aap: Q3/2016 sales and EBITDA within the guidance; North America sales in 9M/2016 above expectations; important progress in LOQTEQ® portfolio expansion

aap Implantate AG / aap: Q3/2016 sales and EBITDA within the guidance; North America sales in 9M/2016 above expectations; important progress in LOQTEQ® portfolio expansion . Processed and transmitted by Nasdaq Corporate Solutions. The issuer is solely responsible for the content of this announcement.

• Sales and EBITDA in Q3/2016 at EUR 2,9 million (Guidance: EUR 2.5 million to EUR 4.0 million) and
  EUR -1.8 million (Guidance: EUR -2.0 million to EUR -1.2 million)
• EBITDA burdened by one-time effects in Q3/2016 and in nine-month period (Q3/2016: EUR 0.5 million; 9M/2016: EUR 0.8 million), which will largely result in savings effects on the earnings level in the future
• North America sales in Q3/2016 at EUR 0.7 million (Q3/2015: EUR 0.1 million) and in 9M/2016 at EUR 2.0 million (9M/2015: EUR 0.4 million)
• LOQTEQ®: Important progress in portfolio completion through market launchs of periprosthetic and polyaxial LOQTEQ® systems - further launches planned shortly
• Silver coating technology: good progress in CE conformity assessment procedure; preparation of approval documents for US FDA
• Signing of a notarial share purchase agreement about the remaining stake of 33% in aap Joints GmbH - Completion planned until year end 2016
• Change in the Supervisory Board: Jacqueline Rijsdijk follows Ronald Meersschaert

aap Implantate AG ("aap") achieved in the third quarter of 2016 sales and EBITDA in line with the expectations. In the continued operation sales in the reporting period amounted to EUR 2.9 million (Q3/2015: EUR 3.4 million) and were thus within the guidance of EUR 2.5 million to EUR 4.0 million. Furthermore, aap realized an EBITDA of EUR -1.8 million (Q3/2015: EUR -1.4 million) in the continued operation in the third quarter of 2016 and thereby a value within the forecasted corridor of EUR -2.0 million to EUR -1.2 million as well. EBITDA in the reporting period was burdened by one-time effects from the termination of a long-term license agreement in connection with the LOQTEQ® technology (EUR 0.3 million) and a value adjustment to customer receivables (EUR 0.2 million) totaling about EUR 0.5 million. The license agreement with a co-developer of the LOQTEQ® technology initially had a long maturity which was tied to the terms of the LOQTEQ® patents. By terminating the license agreement aap has succeeded in providing mid- and long-term as well as sustainable relief on the earnings level. Adjusted for the mentioned special effects recurring EBITDA in the third quarter was at EUR -1.3 million and thereby at the upper end of the guidance. 

Q3 Sales

Q3 EBITDA

9M Sales

* Includes aap Biomaterials GmbH business from 01/01/2016 to 05/11/2016.

9M EBITDA

* Includes aap Biomaterials GmbH business from 01/01/2016 to 05/11/2016 and deconsolidation profit of sale of aap Biomaterials GmbH.

• North America sales: sales with local distributors and global partners who sell aap products under their own name or the aap label in North America totaled EUR 0.7 million in Q3/2016 (Q3/2015: EUR 0.1 million) and EUR 2.0 million in 9M/2016 (9M/2015: EUR 0.4 million) and were thus significantly above expectations
• LOQTEQ®: important progress in portfolio completion through recent market launchs of periprosthetic LOQTEQ® system and polyaxial LOQTEQ® VA ankle system - Shortly further launchs of various polyaxial LOQTEQ® systems for different anatomical areas
• Silver coating technology: good progress in CE conformity assessment procedure for silver-coated LOQTEQ® plate - Intensive and constructive exchange with notified body; preparation of approval documents for US Food and Drug Administration (FDA)
• Signing of a notarial share purchase agreement about the remaining stake of 33% in aap Joints GmbH for EUR 0.4 million on 23 September 2016; prerequisite for closing is the recertification of three products until year end 2016; prolongation of the CE approval is a very challenging task as these are so-called class III products which are in a difficult approval environment with constantly increasing requirements and partly long reaction times of approval authorities; conclusion of the contract led to a value adjustment on the stake in aap Joints GmbH of EUR 0.4 million in Q3/2016
• Amicable agreement with co-developer of LOQTEQ® technology about premature termination of a long-term license agreement and compensation with an indemnity payment which is provided as a first fixed payment in 2016 and will subsequently be payed out in tranches if certain sales targets are reached only in the next three years; termination leads to a mid- and long-term as well as sustainable discharge of earnings level; first indemnity payment of EUR 0.3 million leads to an one-off extraordinary charge on earnings in Q3/2016     
• Change in the Supervisory Board: Jacqueline Rijsdijk follows Ronald Meersschaert who resigned from his office for personal reasons; Jacqueline Rijsdijk has acknowledged economic and financial expertise and an excellent network

About aap Implantate AG
aap Implantate AG is a globally operating medical device company headquartered in Berlin, Germany. The company develops, manufactures and markets trauma products for orthopaedics. The IP protected portfolio includes besides the innovative anatomical plating system LOQTEQ® and trauma complementary biomaterials a wide range of cannulated screws as well as standard plates and screws. Furthermore, aap Implantate AG has an innovation pipeline with promising development projects as the antibacterial silver coating technology and magnesium based implants. These technologies address critical problems in surgery that haven't yet been resolved adequately. In German-speaking Europe aap Implantate AG directly sells its products to hospitals, buying syndicates and hospital groups while it uses a broad network of distributors in more than 25 countries at the international level. aap Implantate AG's stock is listed in the Prime Standard segment of Frankfurt Stock Exchange (XETRA: AAQ.DE). For more information, please visit www.aap.de, or download the Company's investor relations app from the Apple's App Store or Google Play.

Forward-looking statement
This release may contain 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 aap to 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. aap does not assume any obligation to update the forward-looking statements contained in this release or to conform them to future events or developments.

For inquiries please contact: aap Implantate AG, Fabian Franke, Investor Relations, Lorenzweg 5, 12099 Berlin, Germany

--- End of Message ---

aap Implantate AG
Lorenzweg 5 Berlin Germany

WKN: 506660;ISIN: DE0005066609;
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Hanseatische Wertpapierbörse zu Hamburg,
Freiverkehr in Börse Berlin,
Freiverkehr in Börse Düsseldorf,
Freiverkehr in Bayerische Börse München,
Freiverkehr in Niedersächsische Börse zu Hannover,
Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse;