, QII 5.3 %
• Results from ordinary business activities 914 kEUR, -34.8 %, QII 269 kEUR
• Earnings per share EUR 0.13 (2020: EUR 0.21), Q2 EUR 0.04

Dear Shareholders and Parties Interested in Geratherm Medical,

The progress of the coronavirus pandemic has slowed considerably internationally and in Germany over recent months thanks to vaccination efforts. This resulted in a decline and normalisation of the demand for Geratherm clinical thermometers.

In the past three months, there was a -24.4 % drop in sales posted by the entire company compared to the same quarter last year, which was very strong.

In the first six months of 2021, the Group sales decreased by -10.4% to EUR 12.4 million. Compared to the same period last year, the sales posted for the first six months amounted to EUR 13.8 million.

While the Respiratory and Cardio/Stroke business segments reported again a double- digit growth in sales, we recorded a drop in sales in particular in Healthcare Diagnostics and Warming Systems.

The gross profit decreased by -1.2 % to EUR 8.8 million. Based on sales, that corresponds to a gross margin of 70.8 % (2020: 64.1 %).

The EBITDA margin on the Group level amounted to 13.9 % during the first half of the business year (2020: 14.8 %). The EBIT margin amounted to 7.9 % (2020: 10.5 %). Other price adjustments or transfer of costs to our customers cannot not be avoided.

The financial results amounted to -67 kEUR (2020: -51 kEUR), which was mainly due to interest expenses (-61 kEUR). The sale of securities resulted in a total profit of

329 kEUR, which is directly shown in the equity capital according to IFRS. In the second quarter, we took the opportunity and increased our share in Geratherm Respiratory by +2.31 % to a total of 67.58 %.

The results from ordinary business activities for the first six months amounted to 914 kEUR (2020: EUR 1.403 million).

Shareholders' earnings after taxes for the first six months of the current fiscal year amounted to 621 kEUR (2020: EUR 1.039 million), representing a decrease of 40.3 %. The result per share for the first six months was EUR 0.13 (2020: EUR 0.21). The overall result in the Group was EUR 1.023 million (2020: EUR 1.054 million) for the first six months according to IFRS.

The global impact of the coronavirus pandemic between March 2020 and the beginning of 2021 resulted in a strong demand for Geratherm clinical thermometers; that level of demand did not continue during the second quarter. During the second quarter, the sales for the entire Geratherm Group reduced by -24.4 % to EUR 5.7 million.

The normalised level of sales reported during the second quarter has also led to a reduced earnings report on a quarterly basis. The operating income at the EBITDA level dropped to 679 kEUR (2020: EUR 1.381 million). The EBIT reduced in the second quarter to 305 kEUR (2020: EUR 1.082 million). The sales are thus still well above the pre-coronavirus period.

Together with the financial results, the results from ordinary business activities for the second quarter sank to 269 kEUR (2020: EUR 1.055 million). After deducting income tax, the company reported during the second quarter a consolidated net profit of 335 kEUR (2020: 867 kEUR).

After deducting the minority interests, the results after taxes for the second quarter amounted to 199 kEUR (2020: 752 kEUR) or EUR 0.04 per share (2020: EUR 0.15).

Sales development

In the first six months, we posted a drop in sales by about 10 % across business segments and regions. In Europe, our main market, sales normalised to a level of -

1. %. On the German market, we were able to register a trend to the contrary with a

1. % rise in sales.

We also recorded particularly strong growth in the Middle East, which posted a 155.8 % increase compared to the same reference period last year. We experienced setbacks due to decreasing sales of clinical thermometers, especially on the South American market with -51.1 %, the US with -37.1 %, Asia -48.6 % and Africa with -58.0 %.

Sales by regions 1/1 to 6/30/2021

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