DGAP-News: ifa systems AG: Financial year 2017: still with special effects after restructuring

ifa systems AG: Corporate News for the FY 2017

Financial year 2017: still with special effects after restructuring

- Sales 2017 with EUR 8.6 million in line with plans

- Result burdened by high depreciation and provisions

- Sales 2018 approx. EUR 2 million lower than expected due to the focus on core business, the result shall be almost balanced

Frechen, May 9, 2018

The ifa systems AG, a listed specialist for Health-IT applications in ophthalmology, has maintained sales virtually stable within the group with EUR 8.6 million (previous year: EUR 8.9 million) in the financial year 2017. The result was burdened by one-off effects because of the strategic restructuring. The activities on the American market were reassessed as planned, with the result of comprehensive amortization of intangible assets and investment book values in the order of EUR 5.5 million in total. Furthermore, restructuring measures (EUR 1.5 million) had a negative effect on the result. The operating result (EBIT) therefore turned out negatively again and amounted to minus EUR 7.8 million (previous year: minus EUR 2.2 million). The consolidated loss comes up to minus EUR 9.3 million (previous year: minus EUR 2.2 million).

"By concentrating on the core business, ifa will continue to play a significant role in the digitalization in healthcare in the future", says Jörg Polis, chairman of the management board of ifa systems AG. "The risks from the past were adjusted consistently. This allows us to keep our focus on the future."

These measures led in particular to changes in various balance sheet positions. In the area of intangible assets, the total volume of the internal development costs declined to the reporting date by EUR 5.1 million from EUR 18.7 million to EUR 13.6 million. A volume of EUR 0.8 million was newly capitalized in 2017 (previous year: EUR 1.6 million). Due to the disbursement of the loans from Topcon and the Mizuho Bank the liquid funds rose from EUR 0.2 million to EUR 4.3 million during the year. The equity was reduced to EUR 8.3 million as a result of the balance sheet loss for the financial year 2017 (previous year: EUR 15.8 million). Cash flow from operating activity amounted to EUR 544 thousand in the financial year due to the high burden on the group result with non-cash expenses (previous year: EUR 1.2 million).

Outlook

For the financial year 2018, the management board expects for the ifa group a sales level amounting to EUR 6.3 million and EUR 6.8 million, staying well beneath the amount of the previous year (EUR 8.6 million). The reason for this is that the project business with Topcon is completed, which boosted the last two financial years. In addition, opportunities from other areas were deliberately weighed more cautiously because of the strategic reorientation with the concentration on the core business.

"Our objective is to increase the cash flow and to approach a balanced result on the EBIT basis", says Jörg Polis. "The restructuring and rightsizing measures have been introduced and most of them have already been implemented. We will take the opportunity in 2018 to orient the group towards a successful future."

Detailed information can be obtained from the complete annual report 2018, available on www.ifasystems.com, under "Investor Relations".

Dates:
Frühjahrskonferenz Frankfurt (Spring conference in Frankfurt, Germany) - May 15 to 16, 2018, Presentation: May 16, 2018 at 10 a.m.
Annual general meeting - June 22, 2018 in Cologne (Germany)

Key figures as of Dec. 31, 2017
ifa systems Group, acc. to IFRS

The figures above are derived from the balance sheet and the profit and loss account. They cannot and are not supposed to replace the same.

Contact for information:
Robin Booth
ifa systems AG
Augustinusstr. 11b
50226 Frechen
robin.booth@ifasystems.de
+49 2234 933 670

The company:
The ifa systems AG is listed on the open market at the German Stock Exchange under ISIN: DE
007830788. The Topcon Corp., Japanese Technology company, holds 51.92 % of shares through the
subsidiary Topcon Medical Europe B.V. and is also noted (Japanese Stock Exchange Tokyo 7732 TYO). The ifa Group develops, distributes and installs software solutions and components especially targeted at ophthalmologists and eye clinics in the fast-growing health IT industry. The focus of these solutions is to ensure that the patients receive the best treatment. The core principle is that specialized electronic patient files include all the details of examinations and treatments in ophthalmology. Data from more than 480 ophthalmological devices from various manufacturers can be gathered by the software. Doctors can gain knowledge on the respective guidelines, treatment methods and possible risks based on the captured data. Various specialized database solutions additionally archive and assess images, documents and data. These are frequently used in quality-assurance and quality- management and for research. Experts expect that this niche market will grow to total sales of over USD 6.2 billion by 2020. The company maintains users in over 30 countries world-wide, using a total of 15,000 workstation licenses and processing and managing more than 200,000 clinical patient cases.