DGAP-News: Expedeon AG reports strong third quarter 2018 financial results

PRESS RELEASE
8 November 2018

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Interim quarterly statement

Expedeon AG reports strong third quarter 2018 financial results

- 74% increase in revenues to EUR9.3 million for the first nine months of 2018 versus same period in 2017

- Adjusted EBITDA of EUR 461 thousand for the first nine months of 2018 against EUR1.7 million loss in 2017; adjusted EBITDA of EUR 297 thousand reported for the third quarter

- 2018 financial guidance reaffirmed with full year positive EBITDA and revenues of EUR 13-14 million

- Further licensing and supply agreements concluded alongside successful integration of TGR Biosciences

Heidelberg, Germany and Cambridge, UK, 8 November 2018 - Expedeon AG (Frankfurt: EXN; ISIN: DE000A1RFM03; Prime Standard) today reported results for the third quarter of 2018 and nine-month period ended 30 September 2018.

"We are very pleased with our business performance year to date as demonstrated by several new licence and supply agreements. The successfully completed integration of TGR Biosciences expands our complementary product portfolio and further supports our growth ambition," said Dr. Heikki Lanckriet, CEO and CSO of Expedeon. "After the first quarter as Expedeon AG, our company is on track to strengthen its position as an enabler of exciting advances in medical science and patient care in laboratories around the globe."

2018 year-to-date operational highlights:

- February 2018: Extended OEM agreement with leading global research tools supplier to provide customers with improved access to research tools through worldwide sales and distribution channels

- March/April 2018: Capital increase closed in March 2018, with gross proceeds of EUR 4.2 million; debt financing closed in April 2018, with gross proceeds of EUR 2.0 million, thereby enabling Expedeon to conclude the TGR Biosciences acquisition

- May 2018: Completion of the acquisition of TGR Biosciences, priced in Australian Dollars at approximately EUR 10.2 million (gross of cash acquired with the business of EUR 1.1 million)

- May 2018: Introduction of 2view(TM), a unique detection method optimised for Western blotting

- May 2018: Adjustment of revenue guidance for the financial year 2018 to EUR 13-14 million (previous guidance: EUR 11-12 million) after closing the acquisition of TGR Biosciences

- August 2018: Successful change of name to Expedeon AG, defining corporate strategy as united company with broad international sales and distribution networks

- September 2018: Two licence and supply agreements for colloidal Gold signed with Reszon Diagnostics and PaxGenBio

- November 2018: Signing of supply and license agreement with Quanterix for proprietary CaptSure(TM) immunoassay technology

David Roth, CFO of Expedeon, commented: "We are pleased with the continued good progress in our financial performance over the course of 2018 and have reported a strongly improved EBITDA result for the third quarter. We continue to confirm our full year revenue guidance and expected overall EBITDA positive full year result, a major milestone in the development of Expedeon."

First nine months of 2018 financial results:

Total Group revenues increased by 74% to EUR 9.3 million for the first nine months of 2018 (nine months 2017: EUR 5.3 million) including EUR1.8 million for newly acquired TGR. Excluding TGR, revenues increased by 40% year on year.

Adjusted EBITDA for the nine months was EUR 461 thousand (2017 loss of EUR 1.7 million), with underyling reported EBITDA of EUR 136 thousand (2017 loss of EUR 2.5 million).

The result for period included depreciation and amortisation of tangible and intangible assets (including customer lists and patents capitalised on the acquisitions of Expedeon Group, Innova Biosciences and TGR Biosciences) of EUR 1.7 million (nine months 2017: EUR 851 thousand).

As a result, reported net loss significantly improved and was EUR 1.4 million compared to EUR 3.1 million for the first nine months of 2017.

In the first nine months of 2018, the cash and cash equivalent levels increased by EUR 2.3 million to EUR 4.2 million with the partial receipt of loan funds from Boost & Co as previously announced (31 December 2017: cash and cash equivalents of EUR 2.0 million). At 30 September 2018, total assets were EUR 64.0 million including goodwill of EUR 35.2 million and other intangibles of EUR 16.2 million.

During the first nine months of 2018, cash outflows from operating activities were EUR 1.4 million (nine months 2017: EUR 3.0 million), influenced by the working capital needs of the growing business; and heavily affected by seasonal timings in Q3 which are expected to reverse during Q4.

Cash outflows from investing activities were EUR 6.4 million (nine months 2017: EUR 9.0 million) and related primarily to the acquisition of TGR Biosciences in 2018 and Innova Biosciences in 2017.

Third quarter of 2018 financial results:

Revenues increased to EUR 3.7 million in the third quarter of 2018 (Q3 2017: EUR 2.4 million). Expedeon reported an adjusted positive EBITDA for Q3 2018 of EUR 297 thousand, against an adjusted EBITDA loss of EUR 727 thousand in Q3 2017. On a reported basis, Q3 EBITDA was EUR 113 thousand versus a 2017 EBITDA loss of EUR868 thousand.

Reported net loss for the third quarter 2018 amounts to EUR 519 thousand compared to EUR 1.2 million for the third quarter of 2017.

Outlook 2018:

The Company expects to reach agreement on further licence and supply agreements in the coming months with new and existing partners worldwide. Upcoming launches of newly developed products and advancements on existing technologies will continue to broaden the product portfolio and support continued strong revenue growth in coming quarters.

The Company continues to be on track to meets its revised guidance issued in May 2018 of being overall EBITDA positive for the year with full year revenues in the range of EUR13 - 14 million.
 

For a detailed breakdown of the financial results, please refer to the provided PDF document.

For further information, please contact:

Expedeon AG
Dr. Heikki Lanckriet
CEO/CSO
Phone: +44 1223 873 364
Email: heikki.lanckriet@expedeon.com

MC Services AG (Investor Relations and International Media Relations)
Raimund Gabriel
Managing Partner
Phone: +49 89 210228 0
Email: expedeon@mc-services.eu

About Expedeon AG: www.expedeon.com
Expedeon is an enabler of exciting advances in medical science and patient care. The Company's core technologies, innovative products and services are used in research laboratories around the world, enabling scientists to push the boundaries of research and product development, and play an integral part in new diagnostic tools being brought to market. With applications spanning the entire workflows in genomics, proteomics and immunology, Expedeon's technologies both accelerate and simplify research and make new and cost-effective processes available to biopharmaceutical and diagnostic organisations alike, thereby underpinning its customers' development and commercialisation objectives. Expedeon's products are sold through a direct sales force and several distribution partners in Europe, the USA and Asia. Expedeon AG has offices in Germany, Spain, UK, USA and Singapore. The Company is listed on the Prime Standard segment of the Frankfurt Stock Exchange (Ticker: EXN; ISIN: DE000A1RFM03).

### This publication is intended for information only and constitutes neither an offer to sell nor an invitation to buy securities. Some statements included in this press release, relating neither to proven financial results nor other historical data, should be viewed as forward-looking, i.e. not definite. Such statements are mainly predictions of future results, trends, plans or goals. These statements should not be considered to be total guarantees since given their very nature they are subject to known and unknown risks and imponderability and can be affected by other factors as a consequence of which the actual results, plans and goals of Expedeon AG may deviate greatly from the established conclusions or implied predictions contained in such statements. Expedeon does not undertake to publicly update or revise these statements in the light of new information or future results or for any other reason. ###
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