DGAP-News: aap Implantate AG / Key word(s): Preliminary Results/Forecast 
FY/2020: Sales of EUR 9.3 million in Corona year in upper half of guidance - dynamic sales growth in USA (+41%); 
significant sales growth and positive EBITDA in trauma business planned for FY/2021 
2021-01-21 / 17:57 
The issuer is solely responsible for the content of this announcement. 
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- Sales of EUR 9.3 million in a COVID-19-driven FY/2020 in upper half of guidance of EUR 8.0 to 10.0 million (FY/2019: 
EUR 11.7 million) 
- Q4/2020 sales at EUR 2.4 million (Q4/2019: EUR 3.1 million); all markets except USA again strongly impacted by 
comprehensive lockdown measures in context of COVID-19 pandemic 
- USA: Continued dynamic sales growth with +36% in Q4/2020 and +41% in FY/2020; in Q4/2020 target sales of 
USD 1 million/quarter with USD 0.9 million almost reached for first time 
- Outlook FY/2021: Assuming an easing of COVID-19 situation from Q2/2021 onwards significant sales growth (+29 to +61%) 
and positive EBITDA in trauma business planned - guidance with sales of EUR 12.0 to 15.0 million and EBITDA of EUR -5.5 
to -3.5 million (EUR -2.8 to -0.8 million excl. R&D project costs for silver coating and resorbable magnesium implant 
technology) 
- Financing: Focus in Q1/2021 on securing financing; implementation of further measures to finance planned growth and 
further development of key technologies 
- Restructuring: Further double-digit percentage reduction in manufacturing costs planned through efficiency 
improvements in production process and continued strict cost discipline 
- Silver coating technology: Start of human clinical study in Germany planned for FY/2021 - third party co-financing of 
study aimed and further collaboration opportunities under evaluation 
- Resorbable magnesium implant technology: Securing financing for further development and start of GLP animal study in 
USA planned for FY/2021 - promising discussions with various investors underway 
 
Sales development FY/2020 and Q4/2020 
According to preliminary figures, aap Implantate AG ("aap") achieved sales of EUR 9.4 million (FY/2019: EUR 11.7 
million) in a financial year 2020 marked by COVID-19, which is in the upper half of the guidance of EUR 8.0 million to 
EUR 10.0 million. In the fourth quarter of 2020, sales were EUR 2.4 million (Q4/2019: EUR 3.1 million) and, after the 
first recovery trends in the third quarter, were again strongly impacted by the comprehensive lockdown measures in the 
context of the COVID-19 pandemic, which were recently even tightened in some cases. 
 
Sales FY/2020 
in KEUR                      FY/2020 FY/2019^[1] Change 
Sales                        9,326   11,739      -21% 
Germany                      2,246   2,844       -21% 
USA                          2,866   2,039       +41% 
USA Distributors             2,582   1,951       +32% 
USA Global Partners          284     88          >+100% 
International (without USA)  4,214   6,855       -39% 
Europe (without Germany)     1,743   1,960       -11% 
BRICS countries              967     1,759       -45% 
RoW (Rest of World)          1,504   3,136       -52% 
Sales                        9,326   11,739      -21% 
in KEUR                          FY/2020 FY/2019 Change 
Sales (constant exchange rates)  9,326   11,696  -20% 
Thereof USA                      2,866   1,997   +44%

Sales Q4/2020 


in KEUR                       Q4/2020 Q4/2019^[1] Change 
Sales                         2,400   3,060       -22% 
Germany                       480     664         -28% 
USA                           819     605         +36% 
USA Distributors              808     586         +38% 
USA Global Partners           11      19          -39% 
International (without USA)   1,101   1,791       -39% 
Europe (without Deutschland)  396     449         -12% 
BRICS countries               291     447         -35% 
RoW (Rest of World)           414     894         -54% 
Sales                         2,400   3,060       -22% 
in KEUR                          Q4/2020 Q4/2019 Change 
Sales (constant exchange rates)  2,400   3,015   -20% 
Thereof USA                      819     560     +49%

A look at the sales development in the individual regions shows that in the fourth quarter of 2020, with the exception of the USA, all of aap's main markets continued to be affected by the impact of the COVID-19 pandemic. Accordingly, the Company recorded a year-on-year decline in sales both in Germany (-28%) and in international business (-39%) in the fourth quarter. The pandemic-related impairments were particularly noticeable with respect to aap's very important foreign business (excluding the USA; around 60% of total sales in financial year 2019 with the biggest customers from Spain, South Africa, Brazil and Mexico). Furthermore, tenders in which aap is participating and has sometimes already received commitments via its distributors have been postponed until the first quarter of 2021.

The same applies to the sales development in the individual markets (with the exception of the USA) in the entire financial year 2020, which was primarily shaped by the lockdown measures in the first half of the year and the fourth quarter in the context of the COVID-19 pandemic.

In the USA, on the other hand, aap remains on a dynamic growth course and was able to significantly increase sales again in the fourth quarter of 2020 year-on-year (+36%; taking into account constant exchange rates +49%). The Company has thus almost reached its target sales of USD 1 million/quarter for the first time with USD 0.9 million in the fourth quarter of 2020. As a result, aap recorded a significant year-on-year increase in sales of +41% (taking into account constant exchange rates +44%) despite the COVID-19 pandemic that was particularly rampant in the USA. This increase in sales is primarily based on a massive expansion of the customer base and the contracts concluded with US-wide purchasing associations and networks. Overall, the positive sales development in the USA was able to mitigate the COVID 19-related sales declines in the other markets.

Outlook 2021

In addition to the significant effects of the COVID-19 pandemic, aap's financial year 2020 was largely characterised by extensive restructuring and refinancing. In this context, the Company was able to make tangible progress in the restructuring process, which, despite the enormous challenges posed by COVID-19, is reflected, among other things, in dynamic sales growth in the USA (+41% vs. FY/2019), an increased gross margin and a significantly reduced cost level. In addition, aap was able to successfully implement the first two steps of the refinancing with a capital reduction and the issuance of a convertible bond.

In the first quarter of 2021, the focus will remain on securing the Company's further financing. Based on the visible progress in restructuring, aap intends to implement further measures to ensure the continuity of the Company and to finance the planned growth as well as the further development of the key technologies. The financing measures currently under consideration range from equity-based transactions via the capital market (e.g. capital increase) to out-licensing or targeted financing for the two platform technologies antibacterial silver coating and resorbable magnesium implants, as well as the sale of assets (e.g. land). With a view to restructuring, the Company intends to further increase efficiency in the production process and thus reduce manufacturing costs by a double-digit percentage. Furthermore, aap continues to impose strict cost discipline throughout the Company.

Assuming that the COVID-19 situation eases from the second quarter onwards, aap aims to return to the growth path in the financial year 2021. The Management Board expects sales of EUR 12.0 to EUR 15.0 million, which corresponds to a significant growth rate of +29 to +61%. All markets are expected to contribute to the planned sales growth, with the USA acting as the main growth driver. The planned increase in sales in the USA is to be achieved not only by expanding business with existing customers through product portfolio extensions but also by newly acquired customers and, in particular, the concluded contracts with US-wide purchasing associations and networks. Against the backdrop of the still rampant COVID-19 pandemic and the latest comprehensive lockdown measures, some of which have even been tightened recently, the Company expects that the first quarter of 2021 will still be severely affected by COVID-19. As the population's vaccination coverage continues to progress, the Board expects business to recover in the second quarter, also against the backdrop of rising temperatures and increased outdoor human activity, before significant growth is anticipated from the third quarter onwards.

With regard to earnings, the Management Board expects EBITDA for the financial year 2021 to be between EUR -5.5 and EUR -3.5 million. Excluding R&D project costs for the silver coating and the resorbable magnesium implant technology, the projected values for EBIDTA are between EUR -2.8 and -0.8 million. In the operative trauma business, the Company aims to achieve positive EBITDA in the current financial year for the first time since focusing on trauma in 2016.

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January 21, 2021 11:58 ET (16:58 GMT)