Geratherm Medical : Quarterly Statement 3rd Quarter of 2021

Geratherm Medical AG

Quarterly Report Q3/2021

2

GERATHERM

AT A GLANCE

Key group figures

Sales revenues

of which export share

Export ratio

Gross result for period under review (EBITDA)

EBITDA margin

Amortization and depreciation

Operating result (EBIT)

EBIT margin

Financial results

Profit (loss) on ordinary business activities

Net earnings of the parent company's shareholders in given period

Long-term assets

Short-term assets

Balance sheet total

Equity capital

Return on equity

Equity ratio

Cash, cash equivalents and securities

Net result per share for given period according to IFRS (EPS)** Net result per share for given period as per DVFA** (German

Association for Financial Analyses and Asset Management)

Number of employees at end of period

Total shares issued

**based on total shares issued

January -	January -	Change
September	September	%
2021	2020
18,145 kEUR	19,759 kEUR	-8.2 %
14,172 kEUR	16,228 kEUR	-12.7 %
78 %	82 %	-4.9 %
2,857 kEUR	3,053 kEUR	-6.4 %
15.7 %	15.5 %	1.3 %
-1,115 kEUR	-913 kEUR	22.1 %
1,742 kEUR	2,140 kEUR	-18.6 %
9.6 %	10.8 %	-11.1 %
-98 kEUR	-86 kEUR	13.9 %
1,644 kEUR	2,054 kEUR	-19.9 %
1,053 kEUR	1,536 kEUR	-31.4 %
14,724 kEUR	14,255 kEUR	3.3 %
20,496 kEUR	21,245 kEUR	-3.5 %
35,220 kEUR	35,500 kEUR	-0.8 %
19,718 kEUR	19,249 kEUR	2.4 %
7.1 %	10.6 %	-33.1 %
56.0 %	54.2 %	3.3 %
7,163 kEUR	9,247 kEUR	-22.5 %
EUR 0.21	EUR 0.31	-32.3 %
EUR 0.21	EUR 0.31	-32.3 %
	237	-6.8 %
221
4,949,999	4,949,999	0.0 %
4,949,999	4,949,999	0.0 %

Geratherm Medical AG

Quarterly Report Q3/2021

3

Business Performance from 1 January to 30 September 2021

• Internationally stable demand and sales with Geratherm products in QIII
• Segments: Healthcare Diagnostic -18.7 %, Respiratory +16.0 %, Warming Systems +4.4%, Cardio/Stroke +16.0 %
• Sales revenues EUR 18.1 million, -8.2 %; QIII EUR 5.7 million, -2.8 %
• Gross result for period under review (EBITDA) EUR 2.857 million, -6.4 %, QIII EUR 1.128 million, 12.7 %
• Operating result (EBIT) EUR 1.742 million, -18.6 %, QIII 761 kEUR +10.9 %
• EBIT margin 9.6 %, QIII 13.2 %
• Results from ordinary business activities EUR 1.644 million, -19.9 % QIII 730 kEUR, +12.2 %
• Earnings per share EUR 0.21 (2020: EUR 0.31), QIII EUR 0.08

Dear Shareholders and Parties Interested in Geratherm Medical,

Geratherm Medical managed to perform relatively well in the third quarter. Although sales dropped by -2.8 % to EUR 5.7 million compared to the very healthy prior-year quarter in 2020, they were above the last financial year prior to the coronavirus pandemic. The measures taken by management to stabilize sales and costs had an impact.

In the first nine months of 2021, the consolidated sales accumulated to EUR 18.1 million (-8.2%) so that the company performed better for the year than in 2019, i.e. prior to the coronavirus pandemic.

While the Respiratory and Cardio/Stroke business segments reported during the first nine months a double-digit growth in sales, we recorded a drop in sales in particular in Healthcare Diagnostics due to the pandemic.

Geratherm Medical AG

Quarterly Report Q3/2021

4

At approx. EUR 13.3 million, the gross profit was just under 0.1 % above the figure posted in the same period last year. Based on sales, that corresponds to a gross margin of 73.0 % on a nine-month basis (2020: 67.0 %).

The EBITDA margin on the Group level amounted to 15.7 % during the first nine months of the business year (2020: 15.5 %). The EBIT margin amounted to 9.6 % (2020:

10.8 %). We will continue to follow with interest how costs will develop in the future, in particular on the raw materials market.

The financial results amounted to -98 kEUR (2020: -86 kEUR), which was mainly due to interest expenses (-78 kEUR). The sale of securities resulted in a profit of 282 kEUR and a contribution from the market valuation of 150 kEUR, which is directly shown in the equity capital in accordance with IFRS.

The results from ordinary business activities for the first nine months amounted to EUR 1.644 million (2020: EUR 2.054 million).

Shareholders' earnings after taxes for the first nine months of the current fiscal year amounted to EUR 1.053 million (2020: EUR 1.536 million), a minus of -31.4 % compared to the very strong corona year. The result per share for the first nine months is EUR 0.21 (2020: EUR 0.31). The overall result in the Group was EUR 1.832 million (2020: EUR 1.306 million) for the first nine months according to IFRS.

With the stable level of sales and the operational improvements as well as a receipt of already invested subsidies at apoplex, it was possible to slightly increase the result shown here in the third quarter. The operating income at the EBITDA level increased to EUR 1.128 million (2020: EUR 1.001 million). The EBIT improved in the third quarter to 761 kEUR (2020: 686 kEUR).

Together with the financial results, the results from ordinary business activities for the third quarter rose to 730 kEUR (2020: 651 kEUR). After deducting income tax, the company reported during the third quarter a consolidated net profit of 601 kEUR (2020: 484 kEUR).

Geratherm Medical AG

Quarterly Report Q3/2021

5

After deducting the minority interests, the results after taxes for the third quarter amounted to 433 kEUR (2020: 497 kEUR) or EUR 0.08 per share (2020: EUR 0.10).

Facts and figures		III/21	II/21	I/21	IV/20	III/20
(in kEUR)	Sales	5,744	5,741	6,660	7,707	5,912
	EBITDA margin	19.6%	11.8%	15.8%	16.8%	16.9%
	EBIT	761	305	676	899	686
	EPS (EUR)	0.08	0.04	0.09	0.10	0.10
	Cash flow	1,190	456	1,072	1,267	1,160

Sales development

Sales in the first nine months were on a stable level, with a -8.2 % drop compared to the very strong prior year. The Middle East region made up for the lower sales due to coronavirus restrictions and jumped dynamically by +145.6 %. In Europe, our main sales market, sales decreased by -13.2 %. On the German market, we were able to register a trend to the contrary with a 12.5 % increase in sales.

We experienced setbacks due to decreasing sales of clinical thermometers, especially on the South American market with -50.8 %, the US with -37.6 %, and Other countries with -24.1 %.

Sales by regions 1/1 to 30/9/2021

	5%
							as of			as of
	8%
							30/9/2021		30/9/2020
3%								kEUR			kEUR
5%
					Europe			10,422			12,010			-13.2 %
					Germany			3,973			3,531			+12.5 %
22%	57%				USA			906			1,452			-37.6 %
				South America			465			946			-50.8 %
					Middle East			1,444			588		> 100.0 %
					Other countries			935			1,232			-24.1%